Omega Flex (OFLX) 10-Q 8 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013
Document and Entity Information:	'
Entity Registrant Name	'Omega Flex, Inc.
Document Type	'10-Q
Document Period End Date	30-Sep-13
Amendment Flag	'false
Entity Central Index Key	'0001317945
Current Fiscal Year End Date	'--12-31
Entity Common Stock, Shares Outstanding	10,091,822
Entity Filer Category	'Smaller Reporting Company
Entity Current Reporting Status	'Yes
Entity Voluntary Filers	'No
Entity Well-known Seasoned Issuer	'No
Document Fiscal Year Focus	'2013
Document Fiscal Period Focus	'Q3

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (USD $)	Sep. 30, 2013		Dec. 31, 2012
In Thousands, unless otherwise specified
Current Assets	'		'
Cash and Cash Equivalents	$7,032		$939
Accounts Receivable	12,734	[1]	12,134	[2]
Inventories-Net	7,122		7,128
Deferred Taxes	902		750
Other Current Assets	1,471		1,503
Total Current Assets	29,261		22,454
Property and Equipment - Net	4,898		4,824
Goodwill-Net	3,526		3,526
Other Long Term Assets	1,628		1,865
Total Assets	39,313		32,669
Current Liabilities:	'		'
Accounts Payable	2,064		2,737
Line of Credit	'		324
Accrued Compensation	2,203		349
Accrued Commissions and Sales Incentives	3,114		3,671
Taxes Payable	165		235
Other Liabilities	3,496		4,214
Total Current Liabilities	11,042		11,530
Deferred Taxes	832		614
Other Long Term Liabilities	788		783
Total Liabilities	12,662		12,927
Omega Flex, Inc. Shareholders' Equity:	'		'
Common Stock	102	[3]	102	[3]
Treasury Stock	-1		-1
Paid-in Capital	10,808		10,808
Retained Earnings	16,007		9,181
Accumulated Other Comprehensive Loss	-372		-410
Total Omega Flex, Inc. Shareholders' Equity	26,544		19,680
Noncontrolling Interest	107		62
Total Shareholders' Equity	26,651		19,742
Total Liabilities and Shareholders' Equity	$39,313		$32,669
[1]	Less allowance of $785.
[2]	Less allowance of $653
[3]	Common Stock - par value $0.01 per share; authorized 20,000,000 shares: 10,153,633 shares issued and 10,091,822 outstanding at both, September 30, 2013 and December 31, 2012.

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS - PARENTHETICAL (unaudited) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, except Share data, unless otherwise specified
CONDENSED CONSOLIDATED BALANCE SHEETS	'	'
Allowance for doubtful Accounts Receivable	$785	$653
Common Stock, Par Value	$0.01	$0.01
Common Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Shares Issued	10,153,633	10,153,633
Common Stock, Shares Outstanding	10,091,822	10,091,822

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
CONDENSED CONSOLIDATED STATEMENTS OF INCOME	'	'	'	'
Net Sales	$19,988	$16,786	$55,262	$45,590
Cost of Goods Sold	9,009	8,096	25,462	22,358
Gross Profit	10,979	8,690	29,800	23,232
Selling Expense	3,185	3,035	9,429	9,049
General and Administrative Expense	3,032	2,402	7,908	7,667
Insurance Legal Recovery	'	'	'	-4,700
Engineering Expense	673	700	2,017	1,930
Operating Profit	4,089	2,553	10,446	9,286
Interest Income (Expense), Net	3	10	3	18
Other Income (Expense), Net	64	45	-62	90
Income Before Income Taxes	4,156	2,608	10,387	9,394
Income Tax Expense	1,420	900	3,518	3,292
Net Income	2,736	1,708	6,869	6,102
Net (Income) Loss attributable to the Noncontrolling Interest, net of tax	-27	-3	-43	'
Net Income attributable to Omega Flex, Inc.	$2,709	$1,705	$6,826	$6,102
Basic and Diluted Earnings per Common Share	$0.27	$0.17	$0.68	$0.60
Basic and Diluted Weighted-Average Shares Outstanding	10,092	10,092	10,092	10,092

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	'	'	'	'
Net Income	$2,736	$1,708	$6,869	$6,102
Other Comprehensive Income (Loss), Net of Tax:	'	'	'	'
Foreign Currency Translation Adjustment, Net of Taxes	99	71	40	87
Other Comprehensive Income	99	71	40	87
Comprehensive Income	2,835	1,779	6,909	6,189
Less: Comprehensive Income (Loss) Attributable to the Noncontrolling Interest	-33	-7	-45	-5
Total Other Comprehensive Income	$2,802	$1,772	$6,864	$6,184

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash Flows from Operating Activities:	'	'
Net Income	$6,869	$6,102
Adjustments to Reconcile Net Income to Net Cash Provided By (Used In) Operating Activities:	'	'
Non-Cash Compensation Expense	234	9
Depreciation and Amortization	393	455
Provision for Losses on Accounts Receivable, net of write-offs and recoveries	135	55
Changes in Assets and Liabilities	'	'
Accounts Receivable Change	-718	-2,070
Inventory Change	3	81
Other Assets Change	119	-605
Accounts Payable Change	-668	470
Accrued Compensation Change	1,854	488
Accrued Commissions and Sales Incentives Change	-558	532
Other Liabilities Change	-758	271
Net Cash Provided by (Used In) Operating Activities	6,905	5,788
Cash Flows from Investing Activities:	'	'
Capital Expenditures	-473	-109
Net Cash Provided By (Used In) Investing Activities	-473	-109
Cash Flows from Financing Activities:	'	'
Principal Payments on Line of Credit	-324	'
Net Cash Provided by (Used In) Financing Activities	-324	'
Net Increase (Decrease) in Cash and Cash Equivalents	6,108	5,679
Translation effect on cash	-15	51
Cash and Cash Equivalents - Beginning of Period	939	3,476
Cash and Cash Equivalents - End of Period	7,032	9,206
Supplemental Disclosure of Cash Flow Information	'	'
Cash paid for Income Taxes	3,556	3,402
Cash paid for Interest	$1	'

