ASSET IMPAIRMENT

During the first quarter ended July 31, 2012, we discontinued production of the injection molded products effective with the conclusion of the existing orders in July 2012. In conjunction with this decision and subsequent to July 31, 2012, we finalized our review of both current and long-term assets associated with the injection molded products. After reviewing our inventory and property, plant, and equipment related to the injection molded products, we concluded that the following impairments were necessary as of July 31, 2012:



	July 31, 2012
Equipment	$	19,000
Inventory	40,000
Total	$	59,000

The process of selling the equipment associated with the injection molding products has begun but a timeline for completing the sale process remains uncertain as of the date of this report.