Ourpets (OPCO) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 26, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
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		19,741,710

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2017	Dec. 31, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 698,183	$ 127,979
Investments	512,655	0
Accounts receivable - trade, less allowance for doubtful accounts of $83,682 and $79,182	4,649,666	4,641,798
Inventories net of reserve	8,616,509	7,010,536
Prepaid expenses	1,090,125	885,391
Total current assets	15,567,138	12,665,704
PROPERTY AND EQUIPMENT
Computers and office equipment	1,038,576	1,014,679
Warehouse equipment	740,039	583,174
Leasehold improvements	317,057	309,045
Tooling	5,238,343	4,633,246
Construction in progress	103,655	479,224
Total	7,437,670	7,019,368
Less accumulated depreciation	5,396,545	5,018,462
Net property and equipment	2,041,125	2,000,906
OTHER ASSETS
Amortizable Intangible Assets, less amortization of $593,182 and $547,980	421,070	404,273
Intangible Assets	477,328	477,328
Goodwill	67,511	67,511
Deposits and other assets	25,900	98,524
Total other assets	991,809	1,047,636
Total assets	18,600,072	15,714,246
CURRENT LIABILITIES
Current maturities of long-term debt	239,976	228,941
Accounts payable - trade	979,871	784,900
Other accrued expenses	665,672	713,532
Total current liabilities	1,885,519	1,727,373
LONG-TERM LIABILITIES
Long-term debt - less current portion above	556,159	645,203
Revolving Line of Credit	3,675,166	2,083,966
Deferred Income Taxes	346,750	362,753
Total long term liabilities	4,578,075	3,091,922
Total liabilities	6,463,594	4,819,295
COMMON STOCK
No par value; 50,000,000 shares authorized, 19,539,230 and 17,808,569 shares issued and outstanding at September 30, 2017 and December 31, 2016 respectively	6,225,471	5,171,512
PAID-IN CAPITAL	97,539	79,539
ACCUMULATED EARNINGS	5,233,618	4,198,738
Total stockholders' equity	12,136,478	10,894,951
Total liabilities and stockholders' equity	18,600,072	15,714,246
Convertible Preferred Stock [Member]
COMMON STOCK
CONVERTIBLE PREFERRED STOCK	579,850	579,850
Series 2009 Preferred Stock [Member]
COMMON STOCK
CONVERTIBLE PREFERRED STOCK	0	865,312
Total stockholders' equity	$ 0	$ 865,312

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Class of Stock [Line Items]
Accounts receivable - trade, allowance for doubtful accounts	$ 83,682	$ 79,182
Amortization	$ 593,182	$ 547,980
COMMON STOCK, par value per share	$ 0	$ 0
COMMON STOCK, shares authorized	50,000,000	50,000,000
COMMON STOCK, shares issued	19,539,230	17,808,569
COMMON STOCK, shares outstanding	19,539,230	17,808,569
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	0	123,616

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net revenue	$ 6,905,160	$ 7,259,904	$ 19,625,770	$ 18,872,791
Cost of goods sold	4,715,881	4,816,434	13,417,905	13,025,620
Gross profit on sales	2,189,279	2,443,470	6,207,865	5,847,171
Selling, general and administrative expenses	1,623,231	1,649,506	4,864,745	4,410,236
Income from operations	566,048	793,964	1,343,120	1,436,935
Other (income) and expense, net	(4,849)	(24,125)	9,395	(58,593)
Interest expense	30,003	23,450	74,762	84,206
Income before income taxes	540,894	794,639	1,258,963	1,411,322
Income tax expense	107,987	298,970	196,061	494,440
Net income	$ 432,907	$ 495,669	$ 1,062,902	$ 916,882
Basic Net Income per common share	$ 0.02	$ 0.03	$ 0.06	$ 0.05
Diluted Net Income per common share	$ 0.02	$ 0.02	$ 0.05	$ 0.05
Weighted average number of common shares outstanding used to calculate basic earnings per share	19,526,135	17,709,088	18,543,256	17,665,812
Weighted average number of common and equivalent shares outstanding used to calculate diluted earnings per share	20,001,903	20,090,367	19,009,304	19,489,855