1_Basis_of_Presentation_and_De

1. Basis of Presentation and Description of Business	9 Months Ended
	Sep. 30, 2013
Notes	'
1. Basis of Presentation and Description of Business	'
	1.  BASIS OF PRESENTATION AND DESCRIPTION OF BUSINESS
	Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements include the accounts of Omega Flex, Inc. (Omega) and its subsidiaries (collectively the “Company”).  The Company’s unaudited  condensed consolidated financial statements for the quarter ended September 30, 2013 have been prepared in accordance with accounting principles generally accepted in the United States (GAAP), and with the instructions of Form 10-Q and Article 10 of Regulation S-X.  Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the company believes that the disclosures made are adequate to make the information not misleading.  It is suggested that these condensed consolidated financial statements be read in conjunction with the financial statements and the notes thereto included in the Company’s latest shareholders’ annual report (Form 10-K).  All material inter-company accounts and transactions have been eliminated in consolidation.  It is Management’s opinion that all adjustments necessary for a fair statement of the results for the interim periods have been made, and that all adjustments are of a normal recurring nature or a description is provided for any adjustments that are not of a normal recurring nature.
	Description of Business
	The Company is a leading manufacturer of flexible metal hose, which is used in a variety of applications to carry gases and liquids within their particular applications.  These applications include carrying liquefied gases in certain processing applications, fuel gases within residential and commercial buildings and vibration absorbers in high vibration applications.  In addition, our flexible metal piping is used to carry other types of gases or fluids in a number of industrial applications where the customer requires a degree of flexibility, an ability to carry corrosive compounds or mixtures, a double containment system, or piping to carry gases or fluids at very high or very low (cryogenic) temperatures.
	The Company manufactures flexible metal hose at its facilities in Exton, Pennsylvania, with a minor amount of manufacturing performed in the United Kingdom.  The Company sells its product through distributors, wholesalers and to original equipment manufacturers (“OEMs”) throughout North America, and in certain European markets.

2_Significant_Accounting_Polic

2. Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
Notes	'
2. Significant Accounting Policies	'
	. SIGNIFICANT ACCOUNTING POLICIES
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The most significant estimates and assumptions relate to revenue recognition and related sales incentives, accounts receivable valuations, inventory valuations, goodwill valuation, product liability reserve and accounting for income taxes.  Actual amounts could differ significantly from these estimates.
	Revenue Recognition
	The Company’s revenue recognition activities relate almost entirely to the manufacture and sale of flexible metal hose and pipe.  Under GAAP, revenues are considered to have been earned when the Company has substantially accomplished what it must do to be entitled to the benefits represented by the revenues.  The following criteria represent preconditions to the recognition of revenue:
	·    Persuasive evidence of an arrangement for the sale of product or services must exist.
	·    Delivery has occurred or services have been rendered.
	·    The sales price to the customer is fixed or determinable.
	·    Collection is reasonably assured.
	The Company recognizes revenue upon shipment in accordance with the above principles.
	Gross sales are reduced for all consideration paid to customers for which no identifiable benefit is received by the Company.  This includes promotional incentives, which includes various programs including year-end rebates and discounts.  The amounts of certain incentives are known with reasonable certainty at the time of sale, while others are projected based upon the most reliable information available at the reporting date.
	Commissions, for which the Company receives an identifiable benefit, are accounted for as a sales expense.
	Accounts Receivable
	Accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. The estimated allowance for uncollectible amounts is based primarily on a specific analysis of accounts in the receivable portfolio and historical write-off experience. While management believes the allowance to be adequate, if the financial condition of the Company’s customers were to deteriorate, resulting in their inability to make payments, additional allowances may be required.
	Inventory
	Inventories are valued at the lower of cost or market.  Cost of inventories is determined by the first-in, first-out (FIFO) method.  The Company generally considers inventory quantities beyond two-years usage, measured on a historical usage basis, to be excess inventory and reduces the gross carrying value of inventory accordingly.
	Goodwill and Intangible Assets
	In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 350, Intangibles – Goodwill and Other, the Company performed an annual impairment test in accordance with this guidance as of December 31, 2012.  This analysis did not indicate any impairment of goodwill.  There are no circumstances that indicate that Goodwill might be impaired at September 30, 2013.
	Product Liability Reserves
	Product liability reserves represent the estimated unpaid amounts under the Company’s insurance policies with respect to existing claims.  The Company uses the most current available data to estimate claims.  As explained more fully under Contingencies, for various product liability claims covered under the Company’s general liability insurance policies, the Company must pay certain defense costs within its deductible or self-insured retention limits, ranging primarily from $25,000 to $250,000 per claim, depending on the terms of the policy in the applicable policy year, up to an aggregate amount.  The Company is vigorously defending against all known claims.
	Fair Value of Financial and Nonfinancial Instruments
	The Company measures financial instruments in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures.  The accounting standard defines fair value, establishes a framework for measuring fair value under GAAP, and enhances disclosures about fair value measurements.  Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.  The standard creates a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability. The Company relies on its actively traded share value – a level 1 input – in determining the fair value of the reporting unit in its annual impairment test as described in the FASB ASC Topic 350, Intangibles - Goodwill and Other.
	Earnings per Common Share
	Basic earnings per share have been computed using the weighted-average number of common shares outstanding.  For the periods presented, there are no dilutive securities.  Consequently, basic and dilutive earnings per share are the same.
	Currency Translation
	Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates prevailing on the balance sheet dates.  The statements of income are translated into U.S. dollars at average exchange rates for the period.  Adjustments resulting from the translation of financial statements are excluded from the determination of income and are accumulated in a separate component of shareholders’ equity.  Exchange gains and losses resulting from foreign currency transactions are included in operations (other income (expense)) in the period in which they occur.
	Income Taxes
	The Company accounts for taxes in accordance with the FASB ASC Topic 740, Income Taxes.  Under this method the Company records income tax expense and the related deferred taxes and tax benefits.
	Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period in which the rate is enacted.  A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize the benefit, or that future deductibility is uncertain.  No valuation reserve was deemed necessary at September 30, 2013 or at December 31, 2012.  Also, in accordance with FASB ASC Topic 740 (formerly FIN 48), the Company had reserves on the books for uncertainties in tax positions of $99,000 at September 30, 2013, and $119,000 at December 31, 2012.  These reserves are reviewed each quarter.
	Other Comprehensive Income (Loss)
	For the three and nine-months ended September 30, 2013 and 2012, respectively, the sole component of Other Comprehensive Income (Loss) was a foreign currency translation adjustment.
	New Accounting Pronouncements
	ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.  This ASU requires entities to disclose both gross information and net information about both instruments and transactions eligible for offset in the balance sheet, and instruments and transactions subject to an agreement similar to a master netting arrangement. The requirements are effective for annual periods beginning on or after January 1, 2013, and interim periods within those annual periods.  ASU 2011-11 currently has no impact on the Company’s financial conditions, results of operations or cash flows.
	ASU 2011-12, “Comprehensive Income (Topic 220) Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05,” issued in December 2011 amends ASU 2011-05 to reflect only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments.  The amendments are being made to allow FASB time to re-deliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented.  While FASB is considering the operational concerns about the presentation requirements for reclassification adjustments and the needs of financial statement users for additional information about reclassification adjustments; entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before Update 2011-05.  Public entities should begin applying these requirements for fiscal years ending after December 15, 2011.  Adoption of ASU 2011-12 had no material impact on the financial statements.

3_Inventories

3. Inventories	9 Months Ended
	Sep. 30, 2013
Notes	'
3. Inventories	'
	INVENTORIES
	Inventories, net of reserves, consisted of the following:
		September 30,	December 31,
		2013	2012
		(dollars in thousands)
	Finished Goods	$ 5,191	$ 5,598
	Raw Materials	1,931	1,530
	Total Inventory	$ 7,122	$ 7,128

4_Line_of_Credit

4. Line of Credit	9 Months Ended
	Sep. 30, 2013
Notes	'
4. Line of Credit	'
	4. LINE OF CREDIT
	On December 30, 2010, the Company agreed to a new Revolving Line of Credit Note and Loan Agreement with Sovereign Bank, NA (“Sovereign”).  The Company established a line of credit facility in the maximum amount of $10,000,000, maturing on December 31, 2014, with funds available for working capital purposes and other cash needs.  The loan is collateralized by all of the Company’s tangible and intangible assets.  The loan agreement provides for the payment of any borrowings under the agreement at an interest rate range of either LIBOR plus 1.75% to plus 2.75% (for borrowings with a fixed term of 30, 60, or 90 days), or, Prime less 0.50% to plus 0.50% (for borrowings with no fixed term other than the December 31, 2014 maturity date), depending upon the Company’s then existing financial ratios.  At September 30, 2013, the Company’s ratio would allow for the most favorable rate under the agreement’s range, which would be a rate of 1.99% (LIBOR plus 1.75%).  The Company is required to pay an annual commitment fee for the access to the funds, and is also obligated to pay a “Line Fee” ranging from 17.5 to 35.0 basis points of the average unused balance on a quarterly basis, depending again upon the Company’s then existing financial ratios. The Company may terminate the line at any time during the four year term, as long as there are no amounts outstanding.
	As of September 30, 2013, the Company had no outstanding borrowings on its line of credit, but at December 31, 2012, the Company owed $324,000, as it was paid off in full during the first quarter of 2013.
	As of September 30, 2013 and December 31, 2012, the Company was in compliance with all debt covenants.

5_Commitments_and_Contingencie

5. Commitments and Contingencies	9 Months Ended
	Sep. 30, 2013
Notes	'
5. Commitments and Contingencies	'
	5. COMMITMENTS AND CONTINGENCIES
	Commitments:
	Under a number of indemnity agreements between the Company and each of its officers and directors, the Company has agreed to indemnify each of its officers and directors against any liability asserted against them in their capacity as an officer or director, or both.  The Company’s indemnity obligations under the indemnity agreements are subject to certain conditions and limitations set forth in each of the agreements.  Under the terms of the Agreement, the Company is contingently liable for costs which may be incurred by the officers and directors in connection with claims arising by reason of these individuals’ roles as officers and directors.  The Company has obtained directors’ and officers’ insurance policies to fund certain obligations under the indemnity agreements.
	The Company has salary continuation agreements with one current employee, and one former employee who retired at the end of 2010.  These agreements provide for monthly payments to each of the employees or their designated beneficiary upon the employee’s retirement or death.  The payment benefits range from $1,000 per month to $3,000 per month with the term of such payments limited to 15 years after the employee’s retirement at age 65.  The agreements also provide for survivorship benefits if the employee dies before attaining age 65, and severance payments if the employee is terminated without cause; the amount of which is dependent on the length of company service at the date of termination.  The net present value of the retirement payments associated with these agreements is $453,000 at September 30, 2013, of which $441,000 is included in Other Long Term Liabilities, and the remaining current portion of $12,000 is included in Other Liabilities, associated with the retired employee previously noted who is now receiving benefit payments.  The December 31, 2012 liability of $481,000, had $469,000 reported in Other Long Term Liabilities, and a current portion of $12,000 in Other Liabilities.
	The Company has obtained and is the beneficiary of three whole life insurance policies with respect to the two employees discussed above, and one other employee policy.  The cash surrender value of such policies (included in Other Long Term Assets) amounts to $922,000 at September 30, 2013 and $838,000 at December 31, 2012.
	As disclosed in detail in the December 31, 2012 Form 10-K, the Company has several lease obligations in place that will be paid out over time.  Most notably, the Company has a lease for the manufacturing facility in Banbury, England, and also the new building lease in Exton, Pennsylvania near the current main operating facility, which provides additional manufacturing, warehousing and distribution space.
	Contingencies:
	The Company’s general liability insurance policies are subject to deductibles or retentions, ranging primarily from $25,000 to $250,000 per claim, (depending on the terms of the policy and the applicable policy year) up to an aggregate amount.  The Company is insured on a ‘first dollar’ basis for workers’ compensation subject to statutory limits.
	In the ordinary and normal conduct of the Company’s business, it is subject to periodic lawsuits, investigations and claims (collectively, the “Claims”).  There has been an increase in the number of those Claims over the past few years relating primarily to product liability, but the trend appears to be decreasing in 2013.  The Company does not believe that the Claims have legal merit, and is therefore vigorously defending against those Claims.  The Company has in place commercial general liability insurance policies that cover the Claims, as noted above, including those alleging damages as a result of product defects.  Litigation is subject to many uncertainties and management is unable to predict the outcome of the pending suits and claims. The potential liability for a given claim could range from zero to a maximum of $250,000, depending upon the insurance deductible in place for the respective claim year.  The aggregate maximum exposure for all current open claims is estimated not to exceed approximately $3,300,000, which represents the defense costs and any settlements or adverse verdicts incurred over time within the insurance policy deductibles or retentions.  It is possible that the results of operations or liquidity and capital resources of the Company could be adversely affected by the ultimate outcome of the pending litigation as a result of the costs of contesting such lawsuits, potentially materially. The Company is currently unable to estimate the ultimate liability, if any, that may result from the pending litigation and, accordingly, the liability in the consolidated financial statements primarily represents an accrual for legal costs for services previously rendered and outstanding settlements for existing claims. The liabilities recorded on the Company’s books at September 30, 2013 and December 31, 2012 were $583,000 and $537,000, respectively, and are included in Other Liabilities.
	In 2013, the Company won two of the Claims at two separate trials, both of which were held in U.S. District Court; one in St. Louis, Missouri and the other in Bridgeport, Connecticut.  In both cases, the jury unanimously found that the Company was not negligent in designing its TracPipe® product, and that the TracPipe® product was not defective or unreasonably dangerous.  In 2010, the Company took another one of the Claims to trial in Pennsylvania, and the jury returned a verdict that the Company was not negligent in designing and selling the TracPipe product, but that under the unique law in Pennsylvania for strict liability, the product lacked “any element” necessary to make it safe for its intended use.  The Company has appealed that portion of the verdict, and the Supreme Court of Pennsylvania heard oral arguments on that case with the focus on whether the product liability law in Pennsylvania should be revised.  A decision is expected in the first half of 2014. Finally, two putative class action cases have been filed against the company; one in Florida and one in Ohio.  In both cases, the lead plaintiffs claim that they are exposed to an increased likelihood of harm if one of the plaintiffs’ houses that contain TracPipe CSST is struck by lightning, that could damage the CSST causing a release of fuel gas in the house and causing a fire.  However, at this point none of the lead plaintiffs have suffered any actual harm.  The Company intends to vigorously defend itself against these claims, and seek dismissal of the cases under a number of grounds, including the lack of jurisdiction because there is no actual case or controversy posed by these claims.  The Company has also tendered defense of these matters to its insurance carriers.
	In 2007, the Company instituted a legal complaint against a former insurer, seeking reimbursement of amounts paid in defense of a class action litigation, as well as supplementary payments made in connection with the class action.  In March of 2012, the Company and the insurer settled the litigation for $4,700,000, with receipt of the cash occurring during that same month.  For clarity regarding this item, it is defined as the “Insurance Legal Recovery or ILR” on the accompanying condensed consolidated statement of income for the nine-months ended September 30, 2012.
	In February of 2012, the Company was made aware of a fraud perpetrated by an outside party involving insurance related premiums that the Company had prepaid for umbrella coverage. The assets are currently secured by a governmental agency who is investigating the case, and being held in a custodial account.  The value of the assets amount to $248,000 at September 30, 2013, and are included in Other Long Term Assets.  It is possible that not all of those funds will be returned to the Company, or the Company may need to incur additional costs to procure collection, but the outcome is currently not known or able to be estimated.  The Company is currently pursing all avenues in an effort to bring closure to the event, reclaim the assets, and has since replaced the aforementioned insurance coverage.
	As disclosed in Note 13, Subsequent Events, in the Company’s December 31, 2012 Form 10-K, our subsidiary, Omega Flex Limited (“OFL”), had been sued regarding the installation of TracPipe product in an apartment complex in England.  In March of 2013, OFL settled that case by entering into a settlement agreement and making a one-time payment of £ 800,000 to resolve all claims associated with the project.  The Company recorded approximately $1,300,000 in Other Liabilities at December 31, 2012 to reflect the event.  The amount was paid in full in March 2013, and therefore there is no liability relating to this at September 30, 2013.

6_Stock_Based_Plans

6. Stock Based Plans	9 Months Ended
	Sep. 30, 2013
Notes	'
6. Stock Based Plans	'
	6. STOCK BASED PLANS
	Phantom Stock Plan
	Plan Description.  On April 1, 2006, the Company adopted the Omega Flex, Inc. 2006 Phantom Stock Plan (the “Plan”).  The Plan authorizes the grant of up to one million units of phantom stock to employees, officers or directors of the Company and of any of its subsidiaries.  The phantom stock units ("Units") each represent a contractual right to payment of compensation in the future based on the market value of the Company’s common stock.  The Units are not shares of the Company’s common stock, and a recipient of the Units does not receive any of the following:
	§         ownership interest in the Company
	§         shareholder voting rights
	§         other incidents of ownership to the Company’s common stock
	The Units are granted to participants upon the recommendation of the Company’s CEO, and the approval of the Compensation Committee.  Each of the Units that are granted to a participant will be initially valued by the Compensation Committee, and at a minimum, the Unit’s value will be equal to the closing price of the Company’s common stock on the grant date.  The Units follow a vesting schedule, with a maximum vesting of 3 years after the grant date.  Upon vesting, the Units represent a contractual right of payment for the value of the Unit.  The Units will be paid on their maturity date, one year after all of the Units granted in a particular award have fully vested, unless an acceptable event occurs under the terms of the Plan prior to one year, which would allow for earlier payment.  The amount to be paid to the participant on the maturity date is dependent on the type of Unit granted to the participant.
	The Units may be Full Value, in which the value of each Unit at the maturity date, will equal the closing price of the Company’s common stock as of the maturity date; or Appreciation Only, in which the value of each Unit at the maturity date will be equal to the closing price of the Company’s common stock at the maturity date minus the closing price of the Company’s common stock at the grant date.
	On December 9, 2009, the Board of Directors authorized an amendment to the Plan to pay an amount equal to the value of any cash or stock dividend declared by the Company on its common stock to be accrued to the phantom stock units outstanding as of the record date of the common stock dividend.  The dividend equivalent will be paid at the same time the underlying phantom stock units are paid to the participant.
	In certain circumstances, the Units may be immediately vested upon the participant’s death or disability.  All Units granted to a participant are forfeited if the participant is terminated from his relationship with the Company or its subsidiary for “cause,” which is defined under the Plan.  If a participant’s employment or relationship with the Company is terminated for reasons other than for “cause,” then any vested Units will be paid to the participant upon termination.  However, Units granted to certain “specified employees” as defined in Section 409A of the Internal Revenue Code will be paid approximately 181 days after termination.
	Grants of Phantom Stock Units.  As of December 31, 2012, the Company had 16,790 unvested units outstanding, all of which were granted at Full Value.  On April 3, 2013, the Company granted an additional 8,700 Full Value Units with a fair value of $12.59 per unit on grant date, using historical volatility. In all cases, the grant price was equal to the closing price of the Company’s common stock at the grant date. In March 2013, the Company paid $154,000 for the 8,645 fully vested and matured units that were granted on February 20, 2009.  As of September 30, 2013, the Company had 17,193 unvested units outstanding.
	The Company uses the Black-Scholes option pricing model as its method for determining fair value of the Units.  The Company uses the straight-line method of attributing the value of the stock-based compensation expense relating to the Units.  The compensation expense (including adjustment of the liability to its fair value) from the Units is recognized over the vesting period of each grant or award.
	The FASB ASC Topic 718 Stock Compensation requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates in order to derive the Company’s best estimate of awards ultimately to vest.
	Forfeitures represent only the unvested portion of a surrendered Unit and are typically estimated based on historical experience.  Based on an analysis of the Company’s historical data, which has limited experience related to any stock-based plan forfeitures, the Company applied a 0% forfeiture rate to Plan Units outstanding in determining its Plan Unit compensation expense as of September 30, 2013.
	The total Phantom Stock related liability as of September 30, 2013 was $406,000 of which $159,000 is included in other liabilities, as it is expected to be paid in March 2014, and the balance of $247,000 is included in other long term liabilities.
	In accordance with FASB ASC Topic 718 Stock Compensation, the Company recorded compensation expense of approximately $234,000 and $9,000 related to the Phantom Stock Plan for the nine months ended September 30, 2013 and 2012, respectively.
	The following table summarizes information about the Company’s nonvested phantom stock Units at September 30, 2013:
		Units	Weighted Average Grant Date Fair Value
	Number of Phantom Stock Unit Awards:
	Nonvested at December 31, 2012	16,790	$12.14
	Granted	8,700	$12.59
	Vested	-8,297	$                      11.05
	Forfeited	(---)	$---
	Canceled	(---)	$---
	Nonvested at September 30, 2013	17,193	$12.89
	Phantom Stock Unit Awards Expected to Vest	17,193	$                    12.89
	The total unrecognized compensation cost calculated at September 30, 2013 was $212,000 which will be recognized through April of 2016.  The Company will recognize the related expense over the weighted average period of 1.44 years.

7_Noncontrolling_Interests

7. Noncontrolling Interests	9 Months Ended
	Sep. 30, 2013
Notes	'
7. Noncontrolling Interests	'
	7. NONCONTROLLING INTERESTS
	The Company owns 100% of all subsidiaries, except for its UK subsidiary Omega Flex, Limited, of which it owns 95%.  A noncontrolling interest owns the other 5%, and held a value of $62,000 at December 31, 2012.  The total equity of the Company including the non-controlling interest was $19,742,000 at December 31, 2012.
	For the three and nine months ended September 30, 2013, the operations of Omega Flex, Limited generated income of $530,000 and $855,000, respectively.  The noncontrolling interest’s portion of the income related to each of those periods was therefore $27,000 and $43,000.
	The noncontrolling interest must also recognize its share of any currency translation adjustment, since the subsidiary’s functional currency is British Pounds, and the local books are translated into US Dollars for consolidation purposes.  The noncontrolling interest’s share of foreign currency translation was a gain of $6,000 for the three months ended September 30, 2013, and $2,000 for the nine months ended September 30, 2013.
	At September 30, 2013, after considering the income and foreign currency translation components described above, the balance of the noncontrolling interest was $107,000.

8_Shareholders_Equity

8. Shareholders' Equity	9 Months Ended
	Sep. 30, 2013
Notes	'
8. Shareholders' Equity	'
	8. SHAREHOLDERS’ EQUITY
	As of September 30, 2013 and December 31, 2012, the Company had authorized 20,000,000 common stock shares with par value of $0.01 per share.  At both dates, the number of shares issued was 10,153,633, and the total number of outstanding shares was 10,091,822, with the 61,811 variance representing shares held in Treasury.
	On April 4, 2013, the Company’s Board of Directors authorized an extension of its stock repurchase program without expiration, up to a maximum amount of $1,000,000.  The original program established in December of 2007 authorized the purchase of up to $5,000,000 of its common stock.  The purchases may be made from time-to-time in the open market or in privately negotiated transactions, depending on market and business conditions.  The Board retained the right to cancel, extend, or expand the share buyback program, at any time and from time-to-time.  Since inception, the Company has purchased a total of 61,811 shares for approximately $932,000, or approximately $15 per share.  The Company did not make any stock repurchases during the first nine months of 2013, or at all during 2012.
	In connection with the aforementioned share buyback program, on December 15, 2009 the Company entered into an amendment of its Rule 10b5-1 Repurchase Plan (the “Plan”) dated December 15, 2008 with Hunter Associates, Inc. (“Hunter”), by which Hunter will continue to implement the share buyback program by purchasing shares of the Company’s common stock in accordance with the terms of the Plan and within the safe harbor afforded by Rule 10b5-1.

