XML 57 R11.htm IDEA: XBRL DOCUMENT

Property, Plant and Equipment

12 Months Ended

Mar. 31, 2013

Property, Plant and Equipment

F. Property, Plant and Equipment

Property, plant and equipment consist of the following:

(in thousands)	March 31, 2013	March 31, 2012
Land	$500	$500
Building	2,705	2,705
Machinery, equipment and tooling	1,235	1,234
Furniture, fixtures and office equipment	285	285
	4,725	4,765
Less: accumulated depreciation	(2,426)	(2,237)
	$2,299	$2,487

Depreciation expense for the fiscal years ended March 31, 2013 and March 31, 2012 was approximately $188,000 and $197,000, respectively.

As a result of the Company’s evaluation of the recoverability of its property, plant and equipment, the Company recorded impairment of a single group of production equipment that existed during the fiscal year ended March 31, 2012, accordingly, the Company recorded an impairment charge of $16,000. The Company determined that during the fiscal year ended March 31, 2013, there existed no additional impairment of its long-lived assets.

On December 22, 2011, we entered into an agreement with an independent third-party under which we sold and leased back our land and building generating gross proceeds of $2,000,000. The initial minimum lease term is 15 years. At the end of the initial minimum lease term, we have the option to renew the lease for three periods of five years each. Under the terms of the lease, we have provided, as collateral, a security interest in all furnishings, fixtures and equipment owned and used by us, having a net book value of approximately $95,000 as of March 31, 2013. For accounting purposes, the provision of such collateral constitutes continuing involvement with the associated property. Due to this continuing involvement, this sale-leaseback transaction is accounted for under the financing method, rather than as a completed sale. Under the financing method, we include the sales proceeds received as a financing obligation. The building, building improvements and land remain on the consolidated balance sheet and the building and building improvements will continue to be depreciated over their remaining useful lives. Payments made under the lease are applied as payments of imputed interest and deemed principal on the underlying financing obligation.

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.

+ References+ Details