Inventories as of August 31, 2012 and 2011 consist of the following (in thousands):

Inventory write-downs to estimated net realizable values for the years ended August 31, 2012, 2011 and 2010 were $3,148 thousand, $5,793 thousand and $40 thousand, respectively.

Property, plant and equipment as of August 31, 2012 and 2011 consist of the following (in thousands):

	August 31, 2012			August 31, 2011

Buildings and improvements	$	14,501		$	12,924
Machinery and equipment		64,267			50,669
Leasehold improvements		3,143			3,123
Other equipment		2,249			2,136
Construction in progress		2,546			8,159

Total property, plant and equipment		86,706			77,011
Less: Accumulated depreciation, amortization and impairment⁽¹⁾		(40,064	)		(25,207	)

Property, plant and equipment, net	$	46,642		$	51,804

Property, plant and equipment pledged as collateral for the Company's notes payable and lines of credit were $9.9 million and $12.8 million as of August 31, 2012 and 2011, respectively.

In the fourth quarter of fiscal 2012, due to a continued slowdown in demand for the Company's LED products and competitive pricing pressure, the Company experienced significant revenues declines and negative gross margins. The Company's market capitalization had also fallen below its net book value based on the quoted market price of common stock for a sustained period of time. Management reviewed the Company's long-lived assets for impairment and recognized an impairment charge of $7,507 thousand on certain of its property, plant and equipment for the year ended August 31, 2012 based on the present value of expected future net cash flows discounted at the weighted average cost of capital, as well as third-party independent valuations for its machinery and equipment. The impairment charge was primarily related to machinery and equipment used in the manufacturing of LED chips. No impairment charge was recorded in fiscal 2011.

Intangible assets as of August 31, 2012 and 2011 consist of the following (in thousands):

	August 31, 2012

	Weighted Average Amortization Period (Years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Patents and trademarks		17	$	585	$	146	$	439
Acquired technology		4		167		101		66
Customer relationships		5		1,337		290		1,047

Total			$	2,089	$	537	$	1,552

	August 31, 2011

	Weighted Average Amortization Period (Years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Patents and trademarks		17	$	500	$	114	$	386
Acquired technology		4		172		61		111
Customer relationships		5		1,379		23		1,356

Total			$	2,051	$	198	$	1,853

Amortization expense recognized for the years ended August 31, 2012, 2011 and 2010 was $354 thousand, $88 thousand and $37 thousand, respectively.

The estimated future amortization expense for the Company's intangible assets as of August 31, 2012 is as follows (in thousands):

Years Ending August 31,	Total

2013	$	347
2014		329
2015		298
2016		276
2017		31
Thereafter		271

Total	$	1,552

Accrued expenses and other current liabilities as of August 31, 2012 and 2011 consist of the following (in thousands):

	August 31, 2012		August 31, 2011

Accrued compensation and benefits	$	2,179	$	2,238
Accrued business expenses		592		879
Deferred rent		545		563
Accrued professional service fees		325		2,098
Taxes payable		286		351
Customer deposits		146		318
Government grants		77		53
Other (individually less than 5% of total accrued expenses and other current liabilities)		819		861

Total	$	4,969	$	7,361