20. RESTRUCTURING:

In October 2013, the Company decided to consolidate the operations of its TDL subsidiary, located in Quakertown Pennsylvania, into its Orbit International Corp. facility located in Hauppauge, New York (“TDL Consolidation”). This decision was based on a number of factors, among them, a difficult business environment due to the Budget Control Act of 2011 and further budget concerns related to sequestration, the Company’s broader focus on cutting costs and promoting operating efficiencies and TDL’s expiring lease in October 2014. The expense associated with the restructuring plan was approximately $29,000 during the year ending December 31, 2013 and is classified in the consolidated statements of operations as restructuring costs. The restructuring liability was approximately $13,000 at December 31, 2013 and is classified as accrued expenses in the consolidated balance sheets. In addition, the Company incurred approximately $161,000 of accelerated non-cash amortization and depreciation expense during the year ended December 31, 2013 relating to the TDL consolidation. The Company expects to incur an additional $161,000 of accelerated amortization and depreciation expense during the first quarter of 2014 relating to the TDL consolidation as well as approximately $300,000 of additional restructuring related expenses during 2014. The following table presents the detail of expenses and liability for the Company’s restructuring charges:

	Expense incurred during the year ended December 31, 2013		Liability at at 12/31/13
Severance charges	$	7,000	$	7,000

Other associated costs		22,000		6,000

Totals	$	29,000	$	13,000