Note 2 – Fixed Assets

Fixed assets are recorded at cost and, once placed in service, are depreciated on a straight-line basis over the estimated useful lives. Leasehold improvements are amortized over the shorter of the estimated economic life or related lease term. Fixed assets consist of the following:

	Estimated Useful Lives	As of December 31,			As of June 30,
	in years	2017			2017

Manufacturing equipment	2 - 5	$	423,000		$	405,000
Leasehold improvements	3		111,000			111,000
Office equipment, furniture and other	2 - 5		344,000			287,000
Lab equipment	3 - 5		90,000			90,000
Less accumulated depreciation and amortization			(407,000	)		(246,000	)
Fixed assets, net		$	561,000		$	647,000

The depreciation and amortization expense was as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2017		2016		2017		2016

Depreciation and amortization expense	$	81,000	$	26,000	$	161,000	$	45,000