6. INVENTORIES

6 Months Ended

Oct. 31, 2012

Inventories

6. INVENTORIES

Inventories are stated at the lower of cost or market and primarily include raw materials, direct labor and overhead costs (work-in-process) associated with our wholly-owned subsidiary, Avid. Cost is determined by the first-in, first-out method. Inventories consist of the following at October 31, 2012 and April 30, 2012:

	October 31,   2012		April 30, 2012
Raw materials, net	$	2,043,000	$	1,966,000
Work-in-process		3,383,000		1,645,000
Total inventories, net	$	5,426,000	$	3,611,000