Omega Flex (OFLX) 10-K 11 Mar 19 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Mar. 01, 2019	Jun. 30, 2018
Document And Entity Information
Entity Registrant Name	Omega Flex, Inc.
Entity Central Index Key	0001317945
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business Flag	false
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Public Float			$ 228,182,748
Entity Common Stock, Shares Outstanding		10,091,822
Trading symbol	OFLX
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2018

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current Assets:
Cash and Cash Equivalents	$ 32,392	$ 37,938
Accounts Receivable - less allowances of $985 and $920, respectively	16,451	15,636
Investments	14,944
Inventories - Net	7,976	8,007
Other Current Assets	1,859	1,895
Total Current Assets	73,622	63,476
Property and Equipment - Net	8,378	6,998
Goodwill-Net	3,526	3,526
Deferred Taxes	3	12
Other Long Term Assets	1,307	3,079
Total Assets	86,836	77,091
Current Liabilities:
Accounts Payable	2,775	2,598
Accrued Compensation	5,295	4,851
Accrued Commissions and Sales Incentives	4,264	4,284
Dividends Payable	2,422	2,220
Taxes Payable	58	568
Other Liabilities	3,591	3,583
Total Current Liabilities	18,405	18,104
Deferred Taxes	566	209
Long Term Taxes Payable		761
Other Long Term Liabilities	1,544	1,948
Total Liabilities	20,515	21,022
Commitments and Contingencies (Note 10)
Omega Flex, Inc. Shareholders' Equity:
Common Stock - par value $0.01 Shares: authorized 20,000,000, issued 10,153,633 and outstanding 10,091,822 at both December 31, 2018 and 2017	102	102
Treasury Stock	(1)	(1)
Paid-in Capital	10,808	10,808
Retained Earnings	56,110	45,457
Accumulated Other Comprehensive Loss	(950)	(908)
Total Omega Flex, Inc. Shareholders' Equity	66,069	55,458
Noncontrolling Interest	252	611
Total Shareholders' Equity	66,321	56,069
Total Liabilities and Shareholders' Equity	$ 86,836	$ 77,091

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 985	$ 920
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

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Net Sales	$ 108,313	$ 101,799	$ 94,051
Cost of Goods Sold	42,217	40,033	36,167
Gross Profit	66,096	61,766	57,884
Selling Expense	17,117	16,359	15,694
General and Administrative Expense	17,800	17,897	17,108
Engineering Expense	4,813	3,293	3,185
Operating Profit	26,366	24,217	21,897
Interest Income	488	117	98
Other Expense	(126)	(38)	(474)
Income Before Income Taxes	26,728	24,296	21,521
Income Tax Expense	6,451	8,450	6,975
Net Income	20,277	15,846	14,546
Less: Net Income - Noncontrolling Interest	(138)	(184)	(169)
Net Income attributable to Omega Flex, Inc.	$ 20,139	$ 15,662	$ 14,377
Basic and Diluted Earnings per Common Share	$ 2	$ 1.55	$ 1.42
Cash Dividends Declared per Common Share	$ 0.94	$ 0.66	$ 0.85
Basic and Diluted Weighted Average Shares Outstanding	10,092	10,092	10,092

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Net Income	$ 20,277	$ 15,846	$ 14,546
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustment	(48)	822	(1,061)
Other Comprehensive Income (Loss)	(48)	822	(1,061)
Comprehensive Income	20,229	16,668	13,485
Less: Comprehensive Income Attributable to the Noncontrolling Interest	(132)	(229)	(110)
Total Other Comprehensive Income	$ 20,097	$ 16,439	$ 13,375

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Treasury Stock [Member]	Paid In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interest [Member]	Total
Balance at Dec. 31, 2015	$ 102	$ (1)	$ 10,808	$ 30,656	$ (683)	$ 272	$ 41,154
Balance, shares at Dec. 31, 2015	10,091,822
Net Income				14,377		169	14,546
Cumulative Translation Adjustment					(1,002)	(59)	(1,061)
Dividends Declared				(8,578)			(8,578)
Balance at Dec. 31, 2016	$ 102	(1)	10,808	36,455	(1,685)	382	46,061
Balance, shares at Dec. 31, 2016	10,091,822
Net Income				15,662		184	15,846
Cumulative Translation Adjustment					777	45	822
Dividends Declared				(6,660)			(6,660)
Balance at Dec. 31, 2017	$ 102	(1)	10,808	45,457	(908)	611	56,069
Balance, shares at Dec. 31, 2017	10,091,822
Net Income				20,139		138	20,277
Cumulative Translation Adjustment					(42)	(6)	(48)
Dividends Declared				(9,486)		(491)	(9,977)
Balance at Dec. 31, 2018	$ 102	$ (1)	$ 10,808	$ 56,110	$ (950)	$ 252	$ 66,321
Balance, shares at Dec. 31, 2018	10,091,822

