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 December 31,		As of June 30,
	Useful Lives in years		2016		2016

Office equipment and furniture		3 - 5	$	240,000	$	201,000
Leasehold improvements		3		112,000		45,000
Lab equipment		3 - 5		90,000		90,000
Manufacturing equipment		5		7,000		7,000
Less accumulated depreciation and amortization				(157,000)		(112,000)
Fixed assets, net			$	292,000	$	231,000

The depreciation expense was $26,000 and $12,000 for the three months ended December 31, 2016 and 2015, respectively. The depreciation expense was $45,000 and $19,000 for the six months ended December 31, 2016 and 2015, respectively.