Inventory

9 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

Inventory

6. Inventory

In connection with our manufacturing and sales plans for our telehealth service, the company has purchased certain components and contract manufacturing services for the production of the monitoring appliances. These inventory amounts are stated at the lower of cost or market and consist of the following (in thousands):

	March 31,		June 30,
	2015		2014
Purchased components	$	585	$	2,735
Finished goods		333		202
Total inventory	$	918	$	2,937

The company purchased certain components under arrangements that required payment only after such components where actually used in production. Based on the company’s current production plans we have determined that approximately $1.6 million of such components recorded in prior periods will not be used. Accordingly, we offset this inventory balance against the related accounts payable balance during the quarter ended March 31, 2015.