9_Subsequent_Events

9. Subsequent Events	9 Months Ended
	Sep. 30, 2013
Notes	'
9. Subsequent Events	'
	9.         SUBSEQUENT EVENTS
	The Company evaluated all events or transactions that occurred through the date of this filing.  During this period, the Company did not have any material subsequent events that impacted its condensed consolidated financial statements.

2_Significant_Accounting_Polic1

2. Significant Accounting Policies: Use of Estimates (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The most significant estimates and assumptions relate to revenue recognition and related sales incentives, accounts receivable valuations, inventory valuations, goodwill valuation, product liability reserve and accounting for income taxes.  Actual amounts could differ significantly from these estimates.

2_Significant_Accounting_Polic2

2. Significant Accounting Policies: Revenue Recognition (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Revenue Recognition	'
	Revenue Recognition
	The Company’s revenue recognition activities relate almost entirely to the manufacture and sale of flexible metal hose and pipe.  Under GAAP, revenues are considered to have been earned when the Company has substantially accomplished what it must do to be entitled to the benefits represented by the revenues.  The following criteria represent preconditions to the recognition of revenue:
	·    Persuasive evidence of an arrangement for the sale of product or services must exist.
	·    Delivery has occurred or services have been rendered.
	·    The sales price to the customer is fixed or determinable.
	·    Collection is reasonably assured.
	The Company recognizes revenue upon shipment in accordance with the above principles.
	Gross sales are reduced for all consideration paid to customers for which no identifiable benefit is received by the Company.  This includes promotional incentives, which includes various programs including year-end rebates and discounts.  The amounts of certain incentives are known with reasonable certainty at the time of sale, while others are projected based upon the most reliable information available at the reporting date.
	Commissions, for which the Company receives an identifiable benefit, are accounted for as a sales expense.

2_Significant_Accounting_Polic3

2. Significant Accounting Policies: Accounts Receivable (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Accounts Receivable	'
	Accounts Receivable
	Accounts receivable are reduced by an allowance for amounts that may become uncollectible in the future. The estimated allowance for uncollectible amounts is based primarily on a specific analysis of accounts in the receivable portfolio and historical write-off experience. While management believes the allowance to be adequate, if the financial condition of the Company’s customers were to deteriorate, resulting in their inability to make payments, additional allowances may be required.

2_Significant_Accounting_Polic4

2. Significant Accounting Policies: Inventory (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Inventory	'
	Inventory
	Inventories are valued at the lower of cost or market.  Cost of inventories is determined by the first-in, first-out (FIFO) method.  The Company generally considers inventory quantities beyond two-years usage, measured on a historical usage basis, to be excess inventory and reduces the gross carrying value of inventory accordingly.

2_Significant_Accounting_Polic5

2. Significant Accounting Policies: Goodwill and Intangible Assets (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Goodwill and Intangible Assets	'
	Goodwill and Intangible Assets
	In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 350, Intangibles – Goodwill and Other, the Company performed an annual impairment test in accordance with this guidance as of December 31, 2012.  This analysis did not indicate any impairment of goodwill.  There are no circumstances that indicate that Goodwill might be impaired at September 30, 2013.

2_Significant_Accounting_Polic6

2. Significant Accounting Policies: Product Liability Reserves (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Product Liability Reserves	'
	Product Liability Reserves
	Product liability reserves represent the estimated unpaid amounts under the Company’s insurance policies with respect to existing claims.  The Company uses the most current available data to estimate claims.  As explained more fully under Contingencies, for various product liability claims covered under the Company’s general liability insurance policies, the Company must pay certain defense costs within its deductible or self-insured retention limits, ranging primarily from $25,000 to $250,000 per claim, depending on the terms of the policy in the applicable policy year, up to an aggregate amount.  The Company is vigorously defending against all known claims.

2_Significant_Accounting_Polic7

2. Significant Accounting Policies: Fair Value of Financial and Nonfinancial Instruments (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Fair Value of Financial and Nonfinancial Instruments	'
	Fair Value of Financial and Nonfinancial Instruments
	The Company measures financial instruments in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures.  The accounting standard defines fair value, establishes a framework for measuring fair value under GAAP, and enhances disclosures about fair value measurements.  Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.  The standard creates a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable inputs that reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability. The Company relies on its actively traded share value – a level 1 input – in determining the fair value of the reporting unit in its annual impairment test as described in the FASB ASC Topic 350, Intangibles - Goodwill and Other.

2_Significant_Accounting_Polic8

2. Significant Accounting Policies: Earnings Per Common Share (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Earnings Per Common Share	'
	Earnings per Common Share
	Basic earnings per share have been computed using the weighted-average number of common shares outstanding.  For the periods presented, there are no dilutive securities.  Consequently, basic and dilutive earnings per share are the same.

2_Significant_Accounting_Polic9

2. Significant Accounting Policies: Currency Translation (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Currency Translation	'
	Currency Translation
	Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates prevailing on the balance sheet dates.  The statements of income are translated into U.S. dollars at average exchange rates for the period.  Adjustments resulting from the translation of financial statements are excluded from the determination of income and are accumulated in a separate component of shareholders’ equity.  Exchange gains and losses resulting from foreign currency transactions are included in operations (other income (expense)) in the period in which they occur.

Recovered_Sheet1

2. Significant Accounting Policies: Income Taxes (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Income Taxes	'
	Income Taxes
	The Company accounts for taxes in accordance with the FASB ASC Topic 740, Income Taxes.  Under this method the Company records income tax expense and the related deferred taxes and tax benefits.
	Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period in which the rate is enacted.  A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize the benefit, or that future deductibility is uncertain.  No valuation reserve was deemed necessary at September 30, 2013 or at December 31, 2012.  Also, in accordance with FASB ASC Topic 740 (formerly FIN 48), the Company had reserves on the books for uncertainties in tax positions of $99,000 at September 30, 2013, and $119,000 at December 31, 2012.  These reserves are reviewed each quarter.

