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Equipment and Leasehold Improvements

6 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Equipment and Leasehold Improvements

NOTE 6. EQUIPMENT AND LEASEHOLD IMPROVEMENTS

Equipment and leasehold improvements are stated at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives for equipment and furniture and fixtures, or the shorter of the remaining lease term or estimated useful lives for leasehold improvements.

Equipment and leasehold improvements consisted of the following:

	December 31, 2012				June 30, 2012				Estimated Useful Life
Factory Equipment		$	1,680,103			$	1,620,463		2-10 years
Computer Equipment and Software			873,324				894,824		5-7 years
Office Equipment and Furniture			166,996				166,996		5-7 years
Construction in progress			194,241				39,241
Leasehold Improvements			343,120				336,461		10 years
Subtotal			3,257,784				3,057,985
Accumulated Depreciation			(2,393,538	)			(2,322,308	)
Total equipment and leasehold improvements, net		$	864,246			$	735,677

As of December 31, 2012, construction in progress included $11,648 of capitalized interest at a rate of 20%.

Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amount to forecasted undiscounted future cash flows expected to be generated by the asset. If the carrying amount exceeds its estimated future cash flows, then an impairment charge is recognized to the extent that the carrying amount exceeds the asset’s fair value. Management has determined no asset impairment occurred during the six months ended December 31, 2012.

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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