Property, Plant & Equipment

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT & EQUIPMENT

4. PROPERTY, PLANT & EQUIPMENT

The Company's property, plant and equipment at September 30, 2020 and December 31, 2019 consisted of the following:

	Estimated Useful Life	September 30, 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		11,782,276			10,699,461
Office equipment and furniture	3-5 years		1,872,721			1,778,781
Leasehold improvements	10-15 years		587,183			577,068
Finance leases – right to use	5 years		113,741			45,951
Vehicles	3 years		10,020			10,020
Construction in process			361,477			142,612
Property, plant and equipment, gross			24,569,149			23,095,624
Less accumulated depreciation			(14,477,774	)		(13,757,397	)
Property, plant and equipment, net		$	10,091,375		$	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 September 30, 2020, the Company had unused proceeds from the industrial development bond of approximately $739,000 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^® mildew and humidity control products in addition to other production equipment.

Depreciation expense totaled $273,490 (of which $248,528 is included in cost of goods sold and $24,962 is included in selling and administrative expenses) and $253,140 (of which $226,395 is included in cost of goods sold and $26,745 is included in selling and administrative expenses) for the three months ended September 30, 2020 and 2019, respectively, and $791,981 (of which $717,907 is included in cost of goods sold and $74,074 is included in selling and administrative expenses) and $762,479 (of which $679,388 is included in cost of goods sold and $83,091 is included in selling and administrative expenses) for the nine months ended September 30, 2020 and 2019, respectively.