Restructuring Charges

9 Months Ended

Sep. 30, 2011

Restructuring and Related Activities [Abstract]

8. Restructuring Charges

On May 25, 2010, the Company adopted a restructuring plan to focus and align the Company on its GenDrive business. As part of this plan, the Company consolidated all operations into its Latham, New York headquarters. At September 30, 2011, $1,137,870 remains in accrued expenses on the condensed consolidated balance sheets.

The accrued restructuring charges relating to the May 2010 restructuring are comprised of the following at September 30, 2011:

	Accrued restructuring charges at January 1, 2011		Adjustments to, additional accrued restructuring charges or non-cash charges		Cash payments		Accrued restructuring charges at September 30, 2011
Personnel Related	$	-	$	24,095	$	(24,095)	$	-
Net Lease Obligations		687,696		450,174		-		1,137,870
Total	$	687,696	$	474,269	$	(24,095)	$	1,137,870

During 2008, the Company adopted two restructuring plans to focus the Company on becoming a market and sales driven organization, to drive revenue growth, improve organizational efficiency and to position the Company for long-term profitability. As part of the plans, the Company implemented reductions in workforce, terminated purchase commitments, charged off inventory related to lapsed product lines, cut back discretionary spending, and deferred non-strategic projects. At September 30, 2011, $472,785 remains in accrued expenses on the condensed consolidated balance sheets.

The accrued restructuring charges relating to the two 2008 restructurings are comprised of the following at September 30, 2011:

	Accrued restructuring charges at January 1, 2011		Adjustments to, additional accrued restructuring charges or non-cash charges		Cash payments		Accrued restructuring charges at September 30, 2011
Contract Cancellation	$	547,356	$	-	$	(74,571)	$	472,785
Net Lease Obligations		157,516		-		(157,516)		-
Total	$	704,872	$	-	$	(232,087)	$	472,785