EMIS » Topics » 4. Fixed Assets

This excerpt taken from the EMIS 10-K filed Mar 6, 2007.

4. Fixed Assets

          Tarrytown Facility Transaction. In 2003, we surrendered certain of our leased space back to the landlord who subsequently leased the space to another tenant (the “subsequent tenant”).  We sold the subsequent tenant certain equipment for approximately $1.0 million which is payable through 2012.  The subsequent tenant makes their payment directly to our landlord and we receive a credit from the landlord against our rental payment.

          Farmington Facility Transaction. In June 2005, we completed the sale of our Farmington, Connecticut research facility for net proceeds of $4.1 million.   A gain of $0.6 million was recorded in connection with the sale.

          Fixed Assets. Equipment and leasehold improvements, net, including assets held under capital lease in 2005, consists of the following:  

 

 

Useful Lives
 in Years

 

December 31,

 

 

 

 


 

 

 

 

2006

 

2005

 

 

 



 



 



 

 

 

 

 

 

(in thousands)

 

Equipment

 

 

3-7

 

$

9,685

 

$

9,611

 

Leasehold improvements

 

Life of lease

 

 

19,224

 

 

19,209

 

 

 

 

 

 



 



 

 

 

 

 

 

 

28,909

 

 

28,820

 

Less, accumulated depreciation and amortization

 

 

 

 

 

26,257

 

 

22,921

 

 

 

 

 

 



 



 

 

 

 

 

 

$

2,652

 

$

5,899

 

 

 

 

 

 



 



 

          Depreciation expense for the years ended December 31, 2006, 2005 and 2004, was $3.6 million, $4.1 million and $4.7 million, respectively.  Included in equipment at December 31, 2005 are assets which were acquired under capital leases with a cost of $0.7 million and a net book value of $0.3 million.

50


This excerpt taken from the EMIS 10-Q filed Aug 8, 2006.

4.       Fixed Assets

          Tarrytown Facility Transaction.  During 2003, in order to streamline operations and reduce expenditures, we entered into a transaction to surrender to the landlord approximately 27% of the leased space at our Tarrytown facility. Such surrendered space primarily consists of office space which was subsequently leased to another tenant at the Tarrytown facility.

          In connection with this transaction, we agreed to sell most of the furniture and equipment in the surrendered space to the subsequent tenant. Through a contractual agreement with us, the subsequent tenant has agreed to make certain payments which will be made directly to the landlord on a monthly basis. A rental credit equal to each furniture payment will be applied against our rent payment to the landlord on a monthly basis. Total payments under the agreement are $1.0 million and extend through August 2012. The transaction between the subsequent tenant and us has been accounted for as an operating lease, with all furniture payments recorded as rental income. We retain a security interest in the furniture and equipment until all required payments have been made.

          Farmington Facility Transaction. In June 2005, we completed the sale of our Farmington, Connecticut research facility to Winstanley Enterprises LLC for net proceeds of $4.1 million. A gain of $0.6 million was recorded in connection with the sale.

          Fixed Assets. Equipment and leasehold improvements, net, including assets held under capital lease, consists of the following:

 

 

Useful Lives
in Years

 

June 30,
2006

 

December 31,
2005

 

 

 



 



 



 

 

 

 

 

 

(in thousands)
 

Equipment

 

 

3-7

 

$

9,735

 

$

9,611

 

Leasehold improvements

 

 

Life of lease

 

 

19,216

 

 

19,209

 

 

 

 

 

 



 



 

 

 

 

 

 

 

28,951

 

$

28,820

 

Accumulated depreciation and amortization

 

 

 

 

 

24,748

 

 

22,921

 

 

 

 

 

 



 



 

Equipment and leasehold improvements, net

 

 

 

 

$

4,203

 

$

5,899

 

 

 

 

 

 



 



 

          Included in equipment and leasehold improvements at June 30, 2006 are assets which were acquired under capital leases with a cost of $0.7 million and a net book value of $0.2 million (see Note 11).

This excerpt taken from the EMIS 10-Q filed May 9, 2006.

4. Fixed Assets

          Tarrytown Facility Transaction. During 2003, in order to streamline operations and reduce expenditures, we entered into a transaction to surrender to the landlord approximately 27% of our leased space at the Tarrytown facility. Such surrendered space primarily consisted of office space which was subsequently leased to another tenant at the Tarrytown facility. 

