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. 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. The total charges associated with this asset impairment are outlined in the following table:




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