Recovered_Sheet2

2. Significant Accounting Policies: Other Comprehensive Income (loss) (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Other Comprehensive Income (loss)	'
	Other Comprehensive Income (Loss)
	For the three and nine-months ended September 30, 2013 and 2012, respectively, the sole component of Other Comprehensive Income (Loss) was a foreign currency translation adjustment.

Recovered_Sheet3

2. Significant Accounting Policies: New Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
New Accounting Pronouncements	'
	New Accounting Pronouncements
	ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.  This ASU requires entities to disclose both gross information and net information about both instruments and transactions eligible for offset in the balance sheet, and instruments and transactions subject to an agreement similar to a master netting arrangement. The requirements are effective for annual periods beginning on or after January 1, 2013, and interim periods within those annual periods.  ASU 2011-11 currently has no impact on the Company’s financial conditions, results of operations or cash flows.
	ASU 2011-12, “Comprehensive Income (Topic 220) Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05,” issued in December 2011 amends ASU 2011-05 to reflect only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments.  The amendments are being made to allow FASB time to re-deliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented.  While FASB is considering the operational concerns about the presentation requirements for reclassification adjustments and the needs of financial statement users for additional information about reclassification adjustments; entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before Update 2011-05.  Public entities should begin applying these requirements for fiscal years ending after December 15, 2011.  Adoption of ASU 2011-12 had no material impact on the financial statements.

3_Inventories_Schedule_of_Inve

3. Inventories: Schedule of Inventory, Current (Tables)	9 Months Ended
	Sep. 30, 2013
Tables/Schedules	'
Schedule of Inventory, Current	'
		September 30,	December 31,
		2013	2012
		(dollars in thousands)
	Finished Goods	$ 5,191	$ 5,598
	Raw Materials	1,931	1,530
	Total Inventory	$ 7,122	$ 7,128

6_Stock_Based_Plans_Schedule_o

6. Stock Based Plans: Schedule of nonvested phantom stock units (Tables)	9 Months Ended
	Sep. 30, 2013
Tables/Schedules	'
Schedule of nonvested phantom stock units	'
		Units	Weighted Average Grant Date Fair Value
	Number of Phantom Stock Unit Awards:
	Nonvested at December 31, 2012	16,790	$12.14
	Granted	8,700	$12.59
	Vested	-8,297	$                      11.05
	Forfeited	(---)	$---
	Canceled	(---)	$---
	Nonvested at September 30, 2013	17,193	$12.89
	Phantom Stock Unit Awards Expected to Vest	17,193	$                    12.89

Recovered_Sheet4

2. Significant Accounting Policies: Income Taxes (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Details	'	'
Liability for Uncertain Tax Positions, Current	$99	$119

3_Inventories_Schedule_of_Inve1

3. Inventories: Schedule of Inventory, Current (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Details	'	'
Inventory, Finished Goods, Gross	$5,191	$5,598
Inventory, Raw Materials, Gross	1,931	1,530
Inventories-Net	$7,122	$7,128

4_Line_of_Credit_Details

4. Line of Credit (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Line of Credit Facility, Description	'On December 30, 2010, the Company agreed to a new Revolving Line of Credit Note and Loan Agreement with Sovereign Bank, NA (“Sovereign”). The Company established a line of credit facility in the maximum amount of $10,000,000, maturing on December 31, 2014, with funds available for working capital purposes and other cash needs.	'
Sovereign Bank, NA	'	'
Line of Credit Facility, Maximum Borrowing Capacity	$10,000	'
Line of Credit Facility, Collateral	'The loan is collateralized by all of the Company’s tangible and intangible assets.	'
Line of Credit Facility, Interest Rate Description	'The loan agreement provides for the payment of any borrowings under the agreement at an interest rate range of either LIBOR plus 1.75% to plus 2.75% (for borrowings with a fixed term of 30, 60, or 90 days), or, Prime less 0.50% to plus 0.50% (for borrowings with no fixed term other than the December 31, 2014 maturity date), depending upon the Company’s then existing financial ratios. At September 30, 2013, the Company’s ratio would allow for the most favorable rate under the agreement’s range, which would be a rate of 1.99% (LIBOR plus 1.75%).	'
Line of Credit Facility, Commitment Fee Description	'The Company is required to pay an annual commitment fee for the access to the funds, and is also obligated to pay a “Line Fee” ranging from 17.5 to 35.0 basis points of the average unused balance on a quarterly basis, depending again upon the Company’s then existing financial ratios.	'
Line of Credit Facility, Amount Outstanding	$0	$324

5_Commitments_and_Contingencie1

5. Commitments and Contingencies (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Details	'	'
Loss Contingency, Management's Assessment and Process	'Under a number of indemnity agreements between the Company and each of its officers and directors, the Company has agreed to indemnify each of its officers and directors against any liability asserted against them in their capacity as an officer or director, or both. The Company’s indemnity obligations under the indemnity agreements are subject to certain conditions and limitations set forth in each of the agreements. Under the terms of the Agreement, the Company is contingently liable for costs which may be incurred by the officers and directors in connection with claims arising by reason of these individuals’ roles as officers and directors. The Company has obtained directors’ and officers’ insurance policies to fund certain obligations under the indemnity agreements.	'
Deferred Compensation Arrangements, Overall, Description	'The Company has salary continuation agreements with one current employee, and one former employee who retired at the end of 2010. These agreements provide for monthly payments to each of the employees or their designated beneficiary upon the employee’s retirement or death. The payment benefits range from $1,000 per month to $3,000 per month with the term of such payments limited to 15 years after the employee’s retirement at age 65. The agreements also provide for survivorship benefits if the employee dies before attaining age 65, and severance payments if the employee is terminated without cause; the amount of which is dependent on the length of company service at the date of termination.	'
Other Deferred Compensation Arrangements, Liability, Current and Noncurrent	$453	$481
Other Deferred Compensation Arrangements, Liability, Classified, Noncurrent	441	469
Other Deferred Compensation Arrangements, Liability, Current	12	12
Cash Surrender Value of Life Insurance	$922	$838