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash Flows from Operating Activities:
Net Income	$ 20,277	$ 15,846	$ 14,546
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Non-Cash Compensation Expense	118	1,042	996
Depreciation and Amortization	543	502	459
Provision for Losses on Accounts Receivable, net of write-offs and recoveries	57	6	45
Deferred Taxes	366	72	(139)
Provision for Inventory Reserves	(105)	171	130
Changes in Assets and Liabilities:
Accounts Receivable	(979)	(463)	1,217
Inventories	61	(699)	585
Other Assets	1,804	(40)	(1,987)
Accounts Payable	205	251	(108)
Accrued Compensation	468	490	(272)
Accrued Commissions and Sales Incentives	(11)	574	(614)
Other Liabilities	(1,746)	296	(100)
Net Cash Provided by Operating Activities	21,058	18,048	14,758
Cash Flows from Investing Activities:
Purchase of Investments	(35,099)
Net Proceeds from Sale of Investments	20,155
Capital Expenditures	(1,924)	(3,093)	(233)
Net Cash Used In Investing Activities	(16,868)	(3,093)	(233)
Cash Flows from Financing Activities:
Dividends Paid	(9,775)	(13,018)	(8,578)
Net Cash Used In Financing Activities	(9,775)	(13,018)	(8,578)
Net (Decrease) Increase in Cash and Cash Equivalents	(5,585)	1,937	5,947
Translation effect on cash	39	683	(781)
Cash and Cash Equivalents - Beginning of Year	37,938	35,318	30,152
Cash and Cash Equivalents - End of Year	32,392	37,938	35,318
Supplemental Disclosure of Cash Flow Information
Cash paid for Income Taxes	7,310	7,608	7,060
Declared Dividend	$ 2,422	$ 2,220	$ 8,578

