10-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K/A

(Amendment No. 1)

þ Annual Report under Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2012

¨ Transition Report under Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from              to             .

Commission file number 0-439

American Locker Group Incorporated

(Exact Name of registrant as specified in its charter)

Delaware	16-0338330
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2701 Regent Blvd., Suite 200 DFW Airport, Texas	75261
(Address of principal executive offices)	(Zip Code)

(817) 329-1600

(Registrant’s telephone number, including area code)

Securities registered under Section 12(b) of the Exchange Act:

Title of each class Name of each exchange on which registered

None

Securities registered under Section 12(g) of the Exchange Act:

Common Stock, Par Value $1.00 Per Share

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ¨    No  þ

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ¨    No  þ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  þ    No  ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained in this form, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ¨	Accelerated filer  ¨	Non-accelerated filer  ¨	Smaller reporting company	þ
	(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)    Yes  ¨    No  þ

The aggregate market value of the Common Stock held by non-affiliates was approximately $1,506,251 based on the $1.05 price at which the Common Stock was last sold on June 30, 2012, the last business day of the registrant’s most recently completed second quarter. Shares of Common Stock known by the Registrant to be beneficially owned by directors and officers of the Registrant and other persons known to the Registrant to have beneficial ownership of 5% or more of the outstanding Common Stock are not included in the computation. The Registrant, however, has made no determination that such persons are “affiliates” within the meaning of Rule 12b-2 under the Securities Exchange Act of 1934.

As of March 20, 2013, 1,687,319 shares of Common Stock, $1.00 par value per share, were outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

The information required to be furnished pursuant to Part III of this Annual Report on Form 10-K will be set forth in, and is incorporated by reference to, the registrant’s Definitive Proxy Statement for the Annual Meeting of Stockholders (2012 Proxy Statement), which will be filed no later than 120 days after the end of the registrant’s 2012 fiscal year.

Explanatory Note

This Amendment No. 1 to the Annual Report on Form 10-K for the fiscal year ended December 31, 2012 of American Locker Group Incorporated is filed for the purpose of correcting typographical errors in the Consolidated Balance Sheet as of December 31, 2011, described as follows:

(1) the line items “Accounts receivable, less allowance for doubtful accounts” and “Accounts payable” as of December 31, 2011 have been corrected and are now reflected as $1,754,959 and $1,627,489, respectively;

(2) the line items “Total current assets” and “Total current liabilities” as of December 31, 2011 have been corrected and are now reflected as $5,734,994 and $3,649,069, respectively;

(3) the line item “Total liabilities” as of December 31, 2011 has been corrected and is now reflected as $6,300,123; and

(4) the line items “Total assets” and “Total liabilities and stockholders’ equity” as of December 31, 2011 have been corrected and are now each reflected as $10,068,625.

This Amendment No. 1 continues to speak as of the date of the Annual Report, and we have not updated the disclosures contained in this Amendment No. 1 to reflect any events that occurred at a date subsequent to the filing of the Annual Report. The filing of this Amendment No. 1 is not a representation that any statements contained in items of the Annual Report other than that information being amended are true or complete as of any date subsequent to the date of the Annual Report.

TABLE OF CONTENTS

PART II
Item 8. Financial Statements and Supplementary Data	1
PART IV
Item 15. Exhibits, Financial Statement Schedules	25
EXHIBIT INDEX	25
SIGNATURES	27

PART II

Item 8. Financial Statements and Supplementary Data.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors

American Locker Group Incorporated

We have audited the accompanying consolidated balance sheets of American Locker Group Incorporated and Subsidiaries (the Company) as of December 31, 2012 and 2011 and the related consolidated statements of operations, comprehensive loss, stockholders’ equity and cash flows for each of the years in the three year period ended December 31, 2012. Our audits also included the financial statement schedule listed in the index at Item 15(2). These consolidated financial statements and schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements and schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and schedule, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and schedule. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly in all material respects, the consolidated financial position of American Locker Group Incorporated and Subsidiaries as of December 31, 2012 and 2011 and the consolidated results of their operations and cash flows for each of the years in the three year period ended December 31, 2012 in conformity with accounting principles generally accepted in the United States. Also in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

/s/ Travis Wolff, LLP

Dallas, Texas

April 1, 2013

1

American Locker Group Incorporated and Subsidiaries

Consolidated Balance Sheets

	December 31,
	2012			2011
Assets
Current assets:
Cash and cash equivalents	$	413,353		$	525,632
Accounts receivable, less allowance for doubtful accounts of $162,000 in 2012 and $149,000 in 2011		2,385,644			1,754,959
Inventories, net		2,671,616			2,845,563
Prepaid expenses		298,185			330,403
Deferred income taxes		287,417			278,437
Total current assets		6,056,215			5,734,994
Property, plant and equipment:
Land		500			500
Buildings and leasehold improvements		803,021			754,922
Machinery and equipment		11,292,235			10,891,820
		12,095,756			11,647,242
Less allowance for depreciation and amortization		(8,861,997	)		(8,087,988	)
		3,233,759			3,559,254
Other noncurrent assets		45,173			47,259
Deferred income taxes		628,351			727,118
Total assets	$	9,963,498		$	10,068,625

The accompanying notes are an integral part of these consolidated financial statements.

2

American Locker Group Incorporated and Subsidiaries

Consolidated Balance Sheets (continued)

	December 31,
	2012			2011
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	1,856,023		$	1,627,489
Customer deposits		255,753			398,167
Commissions, salaries, wages and taxes thereon		157,087			162,507
Income taxes payable		3,888			69,718
Revolving line of credit		1,300,000			700,000
Current portion of long-term debt		200,000			200,000
Other accrued expenses		690,584			491,188
Total current liabilities		4,463,335			3,649,069
Long-term liabilities:
Long-term debt, net of current portion		400,000			600,000
Pension and other benefits		2,128,210			2,051,054
		2,528,210			2,651,054
Total liabilities		6,991,545			6,300,123
Commitments and contingencies (Note 15)
Stockholders’ equity:
Common stock, $1 par value:
Authorized shares—4,000,000 Issued shares—1,879,319 and 1,871,999 in 2012 and 2011, respectively Outstanding shares—1,687,319 and 1,679,999 in 2012 and 2011, respectively		1,879,319			1,871,999
Other capital		288,395			284,478
Retained earnings		4,386,520			5,001,097
Treasury stock at cost (192,000 shares)		(2,112,000	)		(2,112,000	)
Accumulated other comprehensive loss		(1,470,281	)		(1,277,072	)
Total stockholders’ equity		2,971,953			3,768,502
Total liabilities and stockholders’ equity	$	9,963,498		$	10,068,625

The accompanying notes are an integral part of these consolidated financial statements.

3

American Locker Group Incorporated and Subsidiaries

Consolidated Statements of Operations

	Year ended December 31,
	2012			2011			2010
Net sales	$	13,676,186		$	13,386,336		$	12,099,012
Cost of products sold		9,767,377			9,286,025			7,726,497
Gross profit		3,908,809			4,100,311			4,372,515
Selling, administrative and general expenses		3,991,280			4,070,957			4,217,205
Restructuring charge		283,924			—			—
Total operating expenses		4,275,204			4,070,957			4,217,205
Total operating income (loss)		(366,395	)		29,354			155,310
Interest income (expense)		13,637			(47	)		—
Other income (expense)—net		(14,005	)		120,033			61,087
Interest expense		(116,382	)		(68,733	)		(16,232	)
Net income (loss) before income taxes		(483,145	)		80,607			200,165
Income tax expense (benefit)		131,433			43,516			131,796
Net income (loss)	$	(614,578	)	$	37,091		$	68,369
Weighted average common shares:
Basic		1,682,994			1,655,805			1,605,769
Diluted		1,682,994			1,655,805			1,605,769
Income (loss) per share of common stock:
Basic	$	(0.37	)	$	0.02		$	0.04
Diluted	$	(0.37	)	$	0.02		$	0.04
Dividends per share of common stock	$	0.00		$	0.00		$	0.00

4

American Locker Group Incorporated and Subsidiaries

Consolidated Statements of Comprehensive Income

	Twelve Months Ended December 31,
	2012			2011			2010
Net income (loss)	$	(614,578	)	$	37,091		$	68,369
Other comprehensive income (loss):
Foreign currency translation adjustment		(6,130	)		(18,028	)		11,925
Adjustment to minimum pension liability, net of tax effect of $91,544 in 2012, $158,869 in 2011, and $79,354 in 2010		(187,078	)		(610,220	)		(119,033	)
Other comprehensive loss		(193,208	)		(628,248	)		(107,108	)
Total comprehensive loss	$	(807,786	)	$	(591,157	)	$	(38,739	)

5

American Locker Group Incorporated and Subsidiaries

Consolidated Statements of Stockholders’ Equity

	Common Stock		Other Capital		Retained Earnings			Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Total  Stockholders’ Equity
Balance at December 31, 2009	$	1,781,015	$	242,846	$	4,895,637		$	(2,112,000	)	$	(541,716	)	$	4,265,782
Net income (loss)		—		—		68,369			—			—			68,369
Other comprehensive income (loss):
Foreign currency translation		—		—		—			—			11,925			11,925
Minimum pension liability adjustment, net of tax benefit of $79,354		—		—		—			—			(119,033	)		(119,033	)
Total comprehensive loss															(38,739	)
Common stock issued as compensation (53,091 shares)		53,091		22,425		—			—			—			75,516
Balance at December 31, 2010	$	1,834,106	$	265,271	$	4,964,006		$	(2,112,000	)	$	(648,824	)	$	4,302,559
Net income (loss)		—		—		37,091			—			—			37,091
Other comprehensive income (loss):
Foreign currency translation		—		—		—			—			(18,028	)		(18,028	)
Minimum pension liability adjustment, net of tax benefit of $158,869		—		—		—			—			(610,220	)		(610,220	)
Total comprehensive loss															(591,157	)
Common stock issued as compensation (37,893 shares)		37,893		19,207		—			—			—			57,100
Balance at December 31, 2011	$	1,871,999	$	284,478	$	5,001,097		$	(2,112,000	)	$	(1,277,072	)	$	3,768,502
Net income (loss)		—		—		(614,578	)		—			—			(614,578	)
Other comprehensive income (loss):
Foreign currency translation		—		—		—			—			(6,130	)		(6,130	)
Minimum pension liability adjustment, net of tax benefit of $91,544		—		—		—			—			(187,078	)		(187,078	)
Total comprehensive loss															(807,786	)
Common stock issued as compensation (7,320 shares)		7,320		3,917		—			—			—			11,237
Balance at December 31, 2012	$	1,879,319	$	288,395	$	4,386,519		$	(2,112,000	)	$	(1,470,280	)	$	2,971,953

6

American Locker Group Incorporated and Subsidiaries

Consolidated Statements of Cash Flows

	Year ended December 31,
	2012			2011			2010
Operating activities:
Net income (loss)	$	(614,578	)	$	37,091		$	68,369
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization		744,094			671,009			336,037
Provision for uncollectible accounts		48,342			22,585			31,290
Equity based compensation		11,237			62,025			75,516
Loss on disposal of assets		—			—			686
Deferred income taxes		(770	)		(297,640	)		(36,088	)
Changes in assets and liabilities:
Accounts and other receivables		(740,794	)		1,000,269			1,526,273
Inventories		174,037			(300,472	)		(297,059	)
Prepaid expenses		32,680			(103,376	)		(131,793	)
Deferred revenue		—			(341,000	)		—
Accounts payable and accrued expenses		345,205			(274,209	)		(214,132	)
Income taxes		(65,830	)		4,519			(10,973	)
Pension and other benefits		(11,844	)		123,983			169,543
Net cash provided by (used in) operating activities		(78,221	)		604,784			1,517,669
Net cash used in investing activities:
Purchase of property, plant and equipment		(413,737	)		(1,227,798	)		(1,968,592	)
Financing activities:
Long-term debt payments		(200,000	)		(200,000	)		—
Long-term debt borrowings		—			—			1,000,000
Borrowings under revolving line of credit		600,000			700,000			—
Repayment of factoring agreement		—			—			(428,588	)
Net cash provided by financing activities		400,000			500,000			571,412
Effect of exchange rate changes on cash		(20,321	)		(1,306	)		2,711
Net increase (decrease) in cash and cash equivalents		(112,279	)		(124,320	)		123,200
Cash and cash equivalents at beginning of year		525,632			649,952			526,752
Cash and cash equivalents at end of year	$	413,353		$	525,632		$	649,952
Supplemental cash flow information:
Cash paid during the year for:
Interest	$	107,057		$	67,555		$	15,447
Income taxes	$	15,210		$	15,647		$	20,311

7

Notes to Consolidated Financial Statements

American Locker Group Incorporated and Subsidiaries

December 31, 2012

1. Basis of Presentation

Consolidation and Business Description

The consolidated financial statements include the accounts of American Locker Group Incorporated and its subsidiaries (the “Company”), all of which are wholly owned. Intercompany accounts and transactions have been eliminated in consolidation. The Company is a leading manufacturer and distributor of lockers, locks and keys. The Company’s lockers can be categorized as either lockers or mailboxes. Mailboxes are used for the delivery of mail. Most lockers are key controlled checking lockers. The Company is best known for manufacturing and servicing the key and lock system with the plastic orange cap. The Company serves customers in a variety of industries in all 50 states and in Canada, Mexico, Europe, Asia and South America.

Certain 2011 and 2010 financial statement line items have been reclassified to conform to the current year’s presentation.

2. Summary of Significant Accounting Policies

Cash and Cash Equivalents

Cash and cash equivalents include currency on hand and demand deposits with financial institutions. The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company maintains cash and cash equivalents on deposit in amounts in excess of federally insured limits. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant risk.

Accounts Receivable

The Company grants credit to its customers and generally does not require collateral. Accounts receivable are reported at net realizable value and do not accrue interest. Management uses judgmental factors such as a customer’s payment history and the general economic climate, as well as considering the age of and past due status of invoices in assessing collectability and establishing allowances for doubtful accounts. Accounts receivable are written off after all collection efforts have been exhausted.

Estimated losses for bad debts are provided for in the consolidated financial statements through a charge to expense of approximately $48,000, $23,000 and $31,000 for 2012, 2011 and 2010, respectively. The net charge-off of bad debts was approximately $29,000, $1,300 and $113,000 for 2012, 2011 and 2010, respectively.

Inventories

Inventories are stated at the lower of cost or market value using the FIFO method and are categorized as raw materials, work-in-progress or finished goods.

The Company records reserves for estimated obsolescence or unmarketable inventory equal to the difference between the actual cost of inventory and the estimated market value based upon assumptions about future demand and market conditions and management’s review of existing inventory. If actual demand and market conditions are less favorable than those projected by management, additional inventory reserves resulting in a charge to expense would be required.

8

Property, Plant and Equipment

Property, plant and equipment are stated at historical cost. Depreciation is computed by the straight-line and declining-balance methods for financial reporting purposes and by accelerated methods for income tax purposes. Estimated useful lives for financial reporting purposes are 20 to 40 years for buildings and 3 to 12 years for machinery and equipment. Leasehold improvements are amortized over the shorter of the life of the building or the lease term. Expenditures for repairs and maintenance are expensed as incurred. Gains and losses resulting from the sale or disposal of property and equipment are included in other income.

Long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts of those assets may not be recoverable in accordance with appropriate guidance. The Company uses undiscounted cash flows to determine whether impairment exists and measures any impairment loss using discounted cash flows. The Company recorded no asset impairment charges related to property, plant and equipment in 2012, 2011 or 2010.

Depreciation expense was $744,094 in 2012, of which $728,869 was included in cost of products sold, and $15,225 was included in selling, administrative and general expenses. Depreciation expense was $671,009 in 2011, of which $651,237 was included in cost of products sold, and $19,772 was included in selling, administrative and general expenses. Depreciation expense was $336,037 in 2010, of which $277,580 was included in cost of products sold, and $58,457 was included in selling, administrative and general expenses.

Pensions and Postretirement Benefits

The Company has two defined benefit plans which recognize a net liability or asset and an offsetting adjustment to accumulated other comprehensive income (loss) to report the funded status of the plans. The plan assets and obligations are measured at their year-end balance sheet date. Refer to Note 10 “Pensions and Other Postretirement Benefits” for further detail on the plans.

Revenue Recognition

The Company recognizes revenue upon passage of title and when risks and rewards have passed to customers, which occurs at the time of shipment to the customer. The Company derived approximately 25.5%, 16.9% and 19.4% of its revenue in 2012, 2011 and 2010, respectively, from sales to distributors. These distributors do not have a right to return unsold products; however, returns may be permitted in specific situations. Historically, returns have not had a significant impact on the Company’s results of operations. Revenues are reported net of discounts and returns and net of sales tax.

For concession operations, the Company recognizes revenue when receipts are collected. Revenue is recognized for the Company’s proportional share of receipts with the remaining amounts collected recorded as an accrued liability until they are remitted to the concession contract counterparty.

Shipping and Handling Costs

Shipping and handling costs are expensed as incurred and are included in selling, administrative and general expenses in the accompanying consolidated statements of operations. These costs were approximately $674,000, $696,000 and $579,000 during 2012, 2011 and 2010, respectively.

Advertising Expense

The cost of advertising is generally expensed as incurred. The cost of catalogs and brochures are recorded as a prepaid cost and are expensed over their useful lives, generally one year. The Company incurred approximately $165,000, $149,000 and $134,000 in advertising costs during 2012, 2011 and 2010, respectively.

9

Income Taxes

The Company and its domestic subsidiaries file a consolidated U.S. income tax return. Canadian operations file income tax returns in Canada. Hong Kong operations file income tax returns in Hong Kong. The Company accounts for income taxes using the liability method in accordance with appropriate accounting guidance. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is recorded to reduce the Company’s deferred tax assets to the amount that is more likely than not to be realized.

Pursuant to appropriate accounting guidance, ASC-740—Income Taxes, when establishing a valuation allowance, the Company considers future sources of taxable income such as “future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards” and “tax planning strategies.” Appropriate accounting guidance defines a tax planning strategy as “an action that: is prudent and feasible; an enterprise ordinarily might not take, but would take to prevent an operating loss or tax credit carryforward from expiring unused; and would result in realization of deferred tax assets.” In the event the Company determines that the deferred tax assets will not be realized in the future, the valuation adjustment to the deferred tax assets is charged to earnings in the period in which the Company makes such a determination. If it is later determined that it is more likely than not that the deferred tax assets will be realized, the Company will release the valuation allowance to current earnings.

The amount of income taxes the Company pays is subject to ongoing audits by federal, state and foreign tax authorities. The Company’s estimate of the potential outcome of any uncertain tax issue is subject to management’s assessment of relevant risks, facts and circumstances existing at that time, pursuant to appropriate accounting guidance. Appropriate accounting guidance requires a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company records a liability for the difference between the benefit recognized and measured pursuant to appropriate accounting guidance and tax position taken or expected to be taken on the tax return. To the extent that the Company’s assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made. The Company reports tax-related interest and penalties as a component of income tax expense.

Research and Development

The Company engages in research and development activities relating to new and improved products. It expended approximately $99,000, $77,000 and $108,000 in 2012, 2011 and 2010, respectively, for such activity in its continuing businesses. Research and development costs are included in selling, administrative and general expenses.

