Ourpets (OPCO) 10-Q 15 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 28, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Entity Registrant Name	OURPETS CO
Entity Central Index Key	1,094,139
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	OPCO
Entity Common Stock, Shares Outstanding		17,707,937

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 168,635	$ 100,000
Accounts receivable - trade, less allowance for doubtful accounts of $59,824 and $37,824	3,325,003	4,294,810
Inventories net of reserve	7,181,216	7,914,613
Prepaid expenses	645,076	582,676
Total current assets	11,319,930	12,892,099
PROPERTY AND EQUIPMENT
Computers and office equipment	1,007,956	930,094
Warehouse equipment	578,072	561,173
Leasehold improvements	301,580	291,597
Tooling	4,471,522	4,334,257
Construction in progress	394,755	222,259
Total	6,753,885	6,339,380
Less accumulated depreciation	4,791,395	4,466,120
Net property and equipment	1,962,490	1,873,260
OTHER ASSETS
Amortizable Intangible Assets, less amortization of $519,391 and $493,690	375,792	357,341
Intangible Assets	461,000	461,000
Goodwill	67,511	67,511
Deposits and other assets	18,003	18,003
Total other assets	922,306	903,855
Total assets	14,204,726	15,669,214
CURRENT LIABILITIES
Current maturities of long-term debt	248,153	276,890
Accounts payable - trade	716,122	1,582,849
Other accrued expenses	531,200	571,858
Total current liabilities	1,495,475	2,431,597
LONG-TERM LIABILITIES
Long-term debt - less current portion above	759,794	876,248
Revolving Line of Credit	2,405,032	3,267,170
Deferred Income Taxes	320,955	333,834
Total long term liabilities	3,485,781	4,477,252
Total liabilities	4,981,256	6,908,849
COMMON STOCK
No par value; 50,000,000 shares authorized, 17,707,937 and 17,625,739 shares issued and outstanding at June 30, 2016 and December 31, 2015 respectively	5,112,457	5,082,566
PAID-IN CAPITAL	79,518	67,518
ACCUMULATED EARNINGS	2,586,333	2,165,119
Total stockholders' equity	9,223,470	8,760,365
Total liabilities and stockholders' equity	14,204,726	15,669,214
Convertible Preferred Stock [Member]
COMMON STOCK
CONVERTIBLE PREFERRED STOCK	579,850	579,850
Series 2009 Preferred Stock [Member]
COMMON STOCK
CONVERTIBLE PREFERRED STOCK	865,312	865,312
Total stockholders' equity	$ 865,312	$ 865,312

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Class of Stock [Line Items]
Accounts receivable - trade, allowance for doubtful accounts	$ 59,824	$ 37,824
Amortization	$ 519,391	$ 493,690
COMMON STOCK, par value per share	$ 0	$ 0
COMMON STOCK, shares authorized	50,000,000	50,000,000
COMMON STOCK, shares issued	17,707,937	17,625,739
COMMON STOCK, shares outstanding	17,707,937	17,625,739
Convertible Preferred Stock [Member]
Class of Stock [Line Items]
CONVERTIBLE PREFERRED STOCK, par or stated value per share	$ 0	$ 0
CONVERTIBLE PREFERRED STOCK, convertible into Common stock for each preferred stock rate	10	10
CONVERTIBLE PREFERRED STOCK, shares authorized	4,825,000	4,825,000
CONVERTIBLE PREFERRED STOCK, shares issued	63,500	63,500
CONVERTIBLE PREFERRED STOCK, shares outstanding	63,500	63,500
Series 2009 Preferred Stock [Member]
Class of Stock [Line Items]
CONVERTIBLE PREFERRED STOCK, par or stated value per share	$ 0	$ 0
CONVERTIBLE PREFERRED STOCK, convertible into Common stock for each preferred stock rate	10	10
CONVERTIBLE PREFERRED STOCK, shares authorized	175,000	175,000
CONVERTIBLE PREFERRED STOCK, shares issued	123,616	123,616
CONVERTIBLE PREFERRED STOCK, shares outstanding	123,616	123,616