Basis of Presentation and Conso

Basis of Presentation and Consolidation	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	1. BASIS OF PRESENTATION AND CONSOLIDATION Description of Business The accompanying consolidated financial statements include the accounts of Omega Flex, Inc. (Omega) and its subsidiaries (collectively the “Company”). The Company’s audited consolidated financial statements for the years ended December 31, 2018, 2017 and 2016 have been prepared in accordance with accounting standards set by the Financial Accounting Standards Board (FASB), and with the instructions of Form 10-K and Article 8 of Regulation S-X. All material inter-company accounts and transactions have been eliminated in consolidation. 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. The Company’s business is controlled as a single operating segment that consists of the manufacture and sale of flexible metal hose and accessories. These applications include carrying liquefied gases in certain processing applications, fuel gases within residential and commercial buildings, medical gases in health care facilities, and vibration absorbers in high vibration applications. The Company’s flexible metal piping is also used to carry other types of gases and fluids in a number of industrial applications where the customer requires the piping to have both a degree of flexibility and/or an ability to carry corrosive compounds or mixtures, or to carry at both very high and very low (cryogenic) temperatures. The Company manufactures flexible metal hose at its facilities in Exton, Pennsylvania, in the United States, and in Banbury, Oxfordshire in the United Kingdom, and sells its products through distributors, wholesalers and to original equipment manufacturers (“OEMs”) throughout North America, and in certain European markets.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Significant Accounting Policies	2. SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (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, accounts receivable allowances, investment valuations, inventory valuations, goodwill valuation, product liability costs, phantom stock and accounting for income taxes. Actual amounts could differ significantly from these estimates. Revenue Recognition Effective January 1, 2018, the Company adopted the requirements of Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective approach). The Company selected the modified retrospective approach however there was no material impact which required a cumulative effect adjustment. The principle of Topic 606 was achieved through applying the following five-step approach: ● Identification of the contract, or contracts, with a customer — ● Identification of the performance obligations in the contract — ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, the Company satisfies a performance obligation ● The Company has a present right to payment ● The customer has legal title to the goods ● The Company has transferred physical possession of the goods ● The customer has the significant risks and rewards of ownership of the goods ● The customer has accepted the goods It is important to note that the indicators are not a set of conditions that must be met before the Company can conclude that control of the goods has transferred to the customer. The indicators are a list of factors that are often present if a customer has control of the goods. The Company has typical, unmodified FOB shipping point terms. As the seller, the Company can determine that the shipped goods meet the agreed-upon specifications in the contract or customer purchase order (e.g. items, quantities, and prices) with the buyer, so customer acceptance would be deemed a formality, as noted in ASC 606-10-55-86. As a result, the Company has a legal right to payment upon shipment of the goods. Based upon the above, the Company has concluded that transfer of control substantively transfers to the customer upon shipment. Other considerations of Topic 606 include the following: ● Contract Costs - ● Warranties ● Returned Goods ● Volume Rebates (Promotional Incentives) ● The amount of consideration is highly susceptible to factors outside the Company’s influence. ● The uncertainty about the amount of consideration is not expected to be resolved for a long period of time. ● The Company’s experience with similar types of contracts is limited. ● The contract has a large number and broad range of possible consideration amounts. If it was concluded that the above factors were in place for the Company, it would support the probability of a significant reversal of revenue. However, as none of the four factors apply to the Company, promotional incentives are recorded as a reduction of revenue based upon estimates of the eligible products expected to be sold. Regarding disaggregated revenue disclosures, as previously noted, the Company’s business is controlled as a single operating segment that consists of the manufacture and sale of flexible metal hose. Most of the Company’s transactions are very similar in nature, contract, terms, timing, and transfer of control of goods. As indicated within Note 2, under the caption “Significant Concentration”, the majority of the Company’s sales were geographically contained within North America, with the remainder scattered internationally. All performance assessments and resource allocations are generally based upon the review of the results of the Company as a whole. Cash Equivalents The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents include investments in an institutional money market fund, which invests in U.S. Treasury bills, notes and bonds, and/or repurchase agreements, backed by such obligations. Carrying value approximates fair value. Cash and cash equivalents are deposited at various area banks, which at times may exceed federally insured limits. The Company monitors the viability of the banking institutions carrying its assets on a regular basis, and has the ability to transfer cash to various institutions during times of risk. The Company has not experienced any losses related to these cash balances, and believes its credit risk to be minimal. Accounts Receivable and Provision for Doubtful Accounts 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 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. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. The Company determines the allowance based on any known collection issues, historical experience, and other currently available evidence. The reserve for future credits, discounts, and doubtful accounts was $985,000 and $920,000 as of December 31, 2018 and 2017, respectively. In regards to identifying uncollectible accounts, the Company reviews an aging report on a consistent basis to determine past due accounts, and utilizes a well-established credit rating agency. The Company charges off those accounts that are deemed uncollectible once all collection efforts have been exhausted. Investments The Company invests excess funds in liquid interest earning instruments including US Treasury bills and bank time deposits. These investments are stated at fair value, which approximates amortized cost, and are classified as available-for-sale in accordance with Accounting Standards Codification 320, Investments – Debt and Equity Securities Inventories Inventories are valued at the lower of cost or net realizable value. The cost of inventories is determined by the first-in, first-out (FIFO) method. The Company generally considers inventory quantities beyond two years of non-usage, measured on a historical usage basis, to be excess inventory and reduces the carrying value of inventory accordingly. Property and Equipment Property and equipment are carried at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets or, for leasehold improvements, the life of the lease, if shorter. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in other income or expense for the period. The cost of maintenance and repairs is expensed as incurred; significant improvements are capitalized. Goodwill In accordance with Financial Accounting Standards Board (FASB) ASC Topic 350, Intangibles – Goodwill and Other, the Company performed an annual impairment test in accordance with this guidance as of December 31, 2018 and also at December 31, 2017. These analyses did not indicate any impairment of goodwill at the end of either period. Stock-Based Compensation Plans In 2006, the Company adopted a Phantom Stock Plan (the “Plan”), which allows the Company to grant phantom stock units (Units) to certain key employees, officers or directors. The Units each represent a contractual right to payment of compensation in the future based upon the market value of the Company’s common stock. The Units follow a vesting schedule of three years from the grant date, and are then paid upon maturity. In accordance with FASB ASC Topic 718, Stock Compensation, the Company uses the Black-Scholes option pricing model as its method for determining the fair value of the Units. Further details of the Plan are provided in Note 11. 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 Note 10, Commitments and Contingencies, for various product liability claims covered under the Company’s general liability insurance policies, the Company must pay certain defense and settlement costs within its deductible or self-insured retention limits, ranging primarily from $25,000 to $1,000,000 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 upon Level 1 inputs in determining the fair value of investments and the fair value of the Company’s reporting unit in its annual impairment test as described in the FASB ASC Topic 350, Intangibles - Goodwill and Other. Advertising Expense Advertising costs are charged to operations as incurred and are included in selling expenses in the accompanying consolidated Statement of Operations. Such charges aggregated $1,037,000, $1,075,000 and $1,047,000 for the years ended December 31, 2018, 2017, and 2016, respectively. Research and Development Expense Research and development expenses are charged to operations as incurred. Such charges totaled $1,531,000, $923,000 and $788,000 for the years ended December 31, 2018, 2017 and 2016, respectively and are included in engineering expense in the accompanying consolidated statements of operations. Shipping Costs Shipping costs are included in selling expense on the consolidated statements of operations. The expense relating to shipping was $2,973,000, $2,562,000 and $2,339,000 for the years ended December 31, 2018, 2017 and 2016, respectively. 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 Operations 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 the Statements of Operations (other income (expense)) in the period in which they occur. Income Taxes The Company accounts for tax liabilities in accordance with the FASB ASC Topic 740, Income Taxes. Under this method the Company recorded tax expense, related deferred taxes and tax benefits, and uncertainties in tax positions. 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 that includes the enactment date. 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. The FASB ASC Topic 740, Income Taxes, clarifies the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in a company’s financial statements. This guidance prescribes a recognition threshold of more-likely than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. The Company follows the provisions of ASC 740-10 relative to accounting for uncertainties in tax positions. These provisions provide guidance on the recognition, de-recognition and measurement of potential tax benefits associated with tax positions. The Company reflected the effects of the Tax Cuts and Jobs Act (the “Act”), in its 2017 financial statements. This included the effects of the change in the US corporate tax rate from 35% to 21% on deferred tax assets and liabilities, and a provision related to previously deferred taxes on earnings of the Company’s foreign subsidiary. The Company’s tax expense for the period ended December 31, 2018 includes the effect of the reduction in the US corporate tax rate from 35% to 21%, effective for the Company’s 2018 tax year. The Company’s tax provision also reflects other changes as a result of the Act, including the impact of the Global Intangible Low Taxed Income (“GILTI”) provisions, and changes affecting the deductibility of certain executive compensation. Other Comprehensive Income For the years ended December 31, 2018, 2017 and 2016, respectively, the components of other comprehensive income consisted solely of foreign currency translation adjustments. Significant Concentrations One customer represented 13% to 15% of sales during the period from 2016 to 2018, and that same customer accounted for approximately 19% to 22% of the Accounts Receivable balance over the last three years. No other customer represented more that 10% of Accounts Receivable or Sales. Geographically, North America accounted for approximately 90% of the Company’s sales during the last three years. The remaining portion of sales for each respective year was scattered among other countries, with the United Kingdom being the Company’s most dominant market outside North America. Subsequent Events The Company evaluates all events or transactions through the date of the related filing that may have a material impact on its consolidated financial statements. Refer to Note 13 of the consolidated financial statements. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) The new standard provides a number of optional practical expedients throughout the transition. The Company elected the “package of practical expedients,” which permits the Company to not reassess under the new standard the Company’s prior conclusions about lease identification, lease classification, and initial direct costs. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases that qualify as pursuant to the above definition. This means, for those leases that qualify, the Company will not recognize right-of-use assets or lease liabilities, and this includes not recognizing right-of-use assets or lease liabilities for existing short-term leases of those assets in transition. The impact of adoption is expected to be an increase to the Company’s operating lease assets and liabilities on January 1, 2019 of approximately $800,000. The guidance will not have a material impact on our consolidated statements of operations and statements of cash flows. In January 2017, the FASB amended ASC Topic 350, Intangibles – Goodwill and Other

Inventories

Inventories	12 Months Ended
	Dec. 31, 2018
Inventory Disclosure [Abstract]
Inventories	3. INVENTORIES Inventories, net of reserves of $363,000 and $479,000, respectively, consisted of the following at December 31: 2018 2017 (in thousands) Finished Goods $ 4,756 $ 5,461 Raw Materials 3,220 2,546 Total Inventories - Net $ 7,976 $ 8,007

Property and Equipment

Property and Equipment	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Property and Equipment	4. PROPERTY AND EQUIPMENT Property and equipment consisted of the following at December 31: 2018 2017 Depreciation and Amortization Est. Useful Lives (in thousands) Land $ 1,205 $ 1,205 Buildings 6,452 6,293 39 Years Leasehold Improvements 403 411 3-10 Years (Lesser of Life or Lease) Equipment 11,960 10,242 3-10 Years 20,020 18,151 Accumulated Depreciation (11,642 ) (11,153 ) Property and Equipment - Net $ 8,378 $ 6,698 The above amounts include capital related items of $511,000 and $0 as of December 31, 2018 and 2017 respectively that had not yet been placed in service by the Company, and therefore no depreciation was recorded in the related periods for those assets. Depreciation and amortization expense was approximately $543,000, $502,000 and $459,000 for the years ended December 31, 2018, 2017 and 2016, respectively.

Line of Credit

Line of Credit	12 Months Ended
	Dec. 31, 2018
Debt Disclosure [Abstract]
Line of Credit	5. LINE OF CREDIT On December 1, 2017, the Company agreed to a new Amended and Restated Revolving Line of Credit Note and Third Amendment to the Loan Agreement with Santander Bank, N.A. (the “Bank”). The Company established a line of credit facility in the maximum amount of $15,000,000, maturing on December 1, 2022, with funds available for working capital purposes and other cash needs. The loan is unsecured. The loan agreement provides for the payment of any borrowings under the agreement at an interest rate range of either LIBOR plus 0.75% to plus 1.75% (for borrowings with a fixed term of 30, 60, or 90 days), or, Prime Rate up to Prime Rate plus 0.50% (for borrowings with no fixed term other than the December 1, 2022 maturity date), depending upon the Company’s then existing financial ratios. Currently, the Company’s ratio would allow for the most favorable rate under the agreement’s range, which would be a rate of 3.5%. The Company is also required to pay on a quarterly basis an unused facility fee of 10 basis points of the average unused balance of the note. The Company may terminate the line at any time during the five year term, as long as there are no amounts outstanding. Prior to this, the Company had been operating in adherence an agreement dated December 29, 2014, as discussed in detail in the December 31, 2017 Form 10-K. As of December 31, 2018 and 2017, the Company had no outstanding borrowings on its line of credit, and was in compliance with all debt covenants.