Earnings Per Share

The Company reports earnings per share in accordance with appropriate accounting guidance. Under appropriate accounting guidance basic earnings per share excludes any dilutive effects of stock options, whereas diluted earnings per share assumes exercise of stock options, when dilutive, resulting in an increase in outstanding shares. Please refer to Note 13 for further information.

Foreign Currency

In accordance with appropriate accounting guidance the Company translates the financial statements of the Canadian and Hong Kong subsidiaries from its functional currency into the U.S. dollar. Assets and liabilities are translated into U.S. dollars using exchange rates in effect at the balance sheet date. Income statement amounts are

10

translated using the average exchange rate for the year. All translation gains and losses resulting from the changes in exchange rates from year to year have been reported in other comprehensive income. Foreign currency gains and losses resulting from current year exchange rate transactions are insignificant for all years presented.

Fair Value of Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and long-term debt approximate fair value.

Comprehensive Income

Comprehensive income consists of net income, foreign currency translation and minimum pension liability adjustments and is reported in the consolidated statements of stockholders’ equity.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include allowance for doubtful accounts, inventory obsolescence, product returns, pension, post-retirement benefits, contingencies, and deferred tax asset valuation allowance. Actual results could differ from those estimates.

New Accounting Pronouncements

In June 2011, the FASB issued amendments to guidance regarding the presentation of comprehensive income (ASU 2011-05—Comprehensive Income). The amendments eliminate the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity. The amendments require that comprehensive income be presented in either a single continuous statement or in two separate but consecutive statements. In a single continuous statement, the entity would present the components of net income and total net income, the components of other comprehensive income and a total of other comprehensive income, along with the total of comprehensive income in that statement. In the two-statement approach, the entity would present components of net income and total net income in the statement of net income and a statement of other comprehensive income would immediately follow the statement of net income and include the components of other comprehensive income and a total for other comprehensive income, along with a total for comprehensive income. The amendments also require the entity to present on the face of the financial statements any reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement(s) where the components of net income and the components of other comprehensive income are presented. The amendments do not change the items that must be reported in other comprehensive income, when an item of other comprehensive income must be re-classed to net income or the option to present components of other comprehensive income either net of related tax effects or before related tax effects. The amendments, excluding the specific requirement to present on the face of the financial statements any reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement(s) where the components of net income and the components of other comprehensive income are presented which was deferred by the FASB in December 2011, are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and are to be applied retrospectively. The Company adopted ASU 2011-05 in the first quarter of 2012. Upon adoption, the Company elected the two-statement approach and presents a separate consolidated statement of comprehensive loss.

11

3. Sale of Property

On September 18, 2009, the Company sold its headquarters and primary manufacturing facility to the City of Grapevine, Texas (the “City”) for a purchase price of $2,747,000.

The Company was entitled to continue to occupy the facility, through December 31, 2010 at no cost. The City has further agreed to pay the Company’s relocation costs within the Dallas-Fort Worth area and to pay the Company’s real property taxes for the facility through June 2011. During May 2011, the Company relocated its corporate headquarters and primary manufacturing facility from Grapevine, Texas to a new 100,500 sq. ft. building in DFW Airport, Texas. The Company received a $341,000 payment towards the moving costs at closing which was recorded as “Deferred revenue” in the Company’s consolidated balance sheet as of December 31, 2010. The Company offset $211,768 of moving expense against deferred revenue in 2011. The difference of $129,232 between the deferred revenue balance at December 31, 2010 and the amount offset against moving expenses was recorded as “Other income.” Proceeds of the sale were used to pay off the $2 million mortgage secured by the property and for general working capital purposes.

The Company invested approximately $875.000 during 2011 for leasehold improvements and machinery and equipment related to relocating.

4. Disneyland Concession Agreement

On September 24, 2010, the Company entered into an agreement (the “Disney Agreement”) with Disneyland Resort, a division of Walt Disney Parks and Resorts U.S., Inc., and Hong Kong International Theme Parks Limited, (collectively referred to as “Disney”) to provide locker services under a concession arrangement. Under the Disney Agreement, the Company installed, operates and maintains electronic lockers at Disneyland Park and Disney’s California Adventure Park in Anaheim, California and at Hong Kong Disneyland Park in Hong Kong.

The Company installed approximately 4,300 electronic lockers under the Disney Agreement. The Company retains ownership of the lockers and receives a portion of the revenue generated by the locker operations. The term of the Disney Agreement is five years, with an option to renew for one year at Disney’s option, and operations began in late November 2010. The Agreement contains a buyout option at the end of each contract year and a provision to compensate the Company in the event Disney terminates the Agreement without cause.

Under appropriate accounting guidance, the Company capitalized its costs related to the Disney Agreement and the Company is depreciating such costs over the five year term of the agreement. The Company recognizes revenue for its portion of the revenue as it is collected.

5. Inventories

Inventories consist of the following:

	December 31,
	2012		2011
Finished products	$	602,753	$	321,378
Work-in-process		666,830		862,000
Raw materials		1,402,033		1,662,185
Net inventories	$	2,671,616	$	2,845,563

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6. Other Accrued Expenses and Current Liabilities

Accrued expenses consist of the following at December 31:

	December 31,
	2012		2011
Restructuring liability	$	39,883	$	123,037
Accrued rent liability		286,544		190,229
Accrued expenses, other		364,157		177,922
Total accrued expenses	$	690,584	$	491,188

7. Debt

Long-term debt consists of the following:

	December 31,
	2012		2011
Term loan payable to Bank of America Merrill Lynch through December 2015 at $16,667 monthly plus interest at LIBOR rate plus 375 basis points (3.963% at December 31, 2012) collateralized by accounts receivable, inventory, and equipment	$	600,000	$	800,000
Less current portion		200,000		200,000
Long-term portion	$	400,000	$	600,000

On December 8, 2010, the Company entered into a credit agreement (the “Loan Agreement”) with BAML, pursuant to which the Company obtained a $1 million term loan (the “Term Loan”) and a $2.5 million revolving line of credit (the “Line of Credit”). On November 9, 2012, the Company entered into an amendment to the Loan Agreement (the “Amendment”) that included the addition of a $500,000 draw note (the “Draw Note”). On November 9, 2012, the Company entered into a second amendment to the Loan Agreement, which extended availability under the Draw Note, and the maturity date of the Line of Credit, to October 31, 2013.

The Draw Note is to be used to fund the Company’s investment in future concession contracts. The Company can draw up to $500,000 on the Draw Note before October 31, 2013. The Company will pay interest only on the Draw Note through November 27, 2013, after which the Company will pay interest and principal so that the balance will be paid in full as of October 31, 2016. As of December 31, 2012 there were no borrowings on the Draw Note.

The proceeds of the Term Loan were used to fund the Company’s investment in lockers used in the Disney Agreement. The proceeds of the Line of Credit will be used primarily for working capital needs in the ordinary course of business and for general corporate purposes.

The Company can borrow, repay and re-borrow principal under the Line of Credit from time to time during its term, but the outstanding principal balance of the Line of Credit may not exceed the lesser of the borrowing base or $2,500,000. For purposes of the Line of Credit, “borrowing base” is calculated by multiplying eligible accounts receivable of the Company by 80% and eligible raw material and finished goods by 50%. As of December 31, 2012, there was $1,300,000 outstanding on the Line of Credit.

The outstanding principal balances of the Line of Credit, the Draw Note and the Term Loan bear interest at the one month LIBOR rate plus 375 basis points (3.75%). Accrued interest payments on the outstanding principal balance of the Line of Credit are due monthly, and all outstanding principal payments under the Line of Credit, together with all accrued but unpaid interest, is due at maturity, or October 31, 2013. Payments on the Term Loan, consisting of $16,667 in principal plus accrued interest, began in 2011. The entire outstanding balance of the Term Loan is due on December 8, 2015.

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The Loan Agreement is secured by a first priority lien on all of the Company’s accounts receivable, inventory and equipment pursuant to a Security Agreement between the Company and BAML (the “Credit Security Agreement”).

The Credit Security Agreement and Loan Agreement contain covenants, including financial covenants, with which the Company must comply, including a debt service coverage ratio and a funded debt to EBITDA ratio. Subject to the Lender’s consent, the Company is prohibited under the Credit Security Agreement and the Loan Agreement, except under certain circumstances, from incurring or assuming additional debt and from permitting liens to be placed upon any of its property, assets or revenues. Additionally, the Company is prohibited from entering into certain transactions, including a merger or consolidation, without the Lender’s consent.

8. Operating Leases

The Company leases several operating facilities, vehicles and equipment under non-cancelable operating leases. The Company accounts for operating leases on a straight line basis over the lease term. Future minimum lease payments consist of the following at December 31, 2012:

2013	$	467,386
2014		452,602
2015		435,909
2016		435,909
2017		435,909
Thereafter		349,113
Total	$	2,576,828

Rent expense amounted to approximately $407,600, $380,800 and $34,000 in 2012, 2011 and 2010, respectively.

9. Income Taxes

For financial reporting purposes, income before income taxes includes the following during the years ended December 31:

	2012			2011			2010
United States income (loss)	$	(507,197	)	$	91,329		$	225,555
Foreign income (loss)	$	24,052		$	(10,722	)	$	(25,390	)
	$	(483,145	)	$	80,607		$	200,165

Significant components of the provision for income taxes are as follows:

	2012			2011		2010
Current:
Federal	$	(68,791	)	$	—	$	(13,280	)
State		21,503			19,122		—
Foreign		—			—		9,334
Total current		(47,288	)		19,122		(3,946	)
Deferred:
Federal		169,923			13,302		114,738
State		1,628			463		(530	)
Foreign		7,170			10,629		21,534
		178,721			24,394		135,742
	$	131,433		$	43,516	$	131,796

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The differences between the federal statutory rate and the effective tax rate as a percentage of income before taxes are as follows:

	2012			2011			2010
Statutory income tax rate		34	%		34	%		34	%
State and foreign income taxes, net of federal benefit		1			1			1
Change in valuation allowance		(69	)		—			23
Foreign earnings taxed at different rate		—			(24	)		—
Change in estimated state income tax rate		(5	)		3			—
Other permanent differences		12			40			8
Effective tax rate		(27	)%		54	%		66	%

Differences between the application of accounting principles and tax laws cause differences between the bases of certain assets and liabilities for financial reporting purposes and tax purposes. The tax effects of these differences, to the extent they are temporary, are recorded as deferred tax assets and liabilities. Significant components of the Company’s deferred tax assets and liabilities at December 31 are as follows:

	2012			2011
Deferred tax liabilities:
Property, plant and equipment	$	(192,136	)	$	(165,421	)
Prepaid expenses and other		(4,599	)		(4,599	)
Total deferred tax liabilities		(196,735	)		(170,020	)
Deferred tax assets:
Operating loss carryforwards		1,209,966			929,061
Postretirement benefits		22,047			22,047
Pension costs		691,824			666,138
Allowance for doubtful accounts		52,385			45,667
Other assets		5,719			8,008
Accrued expenses		171,444			121,219
Other employee benefits		16,009			8,746
Inventory costs		85,742			74,563
Total deferred tax assets		2,255,136			1,875,449
Net		2,058,401			1,705,429
Valuation allowance		(1,142,633	)		(699,874	)
Net	$	915,768		$	1,005,555
Current deferred tax asset	$	287,417		$	278,437
Long-term deferred tax asset		628,351			727,118
	$	915,768		$	1,005,555

As of December 31, 2012 and 2011, the Company’s gross deferred tax assets were approximately $2,058,000 and $1,705,000, respectively. Gross deferred tax assets as of December 31, 2012 reflect the benefit of approximately $2,993,000 in net operating loss carryforwards for federal and state income tax purposes which are available to offset future income tax and expire in varying amounts between 2027 and 2032. Realization of deferred tax assets is dependent on generating sufficient taxable income prior to expiration of the net operating loss carryforwards. Due to negative evidence, primarily limited operating income, indicating that a valuation allowance is required, gross deferred tax assets are reduced by a valuation allowance as of December 31, 2012 and 2011 of approximately $1,142,000 and $699,000, respectively. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable

15

income during the carryforward period are reduced. Increases in the valuation allowance in 2012 are primarily due to decreased forecasted future U.S. taxable income exclusive of timing reversals.

The Company has not provided deferred taxes for taxes that could result from the remittance of undistributed earnings of the Company’s foreign subsidiary since it has generally been the Company’s intention to reinvest these earnings indefinitely. Undistributed earnings that could be subject to additional income taxes if remitted were approximately $164,000 at December 31, 2012.

The Company files an income tax return in the U.S. federal jurisdiction, Texas, and a number of other U.S. state and local jurisdictions. Tax returns for the years 2008 through 2012 remain open for examination in various tax jurisdictions in which it operates. On January 1, 2007 the Company adopted the provisions of a new accounting pronouncement that addresses the accounting for uncertainty in income taxes recognized in the financial statements. As a result of this adoption, the Company recognized no material adjustment in the liability for unrecognized income tax benefits. At the adoption date of January 1, 2007, and at December 31, 2012, there were no unrecognized tax benefits. As of December 31, 2012, no interest related to uncertain tax positions had been accrued.

10. Pension and Other Postretirement Benefits

U.S. Pension Plan

The Company maintains a defined benefit pension plan for its domestic employees (the “U.S. Plan”), which was frozen effective July 15, 2005. Accordingly, no new benefits are being accrued under the U.S. Plan. Participant accounts are credited with interest at the federally mandated rates. Company contributions are based on computations by independent actuaries.

The plan’s assets are invested in a balanced index fund (the “Fund”) where the assets were invested during 2010, 2011 and 2012. The principal investment objective of the Fund is to provide an incremental risk adjusted return compared to a portfolio invested 50% in stocks and 50% in bonds over a full market cycle. Under normal market conditions, the average asset allocation for the Fund is expected to be approximately 50% in stocks and 50% in bonds. This benchmark allocation may be adjusted by up to 20% based on economic or market conditions and liquidity needs. Therefore, the stock allocation may fluctuate from 30% to 70% of the total portfolio, with a corresponding bond allocation of from 70% to 30%. Fund reallocation may take place at any time.

Canadian Pension Plan

Effective January 1, 2009, the Company converted its pension plan for its Canadian employees (the “Canadian Plan”) from a noncontributory defined benefit plan to a defined contribution plan. Until the conversion, benefits for the salaried employees were based on specified percentages of the employees’ monthly compensation. The conversion of the Canadian Plan has the effect of freezing the accrual of future defined benefits under the plan. Under the defined contribution plan, the Company will contribute 3% of employee compensation plus 50% of employee elective contributions up to a maximum contribution of 5% of employee compensation.

The Canadian Plan’s assets are invested in various pooled funds (the “Canadian Funds”) managed by a third party fund manager. The principal investment objective of the Canadian Funds is to provide an incremental risk adjusted return compared to a portfolio invested 50% in stocks and 50% in bonds over a full market cycle. Under normal market conditions, the average asset allocation for the Canadian Funds is expected to be approximately 50% in stocks and 50% in bonds. This benchmark allocation may be adjusted based on economic or market conditions and liquidity needs.

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On July 6, 2012, the U.S. Government enacted the “Moving Ahead for Progress in the 21^st Century Act”, which contained provisions that changed the interest rate methodology used to calculate Employee Retirement Income Security Act (“ERISA”) minimum pension funding requirements in the U.S. This change reduced the Company’s near-term annual cash funding requirements for the U.S. pension plan. Contributions to be made to the plan in 2013 are expected to approximate $100,000 for the U.S. Plan and $79,000 for the Canadian Plan. However, contributions for 2014 and beyond have not been quantified at this time.

The change in projected benefit obligation, change in plan assets and reconciliation of funded status for the plans were as follows:

	Pension Benefits
	U.S. Plan						Canadian Plan
	2012			2011			2012			2011
Change in projected benefit obligation
Projected benefit obligation at beginning of year	$	3,829,727		$	3,176,669		$	1,441,482		$	1,262,526
Service cost		—			21,100			—			—
Interest cost		166,534			172,221			58,812			76,866
Benefit payments		(257,958	)		(72,132	)		(94,119	)		(94,262	)
Administrative expenses		(28,019	)		(24,669	)		—			—
Actuarial (gain) loss		389,763			556,538			60,912			227,666
Plan amendments		—			—			—			—
Currency translation adjustment		—			—			33,450			(31,314	)
Settlements		—			—			—			—
Projected benefit obligation at end of year		4,100,047			3,829,727			1,500,537			1,441,482
Change in plan assets
Fair value of plan assets at beginning of year		2,067,871			1,835,326			1,212,167			1,203,920
Actual return on plan assets		227,201			117,350			58,042			44,198
Benefit payments		(257,958	)		(72,132	)		(94,119	)		(94,262	)
Employer contribution		239,830			211,996			83,387			83,036
Administrative expenses		(28,019	)		(24,669	)		—			—
Currency translation adjustment		—			—			28,203			(24,725	)
Fair value of plan assets at end of year		2,248,925			2,067,871			1,287,679			1,212,167
Plan assets (less) greater than benefit obligation	$	(1,851,122	)	$	(1,761,856	)	$	(212,858	)	$	(229,316	)

The net amounts recognized on the consolidated balance sheets were as follows:

	U.S. Plan						Canadian Plan
	2012			2011			2012			2011
Non-current liabilities		(1,851,122	)		(1,761,856	)		(212,858	)		(229,316	)
Net amount recognized	$	(1,851,122	)	$	(1,761,856	)	$	(212,858	)	$	(229,316	)

Amounts in accumulated other comprehensive loss at year end, consist of:

	U.S. Plan				Canadian Plan
	2012		2011		2012		2011
Unrecognized net loss	$	1,636,551	$	1,413,239	$	599,824	$	544,514
	$	1,636,551	$	1,413,239	$	599,824	$	544,514

The estimated net loss that will be amortized from accumulated other comprehensive income for net periodic pension cost over the next year is $116,000 and $37,516 for the U.S. Plan and Canadian Plan, respectively.

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Net pension expense is included in selling, administrative and general expenses on the consolidated statements of operations. The components of net pension expense for the plans were as follows:

	U.S. Plan									Canadian Plan
	2012			2011			2010			2012			2011			2010
Components of net periodic benefit cost:
Service cost	$	—		$	21,100		$	21,200		$	—		$	—		$	—
Interest cost		166,534			172,221			174,649			58,812			76,866			78,845
Expected return on plan assets		(154,411	)		(142,104	)		(132,093	)		(73,715	)		(84,452	)		(81,273	)
Net actuarial loss		93,661			51,287			42,191			—			—			—
Amortization of prior service cost		—			—			—			34,007			15,070			7,380
Net periodic benefit cost	$	105,784		$	102,504		$	105,947		$	19,104		$	7,484		$	4,952

The Fair Value Measurements and Disclosure Topic require the categorization of financial assets and liabilities, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. The fair value hierarchy are described as follows:

Level 1 –	Financial assets and liabilities whose values are based on unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access.
Level 2 –	Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable for substantially the full term of the asset or liability.
Level 3 –	Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.

