Note H – Intangibles

Patents are recorded at cost and are amortized using the straight-line method over the lives of the patents. Technology and licenses are recorded at cost and are generally amortized on a straight-line basis over periods ranging from 5 to 17 years. Non-compete agreements and customer relationships are being amortized using the straight-line method over a period of 5 years. Trademarks are not amortized as their lives are deemed to be indefinite.

The gross carrying amount and accumulated amortization of amortizable intangible assets:

	Industrial Hardware Segment		Security Products Segment		Metal Products Segment		Total		Weighted-Average Amortization Period (Years)
2011 Gross Amount:
Patents and developed technology	$	2,672,217	$	1,046,767	$	26,382	$	3,745,366		16.0
Customer relationships		45,825		1,921,811		-		1,967,636		5.0
Non-compete agreements		30,000		90,735		-		120,735		5.0
Total Gross Intangibles	$	2,748,042	$	3,059,313	$	26,382	$	5,833,737		11.9

2011 Accumulated Amortization:
Patents and developed technology	$	1,467,021	$	478,466	$	25,781	$	1,971,268
Customer relationships		34,369		1,918,881		-		1,953,250
Non-compete agreements		22,500		89,522		-		112,022
Total Gross Amortization	$	1,523,890	$	2,486,869	$	25,781	$	4,036,540

Net October 1, 2011 per Balance Sheet	$	1,224,152	$	572,444	$	601	$	1,797,197

	Industrial Hardware Segment		Security Products Segment		Metal Products Segment		Total		Weighted-Average Amortization Period (Years)
2010 Gross Amount:
Patents and developed technology	$	2,746,918	$	1,016,936	$	26,382	$	3,790,236		16.0
Customer relationships		45,825		1,921,811		-		1,967,636		5.0
Non-compete agreements		30,000		90,735		-		120,735		5.0
Total Gross Intangibles	$	2,822,743	$	3,029,482	$	26,382	$	5,878,607		11.9

2010 Accumulated Amortization:
Patents and developed technology	$	1,416,034	$	417,801	$	25,307	$	1,859,142
Customer relationships		27,495		1,630,581		-		1,658,076
Non-compete agreements		18,000		84,154		-		102,154
Total Gross Amortization	$	1,461,529	$	2,132,536	$	25,307	$	3,619,372

Net January 1, 2011 per Balance Sheet	$	1,361,214	$	896,946	$	1,075	$	2,259,235