Shareholders' Equity

Shareholders' Equity	12 Months Ended
	Dec. 31, 2018
Equity [Abstract]
Shareholders' Equity	6. SHAREHOLDERS’ EQUITY As of December 31, 2018 and 2017, the Company had authorized 20,000,000 common stock shares with par value of $0.01 per share. At these 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. During 2018, the Board of Directors (the “Board”) announced regular quarterly dividends per share of $0.22 in April, and $0.24 in June, September and again in December, to all shareholders of record. The respective 2018 dividend payments were $2,220,000 in April, and $2,422,000 in July and October 2018, and January 2019. Additionally, there was a dividend that was paid in April by the Company’s foreign subsidiary, which amounted to an outlay of cash of $491,000 to the foreign subsidiary’s noncontrolling interest. Also during 2018, the Board approved and granted a total of 2,000 restricted stock unit awards (the “Awards”) to be allocated to the existing non-employee directors of the Company. The Awards must be approved by the shareholders’ of the Company at the annual meeting scheduled for June 11, 2019, or the Awards will be forfeited. A Form S-8 registration statement, and the restricted stock unit award agreements, were filed with the SEC on December 13, 2018. No compensation cost has been recognized through December 31, 2018. During 2017, the Board revised its dividend policy to allow for and establish a record of paying regular quarterly dividends. In furtherance of this policy, during 2017 the Company announced in June, September, and December that the Board had approved a quarterly dividend in the amount of $0.22 per share to all shareholders of record, amounting to the respective dividend payments of $2,220,000 in July, October and January 2018. On December 14, 2016, the Board declared a special dividend of $0.85 per share to all Shareholders of record as of December 26, 2016, payable on or before January 6, 2017. The total payment to shareholders made in January 2017 was $8,578,000. On April 4, 2014, 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 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 has not made any stock repurchases since 2014.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	7. INCOME TAXES New Tax Legislation On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (the “Act”). This legislation makes significant changes in U.S. tax law including a reduction in the corporate tax rate to 21% starting in 2018 and creating a territorial tax system with a one-time mandatory tax on previously deferred foreign earnings of U.S. subsidiaries. The Act reduced the U.S. corporate tax rate from the previous rate of 35% to 21% for tax years beginning after December 31, 2017. The Company reported tax on unremitted foreign earnings in the amount of $822,000 in its 2017 U.S. corporate income tax return. The rate of tax paid, after foreign tax credits, is 8% of the foreign earnings. Although the Company experienced higher earnings in 2018, income taxes have decreased which reflects the impact of the lower 21% tax rate in effect for 2018, and thereafter. The Act repealed the manufacturing deduction for 2018 but added a foreign derived intangible income deduction (FDII Deduction). The Act also taxes global intangible low taxes income (GILTI), but there is no net impact on the 2018 taxes after foreign tax credits. As of December 31, 2018, the Company is indefinitely invested in amounts in the foreign subsidiary in excess of the amounts that have been previously taxed. Income tax expense consisted of the following: December 31, 2018 2017 2016 (in thousands) Federal Income Tax: Current $ 4,618 $ 6,848 $ 5,788 Deferred 306 48 (311 ) State Income Tax: Current 885 667 652 Deferred 50 16 (23 ) Foreign Income Tax: Current 575 863 791 Deferred 17 8 78 Income Tax Expense $ 6,451 $ 8,450 $ 6,975 Pre-tax income included foreign income of $3,123,000, $4,528,000 and $3,944,000 in 2018, 2017 and 2016, respectively. During 2017, the Company was deemed to have paid a dividend out of its U.K. subsidiary of all of its unremitted earnings, resulting in incremental U.S. taxes of $822,000. Total income tax expense differed from statutory income tax expense, computed by applying the U.S. federal income tax rate of 21% (2018) and 35% (2017 and 2016) to earnings before income tax, as follows: December 31, 2018 2017 2016 (in thousands) Computed Statutory Income Tax Expense $ 5,584 $ 8,440 $ 7,475 State Income Tax, Net of Federal Tax Benefit 760 447 386 Foreign Tax Rate Differential (63 ) (713 ) (592 ) Impact of Deemed Repatriation due to Tax Reform — 827 — Manufacturing Deduction — (401 ) (385 ) Impact of Federal Tax Rate Reduction on Deferred Taxes — (118 ) — Executive Compensation Limitation 440 — — Foreign Derived Intangible Income Deduction (100 ) — — Research Credit (143 ) (47 ) (33 ) Increase/(Reduction) in Tax Uncertainties — — (70 ) Valuation Allowance for Foreign Loss Carryover — — 70 Other - Net (27 ) 15 124 Income Tax Expense $ 6,451 $ 8,450 $ 6,975 A deferred income tax (expense) benefit results from temporary timing differences in the recognition of income and expense for income tax and financial reporting purposes. The components of and changes in the net deferred tax assets (liabilities) which give rise to this deferred income tax (expense) benefit for the years ended December 31, 2018 and 2017 are as follows: December 31, 2018 2017 (in thousands) Deferred Tax Assets: Compensation Assets $ 103 $ 98 Inventory Valuation 164 195 Accounts Receivable Valuation 232 215 Deferred Litigation Costs 12 24 Foreign Net Operating Losses 70 70 Valuation Allowance for Loss Carryover (70 ) (70 ) Other 71 78 Compensation Liabilities 510 648 Total Deferred Assets $ 1,092 $ 1,258 Deferred Tax Liabilities: Prepaid Expenses (409 ) (417 ) Depreciation and Amortization (1,246 ) (1,038 ) Total Deferred Liabilities ($ 1,655 ) ($ 1,455 ) Total Deferred Tax Liability ($ 563 ) ($ 197 ) Management believes it is more likely than not that the Company will have sufficient taxable income when these timing differences reverse and that the deferred tax assets will be realized with the exception of a carryover of foreign operating losses. Due to the uncertainty of future income in the foreign subsidiary, the Company has recognized a valuation allowance related to the foreign operating losses carrying forward. The Company is currently subject to audit by the Internal Revenue Service for the calendar years ended 2015 through 2017. The Company and its Subsidiaries’ state income tax returns are subject to audit for the calendar years ended 2014 through 2017. As of December 31, 2018, the Company had no liability for unrecognized tax benefits related to various federal and state income tax matters.

