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STORM DAMAGE AND INSURANCE PROCEEDS
6 Months Ended
Jun. 30, 2017
STORM DAMAGE AND INSURANCE PROCEEDS  
STORM DAMAGE AND INSURANCE PROCEEDS

11.      STORM DAMAGE AND INSURANCE PROCEEDS

 

On March 26, 2017 a hail storm passed through Little Elm, TX, resulting in damage to the Company’s two buildings.  During April, the Company performed an inspection of its facilities and determined that possible roof damage had been sustained.  In late April, the Company’s insurance carrier inspected the two buildings and confirmed that damage occurred from the hail storm.  This damage was principally to the roofs of the buildings but also many of the HVAC units and a wall alongside one of the buildings sustained damage.

 

The Company’s insurance carrier has assessed the damages at approximately $1 million and the Company’s deductible is less than $25,000.  The Company has received these funds from its carrier.  At this time, the Company does not expect the cost of repairs to the roofs, the wall, and to the HVAC units to exceed its coverage.  The Company expects repairs to commence during the third quarter of 2017 and to be completed by the end of the year.  The Company does not currently anticipate that these repairs will result any significant disruption to its operations or interruption to its production.