Property, Plant and Equipment

6 Months Ended

Jun. 30, 2012

Property, Plant and Equipment [Abstract]

5.	Property, Plant and Equipment

	June 30,				December 31,
			2012				2011
		($000’s omitted)

Land		$	21			$	25
Buildings			7,013				7,181
Machinery, equipment and tooling (including capital lease)			12,478				12,930
			19,512				20,136
Less accumulated depreciation and amortization			(13,631	)			(14,033	)
Total property, plant and equipment		$	5,881			$	6,103

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 June 30, 2012 and December 31, 2011, accumulated amortization on the building amounted to approximately $2,487,000 and $2,423,000, respectively. Amortization expense amounted to $33,000 for the three month periods ended June 30, 2012 and 2011, respectively and amounted to $65,000 for the six month periods ended June 30, 2012 and 2011, respectively. The associated current and long-term liabilities are discussed in Note 6, 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 June 30, 2012 and December 31, 2011, accumulated amortization on the machinery and equipment amounted to approximately $224,000 and $182,000, respectively. Amortization expense amounted to $21,000 for the three month periods ended June 30, 2012 and 2011, and amounted to $42,000 for the six month periods ended June 30, 2012 and 2011. The associated current and long-term liabilities are discussed in Note 7, Capital Lease – Related Party, of the accompanying consolidated financial statements.

Depreciation expense amounted to $111,000 and $110,000 for the three month periods ended June 30, 2012 and 2011, respectively, and amounted to $228,000 and $220,000 for the six month periods ended June 30, 2012 and 2011, respectively. The combined depreciation and amortization expense were $169,000 and $166,000 for the three month periods ended June 30, 2012 and 2011, respectively, and amounted to $340,000 and $331,000 for the six month periods ended June 30, 2012 and 2011, respectively.

- 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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