RIMG » Topics » Property and Equipment

These excerpts taken from the RIMG 10-K filed Mar 16, 2009.

Property and Equipment

Property and equipment are stated at cost and depreciated on a straight-line basis over estimated useful lives ranging from two to seven years for most assets, and fifteen years for the Company’s headquarters facility purchased in September 2008. Leasehold improvements are amortized using the straight-line method over the shorter of the property’s useful life or term of the underlying lease. Repairs and maintenance costs are charged to operations as incurred.

Property and Equipment



Property and equipment are stated at cost and depreciated on a
straight-line basis over estimated useful lives ranging from two to seven years
for most assets, and fifteen years for the Company’s headquarters facility
purchased in September 2008. Leasehold improvements are amortized using the
straight-line method over the shorter of the property’s useful life or term of
the underlying lease. Repairs and maintenance costs are charged to operations
as incurred.




6)        Property and Equipment

Property and equipment consisted of the following as of December 31, (in thousands):

 

 

 

 

 

 

 

 

 

 

2008

 

2007

 

 

Land and land improvements

 

$

1,096

 

$

 

Building and building improvements

 

 

2,806

 

 

 

Manufacturing equipment

 

 

3,071

 

 

2,933

 

Development fixtures and equipment

 

 

760

 

 

750

 

Data equipment and furniture

 

 

4,814

 

 

4,667

 

Leasehold improvements

 

 

1,089

 

 

1,073

 

 

 

 

13,636

 

 

9,423

 

Less accumulated depreciation and amortization

 

 

(7,453

)

 

(6,217

)

 

 

$

6,183

 

$

3,206

 

Depreciation and amortization expense was $1,372,000, $1,525,000 and $1,519,000 for the years ended December 31, 2008, 2007 and 2006, respectively.

On August 11, 2008, a Purchase and Sale Agreement dated July 31, 2008 between the Company and 7725 Washington Avenue Corp. (“the Seller”) became effective. Under the Purchase and Sale Agreement, the Company agreed to purchase from the Seller the real property and building the Company previously leased as its corporate headquarters in Edina, Minnesota. The closing of the purchase transaction was effective September 30, 2008. The aggregate cost of the property totaled $3.9 million, consisting of the base purchase price of $3.8 million and other direct costs of $0.1 million. The Company financed the purchase using cash on hand. The $3.9 million purchase price of the property was allocated to the building and land based on relative market values, with 72% of the value allocated to the building ($2.8 million) and 28% allocated to the land ($1.1 million). The Company is depreciating the building cost over a period of 15 years.

In 2007 and 2006, the Company recorded charges to cost of revenues of approximately $60,000 and $312,000, respectively, for impairments in the carrying amount of manufacturing tooling associated with the assembly of the Rimage 360i Desktop product line. The impairment charges were triggered by slow sales of the Rimage 360i product and a resulting reduction in the estimated cash flows attributable to future use of the manufacturing tooling.

6)        Property and Equipment



Property and
equipment consisted of the following as of December 31, (in thousands):





















































































































 



 



 



 



 



 



 



 



 




 




2008




 




2007




 



 



Land and land improvements



 



$



1,096



 



$





 



Building and building
improvements



 



 



2,806



 



 





 



Manufacturing equipment



 



 



3,071



 



 



2,933



 



Development fixtures and
equipment



 



 



760



 



 



750



 



Data equipment and
furniture



 



 



4,814



 



 



4,667



 



Leasehold improvements



 



 



1,089




 



 



1,073




 



 



 



 



13,636



 



 



9,423



 



Less accumulated
depreciation and amortization



 



 



(7,453




)



 



(6,217




)



 



 



$



6,183




 



$



3,206




 




Depreciation and amortization expense was $1,372,000, $1,525,000 and
$1,519,000 for the years ended December 31, 2008, 2007 and 2006, respectively.



On August 11, 2008, a Purchase and Sale Agreement dated July 31, 2008
between the Company and 7725 Washington Avenue Corp. (“the Seller”) became
effective. Under the Purchase and Sale Agreement, the Company agreed to
purchase from the Seller the real property and building the Company previously leased
as its corporate headquarters in Edina, Minnesota. The closing of the purchase
transaction was effective September 30, 2008. The aggregate cost of the
property totaled $3.9 million, consisting of the base purchase price of $3.8
million and other direct costs of $0.1 million. The Company financed the
purchase using cash on hand. The $3.9 million purchase price of the property
was allocated to the building and land based on relative market values, with
72% of the value allocated to the building ($2.8 million) and 28% allocated to
the land ($1.1 million). The Company is depreciating the building cost over a
period of 15 years.



In 2007 and 2006, the Company recorded charges to cost of revenues of
approximately $60,000 and $312,000, respectively, for impairments in the
carrying amount of manufacturing tooling associated with the assembly of the
Rimage 360i Desktop product line. The impairment charges were triggered by slow
sales of the Rimage 360i product and a resulting reduction in the estimated
cash flows attributable to future use of the manufacturing tooling.



This excerpt taken from the RIMG 10-K filed Mar 16, 2007.

Property and Equipment

Property and equipment are stated at cost and depreciated on a straight-line basis over periods of two to seven years. Leasehold improvements are amortized using the straight-line method over the shorter of the property’s useful life or term of the underlying lease. Repairs and maintenance costs are charged to operations as incurred.

 

This excerpt taken from the RIMG 10-K filed Mar 15, 2006.

4)     Property and Equipment

Property and equipment consisted of the following as of December 31 (in thousands):

 

 

 

 

 

 

 

 

 

 

2005

 

2004

 







 

 

 

 

 

 

 

 

Manufacturing equipment

 

$

3,217

 

 

2,965

 

Development fixtures and equipment

 

 

613

 

 

589

 

Data equipment and furniture

 

 

2,303

 

 

2,044

 

Leasehold improvements

 

 

1,019

 

 

733

 









 

 

 

7,152

 

 

6,331

 

Less accumulated depreciation and amortization

 

 

(4,627

)

 

(3,945

)









 

 

$

2,525

 

 

2,386

 









Depreciation and amortization expense was $1,228,000, $919,000 and $930,000 for the years ended December 31, 2005, 2004 and 2003, respectively.

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