The fair value hierarchy of the plan assets are as follows:

		December 31, 2012
		US Plan		Canadian Plan
Cash and cash equivalents	Level 1	$	261,655	$	50,329
Mutual funds	Level 1		254,580		1,237,350
Corporate/Government Bonds	Level 1		693,950
Equities	Level 1		1,038,740		—
Total		$	2,248,925	$	1,287,679

The plans’ weighted-average allocations by asset category are as follows:

	December 31, 2012
	US Plan			Canadian Plan
Equities		58	%		39	%
Fixed income		42	%		61	%
Total		100	%		100	%

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Expected benefits to be paid by the plans during the next five years and in the aggregate for the five fiscal years thereafter, are as follows:

	U.S. Plan		Canadian Plan
2013	$	135,274	$	94,392
2014		139,104		88,273
2015		135,018		84,060
2016		135,102		79,546
2017		138,280		74,731
2018 through 2022		841,875		245,860

Benefit obligations are determined using assumptions at the end of each fiscal year and are not impacted by expected rate of return on plan assets. The weighted average assumptions used in computing the benefit obligations for the plans were as follows:

	U.S. Plan						Canadian Plan
	2012			2011			2012			2011
Weighted average assumptions as of December 31:
Discount rate		3.85	%		4.50	%		3.60	%		4.13	%
Rate of compensation increase		—			—			2.00	%		2.00	%

The weighted average assumptions used in computing net pension expense for the plans were as follows:

	U.S. Plan						Canadian Plan
	2012			2011			2012			2011
Weighted average assumptions as of December 31:
Discount rate		4.50	%		5.50	%		4.13	%		6.25	%
Expected return on plan assets		7.50	%		7.50	%		6.00	%		7.00	%
Rate of compensation increase		—			—			2.00	%		2.00	%

The expected return on plan assets is based upon anticipated returns generated by the investment vehicle. Any shortfall in the actual return has the effect of increasing the benefit obligation. The benefit obligation represents the actuarial present value of benefits attributed to employee service rendered; assuming future compensation levels are used to measure the obligation. The accumulated benefit obligation for the U.S. Plan was $4,100,047 and $3,829,727 at December 31, 2012 and 2011, respectively. The accumulated benefit obligation for the Canadian Plan was $1,500,537 and $1,441,482 at December 31, 2012 and 2011, respectively.

Death Benefit Plan

The Company also provides a death benefit for retired former employees of the Company. Effective in 2000, the Company discontinued this benefit for active employees. The death benefit is not a funded plan. The Company pays the benefit upon the death of the retiree. The Company has fully recorded its liability in connection with this plan. The liability was approximately $64,000 at December 31, 2012 and 2011, respectively, and is recorded as long-term pension and other benefits in the accompanying balance sheets. No expense was recorded in 2012, 2011 or 2010 related to the death benefit, as the plan is closed to new participants.

Defined Contribution Plan

During 1999, the Company established a 401(k) plan for the benefit of its U.S. full-time employees. Under the Company’s 401(k) plan, the Company makes an employer matching contribution equal to $0.10 for each $1.00 of an employee’s salary contributions up to a total of 10% of that employee’s compensation. The Company’s contributions vest over a period of five years. The Company recorded expense of approximately $12,000, $4,000 and $12,000 in connection with its contribution to the plan during 2012, 2011 and 2010, respectively.

19

Effective January 1, 2009, the Company converted the Canadian Plan from a defined benefit plan to a defined contribution plan. Under the defined contribution plan, the Company will contribute 3% of employee compensation plus 50% of employee elective contributions up to a maximum contribution of 5% of employee compensation. The Company recorded expense of approximately $4,600, $4,000 and $4,000 in connection with its contribution to the plan during 2012, 2011 and 2010, respectively.

11. Capital Stock

The Company’s Certificate of Incorporation, as amended, authorizes 4,000,000 shares of common stock and 1,000,000 shares of preferred stock, and 200,000 shares of preferred stock have been designated as Series A Junior Participating Preferred Stock. During 2012, the Company issued 3,986 shares of common stock as compensation to the directors and 3,334 shares as compensation to executive officers, and increased other capital by $3,917 representing compensation expense of $11,237. During 2011, the Company issued 26,313 shares of common stock as compensation to the directors and 11,580 shares as compensation to executive officers, and increased other capital by $19,207 representing compensation expense of $57,100. As of December 31, 2012, 1,879,319 shares of common stock had been issued, of which 1,687,319 shares were outstanding, and zero shares of preferred stock were outstanding.

12. Stock-Based Compensation

In 1999, the Company adopted the American Locker Group Incorporated 1999 Stock Incentive Plan, permitting the Company to provide incentive compensation of the types commonly known as incentive stock options, stock options and stock appreciation rights. The price of option shares or appreciation rights granted under the Plan shall not be less than the fair market value of common stock on the date of grant, and the term of the stock option or appreciation right shall not exceed ten years from date of grant. Upon exercise of a stock appreciation right granted in connection with a stock option, the optionee shall surrender the option and receive payment from the Company of an amount equal to the difference between the option price and the fair market value of the shares applicable to the options surrendered on the date of surrender. Such payment may be in shares, cash or both at the discretion of the Company’s Stock Option-Executive Compensation Committee.

At December 31, 2012 and 2011, there were no stock appreciation rights outstanding.

Key inputs and assumptions used to estimate the fair value of stock options include the grant price of the award, the expected option term, volatility of the Company’s stock, the risk-free rate, estimated forfeitures and the Company’s dividend yield. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company.

No stock options were granted during 2012, 2011 and 2010, and no stock option expense was recorded.

The following table sets forth the activity related to the Company’s stock options for the years ended December 31:

	2012				2011				2009
	Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price
Outstanding—beginning of year		12,000	$	4.95		12,000	$	4.95		12,000	$	4.95
Expired or forfeited		—		—		—		—				—
Outstanding—end of year		12,000	$	4.95		12,000	$	4.95		12,000	$	4.95
Exercisable—end of year		12,000				12,000				12,000

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The following tables summarize information about stock options vested and unvested as of December 31, 2012:

Vested
Exercise Price	Number of Options	Intrinsic Value	Remaining Years of Contractual Life
$4.95	12,000	—	4.7

At December 31, 2012, the total unrecognized compensation cost related to stock options expected to vest was $0. At December 31, 2012, 37,000 options remain available for future issuance under the Plan.

13. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31:

	2012			2011		2010
Numerator:
Net income (loss)	$	(614,578	)	$	37,091	$	68,369
Denominator:
Denominator for basic earnings per share—weighted average shares outstanding		1,682,994			1,655,805		1,605,769
Denominator for diluted earnings per share—weighted average shares outstanding and assumed conversions		1,682,994			1,655,805		1,605,769
Basic earnings (loss) per share	$	(0.37	)	$	0.02	$	0.04
Diluted earnings (loss) per share	$	(0.37	)	$	0.02	$	0.04

For each of the years ended December 31, 2012, 2011 and 2010, 12,000 shares attributable to outstanding stock options were excluded from the calculation of diluted earnings (loss) per share because the effect was antidilutive.

14. Geographical, Customer Concentration and Products Data

The Company is primarily engaged in one business, the sale and rental of lockers. This includes coin, key-only and electronically controlled checking lockers and related locks and sale of plastic centralized mail and parcel distribution lockers. Net sales by product group for the years ended December 31 are as follows:

	2012		2011		2010
Lockers	$	8,327,294	$	9,522,019	$	8,961,181
Mailboxes		2,350,717		2,284,582		2,374,682
Contract manufacturing		1,729,898		430,586		451,898
Concession revenues		1,268,277		1,149,149		311,251
	$	13,676,186	$	13,386,336	$	12,099,012

The Company sells to customers in the United States, Canada and other foreign locations. Sales are attributed based on the country they are shipped to. Net sales to external customers for the years ended December 31 are as follows:

	2012		2011		2010
United States customers	$	11,283,881	$	10,646,590	$	9,266,197
Canadian and other foreign customers		2,392,305		2,739,746		2,832,815
	$	13,676,186	$	13,386,336	$	12,099,012

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The Company did not have any customers that accounted for more than 10% of consolidated sales in 2012, 2011, or 2010.

At December 31, 2012 and 2011, the Company had unsecured trade receivables from governmental agencies of approximately $8,000 and $26,000, respectively. At December 31, 2012 and 2011, the Company had trade receivables from customers considered to be distributors of approximately $583,000 and $334,000, respectively.

At December 31, 2012, the Company had six customers that accounted for 27.0% of accounts receivable. At December 31, 2011, the Company had four customers that accounted for 43.2% of accounts receivable. Other concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of entities comprising the Company’s customer base and their dispersion across many industries.

15. Contingencies

In July 2001, the Company received a letter from the New York State Department of Environmental Conservation (the “NYSDEC”) advising the Company that it is a potentially responsible party (PRP) with respect to environmental contamination at and alleged migration from property located in Gowanda, New York which was sold by the Company to Gowanda Electronics Corporation prior to 1980. In March 2001, the NYSDEC issued a Record of Decision with respect to the Gowanda site in which it set forth a remedy including continued operation of an existing extraction well and air stripper, installation of groundwater pumping wells and a collection trench, construction of a treatment system in a separate building on the site, installation of a reactive iron wall covering 250 linear feet, which is intended to intercept any contaminates and implementation of an on-going monitoring system. The NYSDEC has estimated that its selected remediation plan will cost approximately $688,000 for initial construction and a total of $1,997,000 with respect to expected operation and maintenance expenses over a 30-year period after completion of initial construction. The Company has not conceded to the NYSDEC that the Company is liable with respect to this matter and has not agreed with the NYSDEC that the remediation plan selected by NYSDEC is the most appropriate plan. This matter has not been litigated, and at the present time the Company has only been identified as a PRP. The Company also believes that other parties may have been identified by the NYSDEC as PRPs, and the allocation of financial responsibility of such parties has not been litigated. To the Company’s knowledge, the NYSDEC has not commenced implementation of the remediation plan and has not indicated when construction will start, if ever. Based upon currently available information, the Company is unable to estimate timing with respect to the resolution of this matter. The Company’s primary insurance carrier has assumed the cost of the Company’s defense in this matter, subject to a reservation of rights.

Beginning in September 1998 and continuing through the date of filing of this Annual Report on Form 10-K, the Company has been named as an additional defendant in approximately 234 cases pending in state court in Massachusetts and 1 in the state of Washington. The plaintiffs in each case assert that a division of the Company manufactured and furnished components containing asbestos to a shipyard during the period from 1948 to 1972 and that injury resulted from exposure to such products. The assets of this division were sold by the Company in 1973. During the process of discovery in certain of these actions, documents from sources outside the Company have been produced which indicate that the Company appears to have been included in the chain of title for certain wall panels which contained asbestos and which were delivered to the Massachusetts shipyards. Defense of these cases has been assumed by the Company’s insurance carrier, subject to a reservation of rights. Settlement agreements have been entered in approximately 35 cases with funds authorized and provided by the Company’s insurance carrier. Further, over 167 cases have been terminated as to the Company without liability to the Company under Massachusetts procedural rules. Therefore, the balance of unresolved cases against the Company as of March 25, 2013, the most recent date information is available, is approximately 32 cases.

While the Company cannot estimate potential damages or predict what the ultimate resolution of these asbestos cases may be because the discovery proceedings on the cases are not complete, based upon the Company’s experience to date with similar cases, as well as the assumption that insurance coverage will continue

22

to be provided with respect to these cases, at the present time, the Company does not believe that the outcome of these cases will have a significant adverse impact on the Company’s operations or financial condition.

On February 5, 2013, the Company was notified by one of its customers that certain product purchased by that customer had quality issues. On March 11, 2013, the Company and the customer entered into an agreement whereby the Company will reimburse the customer for reasonable costs and expenses incurred on or before December 31, 2013 by the customer in its efforts to resolve the quality issue. The Company has no current obligation to reimburse the customer for costs incurred after December 31, 2013 and has in place liability coverage for third-party injury and property damage that might occur as a result of the product’s quality issue. At December 31, 2012, the Company recorded a liability of $50,000 for estimated costs to be reimbursed to the customer pursuant to the terms of the agreement.

The Company is involved in other claims and litigation from time to time in the normal course of business. The Company does not believe these matters will have a significant adverse impact on the Company’s operations or financial condition.

16. Restructuring

In 2009, the Company restructured its business operations to rationalize its cost structure in an uncertain economic environment. The restructuring included plans for the relocation and consolidation of its Ellicottville, New York operations into its Texas facility. This planned relocation resulted in severance and payroll charges during the year ended December 31, 2009 of $264,000. At December 31, 2012 the balance remaining of such payments was $27,900 and the Company expects to make such payment before March 31, 2013.

During the second quarter of 2012, the Company commenced the Ellicottville relocation, resulting in the realization of expense for discontinued inventory, severance and professional fees to complete the move. As a result, the Company recorded a restructuring charge in 2012 of approximately $283,900.

When completed, the restructuring and relocation is expected to result in approximately $240,000 in annual cost savings. Accrued restructuring expenses of $39,900 are included in “Other accrued expenses” in the Company’s consolidated balance sheet, while the $89,000 increase to inventory obsolescence is included in “Inventory reserve.”

The following table analyzes the changes incurred related to the Company’s reserve with respect to the restructuring plan for the year ended December 31, 2012:

	December 31, 2011		Expense/ (Benefit)		Payment/Charges			December 31, 2012
Severance	$	111,000	$	64,000	$	(147,100	)	$	27,900
Professional Fees		—		42,000		(42,000	)		—
Inventory		—		89,000		—			89,000
Other		12,000		88,900		(88,900	)		12,000
Total	$	123,000	$	283,900	$	(278,000	)	$	128,900

The following table analyzes the changes incurred related to the Company’s reserve with respect to the restructuring plan for the year ended December 31, 2011:

	December 31, 2010		Expense/ (Benefit)		Payment/Charges			December 31, 2011
Severance	$	132,000	$	—	$	(21,000	)	$	111,000
Other		12,000		—		—			12,000
Total	$	144,000	$	—	$	(21,000	)	$	123,000

23

17. Subsequent Events

None.

24

PART IV

Item 15. Exhibits, Financial Statement Schedules.

The following documents are filed as part of this Amendment No. 1 on Form 10-K/A:

1. The financial statements together with the report of Travis Wolff, LLP dated April 1, 2013 are included in Item 8. Financial Statements and Supplementary Data in this Amendment No. 1 on Form 10-K/A.

2. Schedule II—Valuation and Qualifying Accounts is included in this Amendment No. 1 on Form 10-K/A. All other consolidated financial schedules are omitted because they are inapplicable, not required or the information is included elsewhere in the consolidated financial statements or the notes thereto.

3. The following documents are filed or incorporated by reference as exhibits to this Amendment No. 1 on Form 10-K/A:

EXHIBIT INDEX

Exhibit     No.	Document Description	Prior Filing or Notation of Filing Herewith
3.1*	Certificate of Incorporation of American Locker Group Incorporated	Exhibit to Form 10-K for Year ended December 31, 1980
3.2*	Amendment to Certificate of Incorporation	Form 10-C filed May 6, 1985
3.3*	Amendment to Certificate of Incorporation	Exhibit to Form 10-K for year ended December 31, 1987
3.4*	Amended and Restated By-laws of American Locker Group Incorporated	Exhibit to Form 10-K for the year ended December 31, 2007
4.1*	Certificate of Designations of Series A Junior Participating Preferred Stock	Exhibit to Form 10-K for year ended December 31, 1999
10.1*	Form of Indemnification Agreement between American Locker Group Incorporated and its directors and officers	Exhibit to Form 8-K filed May 18, 2005
10.2*	American Locker Group Incorporated 1999 Stock Incentive Plan	Exhibit to Form 10-Q for the quarter ended June 30, 1999
10.3*	Form of Option Agreement under 1999 Stock Incentive Plan	Exhibit to Form 10-K for year ended December 31, 1999
10.4*	Employment Agreement dated February 1, 2010 between American Locker Group Incorporated and Paul M. Zaidins	Exhibit to Form 10-K for year ended December 31, 2009
10.5*	Loan Agreement dated December 8, 2010 between American Locker Group and Bank of America (Line of Credit and Term Loan)	Exhibit to Form 10-K for year ended December 31, 2010
10.6*	Lease Agreement dated November 16, 2010 between American Locker Group and BV DFWA I, LP	Exhibit to Form 10-K for year ended December 31, 2010
10.7*	Amendment dated October 27, 2011 to Loan Agreement dated December 8, 2010 between American Locker Group and Bank of America (Line of Credit and Term Loan)	Exhibit to Form 10-K for year ended December 31, 2011
10.8*	First Amendment to Employment Agreement dated February 1, 2010 between American Locker Group Incorporated and Paul M. Zaidins	Exhibit to Form 10-K for year ended December 31, 2011

25

Exhibit     No.	Document Description	Prior Filing or Notation of Filing Herewith
10.9*	Amendment dated November 9, 2012 to Loan Agreement dated December 8, 2010 between American Locker Group and Bank of America (Line of Credit and Term Loan)	Filed herewith
21.1*	List of Subsidiaries	Filed herewith
23.1	Consent of Travis Wolff, LLP	Filed herewith
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934	Filed herewith
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act of 1934	Filed herewith
32.1	Certifications of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Filed herewith

101.INS**	XBRL Instance Document
101.SCH**	XBRL Taxonomy Extension Schema Document
101.CAL**	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB**	XBRL Taxonomy Extension Label Linkbase Document
101.DEF**	XBRL Taxonomy Extension Definition Linkbase Document
101.PRE**	XBRL Taxonomy Extension Presentation Linkbase Document

* These exhibits were previously included or incorporated by reference in American Locker Group Incorporated’s Annual Report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission on April 1, 2013.

** In accordance with Rule 406T of Regulation S-T, the information in these exhibits shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability under that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

26

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	AMERICAN LOCKER GROUP INCORPORATED
April 9, 2013	By:	/S/ STEPHEN P. SLAY
		Stephen P. Slay
		Chief Financial Officer

27

Schedule II

American Locker Group Incorporated

Valuation and Qualifying Accounts

Year	Description	Balance at the    Beginning of Year		Additions Charged   to Costs and Expense		Deductions			Balance at End of Year
Year ended 2012
Allowance for Doubtful Accounts		$	149,000	$	48,000	$	(35,000	)	$	162,000
Reserve for Inventory Valuation			693,000		58,000		(343,000	)		408,000
Deferred income tax valuation allowance			699,000		443,000					1,142,000
Year ended 2011
Allowance for Doubtful Accounts		$	134,000	$	23,000	$	(8,000	)	$	149,000
Reserve for Inventory Valuation			753,000		45,000		(105,000	)		693,000
Deferred income tax valuation allowance			758,000				(59,000	)		699,000
Year ended 2010
Allowance for Doubtful Accounts		$	216,000	$	31,000	$	(113,000	)	$	134,000
Reserve for Inventory Valuation			916,000				(163,000	)		753,000
Deferred income tax valuation allowance			713,000		45,000		—			758,000

28

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 333-86494) of American Locker Group Incorporated’s 1999 Stock Incentive Plan of our report dated April 1, 2013 (which reports an unqualified opinion), with respect to the consolidated financial statements and financial statement schedule of American Locker Group Incorporated as of December 31, 2012 and 2011, and for each of the years in the three-year period ended December 31, 2012, included in this Amendment No. 1 on Form 10-K/A for the year ended December 31, 2012.

