PROPERTY, PLANT & EQUIPMENT

6 Months Ended

Dec. 31, 2011

Notes to Financial Statements

PROPERTY, PLANT & EQUIPMENT

NOTE 6– PROPERTY, PLANT & EQUIPMENT

Property, plant, and equipment are comprised of the following as of December 31, 2011 and June 30, 2011:

	December 31, 2011			June 30, 2011
Land	$	217,000		$	217,000
Building and improvements		3,334,131			2,559,266
Manufacturing equipment		4,336,065			2,901,912
Office equipment		302,499			217,074
Construction in process		150,623			1,215,400
Total, at cost		8,340,318			7,110,652
Less, accumulated depreciation		(2,614,907	)		(2,343,781	)
Property, Plant & Equipment, Net	$	5,725,411		$	4,766,871

During the year ended June 30, 2011, manufacturing equipment previously used in production and development activities were identified as impaired or had reached the end of their respective useful lives due to changing product and manufacturing technologies.  Upon write-down the manufacturing equipment and accumulated depreciation accounts were adjusted accordingly and $219,213 was charged to operations during the years ended June 30, 2011.  The adjustments were reported as impairment and other equipment charges.  For the three and six months ended December 31, 2011 the Company has not identified any equipment as impaired or having reached the end of its respective life.