          In connection with this transaction, we agreed to sell most of the furniture and equipment in the surrendered space to the subsequent tenant. Through a contractual agreement with us, the subsequent tenant has agreed to make certain payments which will be made directly to the landlord on a monthly basis. A rental credit equal to such payments will be applied against our rent payment to the landlord on a monthly basis. Total payments under the agreement are $1.0 million and extend through August 2012. The transaction between the subsequent tenant and us has been accounted for as an operating lease, with all furniture payments recorded as rental income. We retain a security interest in the furniture and equipment until all required payments have been made.

10


          Farmington Facility Transaction.In June 2005, we completed the sale of our Farmington, Connecticut research facility to Winstanley Enterprises LLC for net proceeds of $4.1 million. A gain of $0.6 million was recorded in connection with the sale.

          Fixed Assets. Equipment and leasehold improvements, net, including assets held under capital lease, consists of the following:  

 

 

Useful Lives
in Years

 

March 31,
2006

 

December 31,
2005

 

 

 


 


 


 

 

 

 

 

 

(in thousands)

 

Equipment

 

 

3-7

 

$

9,645

 

$

9,611

 

Leasehold improvements

 

 

Life of lease

 

 

19,216

 

 

19,209

 

 

 

 

 

 



 



 

 

 

 

 

 

 

28,861

 

 

28,820

 

Accumulated depreciation and amortization

 

 

 

 

 

23,836

 

 

22,921

 

 

 

 

 

 



 



 

Equipment and leasehold improvements, net

 

 

 

 

$

5,025

 

$

5,899

 

 

 

 

 

 



 



 

          Included in equipment are assets which were acquired under capital leases with a cost of $0.7 million and a net book value of $0.2 million at March 31, 2006 (see Note 11).

This excerpt taken from the EMIS 10-Q filed Nov 21, 2005.

5.     Fixed Assets

          Tarrytown Facility Transaction. During 2003, in order to streamline operations and reduce expenditures, we entered into a transaction to surrender to the landlord approximately 27% of the leased space (the “surrendered space”) at our Tarrytown facility. The surrendered space primarily consists of office space which was subsequently leased to another tenant (the “subsequent tenant”) at the Tarrytown facility.  Completion of the lease amendment and related agreements took place in October 2003.

          In connection with this transaction, we agreed to sell most of the furniture and equipment in the surrendered space to the subsequent tenant. Through a contractual agreement with us, the subsequent tenant has agreed to make certain payments (“furniture payments”) which will be made directly to the landlord on a monthly basis. A rental credit equal to each furniture payment will be applied against our rent payment to the landlord on a monthly basis. Total payments under the agreement are $1.0 million and extend through August 2012. The transaction between the subsequent tenant and us has been accounted for as an operating lease, with all furniture payments recorded as rental income. We retain a security interest in the furniture and equipment until all required payments have been made.

          In connection with this transaction, we identified equipment that had no future use.  This equipment was segregated and classified as available for sale as of December 31, 2004.  At June 30, 2005, we evaluated this equipment for potential impairment. Although the equipment is still being marketed, the fact that we have been unable to sell it in the eighteen months since it has been classified as available for sale casts a significant doubt on our ability to recover any of the cost of the equipment. Accordingly, this equipment was written down to zero, resulting in an impairment charge of $27 thousand, which is included in general and administrative expenses on the condensed consolidated statement of operations for the nine months ended September 30, 2005.

          Farmington Facility Transaction. In June 2005, we completed the sale of our Farmington, Connecticut research facility to Winstanley Enterprises LLC for net proceeds of $4.1 million. These assets are included in land, building and equipment held for sale, net on the condensed consolidated balance sheet as of December 31, 2004. A gain of $0.6 million was recorded in connection with the sale. The litigation commenced by the Farmington Avenue Baptist Church (the “Church’), including the filing of a notice of pendency, was settled, and a withdrawal of the Church’s action was filed with the Superior Court of the State of Connecticut on August 5, 2005.

