Property, Plant and Equipment

3 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

Property, Plant & Equipment

4. PROPERTY, PLANT & EQUIPMENT

The Company’s property, plant and equipment at March 31, 2020 and December 31, 2019 consisted of the following:

	Estimated Useful Life	March 31, 2020			December 31, 2019
Land		$	278,325		$	278,325
Building and improvements	30 years		9,563,406			9,563,406
Manufacturing and warehouse equipment	6-20 years		10,916,711			10,699,461
Office equipment and furniture	3-5 years		1,803,607			1,778,781
Leasehold improvements	10-15 years		577,068			577,068
Finance leases – right to use	5 years		45,951			45,951
Vehicles	3 years		10,020			10,020
Construction in process			363,051			142,612
Property, plant and equipment, gross			23,558,139			23,095,624
Less accumulated depreciation			(13,967,378	)		(13,757,397	)
Property, plant and equipment, net		$	9,590,761		$	9,338,227

The Company’s wholly-owned subsidiary, KINPAK Inc. (“Kinpak”) has been engaged since 2017 in a project involving the expansion of its manufacturing, warehouse and distribution facilities in Montgomery, Alabama, as well as the purchase and installation of associated machinery and equipment (the “Expansion Project”). Kinpak has completed the construction of, and placed into service, an approximately 85,000 square foot addition to the facilities and an expansion of a tank farm to accommodate an additional 500,000 gallons of tank capacity. The final phase of the Expansion Project entails the evaluation, purchase and installation of additional equipment. The Company is financing the Expansion Project through a $4,500,000 industrial development bond, which is described in Note 8. At March 31, 2020, the Company had unused proceeds from the industrial development bond of approximately $1,892,000 in a custodial account restricted for the use of funding additional capital improvements. The Company intends to utilize the remaining proceeds to purchase machinery and equipment to expand production capacity of its disinfectant/sanitizing product group including Performacide^® and its Damp Check^TM mildew and humidity control products in addition to other production equipment.

Depreciation expense totaled $254,308 (of which $230,966 is included in cost of goods sold and $23,342 is included in selling and administrative expenses) and $252,408 (of which $224,161 is included in cost of goods sold and $28,247 is included in selling and administrative expenses) for the three months ended March 31, 2020 and 2019, respectively.