4. INVENTORIES

9 Months Ended

Jan. 31, 2019

Inventory Disclosure [Abstract]

INVENTORIES

4.       INVENTORIES

Inventories are recorded at the lower of cost or market (net realizable value) and include raw materials and work-in-process (comprised of raw materials, direct labor and overhead costs associated with in-process manufacturing services) associated with contract manufacturing services. Overhead costs allocated to work-in-process inventory are based on the normal capacity of our production facilities and do not include costs from under absorption of overhead costs or idle capacity, which are expensed directly to cost of contract manufacturing in the period incurred. During the three and nine months ended January 31, 2019 and 2018, we expensed $1,740 and $6,392, respectively, and $5,344 and $11,182, respectively, in idle capacity costs directly to cost of contract manufacturing in the accompanying condensed consolidated financial statements. Subsequent to the adoption of ASC 606 (Note 2), manufacturing costs associated with work-in-process are recorded to cost of contract manufacturing in the accompanying condensed consolidated financial statements as incurred. Cost is determined by the first-in, first-out method. Inventories consist of the following:

	January 31, 2019		April 30, 2018
Raw materials	$	8,660	$	8,165
Work-in-process		–		7,964
Total inventories	$	8,660	$	16,129