Property, Plant and Equipment

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

4.             Property, Plant and Equipment		December 31,
		2013		2012
		($000’s omitted)
	Land	$	21	$	21
	Buildings		7,851		7,256
	Machinery, equipment and tooling		13,258		12,370
			21,130		19,647

Less accumulated depreciation and amortization		(14,270	)		(13,701	)
Total property, plant and equipment	$	6,860		$	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 December 31, 2013 and 2012, accumulated amortization on the building amounted to approximately $2,682,000 and $2,552,000, respectively. Amortization expense amounted to $130,000 for the twelve month periods ended December 31, 2013 and 2012, respectively. The associated current and long-term liabilities are discussed in Note 5, Long-Term Debt, of the accompanying consolidated financial statements.

On July 23, 2012, the Company gave twelve months notice of termination of a capital lease for machinery and equipment previously under a $588,000 capital lease with a related party. Due to the termination, beginning in July 2012, this lease is 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 6, 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 and $42,000 for the twelve month periods ended December 31, 2013 and 2012, respectively.

Depreciation expense from continuing operations amounted to $498,000 and $461,000 for the twelve month periods ended December 31, 2013 and 2012, respectively. The combined depreciation and amortization expense from continuing operations were $640,000 and $614,000 the twelve month periods ended December 31, 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 December 31 2013, there is approximately $275,000 of construction in progress included in property, plant and equipment related to an anticipated facility expansion and renovation project at the Consumer Products Group and $202,000 related to capital projects at the Advanced Technology Group. There are currently no other material commitments for these projects. At December 31 2012 there was approximately $290,000 of construction in progress related to a previously report facility expansion at the Company’s Advanced Technology Group. These amounts along with amounts incurred during 2013 were placed in service during the year ended December 31, 2013.