/s/ Travis Wolff, LLP

Dallas, Texas

April 8, 2013

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Anthony B. Johnston, certify that:

1. I have reviewed this Annual Report on Form 10-K of American Locker Group Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

Date: April 9, 2013	By:	/S/ ANTHONY B. JOHNSTON
		Anthony B. Johnston
		Chairman, President and Chief Executive Officer
		(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Stephen P. Slay, certify that:

1. I have reviewed this Annual Report on Form 10-K of American Locker Group Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

Date: April 9, 2013	By:	/S/ STEPHEN P. SLAY
		Stephen P. Slay
		Chief Financial Officer
		(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certifications Pursuant to 18 U.S.C. Section 1350

as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report on Form 10-K of American Locker Group Incorporated (the “Company”) for the year ended December 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned, in the respective capacities and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: April 9, 2013

/S/ ANTHONY B. JOHNSTON

Anthony B. Johnston

Chairman, President and Chief Executive Officer

(Principal Executive Officer)

/S/ STEPHEN P. SLAY

Stephen P. Slay

Chief Financial Officer

(Principal Financial Officer)

XML

Basis of Presentation (Details)	Dec. 31, 2012 Location
Basis of Presentation (Textual) [Abstract]
Number of states company serves	50

XML

Pension and Other Postretirement Benefits (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
US Plan [Member]
Change in projected benefit obligation
Projected benefit obligation at beginning of year	$ 3,829,727	$ 3,176,669
Service cost		21,100	21,200
Interest cost	166,534	172,221	174,649
Benefit payments	(257,958)	(72,132)
Administrative expenses	(28,019)	(24,669)
Actuarial (gain) loss	389,763	556,538
Plan amendments
Settlements
Projected benefit obligation at end of year	4,100,047	3,829,727	3,176,669
Change in plan assets
Fair value of plan assets at beginning of year	2,067,871	1,835,326
Actual return on plan assets	227,201	117,350
Benefit payments	(257,958)	(72,132)
Employer contribution	239,830	211,996
Administrative expenses	(28,019)	(24,669)
Fair value of plan assets at end of year	2,248,925	2,067,871	1,835,326
Plan assets (less) greater than benefit obligation	(1,851,122)	(1,761,856)
Canadian Plan [Member]
Change in projected benefit obligation
Projected benefit obligation at beginning of year	1,441,482	1,262,526
Interest cost	58,812	76,866	78,845
Benefit payments	(94,119)	(94,262)
Actuarial (gain) loss	60,912	227,666
Plan amendments
Currency translation adjustment	33,450	(31,314)
Settlements
Projected benefit obligation at end of year	1,500,537	1,441,482	1,262,526
Change in plan assets
Fair value of plan assets at beginning of year	1,212,167	1,203,920
Actual return on plan assets	58,042	44,198
Benefit payments	(94,119)	(94,262)
Employer contribution	83,387	83,036
Currency translation adjustment	28,203	(24,725)
Fair value of plan assets at end of year	1,287,679	1,212,167	1,203,920
Plan assets (less) greater than benefit obligation	$ (212,858)	$ (229,316)

XML

Operating Leases (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Operating Leases (Textual) [Abstract]
Rent expense	$ 407,600	$ 380,800	$ 34,000

XML

Geographical Customer Concentration and Products Data (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Revenue from External Customer [Line Items]
Net sales	$ 13,676,186	$ 13,386,336	$ 12,099,012
Lockers [Member]
Revenue from External Customer [Line Items]
Net sales	8,327,294	9,522,019	8,961,181
Mailboxes [Member]
Revenue from External Customer [Line Items]
Net sales	2,350,717	2,284,582	2,374,682
Contract Manufacturing [Member]
Revenue from External Customer [Line Items]
Net sales	1,729,898	430,586	451,898
Concession Revenues [Member]
Revenue from External Customer [Line Items]
Net sales	$ 1,268,277	$ 1,149,149	$ 311,251

XML

Pension and Other Postretirement Benefits (Details 1) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Summary of net amount recognized on consolidated balance sheets
Non-current liabilities	$ (2,128,210)	$ (2,051,054)
US Plan [Member]
Summary of net amount recognized on consolidated balance sheets
Non-current liabilities	(1,851,122)	(1,761,856)
Net amount recognized	(1,851,122)	(1,761,856)
Canadian Plan [Member]
Summary of net amount recognized on consolidated balance sheets
Non-current liabilities	(212,858)	(229,316)
Net amount recognized	$ (212,858)	$ (229,316)

XML

Debt (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2012
Debt (Textual) [Abstract]
Balance payment date	Dec. 08, 2015
Maturity date of Line of credit facility	Oct. 31, 2013
Debt (Additional Textual) [Abstract]
Entering date of credit agreement	Dec. 08, 2010
Term loan	$ 1,000,000
Revolving line of credit	2,500,000
Amendment date of Loan agreement	Nov. 09, 2012
Advance amount of draw note	500,000
Principal balance of line of credit	2,500,000
Outstanding amount of Line of credit	1,300,000
Interest rate terms	One month LIBOR rate plus 375 basis points (3.75%)
Percentage of interest rate	3.75%
Payments on the Term loan consisting of principal plus accrued interest	16,667
Debt Instrument, Interest Rate at Period End	3.963%
Notes Payable to Banks [Member]
Debt (Textual) [Abstract]
Maturity date of Draw note	Oct. 31, 2013
Period of interest	through November 27, 2013
Balance payment date	Oct. 31, 2016
Borrowings on the Draw note	$ 0
Second Amendment [Member]
Debt (Textual) [Abstract]
Maturity date of Line of credit facility	Oct. 31, 2013
Accounts Receivable [Member]
Debt (Textual) [Abstract]
Eligible accounts receivable, raw materials and finished goods of the company	80.00%
Raw Material And Finished Goods [Member]
Debt (Textual) [Abstract]
Eligible accounts receivable, raw materials and finished goods of the company	50.00%

XML

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Income before income taxes

	2012			2011			2010
United States income (loss)	$	(507,197	)	$	91,329		$	225,555
Foreign income (loss)	$	24,052		$	(10,722	)	$	(25,390	)
	$	(483,145	)	$	80,607		$	200,165

Provision for income taxes

	2012			2011		2010
Current:
Federal	$	(68,791	)	$	—	$	(13,280	)
State		21,503			19,122		—
Foreign		—			—		9,334
Total current		(47,288	)		19,122		(3,946	)
Deferred:
Federal		169,923			13,302		114,738
State		1,628			463		(530	)
Foreign		7,170			10,629		21,534
		178,721			24,394		135,742
	$	131,433		$	43,516	$	131,796

Differences between federal statutory rate and effective tax rate

	2012			2011			2010
Statutory income tax rate		34	%		34	%		34	%
State and foreign income taxes, net of federal benefit		1			1			1
Change in valuation allowance		(69	)		—			23
Foreign earnings taxed at different rate		—			(24	)		—
Change in estimated state income tax rate		(5	)		3			—
Other permanent differences		12			40			8
Effective tax rate		(27	)%		54	%		66	%

Schedule of deferred tax assets and liabilities

	2012			2011
Deferred tax liabilities:
Property, plant and equipment	$	(192,136	)	$	(165,421	)
Prepaid expenses and other		(4,599	)		(4,599	)
Total deferred tax liabilities		(196,735	)		(170,020	)
Deferred tax assets:
Operating loss carryforwards		1,209,966			929,061
Postretirement benefits		22,047			22,047
Pension costs		691,824			666,138
Allowance for doubtful accounts		52,385			45,667
Other assets		5,719			8,008
Accrued expenses		171,444			121,219
Other employee benefits		16,009			8,746
Inventory costs		85,742			74,563
Total deferred tax assets		2,255,136			1,875,449
Net		2,058,401			1,705,429
Valuation allowance		(1,142,633	)		(699,874	)
Net	$	915,768		$	1,005,555
Current deferred tax asset	$	287,417		$	278,437
Long-term deferred tax asset		628,351			727,118
	$	915,768		$	1,005,555

XML

Contingencies (Details) (USD $)	12 Months Ended
	Dec. 31, 2012 LinearFeet Case
Commitments and Contingencies (Additional Textual) [Abstract]
Installation of a reactive iron wall covering area	250
Estimated plan cost for initial construction	$ 688,000
Expected operation and maintenance expenses	1,997,000
Estimated Period	30 years
Unresolved cases	32
Liability for estimated costs	$ 50,000
Massachusetts [Member]
Commitments and Contingencies (Textual) [Abstract]
Number of cases pending	234
Number of cases terminated	167
Settlement agreements, cases	35
Washington [Member]
Commitments and Contingencies (Textual) [Abstract]
Number of cases pending	1

XML

Pension and Other Postretirement Benefits (Details 3) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
U.S. Plan [Member]
Components of net periodic benefit cost
Service cost		$ 21,100	$ 21,200
Interest cost	166,534	172,221	174,649
Expected return on plan assets	(154,411)	(142,104)	(132,093)
Net actuarial loss	93,661	51,287	42,191
Net periodic benefit cost	105,784	102,504	105,947
Canadian Plan [Member]
Components of net periodic benefit cost
Interest cost	58,812	76,866	78,845
Expected return on plan assets	(73,715)	(84,452)	(81,273)
Amortization of prior service cost	34,007	15,070	7,380
Net periodic benefit cost	$ 19,104	$ 7,484	$ 4,952

XML

Valuation and Qualifying Accounts (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Allowance for Doubtful Accounts [Member]
Valuation and Qualifying Accounts
Balance at the beginning of year	$ 149,000	$ 134,000	$ 216,000
Additions charged to costs and expense	48,000	23,000	31,000
Deductions	(35,000)	(8,000)	(113,000)
Balance at end of year	162,000	149,000	134,000
Reserve for Inventory Valuation [Member]
Valuation and Qualifying Accounts
Balance at the beginning of year	693,000	753,000	916,000
Additions charged to costs and expense	58,000	45,000
Deductions	(343,000)	(105,000)	(163,000)
Balance at end of year	408,000	693,000	753,000
Deferred income tax valuation allowance [Member]
Valuation and Qualifying Accounts
Balance at the beginning of year	699,000	758,000	713,000
Additions charged to costs and expense	443,000		45,000
Deductions		(59,000)
Balance at end of year	$ 1,142,000	$ 699,000	$ 758,000

XML

Geographical Customer Concentration and Products Data (Details 1) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales to external customers	$ 13,676,186	$ 13,386,336	$ 12,099,012
Domestic Tax Authority [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales to external customers	11,283,881	10,646,590	9,266,197
Foreign Tax Authority [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales to external customers	$ 2,392,305	$ 2,739,746	$ 2,832,815

XML

Restructuring

12 Months Ended

Dec. 31, 2012

Restructuring [Abstract]

Restructuring

16. Restructuring

In 2009, the Company restructured its business operations to rationalize its cost structure in an uncertain economic environment. The restructuring included plans for the relocation and consolidation of its Ellicottville, New York operations into its Texas facility. This planned relocation resulted in severance and payroll charges during the year ended December 31, 2009 of $264,000. At December 31, 2012 the balance remaining of such payments was $27,900 and the Company expects to make such payment before March 31, 2013.

During the second quarter of 2012, the Company commenced the Ellicottville relocation, resulting in the realization of expense for discontinued inventory, severance and professional fees to complete the move. As a result, the Company recorded a restructuring charge in 2012 of approximately $283,900.

When completed, the restructuring and relocation is expected to result in approximately $240,000 in annual cost savings. Accrued restructuring expenses of $39,900 are included in “Other accrued expenses” in the Company’s consolidated balance sheet, while the $89,000 increase to inventory obsolescence is included in “Inventory reserve.”

The following table analyzes the changes incurred related to the Company’s reserve with respect to the restructuring plan for the year ended December 31, 2012:

	December 31, 2011		Expense/ (Benefit)		Payment/Charges			December 31, 2012
Severance	$	111,000	$	64,000	$	(147,100	)	$	27,900
Professional Fees		—		42,000		(42,000	)		—
Inventory		—		89,000		—			89,000
Other		12,000		88,900		(88,900	)		12,000
Total	$	123,000	$	283,900	$	(278,000	)	$	128,900

The following table analyzes the changes incurred related to the Company’s reserve with respect to the restructuring plan for the year ended December 31, 2011:

	December 31, 2010		Expense/ (Benefit)		Payment/Charges			December 31, 2011
Severance	$	132,000	$	—	$	(21,000	)	$	111,000
Other		12,000		—		—			12,000
Total	$	144,000	$	—	$	(21,000	)	$	123,000

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Income Taxes (Details 1) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Current:
Federal	$ (68,791)		$ (13,280)
State	21,503	19,122
Foreign			9,334
Total current	(47,288)	19,122	(3,946)
Deferred:
Federal	169,923	13,302	114,738
State	1,628	463	(530)
Foreign	7,170	10,629	21,534
Total deferred	178,721	24,394	135,742
Total	$ 131,433	$ 43,516	$ 131,796

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Disneyland Concession Agreement (Details)	12 Months Ended
	Dec. 31, 2012
Disneyland Concession Agreement (Textual) [Abstract]
Option for renewal at Disney's option	1 year
Long Term Supply Commitment [Member]
Disneyland Concession Agreement (Textual) [Abstract]
Number of lockers installed	4,300
Duration of Disney Agreement	5 years
Term of amortization	5 years

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Restructuring (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2009	Dec. 31, 2010
Restructuring (Textual) [Abstract]
Restructuring reserve	$ 128,900	$ 123,000		$ 144,000
Restructuring charge	283,924
Restructuring (Additional Textual) [Abstract]
Severance and payroll charges			264,000
Expected savings on restructuring and relocation	240,000
Accrued restructuring expenses	39,900
Inventory [Member]
Restructuring (Textual) [Abstract]
Restructuring reserve	89,000
Restructuring charge	89,000
Facility Relocation One [Member]
Restructuring (Textual) [Abstract]
Restructuring reserve	$ 27,900

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Geographical Customer Concentration and Products Data (Tables)

12 Months Ended

Dec. 31, 2012

Geographical, Customer Concentration and Products Data [Abstract]

Net sales by product group

	2012		2011		2010
Lockers	$	8,327,294	$	9,522,019	$	8,961,181
Mailboxes		2,350,717		2,284,582		2,374,682
Contract manufacturing		1,729,898		430,586		451,898
Concession revenues		1,268,277		1,149,149		311,251
	$	13,676,186	$	13,386,336	$	12,099,012

Net sales to external customers

	2012		2011		2010
United States customers	$	11,283,881	$	10,646,590	$	9,266,197
Canadian and other foreign customers		2,392,305		2,739,746		2,832,815
	$	13,676,186	$	13,386,336	$	12,099,012

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Income Taxes (Details 3) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Deferred tax liabilities:
Property, plant and equipment	$ (192,136)	$ (165,421)
Prepaid expenses and other	(4,599)	(4,599)
Total deferred tax liabilities	(196,735)	(170,020)
Deferred tax assets:
Operating loss carryforwards	1,209,966	929,061
Postretirement benefits	22,047	22,047
Pension costs	691,824	666,138
Allowance for doubtful accounts	52,385	45,667
Other assets	5,719	8,008
Accrued expenses	171,444	121,219
Other employee benefits	16,009	8,746
Inventory costs	85,742	74,563
Total deferred tax assets	2,255,136	1,875,449
Net	2,058,401	1,705,429
Valuation allowance	(1,142,633)	(699,874)
Net	915,768	1,005,555
Current deferred tax asset	287,417	278,437
Deferred income taxes	628,351	727,118
Net	$ 915,768	$ 1,005,555

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Stock-Based Compensation (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Stock Based Compensation (Textual) [Abstract]
Term of the stock option	10 years
Total unrecognized compensation cost related to stock options expected to vest	$ 0
Stock options granted	0	0	0
Options available for future issuance	37,000
Stock option expense	$ 0
Stock Appreciation Rights (SARs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock appreciation rights outstanding	0	0

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Pension and Other Postretirement Benefits (Details 7)	Dec. 31, 2012	Dec. 31, 2011
US Plan [Member]
Weighted average assumptions used in computing the benefit obligations for the plans
Discount rate	3.85%	4.50%
Canadian Plan [Member]
Weighted average assumptions used in computing the benefit obligations for the plans
Discount rate	3.60%	4.13%
Rate of compensation increase	2.00%	2.00%

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Operating Leases (Details) (USD $)	Dec. 31, 2012
Future minimum lease payments
2013	$ 467,386
2014	452,602
2015	435,909
2016	435,909
2017	435,909
Thereafter	349,113
Total	$ 2,576,828

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Consolidated Statements of Cash Flows (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Operating activities:
Net income (loss)	$ (614,578)	$ 37,091	$ 68,369
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	744,094	671,009	336,037
Provision for uncollectible accounts	48,342	22,585	31,290
Equity based compensation	11,237	62,025	75,516
Loss on disposal of assets			686
Deferred income taxes	(770)	(297,640)	(36,088)
Changes in assets and liabilities:
Accounts and other receivables	(740,794)	1,000,269	1,526,273
Inventories	174,037	(300,472)	(297,059)
Prepaid expenses	32,680	(103,376)	(131,793)
Deferred revenue		(341,000)
Accounts payable and accrued expenses	345,205	(274,209)	(214,132)
Income taxes	(65,830)	4,519	(10,973)
Pension and other benefits	(11,844)	123,983	169,543
Net cash provided by (used in) operating activities	(78,221)	604,784	1,517,669
Net cash used in investing activities:
Purchase of property, plant and equipment	(413,737)	(1,227,798)	(1,968,592)
Financing activities:
Long-term debt payments	(200,000)	(200,000)
Long-term debt borrowings			1,000,000
Borrowings under revolving line of credit	600,000	700,000
Repayment of factoring agreement			(428,588)
Net cash provided by financing activities	400,000	500,000	571,412
Effect of exchange rate changes on cash	(20,321)	(1,306)	2,711
Net increase (decrease) in cash and cash equivalents	(112,279)	(124,320)	123,200
Cash and cash equivalents at beginning of year	525,632	649,952	526,752
Cash and cash equivalents at end of year	413,353	525,632	649,952
Cash paid during the year for:
Interest	107,057	67,555	15,447
Income taxes	$ 15,210	$ 15,647	$ 20,311

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Pension and Other Postretirement Benefits (Details 8)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
US Plan [Member]
Computing net pension expense for the plans
Discount rate	4.50%	5.50%
Expected return on plan assets	7.50%	7.50%
Canadian Plan [Member]
Computing net pension expense for the plans
Discount rate	4.13%	6.25%
Expected return on plan assets	6.00%	7.00%
Rate of compensation increase	2.00%	2.00%

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Inventories (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Inventories
Finished products	$ 602,753	$ 321,378
Work-in-process	666,830	862,000
Raw materials	1,402,033	1,662,185
Net inventories	$ 2,671,616	$ 2,845,563

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Inventories (Tables)

12 Months Ended

Dec. 31, 2012

Inventories [Abstract]

Inventories

	December 31,
	2012		2011
Finished products	$	602,753	$	321,378
Work-in-process		666,830		862,000
Raw materials		1,402,033		1,662,185
Net inventories	$	2,671,616	$	2,845,563

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2012

Summary of Significant Accounting Policies [Abstract]

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include currency on hand and demand deposits with financial institutions. The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company maintains cash and cash equivalents on deposit in amounts in excess of federally insured limits. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant risk.

Accounts Receivable

Accounts Receivable

The Company grants credit to its customers and generally does not require collateral. Accounts receivable are reported at net realizable value and do not accrue interest. Management uses judgmental factors such as a customer’s payment history and the general economic climate, as well as considering the age of and past due status of invoices in assessing collectability and establishing allowances for doubtful accounts. Accounts receivable are written off after all collection efforts have been exhausted.

Estimated losses for bad debts are provided for in the consolidated financial statements through a charge to expense of approximately $48,000, $23,000 and $31,000 for 2012, 2011 and 2010, respectively. The net charge-off of bad debts was approximately $29,000, $1,300 and $113,000 for 2012, 2011 and 2010, respectively.

