Property, Plant and Equipment

9 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

5. Property, Plant and Equipment

	September 30,			December 31,
	2013			2012
	($000’s omitted)
Land	$	21		$	21
Buildings		7,876			7,256
Machinery, equipment and tooling		12,794			12,370
		20,691			19,647
Less accumulated depreciation and amortization		(14,103	)		(13,701	)
Total property, plant and equipment	$	6,588		$	5,946

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 September 30, 2013 and December 31, 2012, accumulated amortization on the building amounted to approximately $2,649,000 and $2,552,000, respectively. Amortization expense amounted to $32,000 and $33,000 for the three month periods ended September 30, 2013 and 2012, respectively, and amounted to $97,000 for the nine month periods ended September 30, 2013 and 2012, respectively. The associated current and long-term liabilities are discussed in Note 6, Long-Term Debt, of the accompanying consolidated financial statements.

On July 23, 2012, the Company gave notice of termination of a capital lease for machinery and equipment previously reported under a $588,000 capital lease with a related party. Due to the termination, beginning in July 2012, this lease was accounted for as an operating lease rather than a capital lease for the remaining term and the related assets and liabilities were removed from the consolidated balance sheet. See also, Note 7, Capital Lease – Related Party, of the accompanying consolidated financial statements for more information. Amortization expense related to the capital lease related party, included in the loss from operations of a discontinued component, net of tax, amounted to zero for the three month periods ended September 30, 2013 and 2012, respectively, and amounted to approximately zero and $42,000 for the nine month periods ended September 30, 2013 and 2012, respectively.

Depreciation expense from continuing operations amounted to $117,000 and $107,000 for the three month periods ended September 30, 2013 and 2012, respectively, and amounted to $355,000 and $334,000 for the nine month periods ended September 30, 2013 and 2012, respectively. The combined depreciation and amortization expense from continuing operations amounted to $152,000 and $141,000 for the three month periods ended September 30, 2013 and 2012, respectively, and amounted to $460,000 and $437,000 for the nine month periods ended September 30, 2013 and 2012, 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.

As of September 30, 2013, there is approximately $121,000 of construction in progress included in property, plant and equipment related to an anticipated facility expansion and renovation project at the Consumer Products Group. There are currently no other material commitments for this project. At December 31, 2012 there was approximately $290,000 of construction in progress related to a previously reported facility expansion at the Company’s Advanced Technology Group. These amounts along with amounts incurred during 2013 were placed in service in the third quarter ended September 30, 2013.