OTHER (INCOME)/EXPENSE

12 Months Ended

Dec. 31, 2016

Other Income and Expenses [Abstract]

OTHER (INCOME)/EXPENSE

5. OTHER (INCOME)/EXPENSE

Other (income) expense in the consolidated statements of operations during the year ended December 31, 2016 and 2015 are as follows:

	Year Ended December 31,
	2016			2015
Payroll tax interest and penalties, (abated 2016) accrued 2015		(1,050	)		1,546
Acquisition transaction and other expenses		735			1,139
Impairment of intangible assets		110			—
(Gain) on cancellation of Titan notes payable		—			(150	)
Other (income)/expense	$	(205	)	$	2,535

During 2015, the Company recognized a charge of approximately $1.5 million representing estimated accrued interest and potential penalties for failure to timely file employer’s federal payroll tax returns and make the required payments thereon for all payroll periods beginning on and after January 1, 2014. Immediately upon discovery of the delinquency in October 2015, the Company contacted the Internal Revenue Service (“IRS”) which confirmed that no delinquency notices had been sent, nor were there any collection proceedings underway. In November 2015, the Company filed all past due payroll tax returns with the IRS and became timely in the remittance of its current period payroll tax obligations.

During the fourth quarter of 2016, the Company received notice from the Internal Revenue Service (“IRS”) that the penalties for failure to timely file employer’s federal payroll tax returns and make the required payments thereon had been abated for Pioneer Power Solutions, Inc., Jefferson Electric Inc. and Pioneer Custom Electrical Products Corp. The abatement of these penalties amounts to approximately $1.1 million and has been recognized in the Company’s other expense in its consolidated statements of operations.