Inventories

3 Months Ended

Oct. 31, 2017

Inventory Disclosure [Abstract]

Inventories

3. INVENTORIES

The Company recorded inventory valuation adjustments of $99,000 and $327,000 for the years ended July 31, 2017 and 2016. The $99,000 and $327,000 inventory valuation adjustment for the year ended July 31, 2017 and 2016, respectively, resulted from management’s business review and related assessment of the net realizable value of the Exer-Rest units. Factors in this determination included the age of inventory, recent historical sales, and the uncertainty of when the Company would have a sales team, either internal or through an alliance or collaboration, for the Exer-Rest. In light of the change in circumstances in connection with management’s business review which included a decision to not pursue re-hiring a sales force or such other alternatives in the foreseeable future, management reassessed its inventory valuation and recorded a provision on inventory.