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2017 - 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, 2016	$ 10,894,951	$ 865,312	$ 579,850	$ 5,171,512	$ 79,539	$ 4,198,738
Balance (in shares) at Dec. 31, 2016		123,616	63,500	17,808,569
Common Stock issued upon exercise of stock options/warrants	188,647	$ 0	$ 0	$ 188,647	0	0
Common Stock issued upon exercise of stock options/warrants (in shares)		0	0	494,501
Cash Dividend paid on Preferred Stock	(28,022)	$ 0	$ 0	$ 0	0	(28,022)
Common Stock issued upon conversion Series 2009 Preferred Stock	0	$ (865,312)	$ 0	$ 865,312	0	0
Common Stock issued upon conversion Series 2009 Preferred Stock (in shares)		(123,616)	0	1,236,160
Net income	1,062,902	$ 0	$ 0	$ 0	0	1,062,902
Stock-Based compensation expense	18,000	0	0	0	18,000	0
Balance at Sep. 30, 2017	$ 12,136,478	$ 0	$ 579,850	$ 6,225,471	$ 97,539	$ 5,233,618
Balance (in shares) at Sep. 30, 2017		0	63,500	19,539,230

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 1,062,902	$ 916,882
Adjustments to reconcile net income to net cash provided by operating activities:
Unrealized gain on investments	(12,746)	0
Loss on fixed assets	995	10,853
Depreciation expense	398,063	451,411
Amortization expense	45,202	39,739
Stock option expense	18,000	18,000
(Increase) decrease in assets:
Accounts receivable - trade	(7,868)	(266,334)
Inventories	(1,605,973)	167,970
Prepaid expenses	(204,734)	(155,811)
Deposits and other assets	72,624	(50,975)
Amortizable Intangible Assets	(61,998)	(74,255)
Increase (decrease) in liabilities:
Accounts payable - trade	194,971	(23,666)
Accrued expenses	(47,860)	241,219
Deferred tax liabilities	(16,003)	3,933
Net cash provided by (used in) in operating activities	(164,425)	1,278,966
CASH FLOWS FROM INVESTING ACTIVITIES
Sale of property and equipment	4,000	1,000
Purchase of Investments	(497,358)	0
Net Change in Investments	(2,551)	0
Acquisition of property and equipment	(337,978)	(588,946)
Net cash used in investing activities	(833,887)	(587,946)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid on preferrred stock	(28,022)	0
Issuances of Common Stock	188,647	29,891
Principal payments on long-term debt	(183,309)	(216,481)
Net (payment) borrowing on bank line of credit	1,591,200	(502,204)
Net cash (used in) provided by financing activities	1,568,516	(688,794)
Net increase in cash	570,204	2,226
CASH AT BEGINNING OF PERIOD	127,979	100,000
CASH AT END OF PERIOD	698,183	102,226
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid	80,034	84,707
Income taxes paid	294,500	245,490
SUPPLEMENTAL DISCLOSURE OF NON CASH TRANSACTIONS
Non cash exercise of stock options/ warrants	81,178	28,997
Equipment obtained through capital lease	105,300	0
Conversion of Preferred to Common Shares	$ 865,312	$ 0

ORGANIZATION AND NATURE OF OPER

ORGANIZATION AND NATURE OF OPERATIONS	9 Months Ended
	Sep. 30, 2017
ORGANIZATION AND NATURE OF OPERATIONS [Abstract]
ORGANIZATION AND NATURE OF OPERATIONS	ORGANIZATION AND NATURE OF OPERATIONS OurPet’s Company (“OurPet’s” or the “Company”) is a Colorado corporation that operates out of Fairport Harbor, Ohio. The Company markets proprietary products to the retail pet business under the OurPet’s ® ® 51

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2017
BASIS OF PRESENTATION [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION OurPet’s 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 three and nine month periods ended September 30, 2017, and September 30, 2016, 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 the information and footnotes required by United States generally accepted accounting principles for complete financial statements. They include the accounts of OurPet’s, Series OP, and DISC. The December 31, 2016, Condensed Consolidated Balance Sheet information contained in this Form 10-Q was derived from the 2016 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, 2016, that are included in the Company’s Form 10-K filed with the Securities and Exchange Commission on March 31, 2017. Operating results for the nine months ended September 30, 2017, are not necessarily indicative of the results that may be expected for future fiscal periods.