5_Commitments_and_Contingencie2

5. Commitments and Contingencies: Contingencies (Details)	9 Months Ended						9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
	USD ($)	USD ($)	Alternative Currency	Positive Outcome of Litigation	Positive Outcome of Litigation	Insurance Claims	Pending or Threatened Litigation	Pending or Threatened Litigation
			GBP (£)	USD ($)	USD ($)	USD ($)	USD ($)	USD ($)
Product Liability Inurance Deductible - Range, minimum	'	'	'	'	'	$25,000	'	'
Product Liability Inurance Deductible - Range, maximum	'	'	'	'	'	250,000	'	'
Product Liability Contingency, Loss Exposure Not Accrued, High Estimate	'	'	'	'	'	'	3,300,000	'
Loss Contingency Accrual	'	'	'	'	'	'	583,000	537,000
Insurance Legal Recovery	'	4,700,000	'	'	4,700,000	'	'	'
Gain Contingency, Income Statement Caption	'	'“Insurance Legal Recovery or ILR”	'	'	'	'	'	'
Loss Contingency, Range of Possible Loss, Maximum	'	'	'	248,000	'	'	'	'
Loss Contingency, Balance Sheet Caption	'	'	'	'Other Long Term Assets	'	'	'	'
Payments for Legal Settlements	$1,300,000	'	£ 800,000	'	'	'	'	'

6_Stock_Based_Plans_Details

6. Stock Based Plans (Details) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Employee Service Share-based Compensation, Unrecognized Compensation Costs on Nonvested Awards, Weighted Average Period of Recognition	1.44	'	'
Phantom Stock Plan	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Description	'Plan Description. On April 1, 2006, the Company adopted the Omega Flex, Inc. 2006 Phantom Stock Plan (the “Plan”). The Plan authorizes the grant of up to one million units of phantom stock to employees, officers or directors of the Company and of any of its subsidiaries. The phantom stock units ('Units') each represent a contractual right to payment of compensation in the future based on the market value of the Company’s common stock. The Units are not shares of the Company’s common stock	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,000,000	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award	'The phantom stock units ('Units') each represent a contractual right to payment of compensation in the future based on the market value of the Company's common stock. The Units are not shares of the Company's common stock, and a recipient of the Units does not receive any of the following: (a) ownership interest in the Company, (b) shareholder voting rights, and (c) other incidents of ownership to the Company's common stock. The Units are granted to participants upon the recommendation of the Company's CEO, and the approval of the Compensation Committee. Each of the Units that are granted to a participant will be initially valued by the Compensation Committee, and at a minimum, the Unit's value will be equal to the closing price of the Company's common stock on the grant date. The Units follow a vesting schedule, with a maximum vesting of 3 years after the grant date. Upon vesting, the Units represent a contractual right of payment for the value of the Unit. The Units will be paid on their maturity date, one year after all of the Units granted in a particular award have fully vested, unless an acceptable event occurs under the terms of the Plan prior to one year, which would allow for earlier payment. The amount to be paid to the participant on the maturity date is dependent on the type of Unit granted to the participant.	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights	'The Units follow a vesting schedule, with a maximum vesting of 3 years after the grant date. Upon vesting, the Units represent a contractual right of payment for the value of the Unit.	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period, Maximum	'3 years	'	'
Unvested units outstanding	17,193	'	16,790
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	8,700	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$12.59	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid	$154,000	'	'
Employee Service, Share-based Compensation, Paid Shares	8,645	'	'
Fair Value, Option, Methodology and Assumptions	'The Company uses the Black-Scholes option pricing model as its method for determining fair value of the Units. The Company uses the straight-line method of attributing the value of the stock-based compensation expense relating to the Units. The compensation expense (including adjustment of the liability to its fair value) from the Units is recognized over the vesting period of each grant or award.	'	'
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent	406,000	'	'
Deferred Compensation Share-based Arrangements, Liability, Current	159,000	'	'
Deferred Compensation Share-based Arrangements, Liability, Classified, Noncurrent	247,000	'	'
Allocated Share-based Compensation Expense	234,000	9,000	'
Employee Service Share-based Compensation, Unrecognized Compensation Costs on Nonvested Awards	$212,000	'	'

6_Stock_Based_Plans_Schedule_o1

6. Stock Based Plans: Schedule of nonvested phantom stock units (Details) (Phantom Stock Plan, USD $)	9 Months Ended
	Sep. 30, 2013
Phantom Stock Plan	'
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance	16,790
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Beginning Balance	$12.14
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	8,700
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$12.59
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	-8,297
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$11.05
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period, Weighted Average Grant Date Fair Value	$0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance	17,193
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value, Ending Balance	$12.89
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expected to Vest, Outstanding, Number	17,193

7_Noncontrolling_Interests_Det

7. Noncontrolling Interests (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Dec. 31, 2012
Total Shareholders' Equity	$26,651	'	$26,651	$19,742
Income (Loss) Attributable to Parent	530	'	855	'
Net (Income) Loss attributable to the Noncontrolling Interest, net of tax	-27	-3	-43	'
A non-controlling interest	'	'	'	'
Shareholders' Equity attributable to non-controlling interest	107	'	107	62
Net (Income) Loss attributable to the Noncontrolling Interest, net of tax	27	'	43	'
Other Comprehensive (Income) Loss, Foreign Currency Transaction and Translation Adjustment, before Tax, Portion Attributable to Noncontrolling Interest	$6	'	$2	'

8_Shareholders_Equity_Details

8. Shareholders' Equity (Details) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Common Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Par Value	$0.01	$0.01
Common Stock, Shares Issued	10,153,633	10,153,633
Common Stock, Shares Outstanding	10,091,822	10,091,822
Treasury Stock, Number of Shares Held	61,811	61,811
Stock Repurchased During Period, Shares	0	0
4-Apr-12	'	'
Stock Repurchase Program, Authorized Amount	$1,000,000	'
Dec-07	'	'
Stock Repurchase Program, Authorized Amount	$5,000,000	'