Property, Plant and Equipment

9 Months Ended

Sep. 30, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

Note 5 – Property, Plant and Equipment

Property, plant and equipment consists of the following:

	September 30 2016		December 31 2015
In thousands
Land, buildings and improvements	$	-	$	1,256
Machinery, fixtures and equipment		1,115		878
Leaseholds and improvements		25		25
		1,140		2,159
Less accumulated depreciation		578		1,003
Net property, plant and equipment	$	562	$	1,156

On February 1, 2016, the Company sold its Des Moines, Iowa facility for $1.1 million in a sale/leaseback transaction.  The lease is for a two year period at an annual rental of $158,000.  As a result of the sale, the remaining $329,000 mortgage was paid in full.  Net proceeds of $661,000 were received after paying off the related mortgage.  The Company calculated a gain of $267,000, which will be recognized over the 24 month term of the lease.  For the three and nine months ended September 30, 2016, $33,000 and $88,000, respectively, of the gain has been recognized.

Depreciation expense for property, plant and equipment for the three months ended September 30, 2016 and 2015 was $40,000 and $57,000, respectively.  Depreciation expense for property, plant and equipment for the nine months ended September 30, 2016 and 2015 was $108,000 and $153,000, respectively.

The Company has paid $1.1 million of deposits toward new manufacturing machinery, which is included in Other assets in the Condensed Consolidated Balance Sheets as of September 30, 2016. We expect to put this new machinery into service in the 4^th quarter of 2016.