Supplemental Balance Sheet Information
 6 Months Ended
Jan. 31, 2015
Supplemental Balance Sheet Information [Abstract]  
Supplemental Balance Sheet Information
Note 8. Supplemental Balance Sheet Information

Inventories: Inventories as of January 31, 2015 and July 31, 2014, respectively, were as follows:
  
January 31,2015
  
July 31, 2014
 
Raw material and component parts
 
$
6,836
  
$
5,900
 
Work in progress
  
2,834
   
2,077
 
Finished goods
  
6,867
   
7,157
 
  
$
16,537
  
$
15,134
 

Property and Equipment: Property and equipment as of January 31, 2015 and July 31, 2014, respectively, were as follows:
  
January 31, 2015
  
July 31, 2014
 
Land
 
$
1,688
  
$
984
 
Building and improvements
  
6,667
   
6,650
 
Machinery and equipment
  
10,375
   
9,023
 
Furniture and fixtures
  
1,401
   
1,182
 
Software
  
1,116
   
1,113
 
Construction in progress
  
94
   
153
 
   
21,341
   
19,105
 
Less accumulated depreciation
  
11,004
   
10,320
 
  
$
10,337
  
$
8,785
 

Other Intangible Assets:  Information regarding the Company’s other intangible assets as of January 31, 2015 and July 31, 2014, respectively, were as follows:

  
Gross Carrying
 Value
  
Accumulated
Amortization
  
Net
 
  
January 31, 2015
 
Proprietary know-how
 
$
4,208
  
$
2,381
  
$
1,827
 
Customer relationships
  
5,260
   
119
   
5,141
 
Trademark
  
5,944
   
--
   
5,944
 
Tradename
  
2,960
   
60
   
2,900
 
Licensing agreement
  
5,694
   
3,030
   
2,664
 
Other intangibles
  
1,123
   
25
   
1,098
 
Patents
  
2,444
   
1,029
   
1,415
 
  
$
27,633
  
$
6,644
  
$
20,989
 
   
  
July 31, 2014
 
Proprietary know-how
 
$
4,208
  
$
2,208
  
$
2,000
 
Customer relationships
  
806
   
61
   
745
 
Trademark
  
5,944
   
--
   
5,944
 
Tradename
  
447
   
44
   
403
 
Licensing agreement
  
5,694
   
2,895
   
2,799
 
Other intangibles
  
26
   
6
   
20
 
Patents
  
2,375
   
903
   
1,472
 
  
$
19,500
  
$
6,117
  
$
13,383
 
   
Goodwill of $4,871,000, other intangibles of $8,180,000 and a contingent payment obligation of $2,561,000 are the result of the Sterimedix Acquisition.  Goodwill of $439,000 and other intangibles of $765,000 are the result of the acquisition of the private, OEM company completed on May 3, 2014.  Goodwill of $1,459,000 and other intangibles of $936,000 are a result of the acquisition of M.I.S.S. Ophthalmics Limited completed on July 8, 2013.  Goodwill of $10,660,000 and proprietary know-how of $3,707,000 are a result of the reverse merger transaction completed on September 21, 2005.

The Company did not incur costs to renew or extend the term of acquired intangible assets during the period ended January 31, 2015.  Amortization expense is included in general and administrative expense and was $295,000 and $543,000 for the three and six months ended January 31, 2015, respectively, and $186,000 and $366,000 for the three and six months ended January 31, 2014, respectively.  Amortization expense for the next five years is expected to approximate $1.3 million annually.

Pledged Assets; Short and Long-Term Debt:  Short- and long-term debt as of January 31, 2015 consisted of the following:

     Revolving Credit Facility: The Company has a credit facility with a bank which allows for borrowings of up to $9.5 million.  There were no borrowings under this facility at January 31, 2015.

     Equipment Line of Credit: Under this credit facility, the Company may borrow up to $1.0 million.  There were no borrowings under this facility at January 31, 2015.

    Term Loan Facility:  The Company has a credit facility with a bank which allows for borrowings of up to $13.0 million with $6.5 million restricted for earn-out payments required under the Sterimedix Acquisition Agreement. There was $2.75 million borrowed under this facility at January 31, 2015. The advances under the term loan are amortized quarterly over five years.

     These facilities bear interest based on either the one-, two- or three-month LIBOR plus 1.75 percent and adjusting each quarter based upon our total debt to earnings before interest, taxes, depreciation and amortization (“EBITDA).  As of January 31, 2015, interest under the facilities was 1.90 percent.  The unused portion of the facilities is charged at a rate of 0.20 percent.  The termination date of the facilities is February 28, 2018.  The facilities are collateralized by substantially all of the Company’s assets

     These facilities have two financial covenants: a maximum total debt to EBITDA ratio of 2.25 times and a minimum fixed charge coverage ratio of 1.25 times. As of January 31, 2015, the total debt to EBITDA ratio was 0.33 and the minimum fixed charge coverage ratio was 14.0 times. The facility restricts the payment of dividends if, following the distribution, the fixed charge coverage ratio would fall below the required minimum.

Deferred Revenue: Deferred revenue as of January 31, 2015 and July 31, 2014, respectively, consisted of the following:

  
January 31, 2015
  
July 31, 2014
 
Deferred revenue – Alcon, Inc. settlement
 
$
13,886
  
$
14,530
 
Less:  Short-term portion
  
1,288
   
1,288
 
Long-term portion
 
$
12,598
  
$
13,242