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net revenue	$ 5,436,902	$ 5,586,828	$ 11,612,887	$ 11,184,150
Cost of goods sold	3,865,058	3,868,759	8,209,186	7,771,736
Gross profit on sales	1,571,844	1,718,069	3,403,701	3,412,414
Selling, general and administrative expenses	1,344,142	1,295,606	2,760,729	2,633,638
Income from operations	227,702	422,463	642,972	778,776
Other income	(7,463)	(21,277)	(34,468)	(26,000)
Interest expense	27,920	24,795	60,756	49,302
Income before income taxes	207,245	418,945	616,684	755,474
Income tax expense	52,611	156,869	195,470	279,606
Net income	$ 154,634	$ 262,076	$ 421,214	$ 475,868
Basic and Diluted Earnings Per Common Share After Dividend Requirements For Preferred Stock:
Net Income	$ 0.01	$ 0.01	$ 0.02	$ 0.02
Weighted average number of common shares outstanding used to calculate basic earnings per share	17,657,516	17,558,838	17,643,936	17,555,973
Weighted average number of common and equivalent shares outstanding used to calculate diluted earnings per share	18,277,335	19,201,418	18,250,885	19,172,847

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 6 months ended Jun. 30, 2016 - USD ($)	Total	Series 2009 Preferred Stock [Member]	Preferred Stock [Member]	Common Stock [Member]	Paid-In Capital [Member]	Accumulated Earnings (Deficit) [Member]
Balance at Dec. 31, 2015	$ 8,760,365	$ 865,312	$ 579,850	$ 5,082,566	$ 67,518	$ 2,165,119
Balance (in shares) at Dec. 31, 2015		123,616	63,500	17,625,739
Common Stock issued upon exercise of stock options/warrants	29,891			$ 29,891
Common Stock issued upon exercise of stock options/warrants (in shares)				82,198
Net income	421,214					421,214
Stock-Based compensation expense	12,000				12,000
Balance at Jun. 30, 2016	$ 9,223,470	$ 865,312	$ 579,850	$ 5,112,457	$ 79,518	$ 2,586,333
Balance (in shares) at Jun. 30, 2016		123,616	63,500	17,707,937

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 421,214	$ 475,868
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on fixed assets	9,474	6,638
Depreciation expense	325,275	313,846
Amortization expense	25,701	40,372
Stock option expense	12,000	12,000
(Increase) decrease in assets:
Accounts receivable - trade	969,807	(390,582)
Inventories	733,397	(1,153,255)
Prepaid expenses	(62,400)	7,760
Amortizable Intangible Asset Additions	(44,152)	(22,940)
Increase (decrease) in liabilities:
Accounts payable - trade	(866,727)	395,665
Accrued expenses	(40,658)	56,116
Deferred tax liabilities	(12,879)	(54,724)
Net cash provided by (used in) in operating activities	1,470,052	(313,236)
CASH FLOWS FROM INVESTING ACTIVITIES
Sale of property and equipment	1,000	0
Acquisition of property and equipment	(424,979)	(420,528)
Net cash used in investing activities	(423,979)	(420,528)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuances of Common Stock	29,891	0
Principal payments on long-term debt	(145,191)	(125,284)
Net (payment) borrowing on bank line of credit	(862,138)	705,000
Net cash (used in) provided by financing activities	(977,438)	579,716
Net increase (decrease) in cash	68,635	(154,048)
CASH AT BEGINNING OF PERIOD	100,000	192,448
CASH AT END OF PERIOD	168,635	38,400
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid	61,119	38,722
Income taxes paid	108,140	256,000
SUPPLEMENTAL DISCLOSURE OF NON CASH TRANSACTIONS
Non cash exercise of stock options/ warrants	25,071	6,933
Tooling Obtained through Asset Purchase		$ 85,000

ORGANIZATION AND NATURE OF OPER

ORGANIZATION AND NATURE OF OPERATIONS	6 Months Ended
	Jun. 30, 2016
ORGANIZATION AND NATURE OF OPERATIONS [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	ORGANIZATION AND NATURE OF OPERATIONS Our management originally founded Napro, Inc. (“Napro”), an Ohio corporation, in 1985 as an enterprise for launching new ventures and acquiring companies in various lines of business. In 1996, Napro formed a wholly owned Ohio subsidiary, Virtu Company (“Virtu”), to market proprietary products to the retail pet business under the OurPet’s® label. Napro then changed its name to OurPet’s Company effective March 19, 1998. On July 16, 1998, Manticus, Inc. (“Manticus”), a Colorado corporation, obtained all of the outstanding shares of OurPet’s/Napro in exchange for 8,000,000 89

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2016
BASIS OF PRESENTATION [Abstract]
Basis of Accounting [Text Block]	BASIS OF PRESENTATION OurPet’s Company (“OurPet’s” or the “Company”) follows accounting standards set by the Financial Accounting Standards Board (“FASB”). FASB sets generally accepted accounting principles to ensure the consistent reporting of the financial condition, results of operations, and cash flows. The accompanying unaudited condensed consolidated financial statements for the six-month periods ended June 30, 2016, and June 30, 2015, have been prepared in accordance with such generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q, including the requirements of Article 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements. They include the accounts of OurPet’s and its wholly owned subsidiaries (collectively, the “Company”), Virtu and SMP Company, Incorporated. The December 31, 2015, Condensed Consolidated Balance Sheet information contained in this Form 10-Q was derived from the 2015 audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America for an annual report. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods presented have been included. All intercompany transactions have been eliminated. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes for the fiscal year ended December 31, 2015, that are included in the Company’s Form 10-K filed with the Securities and Exchange Commission on March 30, 2016. Operating results for the six months ended June 30, 2016, are not necessarily indicative of the results that may be expected for future fiscal periods.

USE OF ESTIMATES

USE OF ESTIMATES	6 Months Ended
	Jun. 30, 2016
USE OF ESTIMATES [Abstract]
Use Of Estimates [Text Block]	USE OF ESTIMATES The preparation of condensed consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2016
INVENTORIES [Abstract]
Inventory Disclosure [Text Block]	INVENTORIES Inventories are carried at the lower of cost, first-in, first-out method, or market. All inventories are pledged as collateral for bank loans. Inventories at June 30, 2016, and June 30, 2015, consisted of: 2016 2015 Finished Goods $ 6,253,589 $ 6,848,510 Components, packaging and work in process 1,136,102 1,414,144 Inventory Reserve (208,475) (215,284) Total $ 7,181,216 $ 8,047,370 During the six months ended June 30, 2016, the Company recorded additional inventory reserve charges of $ 95,673 2016 2015 Beginning Balance $ 213,751 $ 159,076 Increases to reserve 95,673 111,473 Write offs against reserve (100,949) (55,265) Ending Balance $ 208,475 $ 215,284 Monthly accruals are made to account for obsolete and excess inventory. Quarterly reviews are also performed to determine if additional end of quarter adjustments are needed. It was determined that no additional adjustment was needed for the end of the second quarter of 2016. The Company will continue its policy of regularly reviewing inventory quantities on hand based on related service levels and functionality. Carrying cost will be reduced to net realizable value for inventories in which their cost exceeds their utility due to changes in marketing and sales strategies, obsolescence, changes in price levels, or other causes. Furthermore, if future demand or market conditions for the Company’s products are less favorable than forecast, or if unforeseen technological changes negatively impact the utility of certain products or component inventory, the Company may be required to record additional inventory reserves, which would negatively affect its results of operations in the period when the inventory reserve adjustments are recorded. Once established, write downs of inventories are considered permanent adjustments to the cost basis of the obsolete or excess inventories.