USE OF ESTIMATES

USE OF ESTIMATES	9 Months Ended
	Sep. 30, 2017
USE OF ESTIMATES [Abstract]
USE OF ESTIMATES	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	9 Months Ended
	Sep. 30, 2017
INVENTORIES [Abstract]
Inventory Disclosure [Text Block]	INVENTORIES Inventories are carried at the lower of cost, first-in, first-out method, or net realizable value. All inventories are pledged as collateral for bank loans. Inventories at September 30, 2017, and September 30, 2016, consisted of: 2017 2016 Finished Goods $ 7,472,427 $ 6,867,512 Components, packaging and work in process 1,368,465 1,145,193 Inventory Reserve (224,383) (266,062) Total $ 8,616,509 $ 7,746,643 During the nine months ended September 30, 2017, the Company recorded additional inventory reserve charges of $ 151,363 2017 2016 Beginning Balance $ 213,013 $ 213,751 Increases to reserve 151,363 167,787 Write offs against reserve (139,993) (115,476) Ending Balance $ 224,383 $ 266,062 Monthly accruals are made to account for obsolete and excess inventory. Quarterly reviews are also performed to determine if an additional end of quarter adjustment is needed. It was determined that no additional adjustment was needed for the end of the third quarter of 2017. 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. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory.” ASU No. 2015-11 changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for the Company for its fiscal year 2017. Adoption of the guidance took place prospectively during 2017, and the adoption did not have a material effect on the Company’s consolidated financial statements or disclosures.

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	9 Months Ended
	Sep. 30, 2017
ACCOUNTS RECEIVABLE [Abstract]
ACCOUNTS RECEIVABLE	ACCOUNTS RECEIVABLE Accounts receivable have been adjusted for all known uncollectible accounts. An allowance for possible bad debts was established on September 30, 2017, and December 31, 2016, in the amounts of $ 83,682 79,182

CAPITAL STOCK

CAPITAL STOCK	9 Months Ended
	Sep. 30, 2017
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	CAPITAL STOCK On January 28, 2010 and February 1, 2010, the Company sold an aggregate of 123,616 7.00 865,312 595,000 270,312 On June 15, 2017, the Company exercised its right to convert the 123,616 1,236,160 1.50 7.00

INVESTMENTS

INVESTMENTS	9 Months Ended
	Sep. 30, 2017
INVESTMENT [Abstract]
Investment [Text Block]	INVESTMENTS Investment securities, which consist of equity securities, are stated at fair value. The fair value is determined by quoted market prices and considered to be level one of the fair value hierarchy. Any unrealized holding gain or loss is reported as part of net income. As of September 30, 2017, the unrealized gain was $12,746.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	RELATED PARTY TRANSACTIONS We lease a 64,000 26,000 We first entered a 10 36,000 10 27,250 29,013 30,827 32,587 34,347 30,827 10 We entered 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 Lease expenses resulting from the foregoing agreements were $ 363,244 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 $ 781,061 494,312 50,000 50,454 236,749 1,583 On November 8, 2012, the Company received $ 350,000 350,000 50,000 100,000 350,000 3 November 8, 2015 0.50 50,000 50,000 250,000 100,000 150,000 In December 2016, the Company established two new wholly owned subsidiaries. The first is named Series OP and is an Insurance company organized under the law of Delaware. It participates in a group insurance program to insure against certain business losses. The second subsidiary, OurPet’s DISC, Inc. is an Ohio corporation that participates in certain export transactions of goods that are eligible for export subsidies under U.S. tax law.

REVENUE RECOGNITION

REVENUE RECOGNITION	9 Months Ended
	Sep. 30, 2017
REVENUE RECOGNITION [Abstract]
REVENUE RECOGNITION	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®, Pet Zone®, Flappy®, SmartScoop®, Ecopure Naturals®, Play-N-Squeak®, Durapet®, Clipnosis®, Go! Cat! Go!®, Festiva®, and Cosmic Pet™ brand names. Net revenue is comprised of gross sales less discounts given to distributors, returns and allowances. For the three months ended September 30, 2017, 20.8 1,436,358 For the three months ended September 30, 2016, 38.6 1,553,280 1,249,711 17.2 For the nine months ended September 30, 2017, 22.2 4,360,936 For the nine months ended September 30, 2016, 35.5 4,819,967 1,879,570 10.0

STOCK OPTIONS

STOCK OPTIONS	9 Months Ended
	Sep. 30, 2017
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 2017 and 2016, the amount of compensation expense recognized because of stock options was $ 18,000 On May 2, 2008, our Board of Directors approved the 2008 Stock Option Plan which was approved by the shareholders on May 30, 2008. 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 On April 14, 2017, the Board approved the 2017 Plan which was subsequently approved by the shareholders on June 5, 2017. The 2017 Plan supersedes the 2008 Stock Option Plan, as amended. No further options will be granted under the 2008 Plan. The terms of the 2017 Plan are the same as the terms of the 2008 Stock Option Plan and is administered by our Compensation Committee.

