Note 2 — Fixed Assets

Fixed assets are recorded at cost and, once placed in service, are depreciated on the straight-line method over the estimated useful lives. Fixed assets consist of the following:

	Estimated	As of		As of
	Useful Lives in years	September 30, 2016		June 30, 2016
Office equipment and furniture	3 – 5	$	234,000	$	201,000
Lab equipment	3 – 5		90,000		90,000
Leasehold improvements	3		112,000		45,000
Manufacturing equipment	5		7,000		7,000
Less accumulated depreciation and amortization			(130,000)		(112,000)
Fixed assets, net		$	313,000	$	231,000

The depreciation expense was $19,000 and $7,000 for the three months ended September 30, 2016 and 2015, respectively.