Inventories

Inventories

Inventories are stated at the lower of cost or market value using the FIFO method and are categorized as raw materials, work-in-progress or finished goods.

The Company records reserves for estimated obsolescence or unmarketable inventory equal to the difference between the actual cost of inventory and the estimated market value based upon assumptions about future demand and market conditions and management’s review of existing inventory. If actual demand and market conditions are less favorable than those projected by management, additional inventory reserves resulting in a charge to expense would be required.

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment are stated at historical cost. Depreciation is computed by the straight-line and declining-balance methods for financial reporting purposes and by accelerated methods for income tax purposes. Estimated useful lives for financial reporting purposes are 20 to 40 years for buildings and 3 to 12 years for machinery and equipment. Leasehold improvements are amortized over the shorter of the life of the building or the lease term. Expenditures for repairs and maintenance are expensed as incurred. Gains and losses resulting from the sale or disposal of property and equipment are included in other income.

Long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts of those assets may not be recoverable in accordance with appropriate guidance. The Company uses undiscounted cash flows to determine whether impairment exists and measures any impairment loss using discounted cash flows. The Company recorded no asset impairment charges related to property, plant and equipment in 2012, 2011 or 2010.

Depreciation expense was $744,094 in 2012, of which $728,869 was included in cost of products sold, and $15,225 was included in selling, administrative and general expenses. Depreciation expense was $671,009 in 2011, of which $651,237 was included in cost of products sold, and $19,772 was included in selling, administrative and general expenses. Depreciation expense was $336,037 in 2010, of which $277,580 was included in cost of products sold, and $58,457 was included in selling, administrative and general expenses.

Pensions and Postretirement Benefits

Pensions and Postretirement Benefits

The Company has two defined benefit plans which recognize a net liability or asset and an offsetting adjustment to accumulated other comprehensive income (loss) to report the funded status of the plans. The plan assets and obligations are measured at their year-end balance sheet date. Refer to Note 10 “Pensions and Other Postretirement Benefits” for further detail on the plans.

Revenue Recognition

Revenue Recognition

The Company recognizes revenue upon passage of title and when risks and rewards have passed to customers, which occurs at the time of shipment to the customer. The Company derived approximately 25.5%, 16.9% and 19.4% of its revenue in 2012, 2011 and 2010, respectively, from sales to distributors. These distributors do not have a right to return unsold products; however, returns may be permitted in specific situations. Historically, returns have not had a significant impact on the Company’s results of operations. Revenues are reported net of discounts and returns and net of sales tax.

For concession operations, the Company recognizes revenue when receipts are collected. Revenue is recognized for the Company’s proportional share of receipts with the remaining amounts collected recorded as an accrued liability until they are remitted to the concession contract counterparty.

Shipping and Handling Costs

Shipping and Handling Costs

Shipping and handling costs are expensed as incurred and are included in selling, administrative and general expenses in the accompanying consolidated statements of operations. These costs were approximately $674,000, $696,000 and $579,000 during 2012, 2011 and 2010, respectively.

Advertising Expense

Advertising Expense

The cost of advertising is generally expensed as incurred. The cost of catalogs and brochures are recorded as a prepaid cost and are expensed over their useful lives, generally one year. The Company incurred approximately $165,000, $149,000 and $134,000 in advertising costs during 2012, 2011 and 2010, respectively.

Income Taxes

Income Taxes

The Company and its domestic subsidiaries file a consolidated U.S. income tax return. Canadian operations file income tax returns in Canada. Hong Kong operations file income tax returns in Hong Kong. The Company accounts for income taxes using the liability method in accordance with appropriate accounting guidance. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is recorded to reduce the Company’s deferred tax assets to the amount that is more likely than not to be realized.

Pursuant to appropriate accounting guidance, ASC-740—Income Taxes, when establishing a valuation allowance, the Company considers future sources of taxable income such as “future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards” and “tax planning strategies.” Appropriate accounting guidance defines a tax planning strategy as “an action that: is prudent and feasible; an enterprise ordinarily might not take, but would take to prevent an operating loss or tax credit carryforward from expiring unused; and would result in realization of deferred tax assets.” In the event the Company determines that the deferred tax assets will not be realized in the future, the valuation adjustment to the deferred tax assets is charged to earnings in the period in which the Company makes such a determination. If it is later determined that it is more likely than not that the deferred tax assets will be realized, the Company will release the valuation allowance to current earnings.

The amount of income taxes the Company pays is subject to ongoing audits by federal, state and foreign tax authorities. The Company’s estimate of the potential outcome of any uncertain tax issue is subject to management’s assessment of relevant risks, facts and circumstances existing at that time, pursuant to appropriate accounting guidance. Appropriate accounting guidance requires a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company records a liability for the difference between the benefit recognized and measured pursuant to appropriate accounting guidance and tax position taken or expected to be taken on the tax return. To the extent that the Company’s assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made. The Company reports tax-related interest and penalties as a component of income tax expense.

Research and Development

Research and Development

The Company engages in research and development activities relating to new and improved products. It expended approximately $99,000, $77,000 and $108,000 in 2012, 2011 and 2010, respectively, for such activity in its continuing businesses. Research and development costs are included in selling, administrative and general expenses.

Earnings Per Share

Earnings Per Share

The Company reports earnings per share in accordance with appropriate accounting guidance. Under appropriate accounting guidance basic earnings per share excludes any dilutive effects of stock options, whereas diluted earnings per share assumes exercise of stock options, when dilutive, resulting in an increase in outstanding shares. Please refer to Note 13 for further information.

Foreign Currency

Foreign Currency

In accordance with appropriate accounting guidance the Company translates the financial statements of the Canadian and Hong Kong subsidiaries from its functional currency into the U.S. dollar. Assets and liabilities are translated into U.S. dollars using exchange rates in effect at the balance sheet date. Income statement amounts are translated using the average exchange rate for the year. All translation gains and losses resulting from the changes in exchange rates from year to year have been reported in other comprehensive income. Foreign currency gains and losses resulting from current year exchange rate transactions are insignificant for all years presented.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and long-term debt approximate fair value.

Comprehensive Income

Comprehensive Income

Comprehensive income consists of net income, foreign currency translation and minimum pension liability adjustments and is reported in the consolidated statements of stockholders’ equity.

Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include allowance for doubtful accounts, inventory obsolescence, product returns, pension, post-retirement benefits, contingencies, and deferred tax asset valuation allowance. Actual results could differ from those estimates.

New Accounting Pronouncements

New Accounting Pronouncements

In June 2011, the FASB issued amendments to guidance regarding the presentation of comprehensive income (ASU 2011-05—Comprehensive Income). The amendments eliminate the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity. The amendments require that comprehensive income be presented in either a single continuous statement or in two separate but consecutive statements. In a single continuous statement, the entity would present the components of net income and total net income, the components of other comprehensive income and a total of other comprehensive income, along with the total of comprehensive income in that statement. In the two-statement approach, the entity would present components of net income and total net income in the statement of net income and a statement of other comprehensive income would immediately follow the statement of net income and include the components of other comprehensive income and a total for other comprehensive income, along with a total for comprehensive income. The amendments also require the entity to present on the face of the financial statements any reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement(s) where the components of net income and the components of other comprehensive income are presented. The amendments do not change the items that must be reported in other comprehensive income, when an item of other comprehensive income must be re-classed to net income or the option to present components of other comprehensive income either net of related tax effects or before related tax effects. The amendments, excluding the specific requirement to present on the face of the financial statements any reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement(s) where the components of net income and the components of other comprehensive income are presented which was deferred by the FASB in December 2011, are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and are to be applied retrospectively. The Company adopted ASU 2011-05 in the first quarter of 2012. Upon adoption, the Company elected the two-statement approach and presents a separate consolidated statement of comprehensive loss.

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Pension and Other Postretirement Benefits (Details 2) (USD $)	Dec. 31, 2012	Dec. 31, 2011
US Plan [Member]
Summary of amount in accumulated other comprehensive loss
Unrecognized net loss	$ 1,636,551	$ 1,413,239
Net amount recognized	1,636,551	1,413,239
Canadian Plan [Member]
Summary of amount in accumulated other comprehensive loss
Unrecognized net loss	599,824	544,514
Net amount recognized	$ 599,824	$ 544,514

XML

Other Accrued Expenses and Current Liabilities (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Accrued expenses
Restructuring liability	$ 39,883	$ 123,037
Accrued rent liability	286,544	190,229
Accrued expenses, other	364,157	177,922
Total accrued expenses	$ 690,584	$ 491,188

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Other Accrued Expenses and Current Liabilities (Tables)

12 Months Ended

Dec. 31, 2012

Other Accrued Expenses and Current Liabilities [Abstract]

Accrued expenses

	December 31,
	2012		2011
Restructuring liability	$	39,883	$	123,037
Accrued rent liability		286,544		190,229
Accrued expenses, other		364,157		177,922
Total accrued expenses	$	690,584	$	491,188

XML

Debt (Tables)

12 Months Ended

Dec. 31, 2012

Debt [Abstract]

Long-term debt

	December 31,
	2012		2011
Term loan payable to Bank of America Merrill Lynch through December 2015 at $16,667 monthly plus interest at LIBOR rate plus 375 basis points (3.963% at December 31, 2012) collateralized by accounts receivable, inventory, and equipment	$	600,000	$	800,000
Less current portion		200,000		200,000
Long-term portion	$	400,000	$	600,000

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Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Minimum pension liability adjustment	$ 91,544	$ 158,869	$ 79,354
Common stock issued as compensation	0	37,893	53,091
Common Stock
Common stock issued as compensation	0	37,893	53,091
Other Capital
Common stock issued as compensation	0	37,893	53,091
Accumulated Other Comprehensive Income (Loss)
Minimum pension liability adjustment	$ 91,544	$ 158,869	$ 79,354

XML

Operating Leases (Tables)

12 Months Ended

Dec. 31, 2012

Operating Leases [Abstract]

Future minimum lease payments

2013	$	467,386
2014		452,602
2015		435,909
2016		435,909
2017		435,909
Thereafter		349,113
Total	$	2,576,828

XML

Summary of Significant Accounting Policies (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Summary of Significant Accounting Policies (Textual) [Abstract]
Estimated losses for bad debts through a charge to expense	$ 48,000	$ 23,000	$ 31,000
Net charge-off of bad debts	29,000	1,300	113,000
Asset impairment charges related to property, plant and equipment	0	0	0
Depreciation expense	744,094	671,009	336,037
Cost of products sold	728,869	651,237	277,580
Selling, administrative and general expenses	15,225	19,772	58,457
Percentage of revenue recognized	25.50%	16.90%	19.40%
Shipping and handling costs	674,000	696,000	579,000
Useful life of prepaid costs	1 year
Cost of advertising	165,000	149,000	134,000
Research and development expenses	$ 99,000	$ 77,000	$ 108,000
Original maturity of highly liquid investments	3 months
Maximum [Member] | Building [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	40 years
Maximum [Member] | Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	12 years
Minimum [Member] | Building [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	20 years
Minimum [Member] | Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years

XML

Income Taxes (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Income Taxes (Textual) [Abstract]
Decrease in valuation allowance	$ 1,142,000	$ 699,000
Undistributed earnings subject to additional income taxes	164,000
Deferred tax asset gross	2,058,401	1,705,429
Gross deferred tax asset loss carryforwards	2,993,000
Unrecognized tax benefit	0
Interest on uncertain tax position	$ 0
Net operating loss carryforward initial expiration year	2027
Net operating loss carryforward expiration year	2032

XML

Geographical Customer Concentration and Products Data (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2012 Customer	Dec. 31, 2011 Customer	Dec. 31, 2010
Geographical Customer Concentration And Products Data (Textual) [Abstract]
Customers accounted for Consolidated sales	10.00%	10.00%	10.00%
Unsecured trade receivables from governmental agencies	$ 8,000	$ 26,000
Trade receivables from customers	$ 583,000	$ 334,000
Number of customers	6	4
Customers accounted for accounts receivable	27.00%	43.20%

XML

Consolidated Balance Sheets (USD $)	Dec. 31, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 413,353	$ 525,632
Accounts receivable, less allowance for doubtful accounts of $162,000 in 2012 and $149,000 in 2011	2,385,644	1,754,959
Inventories, net	2,671,616	2,845,563
Prepaid expenses	298,185	330,403
Deferred income taxes	287,417	278,437
Total current assets	6,056,215	5,734,994
Property, plant and equipment:
Land	500	500
Buildings and leasehold improvements	803,021	754,922
Machinery and equipment	11,292,235	10,891,820
Total property, plant and equipment	12,095,756	11,647,242
Less allowance for depreciation and amortization	(8,861,997)	(8,087,988)
Net property, plant and equipment	3,233,759	3,559,254
Other noncurrent assets	45,173	47,259
Deferred income taxes	628,351	727,118
Total assets	9,963,498	10,068,625
Current liabilities:
Accounts payable	1,856,023	1,627,489
Customer deposits	255,753	398,167
Commissions, salaries, wages, and taxes thereon	157,087	162,507
Income taxes payable	3,888	69,718
Revolving line of credit	1,300,000	700,000
Current portion of long-term debt	200,000	200,000
Other accrued expenses	690,584	491,188
Total current liabilities	4,463,335	3,649,069
Long-term liabilities:
Long-term debt, net of current portion	400,000	600,000
Pension and other benefits	2,128,210	2,051,054
Total long term liabilities	2,528,210	2,651,054
Total liabilities	6,991,545	6,300,123
Commitments and contingencies (Note 15)
Stockholders' equity:
Common stock, $1 par value: Authorized shares - 4,000,000 Issued shares - 1,879,319 and 1,871,999 in 2012 and 2011, respectively Outstanding shares - 1,687,319 and 1,679,999 in 2012 and 2011, respectively	1,879,319	1,871,999
Other capital	288,395	284,478
Retained earnings	4,386,520	5,001,097
Treasury stock at cost (192,000 shares)	(2,112,000)	(2,112,000)
Accumulated other comprehensive loss	(1,470,281)	(1,277,072)
Total stockholders' equity	2,971,953	3,768,502
Total liabilities and stockholders' equity	$ 9,963,498	$ 10,068,625

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Debt (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Long-term debt
Term loan payable to Bank of America Merrill Lynch through December 2015 at $16,667 monthly plus interest at LIBOR rate plus 375 basis points (3.963% at December 31, 2012) collateralized by accounts receivable, inventory, and equipment	$ 600,000	$ 800,000
Less current portion	200,000	200,000
Long-term portion	$ 400,000	$ 600,000

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Consolidated Statements of Comprehensive Income (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Consolidated Statements of Comprehensive Income [Abstract]
Tax effect on adjustment to minimum pension liability	$ 91,544	$ 158,869	$ 79,354

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Pension and Other Postretirement Benefits (Details 5)	12 Months Ended
	Dec. 31, 2012
US Plan [Member]
Plans weighted-average allocations by asset category
Weighted-average allocations by asset category	100.00%
Canadian Plan [Member]
Plans weighted-average allocations by asset category
Weighted-average allocations by asset category	100.00%
Equities [Member] | US Plan [Member]
Plans weighted-average allocations by asset category
Weighted-average allocations by asset category	58.00%
Equities [Member] | Canadian Plan [Member]
Plans weighted-average allocations by asset category
Weighted-average allocations by asset category	39.00%
Fixed income [Member] | US Plan [Member]
Plans weighted-average allocations by asset category
Weighted-average allocations by asset category	42.00%
Fixed income [Member] | Canadian Plan [Member]
Plans weighted-average allocations by asset category
Weighted-average allocations by asset category	61.00%

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Stock Based Compensation (Tables)

12 Months Ended

Dec. 31, 2012

Stock-Based Compensation [Abstract]

Activity related to the Company's stock options

	2012				2011				2009
	Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price
Outstanding—beginning of year		12,000	$	4.95		12,000	$	4.95		12,000	$	4.95
Expired or forfeited		—		—		—		—				—
Outstanding—end of year		12,000	$	4.95		12,000	$	4.95		12,000	$	4.95
Exercisable—end of year		12,000				12,000				12,000

Summary of stock options vested and unvested

Vested
Exercise Price	Number of Options	Intrinsic Value	Remaining Years of Contractual Life
$4.95	12,000	—	4.7

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Stock-Based Compensation (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Stock options, Outstanding
Outstanding, beginning of year	12,000	12,000	12,000
Expired or forfeited
Outstanding, end of year	12,000	12,000	12,000
Exercisable, end of year	12,000	12,000	12,000
Stock options, Weighted average exercise price
Weighted Average Exercise Price Outstanding, beginning of year	$ 4.95	$ 4.95	$ 4.95
Expired or forfeited
Weighted Average Exercise Price Outstanding, end of year	$ 4.95	$ 4.95	$ 4.95

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Earnings Per Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share

13. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the years ended December 31:

	2012			2011		2010
Numerator:
Net income (loss)	$	(614,578	)	$	37,091	$	68,369
Denominator:
Denominator for basic earnings per share—weighted average shares outstanding		1,682,994			1,655,805		1,605,769
Denominator for diluted earnings per share—weighted average shares outstanding and assumed conversions		1,682,994			1,655,805		1,605,769
Basic earnings (loss) per share	$	(0.37	)	$	0.02	$	0.04
Diluted earnings (loss) per share	$	(0.37	)	$	0.02	$	0.04

For each of the years ended December 31, 2012, 2011 and 2010, 12,000 shares attributable to outstanding stock options were excluded from the calculation of diluted earnings (loss) per share because the effect was antidilutive.

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Computation of basic and diluted earnings per share

	2012			2011		2010
Numerator:
Net income (loss)	$	(614,578	)	$	37,091	$	68,369
Denominator:
Denominator for basic earnings per share—weighted average shares outstanding		1,682,994			1,655,805		1,605,769
Denominator for diluted earnings per share—weighted average shares outstanding and assumed conversions		1,682,994			1,655,805		1,605,769
Basic earnings (loss) per share	$	(0.37	)	$	0.02	$	0.04
Diluted earnings (loss) per share	$	(0.37	)	$	0.02	$	0.04

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Contingencies

12 Months Ended

Dec. 31, 2012

Contingencies [Abstract]

Contingencies

15. Contingencies

In July 2001, the Company received a letter from the New York State Department of Environmental Conservation (the “NYSDEC”) advising the Company that it is a potentially responsible party (PRP) with respect to environmental contamination at and alleged migration from property located in Gowanda, New York which was sold by the Company to Gowanda Electronics Corporation prior to 1980. In March 2001, the NYSDEC issued a Record of Decision with respect to the Gowanda site in which it set forth a remedy including continued operation of an existing extraction well and air stripper, installation of groundwater pumping wells and a collection trench, construction of a treatment system in a separate building on the site, installation of a reactive iron wall covering 250 linear feet, which is intended to intercept any contaminates and implementation of an on-going monitoring system. The NYSDEC has estimated that its selected remediation plan will cost approximately $688,000 for initial construction and a total of $1,997,000 with respect to expected operation and maintenance expenses over a 30-year period after completion of initial construction. The Company has not conceded to the NYSDEC that the Company is liable with respect to this matter and has not agreed with the NYSDEC that the remediation plan selected by NYSDEC is the most appropriate plan. This matter has not been litigated, and at the present time the Company has only been identified as a PRP. The Company also believes that other parties may have been identified by the NYSDEC as PRPs, and the allocation of financial responsibility of such parties has not been litigated. To the Company’s knowledge, the NYSDEC has not commenced implementation of the remediation plan and has not indicated when construction will start, if ever. Based upon currently available information, the Company is unable to estimate timing with respect to the resolution of this matter. The Company’s primary insurance carrier has assumed the cost of the Company’s defense in this matter, subject to a reservation of rights.