NET INCOME PER COMMON SHARE

NET INCOME PER COMMON SHARE	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
NET INCOME PER COMMON SHARE	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 have not been included. As of September 30, 2017, common shares that are or could be potentially dilutive included 447,833 0.41 1.60 396,343 0.49 0.59 635,000 1.00 553,000 0.41 1.12 824,180 0.42 0.59 635,000 1.00 1,236,160 0.70

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	INCOME TAXES During the first nine months of 2017, the Company decreased its deferred tax liabilities by approximately $ 16,000 362,753 346,750 6,000 22,000 In 2016 the Company set up an insurance company and a DISC as wholly owned subsidiaries. Transactions with these entities lowered our taxable income by approximately $ 1,165,000 207,275 11,717 During the first nine months of 2016, the Company increased its deferred tax liabilities by approximately $ 4,000 333,834 337,767 463,409 27,259 1,200 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 September 30, 2017, or December 31, 2016, 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, 2014.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2017
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	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, 2016, and September 30, 2017. 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, investments, 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	9 Months Ended
	Sep. 30, 2017
Professional Employer Organization [Abstract]
Professional Employer Organization [Text Block]	PROFESSIONAL EMPLOYER ORGANIZATION The Company contracts 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 to obtain better benefits at lower costs.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events [Text Block]	SUBSEQUENT EVENTS The Company has performed an evaluation of subsequent events and no events were identified that would require adjustment or disclosure in the condensed consolidated financial statements.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2017
Accounting Changes and Error Corrections [Abstract]
Accounting Changes and Error Corrections [Text Block]	RECENT ACCOUNTING PRONOUNCEMENTS On May 10, 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-09, “Compensation–Stock Compensation (Topic 718): Scope of Modification Accounting,” clarifying when a change to the terms or conditions of a share-based payment award must be accounted for as a modification. The new guidance requires modification accounting if the fair value, vesting condition or the classification of the award is not the same immediately before and after a change to the terms and conditions of the award. The new guidance is effective for the Company on a prospective basis beginning on January 1, 2018, with early adoption permitted. This new guidance is not expected to have an impact on the Company’s Consolidated Financial Statements as it is not the Company’s practice to change either the terms or conditions of share-based payment awards once they are granted. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment.” The standard eliminates step two in the current two-step impairment test under ASC 350. Under the new standard, a goodwill impairment will be recorded for any excess of a reporting unit’s carrying value over its fair value. A prospective transition approach is required. The standard is effective for annual and interim reporting periods beginning after December 15, 2019, with early adoption permitted for annual and interim goodwill impairment testing dates after January 1, 2017. We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements. In November 2016, the FASB issued updated guidance on Cash and Cash Equivalents, including Statement of Cash Flows and Restricted Cash requiring entities to explain, in their statements of cash flows, the change during the period in the total of cash, cash equivalents, and amounts generally described as “restricted cash” or “restricted cash equivalents.” As a result, restricted cash and restricted cash equivalents must now be included within the total of cash and cash equivalents when reconciling the beginning and end of period totals shown on the statement of cash flows. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017, with early adoption permitted. The new guidance is not expected to have an impact on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of certain cash receipts and cash payments (a consensus of the emerging issues task force).” This ASU addresses the following eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This guidance will be effective for the Company on January 1, 2018. The Company does not believe the guidance will have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This 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 year 2020 with early adoption permitted beginning in the first quarter of fiscal year 2019. We are currently evaluating the impact the adoption of this standard will have on our consolidated financial statements. In April and May 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”, and ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.” These amendments provide additional guidance to the new revenue standard (Topic 606) that will be applicable for reporting periods beginning after December 15, 2017. Early adoption is not permitted. Management is evaluating the impact of this guidance on our financial statements. 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 does not believe the guidance will have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”, amending the new revenue recognition standard that it issued jointly with the FASB in 2014 – “Revenue from Contracts with Customers (Topic 606).” The amendments in this ASU provide more detailed guidance to clarify certain aspects of the principal-versus-agent guidance in the original ASU. The ASU is effective for annual and interim reporting periods beginning after December 15, 2017, based on ASU 2015-14. Early application is permitted but not before the original effective date of December 15, 2016. The Company is currently assessing the impact of this guidance on our financial statements. 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. The Company expects the adoption of ASU 2016-02 may have a material impact related to its facility operating leases on its consolidated financial statements. 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 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 have selected the modified retrospective method and do not expect a material impact on our consolidated financial statements.

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2017
INVENTORIES [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventories at September 30, 2017, and September 30, 2016, consisted of: 2017 2016 Finished Goods $ 7,472,427 $ 6,867,512 Components, packaging and work in process 1,368,465 1,145,193 Inventory Reserve (224,383) (266,062) Total $ 8,616,509 $ 7,746,643
Schedule of Inventory Reserves [Table Text Block]	2017 2016 Beginning Balance $ 213,013 $ 213,751 Increases to reserve 151,363 167,787 Write offs against reserve (139,993) (115,476) Ending Balance $ 224,383 $ 266,062

ORGANIZATION AND NATURE OF OP24

ORGANIZATION AND NATURE OF OPERATIONS (Details Textual)	9 Months Ended
	Sep. 30, 2017
Manufacturing Products Sale Percentage	51.00%

INVENTORIES (Schedule of Invent

INVENTORIES (Schedule of Inventories) (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Inventory [Line Items]
Finished Goods	$ 7,472,427		$ 6,867,512
Components, packaging and work in process	1,368,465		1,145,193
Inventory Reserve	(224,383)	$ (213,013)	(266,062)	$ (213,751)
Total	$ 8,616,509	$ 7,010,536	$ 7,746,643

INVENTORIES (Schedule of Change

INVENTORIES (Schedule of Changes to Inventory Reserve) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Inventory [Line Items]
Beginning Balance	$ 213,013	$ 213,751
Increases to reserve	151,363	167,787
Write offs against reserve	(139,993)	(115,476)
Ending Balance	$ 224,383	$ 266,062

INVENTORIES (Details Textual )

INVENTORIES (Details Textual )	9 Months Ended
	Sep. 30, 2017USD ($)
Inventory [Line Items]
Additional Inventory Reserve Charges	$ 151,363

ACCOUNTS RECEIVABLE (Details Te

ACCOUNTS RECEIVABLE (Details Textual) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Accounts receivable - trade, allowance for doubtful accounts	$ 83,682	$ 79,182

CAPITAL STOCK (Details Textual)

CAPITAL STOCK (Details Textual) - USD ($)	Feb. 01, 2010	Jun. 15, 2017
Class of Stock [Line Items]
Convertible Preferred Stock, Terms of Conversion		This was based upon each share of the 2009 Preferred Stock having been issued at $7.00 a share, and a conversion ratio of 10 shares of Common Stock for each share of the 2009 Preferred Stock.
Shares Issued, Price Per Share	$ 7
Original Series of Preferred Stock
Class of Stock [Line Items]
Amount of debt converted	$ 270,312
Stock Issued During Period, Value, Issued for Services	865,312
Proceeds from Issuance of Convertible Preferred Stock	595,000
Second Series 2009 Preferred Stock
Class of Stock [Line Items]
Conversion of Preferred shares to common stock, shares		123,616
Stock price triggering redemption		$ 1.50
Stock Issued During Period, Value, Issued for Services	$ 7
Preferred stock, conversion rate		$ 0.70
Stock Issued During Period, Shares, New Issues	123,616
Conversion of Stock, Shares Issued		1,236,160

INVESTMENTS (Details Textual)

INVESTMENTS (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Unrealized Gain (Loss) on Investments	$ 12,746	$ 0