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	6 Months Ended
	Jun. 30, 2016
ACCOUNTS RECEIVABLE [Abstract]
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	ACCOUNTS RECEIVABLE Accounts receivable have been adjusted for all known uncollectible accounts. An allowance for possible bad debts was established on June 30, 2016, and December 31, 2015, in the amounts of $ 59,824 37,824

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	RELATED PARTY TRANSACTIONS We lease a 64,000 26,000 We first entered into a 10 36,000 10 27,250 29,013 30,827 32,587 34,347 29,013 We entered into a second lease with Senk Properties for our facility in Mentor, Ohio, on December 30, 2011. Payments for this lease started on January 1, 2012 8,542 9,083 9,732 10,056 10,597 10,813 9,732 10 Lease expenses resulting from the foregoing agreements were $ 241,896 On January 15, 2007, and November 25, 2008, the Company entered into agreements with Nottingham-Spirk Design Associates, Inc. (“NSDA”). One of the principals of NSDA is John W. Spirk, Jr., a member of the Company’s board of directors and a shareholder. NSDA indirectly owns shares of the Company through its ownership in Pet Zone Products, Ltd., a significant shareholder of the Company. The agreements address the invoicing and payment of NSDA’s fees and expenses related to the development of certain products on behalf of the Company. The Company has been invoiced $ 781,061 485,390 50,000 50,454 245,671 1,858 On November 8, 2012, the Company received $ 350,000 100,000 350,000 3 350,000 0.50 353,944 .4944 14,000 36,563

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
	Jun. 30, 2016
REVENUE RECOGNITION [Abstract]
Revenue Recognition Disclosure [Text Block]	REVENUE RECOGNITION With respect to revenue from product sales, revenue is recognized only upon shipment of products to customers. The Company derives its revenues from the sale of proprietary pet products under the OurPet’s®, PetZone®, SmartScoop®, EcoPure Naturals®, Play-N-Squeak®, Durapet®, Flappy®, Go! Cat! Go!®, Eat®, Smarter Toys®, Clipnosis®, Cosmic Pet™, and Festiva® brand names. Net revenue is comprised of gross sales less discounts given to distributors, returns and allowances. For the three months ended June 30, 2016, 29.3 1,594,456 For the three months ended June 30, 2015, 39.3 1,414,446 25.3 779,822 14.0 For the six months ended June 30, 2016, 28.1 3,266,687 For the six months ended June 30, 2015, 38.2 2,999,918 26.8 1,271,483 11.4

STOCK OPTIONS

STOCK OPTIONS	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	STOCK OPTIONS “Share-Based Payment” standards require the grant-date value of all share-based payment awards that are expected to vest, including employee share options, to be recognized as employee compensation expense over the requisite service period. In both 2016 and 2015, the amount of compensation expense recognized as a result of stock options was $ 12,000 On February 13, 2012, the board of directors, by unanimous written consent, approved a second amendment to the 2008 Stock Option Plan (the “Plan”) whereby the maximum number of shares reserved and available for issuance under the plan was increased by 750,000 1,000,000 1,750,000

NET INCOME PER COMMON SHARE

NET INCOME PER COMMON SHARE	6 Months Ended
	Jun. 30, 2016
NET INCOME PER COMMON SHARE [Abstract]
Earnings Per Share [Text Block]	NET INCOME PER COMMON SHARE Basic and diluted net income per common share is based on the net income attributable to common stockholders after preferred stock dividend requirements for the period, divided by the weighted average number of common and equivalent dilutive shares outstanding during the period. Potential common shares whose effect would be anti-dilutive are not included. As of June 30, 2016, common shares that were or could have been potentially dilutive included 561,168 0.41 1.27 824,180 0.42 0.59 635,000 1.00 1,236,160 0.70 579,360 0.41 1.27 1,070,603 0.42 0.98 635,000 1.00 1,236,160 0.70

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	INCOME TAXES During the first six months of 2016, the Company reduced its deferred tax liabilities by approximately $ 13,000 333,834 320,955 196,401 10,824 1,100 During the first six months of 2015, the Company reduced its deferred tax liabilities by approximately $ 55,000 281,651 226,927 315,279 18,546 The Company follows provisions of uncertain tax positions as addressed in FASB Accounting Standards Codification 740-10-65-1. Based on management’s evaluation, the Company has no position at June 30, 2016, or December 31, 2015, for which there is uncertainty about deductibility. The Company is no longer subject to U.S. Federal and state income tax examinations by taxing authorities for years before December 31, 2013.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
	Jun. 30, 2016
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
Fair Value Disclosures [Text Block]	FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value estimates discussed herein are based on certain market assumptions and pertinent information available to management as of December 31, 2015, and June 30, 2016. A fair value hierarchy that prioritizes the inputs used to measure fair value and requires fair value measurements to be categorized based on the observability of those inputs has been established by the applicable accounting guidance. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). The respective carrying value of certain balance sheet financial instruments approximate their fair values and are classified within level 1 of the fair value hierarchy. These financial instruments include cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses. The fair value of the Company’s long-term debt is estimated based upon the quoted market prices for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities. The carrying value approximates the fair value of the debt.

PROFESSIONAL EMPLOYER ORGANIZAT

PROFESSIONAL EMPLOYER ORGANIZATION	6 Months Ended
	Jun. 30, 2016
Professional Employer Organization [Abstract]
Professional Employer Organization [Text Block]	PROFESSIONAL EMPLOYER ORGANIZATION In early January 2014, the Company contracted with a Professional Employer Organization (“PEO”) which co-employs the Company’s employees. The PEO and the Company share and allocate responsibilities and liabilities. The PEO assumes much of the responsibilities and liabilities for the business of employment such as risk management, human resources (“HR”) management, benefits administration, workers’ compensation, payroll and payroll tax compliance. The Company retains the responsibility for the hiring, firing and managing its employees and operations. The purpose of the Company’s contracting with a PEO was to strengthen the Company’s HR functions and provide its employees with a wider range of benefits at more affordable prices. The Company changed PEO providers in January of 2016 primarily for the purpose of obtaining better benefits at lower costs.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	SUBSEQUENT EVENTS The Company has performed an evaluation of subsequent events and noted the following: The renewal of our line of credit through June 30, 2018, was approved by our Bank on July 12, 2016. The execution of the paper work to document the renewal is to be completed by the end of August. The terms will remain the same.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2016
Accounting Changes and Error Corrections [Abstract]
Accounting Changes and Error Corrections [Text Block]	RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued an accounting standards update with new guidance on recognizing revenue from contracts with customers. The standards update outlines a single comprehensive model for entities to utilize to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that will be received in exchange for the goods and services. Additional disclosures will also be required to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The standards update is effective for fiscal years beginning after December 15, 2017, which has been delayed from the original effective date of December 15, 2016. Early adoption is permitted as of the original effective date. We are currently evaluating the impact of adopting this standards update on our consolidated financial statements and we have not yet selected a transition method. In August 2014, the FASB issued ASU No. 2014-15, “Disclosures of Uncertainties About an Entity’s Ability to Continue as a Going Concern.” The new standard provides guidance around management's responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company does not expect that this guidance will have a material impact on its financial position, results of operations or cash flows. In November 2015, accounting guidance was issued which simplifies the presentation of deferred income taxes. The guidance requires that all deferred tax assets and deferred tax liabilities, including any valuation allowances, be classified as long-term in the consolidated balance sheet. This guidance is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact of adopting this new standard. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” This update revises an entity’s accounting related to the classification and measurement of investments in equity securities (except those accounted for under the equity method of accounting or those that result in consolidation of the investee), changes the presentation of certain fair value changes relating to instrument specific credit risk for financial liabilities and amends certain disclosure requirements associated with the fair value of financial instruments. This update is effective for the first interim and annual periods beginning after December 15, 2017, with early adoption permitted for certain provisions of the update. The Company is currently evaluating the impact of adopting this new standard. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This update revises an entity’s accounting for operating leases by a lessee, among other changes, and requires a lessee to recognize a liability to make lease payments and an asset representing its right to use the underlying asset for the lease term in the statement of financial position. The distinction between finance and operating leases has not changed and the update does not significantly change the effect of finance and operating leases on the statement of cash flows. Additionally, this update requires both qualitative and specific quantitative disclosures. This update is effective for the first interim and annual periods beginning after December 15, 2018, with early adoption permitted. At adoption, this update will be applied using a modified retrospective approach. The Company is currently evaluating the impact of adopting this new standard. On March 30, 2016, the FASB issued ASU No. 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. Excess tax benefits for share-based payments will be recorded as a reduction of income taxes and reflected in operating cash flows upon the adoption of this ASU. Excess tax benefits are currently recorded in equity and as financing activity under the current rules. This guidance is effective for annual and interim reporting periods of public entities beginning after December 15, 2016. The Company is currently evaluating the impact of adopting this new standard. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The ASU requires measurement and recognition of expected versus incurred credit losses for financial assets held. ASU 2016-13 is effective for the Company in our first quarter of fiscal 2020 with early adoption permitted beginning in the first quarter of fiscal 2019. We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements.

