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 impairments were necessary as of July 31, 2012. On January 23, 2013 we accepted an offer for the sale of the equipment that is lower than the estimated value used at July 31, 2012. To reflect the agreed upon sale price, an additional impairment charge was recorded in the third quarter ended January 31, 2013. The total charges associated with this asset impairment are outlined in the following table:



	Three Months Ended		Nine Months Ended
	January 31, 2013		January 31, 2013
Equipment	$	46,000	$	65,000
Inventory	—		40,000
Total	$	46,000	$	105,000