Note

- Supplemental Balance Sheet Information

a.	Inventory , Net

Inventories are stated at the lower of cost or market with cost determined under the

first

-in,

first

-out (FIFO) method. The composition of inventories, net was:

	December 31,
	201 6		201 5
Raw Materials	$	14,482	$	11,602
Work in Process		986		1,560
Finished Products		7,988		10,652
Total	$	23,456	$	23,814

The

December

31,

2016

inventories include

$1,443

for Accutronics, which was acquired on

January

13,

2016.

b.	Property, Plant and Equipment

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

	December 31,
	201 6			201 5
Land	$	123		$	123
Buildings and Leasehold Improvements		7,757			7,490
Machinery and Equipment		49,722			49,609
Furniture and Fixtures		1,947			1,974
Computer Hardware and Software		5,223			4,585
Construction in Progress		421			745
		65,193			64,526
Less – Accumulated Depreciation		(57,194	)		(55,488	)
Total	$	7,999		$	9,038

Estimated costs to complete construction-in-progress as of

December

31,

2016

and

2015

were approximately

$170

and

$180,

respectively.

Depreciation expense was

$2,223

and

$2,401

for the years ended

December

31,

2016

and

2015,

respectively.

c.	Impairment of Goodwill, Intangible Assets and Long-Lived Assets

We elected to forego the qualitative assessment for our

four

identified reporting units and conducted a quantitative assessment.

The fair value for our reporting units subjected to this quantitative test could not be determined using readily available quoted Level

inputs or Level

inputs that were observable in active markets. Therefore, we used an income approach to estimate the fair value of the reporting units, using Level

inputs. To estimate the fair value of the reporting units, we used significant estimates and judgments, including an assessment of our future revenue prospects, particularly government/defense opportunities, as well as our estimates of the probabilities of the opportunities being funded, awarded, and awarded to us. Other key estimates and factors used in the valuation model included revenue growth rates and profit margins based on internal forecasts, as well as industry and market based terminal growth rates, inputs to the weighted-average cost of capital used to discount future cash flows, and earnings multiples. As a result of the goodwill impairment tests performed during

2016

and

2015,

we determined that an impairment was not required.

Similarly, for our

four

other indefinite-lived intangible assets (trademarks), we elected to forego the qualitative assessment and proceeded to perform quantitative assessments.

The fair value for our indefinite-lived intangible assets subjected to this quantitative test could not be determined using readily available quoted Level

inputs or Level

inputs that were observable in active markets. Therefore, we used a relief from royalty approach, to estimate the fair value of the indefinite-lived intangible assets, using Level

inputs. This method also required us to use significant estimates and judgmental factors. The key estimates and factors used in the valuation model included revenue growth rates, as well as industry and market based terminal growth rates, inputs to the weighted-average cost of capital used to discount future cash flows, and determined royalty rates from market data. As a result of the impairment tests performed during

2016,

we determined that

impairments were required. As a result of the impairment tests performed during

2015,

we determined that an impairment amounting to

$150

was required to reduce the carrying value of

one

Communications Systems business trademark to its estimated fair value.

There is a possibility that our goodwill and other intangible assets, particularly in our Communications Systems business, could be impaired should there be a significant change in our internal forecasts and other assumptions we use in our impairment analysis.

Goodwill

The following table summarizes the goodwill activity by segment for the years ended

December

31,

2016

and

2015:

	Battery & Energy Products			Communi- cations Systems		Total
Balance – January 1, 2015	$	4,914		$	11,493	$	16,407
Effect of Foreign Currency Translation		(124	)		-		(124	)
Balance – December 31, 2015		4,790			11,493		16,283
Acquisition of Accutronics		4,487			-		4,487
Effect of Foreign Currency Translation		(805	)		-		(805	)
Balance – December 31, 2016	$	8,472		$	11,493	$	19,965

e.	Other Intangible Assets

The composition of intangible assets was:

	December 31, 201 6
	Cost		Accumulated Amortization		Net
Trademarks	$	3,404	$	-	$	3,404
Customer Relationships		6,395		3,975		2,420
Patents and Technology		5,455		4,417		1,038
Distributor Relationships		377		368		9
Trade Name		359		36		323
Total Other Intangible Assets	$	15,990	$	8,796	$	7,194

	December 31, 201 5
	Cost		Accumulated Amortization		Net
Trademarks	$	3,411	$	-	$	3,411
Patents and Technology		4,482		4,217		265
Customer Relationships		3,971		3,716		255
Distributor Relationships		370		355		15
Total Other Intangible Assets	$	12,234	$	8,288	$	3,946

Amortization of intangible assets was included in the following financial statement captions:

	Year ended December 31,
	201 6		201 5
Research and Development Expense	$	200	$	130
Selling, General and Administrative Expense		303		105
Total	$	503	$	235

Except for the impairment charge recorded against a Communications Systems trademark in

2015,

the change in the cost value of total intangible assets is a result of the acquisition of Accutronics on

January

13,

2016

and the effect of foreign currency exchange rate fluctuations.