Property, Plant and Equipment

12 Months Ended

Dec. 31, 2011

Property, Plant and Equipment [Abstract]

3.	Property, Plant and Equipment

	December 31,
	2011			2010
	($000’s omitted)
Land	$	25		$	25
Buildings		7,181			7,060
Machinery, equipment and tooling (including capital lease)		12,930			12,444

		20,136			19,529
Less accumulated depreciation and amortization		(14,033	)		(13,370	)

Total property, plant and equipment	$	6,103		$	6,159

Property, plant and equipment includes land and building in Elma, New York, under a $5,000,000 capital lease which can be purchased for a nominal amount at the end of the lease term. As of December 31, 2011 and 2010, accumulated amortization on the building amounted to approximately $2,423,000 and $2,293,000, respectively. Amortization expense amounted to $130,000 for the twelve month periods ended December 31, 2011 and 2010, respectively. The associated current and long-term liabilities are discussed in Note 4, Long-Term Debt, of the accompanying consolidated financial statements. Property, plant and equipment also includes machinery and equipment under a $588,000 capital lease with a related party. As of December 31, 2011 and 2010, accumulated amortization on the machinery and equipment amounted to approximately $182,000 and $98,000, respectively. Amortization expense amounted to $84,000 for each of the twelve month periods ended December 31, 2011 and 2010, respectively. The associated current and long-term liabilities are discussed in Note 5, Capital Lease – Related Party, of the accompanying consolidated financial statements.

Depreciation expense amounted to $449,000 and $427,000 for the twelve month periods ended December 31, 2011 and 2010, respectively. The combined depreciation and amortization expense were $686,000 and $664,000 for the twelve month periods ended December 31, 2011 and 2010, respectively. The Company believes that it maintains property and casualty insurance in amounts adequate for the risk and nature of its assets and operations and which are generally customary in its industry.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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