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2016
INVENTORIES [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventories at June 30, 2016, and June 30, 2015, consisted of: 2016 2015 Finished Goods $ 6,253,589 $ 6,848,510 Components, packaging and work in process 1,136,102 1,414,144 Inventory Reserve (208,475) (215,284) Total $ 7,181,216 $ 8,047,370
Schedule of Inventory Reserves [Table Text Block]	2016 2015 Beginning Balance $ 213,751 $ 159,076 Increases to reserve 95,673 111,473 Write offs against reserve (100,949) (55,265) Ending Balance $ 208,475 $ 215,284

ORGANIZATION AND NATURE OF OP22

ORGANIZATION AND NATURE OF OPERATIONS (Details Textual) - Manticus, Inc [Member]	6 Months Ended
	Jun. 30, 2016shares
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	8,000,000
Business Acquisition, Percentage of Voting Interests Acquired	89.00%

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Inventory [Line Items]
Finished Goods	$ 6,253,589		$ 6,848,510
Components, packaging and work in process	1,136,102		1,414,144
Inventory Reserve	(208,475)	$ (213,751)	(215,284)	$ (159,076)
Total	$ 7,181,216	$ 7,914,613	$ 8,047,370

INVENTORIES (Details 1)

INVENTORIES (Details 1) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Inventory [Line Items]
Beginning Balance	$ 213,751	$ 159,076
Increases to reserve	95,673	111,473
Write offs against reserve	(100,949)	(55,265)
Ending Balance	$ 208,475	$ 215,284

INVENTORIES (Details Textual)

INVENTORIES (Details Textual)	6 Months Ended
	Jun. 30, 2016USD ($)
Inventory [Line Items]
Additional Inventory Reserve Charges	$ 95,673

ACCOUNTS RECEIVABLE (Details Te

ACCOUNTS RECEIVABLE (Details Textual) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Accounts receivable - trade, allowance for doubtful accounts	$ 59,824	$ 37,824