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Textual)	Nov. 08, 2012USD ($)$ / sharesshares	Oct. 31, 2017shares	Jun. 30, 2017shares	Dec. 30, 2011USD ($)	Sep. 30, 2017USD ($)ft²shares	Dec. 31, 2016shares	Dec. 31, 2012USD ($)
Related Party Transaction [Line Items]
Operating Leases, Rent Expense, Net, Total					$ 363,244
Number Of Warrants Exercised By Nonaffiliated Party | shares						50,000
Number Of Warrants Exercised | shares						50,000
Subsequent Event [Member]
Related Party Transaction [Line Items]
Number Of Warrants Exercised | shares		250,000
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
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares	$ 0.50
Debt Instrument, Maturity Date	Nov. 8, 2015
Debt Instrument, Basis Spread on Variable Rate	3.00%
Affiliated Entity [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction					781,061
Payments to Suppliers					494,312
Share-based Goods and Nonemployee Services Transaction, Capitalized Cost					$ 50,000
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued | shares					50,454
Due to Related Parties					$ 236,749
Related Party Fees Accrued					$ 1,583
SENK Properties, First Lease Agreement [Member]
Related Party Transaction [Line Items]
Square Footage Of Leased Office Space | ft²					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					$ 30,827
Lease Extension Period					10 years
SENK Properties, Second Lease Agreement [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment					$ 9,732
SENK Properties, Second Lease Agreement [Member] | Scenario Two [Member]
Related Party Transaction [Line Items]
Lease Extension Period					10 years
Agreement Entry Date				Jan. 1, 2012
Senk Properties Llc [Member]
Related Party Transaction [Line Items]
Number Of Warrants Exercised | shares			50,000
LJR Limited Partnership [Member] | Subsequent Event [Member]
Related Party Transaction [Line Items]
Number Of Warrants Exercised | shares		150,000
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]
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]
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]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment				9,732
Period Seven [Member] | SENK Properties, Second Lease Agreement [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment				10,056
Period Eight [Member] | SENK Properties, Second Lease Agreement [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment				10,597
Period Ten [Member] | SENK Properties, Second Lease Agreement [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment				$ 10,813
Thereafter [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment							32,587
Thereafter [Member] | SENK Properties, First Lease Agreement [Member] | Scenario One [Member]
Related Party Transaction [Line Items]
Lease Agreement Monthly Payment							$ 34,347
Pet Zone Products Ltd [Member] | Subsequent Event [Member]
Related Party Transaction [Line Items]
Number Of Warrants Exercised | shares		100,000
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
Mentor [Member] | Senk Properties Llc [Member]
Related Party Transaction [Line Items]
Square Footage Of Leased Office Space | ft²					26,000

REVENUE RECOGNITION (Details Te

REVENUE RECOGNITION (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Two Major Customer [Member] | Sales Revenue, Net [Member]
Concentration Risk, Percentage	20.80%	38.60%	22.20%	35.50%
Major Customer Two [Member]
Revenues		$ 1,249,711		$ 1,879,570
Major Customer Two [Member] | Sales Revenue, Net [Member]
Concentration Risk, Percentage		17.20%		10.00%
Major Customer One [Member]
Revenues	$ 1,436,358	$ 1,553,280	$ 4,360,936	$ 4,819,967
Major Customer One [Member] | Sales Revenue, Net [Member]
Concentration Risk, Percentage		21.40%		25.50%

STOCK OPTIONS (Details Textual)

STOCK OPTIONS (Details Textual) - USD ($)	Feb. 13, 2012	Sep. 30, 2017	Sep. 30, 2016
Allocated Share-based Compensation Expense		$ 18,000	$ 18,000
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] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	1,000,000
2008 Stock Option Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	1,750,000

NET INCOME PER COMMON SHARE (De

NET INCOME PER COMMON SHARE (Details Textual) - $ / shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Potentially dilutive options, minimum exercise price	$ 0.49	$ 0.42
Potentially dilutive options, maximum exercise price	$ 0.59	$ 0.59
Potentially dilutive stock options	396,343	824,180
Series A Preferred Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Potentially dilutive shares not included in computation of diluted earning per share	635,000	635,000
Preferred stock, conversion rate	$ 1	$ 1
Series B Preferred Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Potentially dilutive shares not included in computation of diluted earning per share		1,236,160
Preferred stock, conversion rate		$ 0.70
Stock Options [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Potentially dilutive options, minimum exercise price	0.41	0.41
Potentially dilutive options, maximum exercise price	$ 1.60	$ 1.12
Potentially dilutive stock options	447,833	553,000

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Line Items]
Increase (Decrease) in Deferred Liabilities, Total	$ 346,750	$ 337,767	$ 362,753	$ 333,834
State franchise taxes		1,200
Local Income Tax Expense Payable	11,717	27,259
Federal Income Tax Expense Payable	207,275	463,409
Deferred Tax Liabilities, Net	16,000	4,000
Decrease In Net Taxable Income		$ 1,165,000
Increase of Income Tax Adjustments Related Accelerated Deductibility	6,000
Decrease For Reversal of Deductible Amount	$ 22,000