Note 4 - Property, Plant and Equipment

9 Months Ended

Sep. 29, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

4.   PROPERTY, PLANT AND EQUIPMENT

Major classes of property, plant and equipment consisted of the following:

	September 29, 2013		December 31, 2012
Land	$	123	$	123
Buildings and leasehold improvements		7,407		7,381
Machinery and equipment		47,018		46,606
Furniture and fixtures		1,947		1,810
Computer hardware and software		4,209		4,103
Construction in progress		1,389		1,275
		62,093		61,298
Less:  Accumulated depreciation		51,257		48,883
	$	10,836	$	12,415

Depreciation expense for property, plant and equipment was $720 and $2,279 for the three and nine month periods ended September 29, 2013, respectively, and $800 and $2,460 for the three and nine month periods ended September 30, 2012, respectively.

In the second quarter of 2013, we received a termination notice from the New York State Energy Research and Development Authority (“NYSERDA”) regarding our collaborative agreement to develop and demonstrate a large hybrid grid-connected energy storage system. Pursuant to the terms of the agreement, NYSERDA will reimburse us for certain construction and project research and development costs incurred through the date of termination. Construction costs are reflected in the property, plant and equipment, net line on our Condensed Consolidated Balance Sheets as of September 29, 2013 and December 31, 2012. Project research and development costs are reflected in the research and development line on our Condensed Consolidated Statements of Comprehensive Income (Loss) the three and nine month periods ended September 29, 2013 and September 30, 2012.

We plan to continue this project internally with smaller form batteries which provide greater opportunity and applicability in the markets we serve. However, due to the termination of the NYSERDA agreement and the resulting change in scope of the project, we performed a review of the details of costs capitalized in connection with this project to determine their future use. Those costs without an identifiable future use were written off in the second quarter of 2013 and totaled $56. The remaining capitalized costs were subjected to an impairment test based upon forecasted future cash flows, in accordance with current accounting guidance. No impairment was taken on the remaining capitalized costs.