FIXED ASSETS

Fixed assets as of September 30, 2016 and 2015, respectively, consist of the following:



	September 30,						Estimated Useful
	2016			2015			Lives (in years)
Equipment	$	1,036,000		$	539,000		5
Furniture and fixtures	163,000			162,000			5
Leasehold improvements	653,000			598,000			Lesser of useful life or term of lease
Capital leases (primarily composed of computer equipment)	739,000			452,000			5
	2,591,000			1,751,000
Less accumulated depreciation and amortization	(1,427,000		)	(1,039,000		)
Fixed assets - net	$	1,164,000		$	712,000

Depreciation expense for the years ended September 30, 2016 and 2015 was $480,000 and $294,000 respectively. In the year ended September 30, 2016, fixed assets with a cost of $92,000 which were fully depreciated and no longer in service were written off.