3. Balance Sheet Details

Inventories consist of the following:


	July 31,		July 31,
	2015		2014
Raw materials	$	96,000	$	102,000
Finished goods		111,000		147,000
	$	207,000	$	249,000

During the fiscal year ended July 31, 2014, we established a reserve of $128,000 for slow moving finished goods inventory that was manufactured in prior years. The majority of the reserve related to components such as, plastic bottles, spray triggers, miscellaneous plastics, and numerous corrugated cardboard configurations. No reserve was established during the fiscal year ended July 31, 2015.

In addition, during the fiscal year ended July 31, 2014, we received $20,000 from the sale of inventory which was previously reserved during the fiscal year ended July 31, 2013. The $20,000 gain on sale of inventory sold during the prior fiscal year is reflected in the other income (expense) section of the consolidated statement of operations.

Property, plant, and equipment consist of the following:


	July 31,
	2015		2014
Computers and equipment	$	590,000	$	508,000
Furniture and fixtures		21,000		21,000
Leasehold improvements		-		622,000
		611,000		1,151,000
Less accumulated depreciation		(521,000)		(1,115,000)
	$	90,000	$	36,000

Depreciation expense was $27,000 and $71,000 for the years ended July 31, 2015 and 2014, respectively.

Patents consist of the following:


	July 31,
	2015		2014
Patents	$	3,508,000	$	3,482,000
Less accumulated amortization		(2,316,000)		(2,137,000)
	$	1,192,000	$	1,345,000

Patent amortization expense was $179,000 and $177,000 for the years ended July 31, 2015 and 2014, respectively. At July 31, 2015, the weighted average remaining amortization period for all patents was approximately seven years. The annual patent amortization expense for the next five years is estimated to be approximately $170,000 per year. There were no patent impairments during the fiscal year ended July 31, 2015 and 2014.