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OTHER EXPENSE
 9 Months Ended
Sep. 30, 2016
Other Nonoperating Income (Expense) [Abstract]  
OTHER EXPENSE

5.  OTHER EXPENSE

 

Other expense in the consolidated statements of operations for the three and nine months ended September 30, 2016 and 2015 are as follows (in thousands):

         
    Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
    2016     2015     2016     2015  
Accrued interest and penalties, net     68       1,186       23       1,186  
Acquisition transaction and other expenses     196       129       531       497  
(Gain) on cancellation of Titan notes payable     —       (45 )     —       (150 )
Other expense   $ 264     $ 1,270     $ 554     $ 1,533  

 

The Company continues to record interest and penalties on past due and unpaid payroll tax obligations. During the nine months ended September 30, 2016, the Company received waivers of certain interest and penalties on these obligations totaling $0.4 million.

 

On October 24, 2016, the Internal Revenue Service has granted abatement for $1.2 million in previously accrued penalties related to the Company’s delinquent federal payroll tax obligations. The abatement covers the entire accrued penalties from Pioneer Power Solutions (Corporate), Pioneer CEP, and Jefferson Electric, with accrued penalties for Pioneer Critical Power, Inc. still being reviewed by the IRS for potential abatement. The remaining accrued penalty and related interest is approximately $72.