Beginning in September 1998 and continuing through the date of filing of this Annual Report on Form 10-K, the Company has been named as an additional defendant in approximately 234 cases pending in state court in Massachusetts and 1 in the state of Washington. The plaintiffs in each case assert that a division of the Company manufactured and furnished components containing asbestos to a shipyard during the period from 1948 to 1972 and that injury resulted from exposure to such products. The assets of this division were sold by the Company in 1973. During the process of discovery in certain of these actions, documents from sources outside the Company have been produced which indicate that the Company appears to have been included in the chain of title for certain wall panels which contained asbestos and which were delivered to the Massachusetts shipyards. Defense of these cases has been assumed by the Company’s insurance carrier, subject to a reservation of rights. Settlement agreements have been entered in approximately 35 cases with funds authorized and provided by the Company’s insurance carrier. Further, over 167 cases have been terminated as to the Company without liability to the Company under Massachusetts procedural rules. Therefore, the balance of unresolved cases against the Company as of March 25, 2013, the most recent date information is available, is approximately 32 cases.

While the Company cannot estimate potential damages or predict what the ultimate resolution of these asbestos cases may be because the discovery proceedings on the cases are not complete, based upon the Company’s experience to date with similar cases, as well as the assumption that insurance coverage will continue to be provided with respect to these cases, at the present time, the Company does not believe that the outcome of these cases will have a significant adverse impact on the Company’s operations or financial condition.

On February 5, 2013, the Company was notified by one of its customers that certain product purchased by that customer had quality issues. On March 11, 2013, the Company and the customer entered into an agreement whereby the Company will reimburse the customer for reasonable costs and expenses incurred on or before December 31, 2013 by the customer in its efforts to resolve the quality issue. The Company has no current obligation to reimburse the customer for costs incurred after December 31, 2013 and has in place liability coverage for third-party injury and property damage that might occur as a result of the product’s quality issue. At December 31, 2012, the Company recorded a liability of $50,000 for estimated costs to be reimbursed to the customer pursuant to the terms of the agreement.

The Company is involved in other claims and litigation from time to time in the normal course of business. The Company does not believe these matters will have a significant adverse impact on the Company’s operations or financial condition.

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Earnings Per Share (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Numerator:
Net income (loss)	$ (614,578)	$ 37,091	$ 68,369
Denominator:
Denominator for basic earnings per share-weighted average shares outstanding	1,682,994	1,655,805	1,605,769
Denominator for diluted earnings per share-weighted average shares outstanding and assumed conversion	1,682,994	1,655,805	1,605,769
Basic earnings (loss) per share	$ (0.37)	$ 0.02	$ 0.04
Diluted earnings (loss) per share	$ (0.37)	$ 0.02	$ 0.04

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Consolidated Statements of Stockholders' Equity (USD $)	Total	Common Stock	Other Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)
Beginning Balance at Dec. 31, 2009	$ 4,265,782	$ 1,781,015	$ 242,846	$ 4,895,637	$ (2,112,000)	$ (541,716)
Net income (loss)	68,369			68,369
Other comprehensive income (loss):
Foreign currency translation	11,925					11,925
Minimum pension liability adjustment, net of tax benefit of $79,354, $158,869 and $91,544 for 2010, 2011 and 2012, respectively	(119,033)					(119,033)
Total comprehensive loss	(38,739)
Common stock issued as compensation (53,091, 37,893 and 00,000 shares for 2010, 2011 and 2012, respectively)	75,516	53,091	22,425
Ending Balance at Dec. 31, 2010	4,302,559	1,834,106	265,271	4,964,006	(2,112,000)	(648,824)
Net income (loss)	37,091			37,091
Other comprehensive income (loss):
Foreign currency translation	(18,028)					(18,028)
Minimum pension liability adjustment, net of tax benefit of $79,354, $158,869 and $91,544 for 2010, 2011 and 2012, respectively	(610,220)					(610,220)
Total comprehensive loss	(591,157)
Common stock issued as compensation (53,091, 37,893 and 00,000 shares for 2010, 2011 and 2012, respectively)	57,100	37,893	19,207
Ending Balance at Dec. 31, 2011	3,768,502	1,871,999	284,478	5,001,097	(2,112,000)	(1,277,072)
Net income (loss)	(614,578)			(614,578)
Other comprehensive income (loss):
Foreign currency translation	(6,130)					(6,130)
Minimum pension liability adjustment, net of tax benefit of $79,354, $158,869 and $91,544 for 2010, 2011 and 2012, respectively	(187,078)					(187,078)
Total comprehensive loss	(807,786)
Common stock issued as compensation (53,091, 37,893 and 00,000 shares for 2010, 2011 and 2012, respectively)	11,237	7,320	3,917
Ending Balance at Dec. 31, 2012	$ 2,971,953	$ 1,879,319	$ 288,395	$ 4,386,519	$ (2,112,000)	$ (1,470,280)

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Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Consolidated Balance Sheets [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 162,000	$ 149,000
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	4,000,000	4,000,000
Common stock, shares issued	1,879,319	1,871,999
Common stock, shares outstanding	1,687,319	1,679,999
Treasury stock, shares	192,000	192,000

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Operating Leases

12 Months Ended

Dec. 31, 2012

Operating Leases [Abstract]

Operating Leases

8. Operating Leases

The Company leases several operating facilities, vehicles and equipment under non-cancelable operating leases. The Company accounts for operating leases on a straight line basis over the lease term. Future minimum lease payments consist of the following at December 31, 2012:

2013	$	467,386
2014		452,602
2015		435,909
2016		435,909
2017		435,909
Thereafter		349,113
Total	$	2,576,828

Rent expense amounted to approximately $407,600, $380,800 and $34,000 in 2012, 2011 and 2010, respectively.

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2012	Mar. 20, 2013	Jun. 30, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	AMERICAN LOCKER GROUP INC
Entity Central Index Key	0000008855
Document Type	10-K/A
Document Period End Date	Dec. 31, 2012
Amendment Flag	true
Amendment Description	This Amendment No. 1 to the Annual Report on Form 10-K for the fiscal year ended December 31, 2012 of American Locker Group Incorporated is filed for the purpose of correcting a typographical error in the Consolidated Balance Sheet as of December 31, 2011.
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 1,506,251
Entity Common Stock, Shares Outstanding		1,687,319

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Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Income Taxes

9. Income Taxes

For financial reporting purposes, income before income taxes includes the following during the years ended December 31:

	2012			2011			2010
United States income (loss)	$	(507,197	)	$	91,329		$	225,555
Foreign income (loss)	$	24,052		$	(10,722	)	$	(25,390	)
	$	(483,145	)	$	80,607		$	200,165

Significant components of the provision for income taxes are as follows:

	2012			2011		2010
Current:
Federal	$	(68,791	)	$	—	$	(13,280	)
State		21,503			19,122		—
Foreign		—			—		9,334
Total current		(47,288	)		19,122		(3,946	)
Deferred:
Federal		169,923			13,302		114,738
State		1,628			463		(530	)
Foreign		7,170			10,629		21,534
		178,721			24,394		135,742
	$	131,433		$	43,516	$	131,796

The differences between the federal statutory rate and the effective tax rate as a percentage of income before taxes are as follows:

	2012			2011			2010
Statutory income tax rate		34	%		34	%		34	%
State and foreign income taxes, net of federal benefit		1			1			1
Change in valuation allowance		(69	)		—			23
Foreign earnings taxed at different rate		—			(24	)		—
Change in estimated state income tax rate		(5	)		3			—
Other permanent differences		12			40			8
Effective tax rate		(27	)%		54	%		66	%

Differences between the application of accounting principles and tax laws cause differences between the bases of certain assets and liabilities for financial reporting purposes and tax purposes. The tax effects of these differences, to the extent they are temporary, are recorded as deferred tax assets and liabilities. Significant components of the Company’s deferred tax assets and liabilities at December 31 are as follows:

	2012			2011
Deferred tax liabilities:
Property, plant and equipment	$	(192,136	)	$	(165,421	)
Prepaid expenses and other		(4,599	)		(4,599	)
Total deferred tax liabilities		(196,735	)		(170,020	)
Deferred tax assets:
Operating loss carryforwards		1,209,966			929,061
Postretirement benefits		22,047			22,047
Pension costs		691,824			666,138
Allowance for doubtful accounts		52,385			45,667
Other assets		5,719			8,008
Accrued expenses		171,444			121,219
Other employee benefits		16,009			8,746
Inventory costs		85,742			74,563
Total deferred tax assets		2,255,136			1,875,449
Net		2,058,401			1,705,429
Valuation allowance		(1,142,633	)		(699,874	)
Net	$	915,768		$	1,005,555
Current deferred tax asset	$	287,417		$	278,437
Long-term deferred tax asset		628,351			727,118
	$	915,768		$	1,005,555

As of December 31, 2012 and 2011, the Company’s gross deferred tax assets were approximately $2,058,000 and $1,705,000, respectively. Gross deferred tax assets as of December 31, 2012 reflect the benefit of approximately $2,993,000 in net operating loss carryforwards for federal and state income tax purposes which are available to offset future income tax and expire in varying amounts between 2027 and 2032. Realization of deferred tax assets is dependent on generating sufficient taxable income prior to expiration of the net operating loss carryforwards. Due to negative evidence, primarily limited operating income, indicating that a valuation allowance is required, gross deferred tax assets are reduced by a valuation allowance as of December 31, 2012 and 2011 of approximately $1,142,000 and $699,000, respectively. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward period are reduced. Increases in the valuation allowance in 2012 are primarily due to decreased forecasted future U.S. taxable income exclusive of timing reversals.

The Company has not provided deferred taxes for taxes that could result from the remittance of undistributed earnings of the Company’s foreign subsidiary since it has generally been the Company’s intention to reinvest these earnings indefinitely. Undistributed earnings that could be subject to additional income taxes if remitted were approximately $164,000 at December 31, 2012.

The Company files an income tax return in the U.S. federal jurisdiction, Texas, and a number of other U.S. state and local jurisdictions. Tax returns for the years 2008 through 2012 remain open for examination in various tax jurisdictions in which it operates. On January 1, 2007 the Company adopted the provisions of a new accounting pronouncement that addresses the accounting for uncertainty in income taxes recognized in the financial statements. As a result of this adoption, the Company recognized no material adjustment in the liability for unrecognized income tax benefits. At the adoption date of January 1, 2007, and at December 31, 2012, there were no unrecognized tax benefits. As of December 31, 2012, no interest related to uncertain tax positions had been accrued.

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Consolidated Statements of Operations (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Consolidated Statements of Operations [Abstract]
Net sales	$ 13,676,186	$ 13,386,336	$ 12,099,012
Cost of products sold	9,767,377	9,286,025	7,726,497
Gross profit	3,908,809	4,100,311	4,372,515
Selling, administrative and general expenses	3,991,280	4,070,957	4,217,205
Restructuring charge	283,924
Total operating expenses	4,275,204	4,070,957	4,217,205
Total operating income (loss)	(366,395)	29,354	155,310
Interest income (expense)	13,637	(47)
Other income (expense) - net	(14,005)	120,033	61,087
Interest expense	(116,382)	(68,733)	(16,232)
Net income (loss) before income taxes	(483,145)	80,607	200,165
Income tax expense (benefit)	131,433	43,516	131,796
Net income (loss)	$ (614,578)	$ 37,091	$ 68,369
Weighted average common shares:
Basic	1,682,994	1,655,805	1,605,769
Diluted	1,682,994	1,655,805	1,605,769
Income (loss) per share of common stock:
Basic	$ (0.37)	$ 0.02	$ 0.04
Diluted	$ (0.37)	$ 0.02	$ 0.04
Dividends per share of common stock	$ 0.00	$ 0.00	$ 0.00

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Sale of Property

12 Months Ended

Dec. 31, 2012

Sale of Property [Abstract]

Sale of Property

3. Sale of Property

On September 18, 2009, the Company sold its headquarters and primary manufacturing facility to the City of Grapevine, Texas (the “City”) for a purchase price of $2,747,000.

The Company was entitled to continue to occupy the facility, through December 31, 2010 at no cost. The City has further agreed to pay the Company’s relocation costs within the Dallas-Fort Worth area and to pay the Company’s real property taxes for the facility through June 2011. During May 2011, the Company relocated its corporate headquarters and primary manufacturing facility from Grapevine, Texas to a new 100,500 sq. ft. building in DFW Airport, Texas. The Company received a $341,000 payment towards the moving costs at closing which was recorded as “Deferred revenue” in the Company’s consolidated balance sheet as of December 31, 2010. The Company offset $211,768 of moving expense against deferred revenue in 2011. The difference of $129,232 between the deferred revenue balance at December 31, 2010 and the amount offset against moving expenses was recorded as “Other income.” Proceeds of the sale were used to pay off the $2 million mortgage secured by the property and for general working capital purposes.

The Company invested approximately $875.000 during 2011 for leasehold improvements and machinery and equipment related to relocating.

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Cash and Cash Equivalents

Cash and cash equivalents include currency on hand and demand deposits with financial institutions. The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company maintains cash and cash equivalents on deposit in amounts in excess of federally insured limits. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant risk.

Accounts Receivable

The Company grants credit to its customers and generally does not require collateral. Accounts receivable are reported at net realizable value and do not accrue interest. Management uses judgmental factors such as a customer’s payment history and the general economic climate, as well as considering the age of and past due status of invoices in assessing collectability and establishing allowances for doubtful accounts. Accounts receivable are written off after all collection efforts have been exhausted.

Estimated losses for bad debts are provided for in the consolidated financial statements through a charge to expense of approximately $48,000, $23,000 and $31,000 for 2012, 2011 and 2010, respectively. The net charge-off of bad debts was approximately $29,000, $1,300 and $113,000 for 2012, 2011 and 2010, respectively.

Inventories

Inventories are stated at the lower of cost or market value using the FIFO method and are categorized as raw materials, work-in-progress or finished goods.

The Company records reserves for estimated obsolescence or unmarketable inventory equal to the difference between the actual cost of inventory and the estimated market value based upon assumptions about future demand and market conditions and management’s review of existing inventory. If actual demand and market conditions are less favorable than those projected by management, additional inventory reserves resulting in a charge to expense would be required.

Property, Plant and Equipment

Property, plant and equipment are stated at historical cost. Depreciation is computed by the straight-line and declining-balance methods for financial reporting purposes and by accelerated methods for income tax purposes. Estimated useful lives for financial reporting purposes are 20 to 40 years for buildings and 3 to 12 years for machinery and equipment. Leasehold improvements are amortized over the shorter of the life of the building or the lease term. Expenditures for repairs and maintenance are expensed as incurred. Gains and losses resulting from the sale or disposal of property and equipment are included in other income.

Long-lived assets, including intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts of those assets may not be recoverable in accordance with appropriate guidance. The Company uses undiscounted cash flows to determine whether impairment exists and measures any impairment loss using discounted cash flows. The Company recorded no asset impairment charges related to property, plant and equipment in 2012, 2011 or 2010.

Depreciation expense was $744,094 in 2012, of which $728,869 was included in cost of products sold, and $15,225 was included in selling, administrative and general expenses. Depreciation expense was $671,009 in 2011, of which $651,237 was included in cost of products sold, and $19,772 was included in selling, administrative and general expenses. Depreciation expense was $336,037 in 2010, of which $277,580 was included in cost of products sold, and $58,457 was included in selling, administrative and general expenses.

Pensions and Postretirement Benefits

The Company has two defined benefit plans which recognize a net liability or asset and an offsetting adjustment to accumulated other comprehensive income (loss) to report the funded status of the plans. The plan assets and obligations are measured at their year-end balance sheet date. Refer to Note 10 “Pensions and Other Postretirement Benefits” for further detail on the plans.

Revenue Recognition

The Company recognizes revenue upon passage of title and when risks and rewards have passed to customers, which occurs at the time of shipment to the customer. The Company derived approximately 25.5%, 16.9% and 19.4% of its revenue in 2012, 2011 and 2010, respectively, from sales to distributors. These distributors do not have a right to return unsold products; however, returns may be permitted in specific situations. Historically, returns have not had a significant impact on the Company’s results of operations. Revenues are reported net of discounts and returns and net of sales tax.

For concession operations, the Company recognizes revenue when receipts are collected. Revenue is recognized for the Company’s proportional share of receipts with the remaining amounts collected recorded as an accrued liability until they are remitted to the concession contract counterparty.

Shipping and Handling Costs

Shipping and handling costs are expensed as incurred and are included in selling, administrative and general expenses in the accompanying consolidated statements of operations. These costs were approximately $674,000, $696,000 and $579,000 during 2012, 2011 and 2010, respectively.

Advertising Expense

The cost of advertising is generally expensed as incurred. The cost of catalogs and brochures are recorded as a prepaid cost and are expensed over their useful lives, generally one year. The Company incurred approximately $165,000, $149,000 and $134,000 in advertising costs during 2012, 2011 and 2010, respectively.

Income Taxes

The Company and its domestic subsidiaries file a consolidated U.S. income tax return. Canadian operations file income tax returns in Canada. Hong Kong operations file income tax returns in Hong Kong. The Company accounts for income taxes using the liability method in accordance with appropriate accounting guidance. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. A valuation allowance is recorded to reduce the Company’s deferred tax assets to the amount that is more likely than not to be realized.

Pursuant to appropriate accounting guidance, ASC-740—Income Taxes, when establishing a valuation allowance, the Company considers future sources of taxable income such as “future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards” and “tax planning strategies.” Appropriate accounting guidance defines a tax planning strategy as “an action that: is prudent and feasible; an enterprise ordinarily might not take, but would take to prevent an operating loss or tax credit carryforward from expiring unused; and would result in realization of deferred tax assets.” In the event the Company determines that the deferred tax assets will not be realized in the future, the valuation adjustment to the deferred tax assets is charged to earnings in the period in which the Company makes such a determination. If it is later determined that it is more likely than not that the deferred tax assets will be realized, the Company will release the valuation allowance to current earnings.

The amount of income taxes the Company pays is subject to ongoing audits by federal, state and foreign tax authorities. The Company’s estimate of the potential outcome of any uncertain tax issue is subject to management’s assessment of relevant risks, facts and circumstances existing at that time, pursuant to appropriate accounting guidance. Appropriate accounting guidance requires a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. The Company records a liability for the difference between the benefit recognized and measured pursuant to appropriate accounting guidance and tax position taken or expected to be taken on the tax return. To the extent that the Company’s assessment of such tax positions changes, the change in estimate is recorded in the period in which the determination is made. The Company reports tax-related interest and penalties as a component of income tax expense.

Research and Development

The Company engages in research and development activities relating to new and improved products. It expended approximately $99,000, $77,000 and $108,000 in 2012, 2011 and 2010, respectively, for such activity in its continuing businesses. Research and development costs are included in selling, administrative and general expenses.

Earnings Per Share

The Company reports earnings per share in accordance with appropriate accounting guidance. Under appropriate accounting guidance basic earnings per share excludes any dilutive effects of stock options, whereas diluted earnings per share assumes exercise of stock options, when dilutive, resulting in an increase in outstanding shares. Please refer to Note 13 for further information.