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Textual)	Nov. 08, 2012USD ($)$ / sharesshares	Jun. 30, 2016USD ($)ft²$ / sharesshares	Mar. 31, 2016shares	Dec. 30, 2011	Jun. 30, 2016USD ($)ft²$ / sharesshares	Jan. 01, 2012USD ($)	Jun. 01, 2007USD ($)
Related Party Transaction [Line Items]
Operating Leases, Rent Expense, Net, Total					$ 241,896
Debt and Capital Lease Obligations		$ 50,000			$ 50,000
Number Of Warrants Exercised By Non-Affiliated Party | shares		36,563	14,000
Notes Payable, Other Payables [Member]
Related Party Transaction [Line Items]
Debt and Capital Lease Obligations	$ 350,000
Debt Conversion, Converted Instrument, Warrants or Options Issued | shares	350,000				353,944
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 0.50	$ 0.4944			$ 0.4944
Debt Instrument, Basis Spread on Variable Rate	3.00%
NSDA [Member]
Related Party Transaction [Line Items]
Lease Expense, Related Party					$ 781,061
Payments to Suppliers					$ 485,390
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued | shares					50,454
Due to Related Parties		$ 245,671			$ 245,671
Related Party Fees Accrued					$ 1,858
SENK Properties, First Lease Agreement [Member]
Related Party Transaction [Line Items]
Square Footage Of Leased Office Space | ft²		36,000			36,000
Lease Term					10 years
SENK Properties, First Lease Agreement [Member] | Notes Payable, Other Payables [Member]
Related Party Transaction [Line Items]
Debt and Capital Lease Obligations	$ 350,000
SENK Properties, First Lease Agreement [Member] | Scenario One [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment		$ 29,013			$ 29,013
Lease Extension Period					10 years
SENK Properties, Second Lease Agreement [Member] | Scenario Two [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment		$ 9,732			$ 9,732
Lease Extension Period					10 years
Agreement Entry Date				Jan. 1, 2012
Period One [Member] | SENK Properties, First Lease Agreement [Member] | Scenario One [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment							$ 27,250
Period One [Member] | SENK Properties, Second Lease Agreement [Member] | Scenario Two [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment						$ 8,542
Period Three [Member] | SENK Properties, First Lease Agreement [Member] | Scenario One [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment							29,013
Period Three [Member] | SENK Properties, Second Lease Agreement [Member] | Scenario Two [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment						9,083
Period Five [Member] | SENK Properties, First Lease Agreement [Member] | Scenario One [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment							30,827
Period Five [Member] | SENK Properties, Second Lease Agreement [Member] | Scenario Two [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment						9,732
Period Seven [Member] | SENK Properties, Second Lease Agreement [Member] | Scenario Two [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment						10,056
Period Eight [Member] | SENK Properties, First Lease Agreement [Member] | Scenario One [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment							32,587
Period Eight [Member] | SENK Properties, Second Lease Agreement [Member] | Scenario Two [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment						10,597
Period Ten [Member] | SENK Properties, First Lease Agreement [Member] | Scenario One [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment							$ 34,347
Period Ten [Member] | SENK Properties, Second Lease Agreement [Member] | Scenario Two [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment						$ 10,813
Pet Zone Products Ltd [Member] | Notes Payable, Other Payables [Member]
Related Party Transaction [Line Items]
Debt and Capital Lease Obligations	$ 100,000
Fairport Harbor [Member] | Senk Properties LLC [Member]
Related Party Transaction [Line Items]
Square Footage Of Leased Office Space | ft²		64,000			64,000
Mentor [Member] | Senk Properties LLC [Member]
Related Party Transaction [Line Items]
Square Footage Of Leased Office Space | ft²		26,000			26,000

REVENUE RECOGNITION (Details Te

REVENUE RECOGNITION (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Major Customer One [Member]
Concentration Risk [Line Items]
Revenues	$ 1,594,456	$ 1,414,446	$ 3,266,687	$ 2,999,918
Major Customer One [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	29.30%	25.30%	28.10%	26.80%
Major Customer Two [Member]
Concentration Risk [Line Items]
Revenues		$ 779,822		$ 1,271,483
Major Customer Two [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage		14.00%		11.40%
Two Major Customer [Member] | Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage		39.30%		38.20%

STOCK OPTIONS (Details Textual)

STOCK OPTIONS (Details Textual) - USD ($)	Feb. 13, 2012	Jun. 30, 2016	Jun. 30, 2015
Allocated Share-based Compensation Expense		$ 12,000	$ 12,000
2008 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	750,000
2008 Stock Option Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,750,000
2008 Stock Option Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,000,000

NET INCOME PER COMMON SHARE (De

NET INCOME PER COMMON SHARE (Details Textual) - $ / shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive options, minimum exercise price	$ 0.42	$ 0.42
Potentially dilutive options, maximum exercise price	$ 0.59	$ 0.98
Potentially dilutive stock options	824,180	1,070,603
Original Series of Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive shares not included in computation of diluted earning per share	635,000	635,000
Preferred stock, conversion rate	$ 1	$ 1
Second Series 2009 Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive shares not included in computation of diluted earning per share	1,236,160	1,236,160
Preferred stock, conversion rate	$ 0.70	$ 0.70
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive options, minimum exercise price	0.41	0.41
Potentially dilutive options, maximum exercise price	$ 1.27	$ 1.27
Potentially dilutive stock options	561,168	579,360

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Line Items]
Deferred Tax Liabilities, Net, Total	$ 13,000	$ 55,000
Increase (Decrease) in Deferred Liabilities	320,955	226,927	$ 333,834	$ 281,651
Federal Income Tax Expense Payable	196,401	315,279
Local Income Tax Expense Payable	10,824	$ 18,546
Taxes, Other	$ 1,100