9


          Fixed Assets. Equipment and leasehold improvements, net, including assets held under capital lease, consists of the following:

 

 

Useful Lives
in Years

 

September 30,
2005

 

December 31,
2004

 

 

 



 



 



 

 

 

 

 

 

(in thousands)

 

Equipment

 

 

3-7

 

$

14,381

 

$

14,126

 

Leasehold improvements

 

 

Life of lease

 

 

19,101

 

 

19,094

 

 

 

 

 

 



 



 

 

 

 

 

 

 

33,482

 

 

33,220

 

Accumulated depreciation and amortization

 

 

 

 

 

26,462

 

 

23,213

 

 

 

 

 

 



 



 

Equipment and leasehold improvements, net

 

 

 

 

$

7,020

 

$

10,007

 

 

 

 

 

 



 



 

          Included in equipment and leasehold improvements at September 30, 2005 are assets which were acquired under capital leases with a cost of $0.7 million and a net book value of $0.3 million.

This excerpt taken from the EMIS 10-Q filed Aug 12, 2005.

4.      Fixed Assets

Tarrytown Facility Transaction. During 2003, in order to streamline operations and reduce expenditures, we entered into a transaction to surrender to the landlord approximately 27% of the leased space (the “surrendered space”) at our Tarrytown facility. The surrendered space primarily consists of office space which was subsequently leased to another tenant (the “subsequent tenant”) at the Tarrytown facility.  In the event that the subsequent tenant vacates the space before August 31, 2005, we will be liable for the rent payments and will be required to re-let the space through August 31, 2007. Completion of the lease amendment and related agreements took place in October 2003.

          In connection with this transaction, we agreed to sell most of the furniture and equipment in the surrendered space to the subsequent tenant. Through a contractual agreement with us, the subsequent tenant has agreed to make certain payments (“furniture payments”) which will be made directly to the landlord on a monthly basis. A rental credit equal to each furniture payment will be applied against our rent payment to the landlord on a monthly basis. Total payments under the agreement are $1.0 million and extend through August 2012. The transaction between the subsequent tenant and us has been accounted for as an operating lease, with all furniture payments recorded as rental income. We retain a security interest in the furniture and equipment until all required payments have been made.

          In connection with this restructuring, we identified equipment that had no future use.  This equipment was segregated and classified as available for sale as of June 30, 2005 and 2004.  At June 30, 2005, we evaluated this equipment for potential impairment. Although the equipment is still being marketed, the fact that we have been unable to sell it in the eighteen months since it has been classified as available for sale casts a significant doubt on our ability to recover any of the cost of the equipment. Accordingly, this equipment was written down to zero, resulting in an impairment charge of $27 thousand, which is included in general and administrative expenses on the condensed consolidated statement of operations for the three and six months ended June 30, 2005.

          Farmington Facility Transaction. In June 2005, we completed the sale of our Farmington, Connecticut research facility to Winstanley Enterprises LLC for net proceeds of $4.1 million. These assets are included in land, building and equipment held for sale, net on the condensed consolidated balance sheet as of December 31, 2004. A gain of $0.6 million was recorded in connection with the sale. The litigation commenced by the Farmington Avenue Baptist Church (the “Church’), including the filing of a notice of pendency, was settled, and a withdrawal of the Church’s action was filed with the Superior Court of the State of Connecticut on August 5, 2005.

9


          Fixed Assets. Equipment and leasehold improvements, net, including assets held under capital lease, consists of the following:

 

 

Useful Lives
in Years

 

June 30,
2005

 

December 31,
2004

 

 

 



 



 



 

 

 

 

 

 

(in thousands)

 

Equipment

 

3-7

 

$

14,372

 

$

14,126

 

Leasehold improvements

 

Life of lease

 

 

19,094

 

 

19,094

 

 

 

 

 

 



 



 

 

 

 

 

 

 

33,466

 

 

33,220

 

Accumulated depreciation and amortization

 

 

 

 

 

25,475

 

 

23,213

 

 

 

 

 

 



 



 

Equipment and leasehold improvements, net

 

 

 

 

$

7,991

 

$

10,007

 

 

 

 

 

 



 



 

          Included in equipment and leasehold improvements at June 30, 2005 are assets which were acquired under capital leases with a cost of $0.7 million and a net book value of $0.4 million.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki