Property, Plant and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property, Plant & Equipment

Note 3 – Property, Plant and Equipment:

The Company's property, plant and equipment at December 31, 2019 and 2018 consisted of the following:

	Estimated
	Useful Life	2019			2018
Land		$	278,325		$	278,325
Building and Improvements	30 years		9,563,406			9,548,922
Manufacturing and warehouse equipment	6-20 years		10,699,461			10,736,161
Office equipment and furniture	3-5 years		1,778,781			1,838,360
Leasehold improvements	10-15 years		577,068			577,068
Finance leases – right to use	5 years		45,951			-
Vehicles	3 years		10,020			10,020
Construction in process			142,612			80,682
Property, plant and equipment, gross			23,095,624			23,069,538
Less accumulated depreciation			(13,757,397	)		(13,420,301	)
Property, plant and equipment, net		$	9,338,227		$	9,649,237

The Company's wholly-owned subsidiary, KINPAK Inc. ("Kinpak"), has been engaged since 2017 in a project involving the expansion of its manufacturing, warehouse and distribution facilities in Montgomery, Alabama, as well as the purchase and installation of associated machinery and equipment (the "Expansion Project"). Kinpak has completed the construction of, and placed into service, an approximately 85,000 square foot addition to the facilities and an expansion of a tank farm to accommodate an additional 500,000 gallons of tank capacity. The final phase of the Expansion Project entails the evaluation, purchase and installation of additional equipment. At December 31, 2019, Kinpak has spent an aggregate of approximately $6,117,000 on the Expansion Project. Of that amount, approximately $2,654,000 was provided through a $4,500,000 industrial development bond financing, which is described in Note 8.

On December 9, 2019, there was a chemical incident at our Kinpak facility. 

The chemical incident damaged some of Kinpak's manufacturing equipment.  At December 31, 2019, it was determined that manufacturing equipment with a book value of $50,520 was no longer useable. The Company recorded a loss for the $50,520 and an offsetting gain and receivable of $50,520 in 2019. The Company is still assessing the total property damage from the chemical incident. At the time of this report the Company is unable to make an estimate of the total loss; however the Company expects to recover any losses through property insurance, which covers replacement cost.