Foreign Currency

In accordance with appropriate accounting guidance the Company translates the financial statements of the Canadian and Hong Kong subsidiaries from its functional currency into the U.S. dollar. Assets and liabilities are translated into U.S. dollars using exchange rates in effect at the balance sheet date. Income statement amounts are translated using the average exchange rate for the year. All translation gains and losses resulting from the changes in exchange rates from year to year have been reported in other comprehensive income. Foreign currency gains and losses resulting from current year exchange rate transactions are insignificant for all years presented.

Fair Value of Financial Instruments

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and long-term debt approximate fair value.

Comprehensive Income

Comprehensive income consists of net income, foreign currency translation and minimum pension liability adjustments and is reported in the consolidated statements of stockholders’ equity.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include allowance for doubtful accounts, inventory obsolescence, product returns, pension, post-retirement benefits, contingencies, and deferred tax asset valuation allowance. Actual results could differ from those estimates.

New Accounting Pronouncements

In June 2011, the FASB issued amendments to guidance regarding the presentation of comprehensive income (ASU 2011-05—Comprehensive Income). The amendments eliminate the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity. The amendments require that comprehensive income be presented in either a single continuous statement or in two separate but consecutive statements. In a single continuous statement, the entity would present the components of net income and total net income, the components of other comprehensive income and a total of other comprehensive income, along with the total of comprehensive income in that statement. In the two-statement approach, the entity would present components of net income and total net income in the statement of net income and a statement of other comprehensive income would immediately follow the statement of net income and include the components of other comprehensive income and a total for other comprehensive income, along with a total for comprehensive income. The amendments also require the entity to present on the face of the financial statements any reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement(s) where the components of net income and the components of other comprehensive income are presented. The amendments do not change the items that must be reported in other comprehensive income, when an item of other comprehensive income must be re-classed to net income or the option to present components of other comprehensive income either net of related tax effects or before related tax effects. The amendments, excluding the specific requirement to present on the face of the financial statements any reclassification adjustments for items that are reclassified from other comprehensive income to net income in the statement(s) where the components of net income and the components of other comprehensive income are presented which was deferred by the FASB in December 2011, are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and are to be applied retrospectively. The Company adopted ASU 2011-05 in the first quarter of 2012. Upon adoption, the Company elected the two-statement approach and presents a separate consolidated statement of comprehensive loss.

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Geographical, Customer Concentration and Products Data

12 Months Ended

Dec. 31, 2012

Geographical, Customer Concentration and Products Data [Abstract]

Geographical, Customer Concentration and Products Data

14. Geographical, Customer Concentration and Products Data

The Company is primarily engaged in one business, the sale and rental of lockers. This includes coin, key-only and electronically controlled checking lockers and related locks and sale of plastic centralized mail and parcel distribution lockers. Net sales by product group for the years ended December 31 are as follows:

	2012		2011		2010
Lockers	$	8,327,294	$	9,522,019	$	8,961,181
Mailboxes		2,350,717		2,284,582		2,374,682
Contract manufacturing		1,729,898		430,586		451,898
Concession revenues		1,268,277		1,149,149		311,251
	$	13,676,186	$	13,386,336	$	12,099,012

The Company sells to customers in the United States, Canada and other foreign locations. Sales are attributed based on the country they are shipped to. Net sales to external customers for the years ended December 31 are as follows:

	2012		2011		2010
United States customers	$	11,283,881	$	10,646,590	$	9,266,197
Canadian and other foreign customers		2,392,305		2,739,746		2,832,815
	$	13,676,186	$	13,386,336	$	12,099,012

The Company did not have any customers that accounted for more than 10% of consolidated sales in 2012, 2011, or 2010.

At December 31, 2012 and 2011, the Company had unsecured trade receivables from governmental agencies of approximately $8,000 and $26,000, respectively. At December 31, 2012 and 2011, the Company had trade receivables from customers considered to be distributors of approximately $583,000 and $334,000, respectively.

At December 31, 2012, the Company had six customers that accounted for 27.0% of accounts receivable. At December 31, 2011, the Company had four customers that accounted for 43.2% of accounts receivable. Other concentrations of credit risk with respect to trade accounts receivable are limited due to the large number of entities comprising the Company’s customer base and their dispersion across many industries.

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Pension and Other Postretirement Benefits

12 Months Ended

Dec. 31, 2012

Pension and Other Postretirement Benefits [Abstract]

Pension and Other Postretirement Benefits

10. Pension and Other Postretirement Benefits

U.S. Pension Plan

The Company maintains a defined benefit pension plan for its domestic employees (the “U.S. Plan”), which was frozen effective July 15, 2005. Accordingly, no new benefits are being accrued under the U.S. Plan. Participant accounts are credited with interest at the federally mandated rates. Company contributions are based on computations by independent actuaries.

The plan’s assets are invested in a balanced index fund (the “Fund”) where the assets were invested during 2010, 2011 and 2012. The principal investment objective of the Fund is to provide an incremental risk adjusted return compared to a portfolio invested 50% in stocks and 50% in bonds over a full market cycle. Under normal market conditions, the average asset allocation for the Fund is expected to be approximately 50% in stocks and 50% in bonds. This benchmark allocation may be adjusted by up to 20% based on economic or market conditions and liquidity needs. Therefore, the stock allocation may fluctuate from 30% to 70% of the total portfolio, with a corresponding bond allocation of from 70% to 30%. Fund reallocation may take place at any time.

Canadian Pension Plan

Effective January 1, 2009, the Company converted its pension plan for its Canadian employees (the “Canadian Plan”) from a noncontributory defined benefit plan to a defined contribution plan. Until the conversion, benefits for the salaried employees were based on specified percentages of the employees’ monthly compensation. The conversion of the Canadian Plan has the effect of freezing the accrual of future defined benefits under the plan. Under the defined contribution plan, the Company will contribute 3% of employee compensation plus 50% of employee elective contributions up to a maximum contribution of 5% of employee compensation.

The Canadian Plan’s assets are invested in various pooled funds (the “Canadian Funds”) managed by a third party fund manager. The principal investment objective of the Canadian Funds is to provide an incremental risk adjusted return compared to a portfolio invested 50% in stocks and 50% in bonds over a full market cycle. Under normal market conditions, the average asset allocation for the Canadian Funds is expected to be approximately 50% in stocks and 50% in bonds. This benchmark allocation may be adjusted based on economic or market conditions and liquidity needs.

On July 6, 2012, the U.S. Government enacted the “Moving Ahead for Progress in the 21 ^st Century Act”, which contained provisions that changed the interest rate methodology used to calculate Employee Retirement Income Security Act (“ERISA”) minimum pension funding requirements in the U.S. This change reduced the Company’s near-term annual cash funding requirements for the U.S. pension plan. Contributions to be made to the plan in 2013 are expected to approximate $100,000 for the U.S. Plan and $79,000 for the Canadian Plan. However, contributions for 2014 and beyond have not been quantified at this time.

The change in projected benefit obligation, change in plan assets and reconciliation of funded status for the plans were as follows:

	Pension Benefits
	U.S. Plan						Canadian Plan
	2012			2011			2012			2011
Change in projected benefit obligation
Projected benefit obligation at beginning of year	$	3,829,727		$	3,176,669		$	1,441,482		$	1,262,526
Service cost		—			21,100			—			—
Interest cost		166,534			172,221			58,812			76,866
Benefit payments		(257,958	)		(72,132	)		(94,119	)		(94,262	)
Administrative expenses		(28,019	)		(24,669	)		—			—
Actuarial (gain) loss		389,763			556,538			60,912			227,666
Plan amendments		—			—			—			—
Currency translation adjustment		—			—			33,450			(31,314	)
Settlements		—			—			—			—
Projected benefit obligation at end of year		4,100,047			3,829,727			1,500,537			1,441,482
Change in plan assets
Fair value of plan assets at beginning of year		2,067,871			1,835,326			1,212,167			1,203,920
Actual return on plan assets		227,201			117,350			58,042			44,198
Benefit payments		(257,958	)		(72,132	)		(94,119	)		(94,262	)
Employer contribution		239,830			211,996			83,387			83,036
Administrative expenses		(28,019	)		(24,669	)		—			—
Currency translation adjustment		—			—			28,203			(24,725	)
Fair value of plan assets at end of year		2,248,925			2,067,871			1,287,679			1,212,167
Plan assets (less) greater than benefit obligation	$	(1,851,122	)	$	(1,761,856	)	$	(212,858	)	$	(229,316	)

The net amounts recognized on the consolidated balance sheets were as follows:

	U.S. Plan						Canadian Plan
	2012			2011			2012			2011
Non-current liabilities		(1,851,122	)		(1,761,856	)		(212,858	)		(229,316	)
Net amount recognized	$	(1,851,122	)	$	(1,761,856	)	$	(212,858	)	$	(229,316	)

Amounts in accumulated other comprehensive loss at year end, consist of:

	U.S. Plan				Canadian Plan
	2012		2011		2012		2011
Unrecognized net loss	$	1,636,551	$	1,413,239	$	599,824	$	544,514
	$	1,636,551	$	1,413,239	$	599,824	$	544,514

The estimated net loss that will be amortized from accumulated other comprehensive income for net periodic pension cost over the next year is $116,000 and $37,516 for the U.S. Plan and Canadian Plan, respectively.

Net pension expense is included in selling, administrative and general expenses on the consolidated statements of operations. The components of net pension expense for the plans were as follows:

	U.S. Plan									Canadian Plan
	2012			2011			2010			2012			2011			2010
Components of net periodic benefit cost:
Service cost	$	—		$	21,100		$	21,200		$	—		$	—		$	—
Interest cost		166,534			172,221			174,649			58,812			76,866			78,845
Expected return on plan assets		(154,411	)		(142,104	)		(132,093	)		(73,715	)		(84,452	)		(81,273	)
Net actuarial loss		93,661			51,287			42,191			—			—			—
Amortization of prior service cost		—			—			—			34,007			15,070			7,380
Net periodic benefit cost	$	105,784		$	102,504		$	105,947		$	19,104		$	7,484		$	4,952

The Fair Value Measurements and Disclosure Topic require the categorization of financial assets and liabilities, based on the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to the quoted prices in active markets for identical assets and liabilities and lowest priority to unobservable inputs. The fair value hierarchy are described as follows:

Level 1 –	Financial assets and liabilities whose values are based on unadjusted quoted market prices for identical assets and liabilities in an active market that the Company has the ability to access.
Level 2 –	Financial assets and liabilities whose values are based on quoted prices in markets that are not active or model inputs that are observable for substantially the full term of the asset or liability.
Level 3 –	Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.

The fair value hierarchy of the plan assets are as follows:

		December 31, 2012
		US Plan		Canadian Plan
Cash and cash equivalents	Level 1	$	261,655	$	50,329
Mutual funds	Level 1		254,580		1,237,350
Corporate/Government Bonds	Level 1		693,950
Equities	Level 1		1,038,740		—
Total		$	2,248,925	$	1,287,679

The plans’ weighted-average allocations by asset category are as follows:

	December 31, 2012
	US Plan			Canadian Plan
Equities		58	%		39	%
Fixed income		42	%		61	%
Total		100	%		100	%

Expected benefits to be paid by the plans during the next five years and in the aggregate for the five fiscal years thereafter, are as follows:

	U.S. Plan		Canadian Plan
2013	$	135,274	$	94,392
2014		139,104		88,273
2015		135,018		84,060
2016		135,102		79,546
2017		138,280		74,731
2018 through 2022		841,875		245,860

Benefit obligations are determined using assumptions at the end of each fiscal year and are not impacted by expected rate of return on plan assets. The weighted average assumptions used in computing the benefit obligations for the plans were as follows:

	U.S. Plan						Canadian Plan
	2012			2011			2012			2011
Weighted average assumptions as of December 31:
Discount rate		3.85	%		4.50	%		3.60	%		4.13	%
Rate of compensation increase		—			—			2.00	%		2.00	%

The weighted average assumptions used in computing net pension expense for the plans were as follows:

	U.S. Plan						Canadian Plan
	2012			2011			2012			2011
Weighted average assumptions as of December 31:
Discount rate		4.50	%		5.50	%		4.13	%		6.25	%
Expected return on plan assets		7.50	%		7.50	%		6.00	%		7.00	%
Rate of compensation increase		—			—			2.00	%		2.00	%

The expected return on plan assets is based upon anticipated returns generated by the investment vehicle. Any shortfall in the actual return has the effect of increasing the benefit obligation. The benefit obligation represents the actuarial present value of benefits attributed to employee service rendered; assuming future compensation levels are used to measure the obligation. The accumulated benefit obligation for the U.S. Plan was $4,100,047 and $3,829,727 at December 31, 2012 and 2011, respectively. The accumulated benefit obligation for the Canadian Plan was $1,500,537 and $1,441,482 at December 31, 2012 and 2011, respectively.

Death Benefit Plan

The Company also provides a death benefit for retired former employees of the Company. Effective in 2000, the Company discontinued this benefit for active employees. The death benefit is not a funded plan. The Company pays the benefit upon the death of the retiree. The Company has fully recorded its liability in connection with this plan. The liability was approximately $64,000 at December 31, 2012 and 2011, respectively, and is recorded as long-term pension and other benefits in the accompanying balance sheets. No expense was recorded in 2012, 2011 or 2010 related to the death benefit, as the plan is closed to new participants.

Defined Contribution Plan

During 1999, the Company established a 401(k) plan for the benefit of its U.S. full-time employees. Under the Company’s 401(k) plan, the Company makes an employer matching contribution equal to $0.10 for each $1.00 of an employee’s salary contributions up to a total of 10% of that employee’s compensation. The Company’s contributions vest over a period of five years. The Company recorded expense of approximately $12,000, $4,000 and $12,000 in connection with its contribution to the plan during 2012, 2011 and 2010, respectively.

Effective January 1, 2009, the Company converted the Canadian Plan from a defined benefit plan to a defined contribution plan. Under the defined contribution plan, the Company will contribute 3% of employee compensation plus 50% of employee elective contributions up to a maximum contribution of 5% of employee compensation. The Company recorded expense of approximately $4,600, $4,000 and $4,000 in connection with its contribution to the plan during 2012, 2011 and 2010, respectively.

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Other Accrued Expenses and Current Liabilities

12 Months Ended

Dec. 31, 2012

Other Accrued Expenses and Current Liabilities [Abstract]

Other Accrued Expenses and Current Liabilities

6. Other Accrued Expenses and Current Liabilities

Accrued expenses consist of the following at December 31:

	December 31,
	2012		2011
Restructuring liability	$	39,883	$	123,037
Accrued rent liability		286,544		190,229
Accrued expenses, other		364,157		177,922
Total accrued expenses	$	690,584	$	491,188

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Pension and Other Postretirement Benefits (Details 6) (USD $)	Dec. 31, 2012
US Plan [Member]
Expected benefits to be paid by the plans
2013	$ 135,274
2014	139,104
2015	135,018
2016	135,102
2017	138,280
2018 through 2022	841,875
Canadian Plan [Member]
Expected benefits to be paid by the plans
2013	94,392
2014	88,273
2015	84,060
2016	79,546
2017	74,731
2018 through 2022	$ 245,860

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Disneyland Concession Agreement

12 Months Ended

Dec. 31, 2012

Disneyland Concession Agreement [Abstract]

Disneyland Concession Agreement

4. Disneyland Concession Agreement

On September 24, 2010, the Company entered into an agreement (the “Disney Agreement”) with Disneyland Resort, a division of Walt Disney Parks and Resorts U.S., Inc., and Hong Kong International Theme Parks Limited, (collectively referred to as “Disney”) to provide locker services under a concession arrangement. Under the Disney Agreement, the Company installed, operates and maintains electronic lockers at Disneyland Park and Disney’s California Adventure Park in Anaheim, California and at Hong Kong Disneyland Park in Hong Kong.

The Company installed approximately 4,300 electronic lockers under the Disney Agreement. The Company retains ownership of the lockers and receives a portion of the revenue generated by the locker operations. The term of the Disney Agreement is five years, with an option to renew for one year at Disney’s option, and operations began in late November 2010. The Agreement contains a buyout option at the end of each contract year and a provision to compensate the Company in the event Disney terminates the Agreement without cause.

Under appropriate accounting guidance, the Company capitalized its costs related to the Disney Agreement and the Company is depreciating such costs over the five year term of the agreement. The Company recognizes revenue for its portion of the revenue as it is collected.

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Inventories

12 Months Ended

Dec. 31, 2012

Inventories [Abstract]

Inventories

5. Inventories

Inventories consist of the following:

	December 31,
	2012		2011
Finished products	$	602,753	$	321,378
Work-in-process		666,830		862,000
Raw materials		1,402,033		1,662,185
Net inventories	$	2,671,616	$	2,845,563

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Debt

12 Months Ended

Dec. 31, 2012

Debt [Abstract]

Debt

7. Debt

Long-term debt consists of the following:

	December 31,
	2012		2011
Term loan payable to Bank of America Merrill Lynch through December 2015 at $16,667 monthly plus interest at LIBOR rate plus 375 basis points (3.963% at December 31, 2012) collateralized by accounts receivable, inventory, and equipment	$	600,000	$	800,000
Less current portion		200,000		200,000
Long-term portion	$	400,000	$	600,000

On December 8, 2010, the Company entered into a credit agreement (the “Loan Agreement”) with BAML, pursuant to which the Company obtained a $1 million term loan (the “Term Loan”) and a $2.5 million revolving line of credit (the “Line of Credit”). On November 9, 2012, the Company entered into an amendment to the Loan Agreement (the “Amendment”) that included the addition of a $500,000 draw note (the “Draw Note”). On November 9, 2012, the Company entered into a second amendment to the Loan Agreement, which extended availability under the Draw Note, and the maturity date of the Line of Credit, to October 31, 2013.

The Draw Note is to be used to fund the Company’s investment in future concession contracts. The Company can draw up to $500,000 on the Draw Note before October 31, 2013. The Company will pay interest only on the Draw Note through November 27, 2013, after which the Company will pay interest and principal so that the balance will be paid in full as of October 31, 2016. As of December 31, 2012 there were no borrowings on the Draw Note.

The proceeds of the Term Loan were used to fund the Company’s investment in lockers used in the Disney Agreement. The proceeds of the Line of Credit will be used primarily for working capital needs in the ordinary course of business and for general corporate purposes.

The Company can borrow, repay and re-borrow principal under the Line of Credit from time to time during its term, but the outstanding principal balance of the Line of Credit may not exceed the lesser of the borrowing base or $2,500,000. For purposes of the Line of Credit, “borrowing base” is calculated by multiplying eligible accounts receivable of the Company by 80% and eligible raw material and finished goods by 50%. As of December 31, 2012, there was $1,300,000 outstanding on the Line of Credit.

The outstanding principal balances of the Line of Credit, the Draw Note and the Term Loan bear interest at the one month LIBOR rate plus 375 basis points (3.75%). Accrued interest payments on the outstanding principal balance of the Line of Credit are due monthly, and all outstanding principal payments under the Line of Credit, together with all accrued but unpaid interest, is due at maturity, or October 31, 2013. Payments on the Term Loan, consisting of $16,667 in principal plus accrued interest, began in 2011. The entire outstanding balance of the Term Loan is due on December 8, 2015.

The Loan Agreement is secured by a first priority lien on all of the Company’s accounts receivable, inventory and equipment pursuant to a Security Agreement between the Company and BAML (the “Credit Security Agreement”).

