LONG-LIVED ASSETS

3 Months Ended

Oct. 31, 2014

11. LONG-LIVED ASSETS

The Company’s long-lived assets include furniture and equipment, tooling, websites and software, leasehold improvements, patents and trademarks. Tooling and equipment, net of accumulated depreciation, consists of the following at October 31 and July 31, 2014 (in thousands):

	Estimated	October 31,		July 31,
	Useful Life	2014		2014
Furniture and fixtures, leasehold improvements, office equipment and computers	3 – 5 years	$	85	$	85
Website and software	3 years		26		26
			111		111
Less accumulated depreciation			(110)		(110)
Tooling and equipment, net		$	1	$	1

Depreciation expense was $0 and $2,000 during the three months ended October 31, 2014 and 2013, respectively. Nine Exer-Rest AT3800 and AT4700 demonstration units are included in furniture and fixtures at an aggregate cost of $25,000. These units were placed in service in fiscal 2009 and 2010, and are being depreciated based upon five-year estimated useful lives. In June 2014, the Company transferred an Exer-Rest unit with a net book value of $0 from long-lived assets to inventory.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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