The Credit Security Agreement and Loan Agreement contain covenants, including financial covenants, with which the Company must comply, including a debt service coverage ratio and a funded debt to EBITDA ratio. Subject to the Lender’s consent, the Company is prohibited under the Credit Security Agreement and the Loan Agreement, except under certain circumstances, from incurring or assuming additional debt and from permitting liens to be placed upon any of its property, assets or revenues. Additionally, the Company is prohibited from entering into certain transactions, including a merger or consolidation, without the Lender’s consent.

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Capital Stock (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Preferred stock, authorized shares	1,000,000
Common stock issued as compensation	0	37,893	53,091
Capital Stock (Textual) [Abstract]
Common stock, shares authorized	4,000,000	4,000,000
Increased other capital	$ 3,917	$ 19,207
Compensation expense	$ 11,237	$ 57,100	$ 75,516
Common stock, shares issued	1,879,319	1,871,999
Common stock, shares outstanding	1,687,319	1,679,999
Preferred stock outstanding	0
Executive Officer [Member]
Common stock issued as compensation	3,334	11,580
Director [Member]
Common stock issued as compensation	3,986	26,313
Series A junior Participating Preferred Stock [Member]
Preferred stock, authorized shares	200,000

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Stock-Based Compensation (Details 1) (USD $)	12 Months Ended
	Dec. 31, 2012
Summary of stock options vested and unvested
Exercise Price	$ 4.95
Number of options	12,000
Intrinsic Value
Remaining Years of Contractual Life	4 years 8 months 12 days

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Pension and Other Postretirement Benefits (Details Textual) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Pension and Other Postretirement Benefits (Textual) [Abstract]
Company's contributions vest over a period	5 years
US Plan [Member]
Pension and Other Postretirement Benefits (Textual) [Abstract]
Accrued benefits under plan	$ 0
Benchmark allocation on economic or market conditions and liquidity needs	20.00%
Contributions to be made to the plan	100,000
Estimated net loss amortized from accumulated other comprehensive income for net periodic pension cost	116,000
Accumulated benefit obligation	4,100,047	3,829,727
Company's contribution to 401(k) plan	239,830	211,996
US Plan [Member] | Equities [Member]
Pension and Other Postretirement Benefits (Textual) [Abstract]
Average asset allocation for the Fund	50.00%
US Plan [Member] | Equities [Member] | Maximum [Member]
Pension and Other Postretirement Benefits (Textual) [Abstract]
Average asset allocation for the Fund	70.00%
US Plan [Member] | Equities [Member] | Minimum [Member]
Pension and Other Postretirement Benefits (Textual) [Abstract]
Average asset allocation for the Fund	30.00%
US Plan [Member] | Debt Securities [Member]
Pension and Other Postretirement Benefits (Textual) [Abstract]
Average asset allocation for the Fund	50.00%
US Plan [Member] | Debt Securities [Member] | Maximum [Member]
Pension and Other Postretirement Benefits (Textual) [Abstract]
Average asset allocation for the Fund	30.00%
US Plan [Member] | Debt Securities [Member] | Minimum [Member]
Pension and Other Postretirement Benefits (Textual) [Abstract]
Average asset allocation for the Fund	70.00%
Canadian Plan [Member]
Pension and Other Postretirement Benefits (Textual) [Abstract]
Contribution of employee compensation	3.00%
Employees elective contribution	50.00%
Maximum contribution of employee compensation	5.00%
Contributions to be made to the plan	79,000
Estimated net loss amortized from accumulated other comprehensive income for net periodic pension cost	37,516
Accumulated benefit obligation	1,500,537	1,441,482
Company's contribution to 401(k) plan	83,387	83,036
Canadian Plan [Member] | Equities [Member]
Pension and Other Postretirement Benefits (Textual) [Abstract]
Average asset allocation for the Fund	50.00%
Canadian Plan [Member] | Debt Securities [Member]
Pension and Other Postretirement Benefits (Textual) [Abstract]
Average asset allocation for the Fund	50.00%
Death Benefit Plan [Member]
Pension and Other Postretirement Benefits (Textual) [Abstract]
Benefit upon the death of the retiree	64,000	64,000
Expense recorded	0	0	0
Defined Contribution Plan [Member]
Pension and Other Postretirement Benefits (Textual) [Abstract]
Contribution of employee compensation	3.00%
Maximum contribution of employee compensation	5.00%
Expenses recorded 401(K) PLAN	4,600	4,000	4,000
Employee elective contribution	50.00%
401 (k) Plan [Member]
Pension and Other Postretirement Benefits (Textual) [Abstract]
Maximum contribution of employee compensation	10.00%
Employer matching contribution to 401(k) plan	0.10
Employee's salary contributions to 401(k) plan	1.00
Expenses recorded 401(K) PLAN	$ 12,000	$ 4,000	$ 12,000

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Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2012

Pension and Other Postretirement Benefits [Abstract]

Summary of change in projected benefit obligation, change in plan assets and reconciliation of funded status for the plans

	Pension Benefits
	U.S. Plan						Canadian Plan
	2012			2011			2012			2011
Change in projected benefit obligation
Projected benefit obligation at beginning of year	$	3,829,727		$	3,176,669		$	1,441,482		$	1,262,526
Service cost		—			21,100			—			—
Interest cost		166,534			172,221			58,812			76,866
Benefit payments		(257,958	)		(72,132	)		(94,119	)		(94,262	)
Administrative expenses		(28,019	)		(24,669	)		—			—
Actuarial (gain) loss		389,763			556,538			60,912			227,666
Plan amendments		—			—			—			—
Currency translation adjustment		—			—			33,450			(31,314	)
Settlements		—			—			—			—
Projected benefit obligation at end of year		4,100,047			3,829,727			1,500,537			1,441,482
Change in plan assets
Fair value of plan assets at beginning of year		2,067,871			1,835,326			1,212,167			1,203,920
Actual return on plan assets		227,201			117,350			58,042			44,198
Benefit payments		(257,958	)		(72,132	)		(94,119	)		(94,262	)
Employer contribution		239,830			211,996			83,387			83,036
Administrative expenses		(28,019	)		(24,669	)		—			—
Currency translation adjustment		—			—			28,203			(24,725	)
Fair value of plan assets at end of year		2,248,925			2,067,871			1,287,679			1,212,167
Plan assets (less) greater than benefit obligation	$	(1,851,122	)	$	(1,761,856	)	$	(212,858	)	$	(229,316	)

Summary of net amount recognized on consolidated balance sheets

	U.S. Plan						Canadian Plan
	2012			2011			2012			2011
Non-current liabilities		(1,851,122	)		(1,761,856	)		(212,858	)		(229,316	)
Net amount recognized	$	(1,851,122	)	$	(1,761,856	)	$	(212,858	)	$	(229,316	)

Summary of amount in accumulated other comprehensive loss

	U.S. Plan				Canadian Plan
	2012		2011		2012		2011
Unrecognized net loss	$	1,636,551	$	1,413,239	$	599,824	$	544,514
	$	1,636,551	$	1,413,239	$	599,824	$	544,514

Components of net periodic benefit cost

	U.S. Plan									Canadian Plan
	2012			2011			2010			2012			2011			2010
Components of net periodic benefit cost:
Service cost	$	—		$	21,100		$	21,200		$	—		$	—		$	—
Interest cost		166,534			172,221			174,649			58,812			76,866			78,845
Expected return on plan assets		(154,411	)		(142,104	)		(132,093	)		(73,715	)		(84,452	)		(81,273	)
Net actuarial loss		93,661			51,287			42,191			—			—			—
Amortization of prior service cost		—			—			—			34,007			15,070			7,380
Net periodic benefit cost	$	105,784		$	102,504		$	105,947		$	19,104		$	7,484		$	4,952

Fair value hierarchy of plan assets

		December 31, 2012
		US Plan		Canadian Plan
Cash and cash equivalents	Level 1	$	261,655	$	50,329
Mutual funds	Level 1		254,580		1,237,350
Corporate/Government Bonds	Level 1		693,950
Equities	Level 1		1,038,740		—
Total		$	2,248,925	$	1,287,679

Plans weighted-average allocations by asset category

	December 31, 2012
	US Plan			Canadian Plan
Equities		58	%		39	%
Fixed income		42	%		61	%
Total		100	%		100	%

Expected benefits to be paid by the plans

	U.S. Plan		Canadian Plan
2013	$	135,274	$	94,392
2014		139,104		88,273
2015		135,018		84,060
2016		135,102		79,546
2017		138,280		74,731
2018 through 2022		841,875		245,860

Weighted average assumptions used in computing the benefit obligations for the plans

	U.S. Plan						Canadian Plan
	2012			2011			2012			2011
Weighted average assumptions as of December 31:
Discount rate		3.85	%		4.50	%		3.60	%		4.13	%
Rate of compensation increase		—			—			2.00	%		2.00	%

Computing net pension expense for the plans

	U.S. Plan						Canadian Plan
	2012			2011			2012			2011
Weighted average assumptions as of December 31:
Discount rate		4.50	%		5.50	%		4.13	%		6.25	%
Expected return on plan assets		7.50	%		7.50	%		6.00	%		7.00	%
Rate of compensation increase		—			—			2.00	%		2.00	%

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Income Taxes (Details 2)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Differences between federal statutory rate and effective tax rate
Statutory income tax rate	34.00%	34.00%	34.00%
State and foreign income taxes, net of federal benefit	1.00%	1.00%	1.00%
Change in valuation allowance	(69.00%)		23.00%
Foreign earnings taxed at different rate		(24.00%)
Change in estimated state income tax rate	(5.00%)	3.00%
Other permanent differences	12.00%	40.00%	8.00%
Effective tax rate	(27.00%)	54.00%	66.00%

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Stock-Based Compensation

12 Months Ended

Dec. 31, 2012

Stock-Based Compensation [Abstract]

Stock-Based Compensation

12. Stock-Based Compensation

In 1999, the Company adopted the American Locker Group Incorporated 1999 Stock Incentive Plan, permitting the Company to provide incentive compensation of the types commonly known as incentive stock options, stock options and stock appreciation rights. The price of option shares or appreciation rights granted under the Plan shall not be less than the fair market value of common stock on the date of grant, and the term of the stock option or appreciation right shall not exceed ten years from date of grant. Upon exercise of a stock appreciation right granted in connection with a stock option, the optionee shall surrender the option and receive payment from the Company of an amount equal to the difference between the option price and the fair market value of the shares applicable to the options surrendered on the date of surrender. Such payment may be in shares, cash or both at the discretion of the Company’s Stock Option-Executive Compensation Committee.

At December 31, 2012 and 2011, there were no stock appreciation rights outstanding.

Key inputs and assumptions used to estimate the fair value of stock options include the grant price of the award, the expected option term, volatility of the Company’s stock, the risk-free rate, estimated forfeitures and the Company’s dividend yield. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by the Company.

No stock options were granted during 2012, 2011 and 2010, and no stock option expense was recorded.

The following table sets forth the activity related to the Company’s stock options for the years ended December 31:

	2012				2011				2009
	Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price
Outstanding—beginning of year		12,000	$	4.95		12,000	$	4.95		12,000	$	4.95
Expired or forfeited		—		—		—		—				—
Outstanding—end of year		12,000	$	4.95		12,000	$	4.95		12,000	$	4.95
Exercisable—end of year		12,000				12,000				12,000

The following tables summarize information about stock options vested and unvested as of December 31, 2012:

Vested
Exercise Price	Number of Options	Intrinsic Value	Remaining Years of Contractual Life
$4.95	12,000	—	4.7

At December 31, 2012, the total unrecognized compensation cost related to stock options expected to vest was $0. At December 31, 2012, 37,000 options remain available for future issuance under the Plan.

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Subsequent Events

12 Months Ended

Dec. 31, 2012

Subsequent Events [Abstract]

Subsequent Events

17. Subsequent Events

None.

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Income Taxes (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income before income taxes
United States income (loss)	$ (507,197)	$ 91,329	$ 225,555
Foreign income (loss)	24,052	(10,722)	(25,390)
Net income (loss) before income taxes	$ (483,145)	$ 80,607	$ 200,165

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Sale of Property (Details) (Disposal Group [Member], USD $)	1 Months Ended		3 Months Ended	12 Months Ended
	May 31, 2011 sqft	Sep. 30, 2009	Jun. 30, 2011	Dec. 31, 2011	Dec. 31, 2010
Disposal Group [Member]
Sale of Property (Textual) [Abstract]
Purchase price of sale of facility		$ 2,747,000
Facility occupied to relocate corporate headquarters and Texas manufacturing facility from Grapevine, TX to DFW Airport	100,500
Relocation allowance to offset the moving costs					341,000
Moving expense against deferred revenue			211,768
Other income			129,232
Pay off the mortgage secured by the property	2,000,000
Invested for leasehold improvements and machinery and equipment				$ 875,000

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Consolidated Statements of Comprehensive Income (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Consolidated Statements of Comprehensive Income [Abstract]
Net income (loss)	$ (614,578)	$ 37,091	$ 68,369
Other comprehensive income (loss):
Foreign currency translation adjustment	(6,130)	(18,028)	11,925
Adjustment to minimum pension liability, net of tax effect of $ 91,544 in 2012, $158,869 in 2011, and $79,354 in 2010	(187,078)	(610,220)	(119,033)
Other comprehensive loss	(193,208)	(628,248)	(107,108)
Total comprehensive loss	$ (807,786)	$ (591,157)	$ (38,739)

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Basis of Presentation

12 Months Ended

Dec. 31, 2012

Basis of Presentation [Abstract]

Basis of Presentation

1. Basis of Presentation

Consolidation and Business Description

The consolidated financial statements include the accounts of American Locker Group Incorporated and its subsidiaries (the “Company”), all of which are wholly owned. Intercompany accounts and transactions have been eliminated in consolidation. The Company is a leading manufacturer and distributor of lockers, locks and keys. The Company’s lockers can be categorized as either lockers or mailboxes. Mailboxes are used for the delivery of mail. Most lockers are key controlled checking lockers. The Company is best known for manufacturing and servicing the key and lock system with the plastic orange cap. The Company serves customers in a variety of industries in all 50 states and in Canada, Mexico, Europe, Asia and South America.

Certain 2011 and 2010 financial statement line items have been reclassified to conform to the current year’s presentation.

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Pension and Other Postretirement Benefits (Details 4) (USD $)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
US Plan [Member]
Fair value hierarchy of plan assets
Fair value of plan assets	$ 2,248,925	$ 2,067,871	$ 1,835,326
Canadian Plan [Member]
Fair value hierarchy of plan assets
Fair value of plan assets	1,287,679	1,212,167	1,203,920
Cash and cash equivalents [Member] | US Plan [Member] | Level 1 [Member]
Fair value hierarchy of plan assets
Fair value of plan assets	261,655
Cash and cash equivalents [Member] | Canadian Plan [Member] | Level 1 [Member]
Fair value hierarchy of plan assets
Fair value of plan assets	50,329
Mutual funds [Member] | US Plan [Member] | Level 1 [Member]
Fair value hierarchy of plan assets
Fair value of plan assets	254,580
Mutual funds [Member] | Canadian Plan [Member] | Level 1 [Member]
Fair value hierarchy of plan assets
Fair value of plan assets	1,237,350
Corporate/Government Bonds [Member] | US Plan [Member] | Level 1 [Member]
Fair value hierarchy of plan assets
Fair value of plan assets	693,950
Equities [Member] | US Plan [Member] | Level 1 [Member]
Fair value hierarchy of plan assets
Fair value of plan assets	$ 1,038,740

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Earnings Per Share (Details Textual)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Earnings Per Share (Textual) [Abstract]
Employee stock options	12,000	12,000	12,000

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Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2012

Valuation and Qualifying Accounts [Abstract]

Valuation and Qualifying Accounts

Valuation and Qualifying Accounts

Year	Description	Balance at the    Beginning of Year		Additions Charged   to Costs and Expense		Deductions			Balance at End of Year
Year ended 2012
Allowance for Doubtful Accounts		$	149,000	$	48,000	$	(35,000	)	$	162,000
Reserve for Inventory Valuation			693,000		58,000		(343,000	)		408,000
Deferred income tax valuation allowance			699,000		443,000					1,142,000
Year ended 2011
Allowance for Doubtful Accounts		$	134,000	$	23,000	$	(8,000	)	$	149,000
Reserve for Inventory Valuation			753,000		45,000		(105,000	)		693,000
Deferred income tax valuation allowance			758,000				(59,000	)		699,000
Year ended 2010
Allowance for Doubtful Accounts		$	216,000	$	31,000	$	(113,000	)	$	134,000
Reserve for Inventory Valuation			916,000				(163,000	)		753,000
Deferred income tax valuation allowance			713,000		45,000		—			758,000

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Restructuring (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Changes in the Company's reserve with respect to the restructuring plan
Beginning Balance	$ 123,000	$ 144,000
Expense/(Benefit)	283,924
Payment/Charges	(278,000)	(21,000)
Ending Balance	128,900	123,000
Severance [Member]
Changes in the Company's reserve with respect to the restructuring plan
Beginning Balance	111,000	132,000
Expense/(Benefit)	64,000
Payment/Charges	(147,100)	(21,000)
Ending Balance	27,900	111,000
Professional fees [Member]
Changes in the Company's reserve with respect to the restructuring plan
Expense/(Benefit)	42,000
Payment/Charges	(42,000)
Inventory [Member]
Changes in the Company's reserve with respect to the restructuring plan
Expense/(Benefit)	89,000
Ending Balance	89,000
Other [Member]
Changes in the Company's reserve with respect to the restructuring plan
Beginning Balance	12,000	12,000
Expense/(Benefit)	88,900
Payment/Charges	(88,900)
Ending Balance	$ 12,000	$ 12,000

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Restructuring (Tables)

12 Months Ended

Dec. 31, 2012

Restructuring [Abstract]

Changes in the Company's reserve with respect to the restructuring plan

	December 31, 2011		Expense/ (Benefit)		Payment/Charges			December 31, 2012
Severance	$	111,000	$	64,000	$	(147,100	)	$	27,900
Professional Fees		—		42,000		(42,000	)		—
Inventory		—		89,000		—			89,000
Other		12,000		88,900		(88,900	)		12,000
Total	$	123,000	$	283,900	$	(278,000	)	$	128,900

	December 31, 2010		Expense/ (Benefit)		Payment/Charges			December 31, 2011
Severance	$	132,000	$	—	$	(21,000	)	$	111,000
Other		12,000		—		—			12,000
Total	$	144,000	$	—	$	(21,000	)	$	123,000

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Capital Stock

12 Months Ended

Dec. 31, 2012

Capital Stock [Abstract]

Capital Stock

11. Capital Stock

The Company’s Certificate of Incorporation, as amended, authorizes 4,000,000 shares of common stock and 1,000,000 shares of preferred stock, and 200,000 shares of preferred stock have been designated as Series A Junior Participating Preferred Stock. During 2012, the Company issued 3,986 shares of common stock as compensation to the directors and 3,334 shares as compensation to executive officers, and increased other capital by $3,917 representing compensation expense of $11,237. During 2011, the Company issued 26,313 shares of common stock as compensation to the directors and 11,580 shares as compensation to executive officers, and increased other capital by $19,207 representing compensation expense of $57,100. As of December 31, 2012, 1,879,319 shares of common stock had been issued, of which 1,687,319 shares were outstanding, and zero shares of preferred stock were outstanding.