Leases

Leases	12 Months Ended
	Dec. 31, 2018
Leases [Abstract]
Leases	8. LEASES In the United States, the Company owns its main operating facility located at 451 Creamery Way in Exton, PA, and in early 2017 consummated an agreement to purchase another facility at 427 Creamery Way in Exton, which was previously under lease through January 2018. Both facilities provide manufacturing, warehousing and distribution space. The Company also leases a warehousing and distribution center in Houston, Texas, which currently provides manufacturing, stocking and sales operations. The Houston lease runs through October 2019. Additionally, the Company leases its corporate office space in Middletown, CT, with the lease term expiring in 2022. In the United Kingdom, the Company leases a facility in Banbury, England, which serves sales, warehousing and operational functions. The lease in Banbury was effective April 1, 2006 and has a 15-year term ending in March 2021. In addition to property rentals, the Company also leases several automobiles and a small amount of equipment, which are included in the rent expense and in the operating lease details below. Rent expense for operating leases was approximately $377,000, $393,000 and $486,000 for the years ended December 31, 2018, 2017 and 2016, respectively. The decrease in rent expense between 2017 and 2016 largely relates to the purchase of the facility at 427 Creamery Way during February 2017, which was previously rented. Future minimum lease payments under non-cancelable leases as of December 31, 2018 is as follows: Year Ending December 31, Operating Leases (in thousands) 2019 $ 412 2020 319 2021 115 2022 33 2023 — Thereafter — Total Minimum Lease Payments $ 879

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2018
Retirement Benefits [Abstract]
Employee Benefit Plans	9. EMPLOYEE BENEFIT PLANS Defined Contribution and 401(K) Plans The Company maintains a qualified non-contributory profit-sharing plan (the “Plan”) covering all eligible employees. There were $361,000, $338,000 and $323,000 of contributions accrued for the Plan in 2018, 2017 and 2016 respectively, which were charged to expense in those respective years. Contributions to the Plan are defined as three percent (3%) of gross wages up to the current Old Age, Survivors, and Disability (OASDI) limit and six percent (6%) of the excess over the OASDI limit, subject to the maximum allowed under the Employee Retirement Income Security Act (ERISA). Participants vest over six years. The Company also maintains a savings and retirement plan qualified under Internal Revenue Code Section 401(k) for all employees. Employees are eligible to participate in the Plan the first day of the month following date of hire. Participants may elect to have up to fifty percent (50%) of their compensation withheld, up to the maximum allowed by the Internal Revenue Code. After completing one year of service, the Company contributed an additional amount equal to 50% of all employee contributions, up to a maximum of 6% of an employee’s gross wages. Contributions are funded on a current basis. Contributions to the Plan charged to expense for the years ended December 31, 2018, 2017 and 2016 were $256,000, $227,000 and $196,000, respectively. The participant’s Company contribution vests ratably over six years.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. 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. 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 $462,000 at December 31, 2018, of which $450,000 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, 2017 liability of $496,000 had $484,000 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 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 $1,296,000 at December 31, 2018 and $1,281,000 at December 31, 2017. As disclosed in detail in Note 8, under the caption “Leases”, the Company has several lease obligations in place that will be paid out over time. Most notably, the Company leases a facility in Banbury, England that serves the manufacturing, warehousing and distribution functions. Additionally, the Company purchased the operating facility at 427 Creamery Way in Exton, PA in February 2017, which was previously under lease through January 2018. Contingencies: In the ordinary and normal conduct of the Company’s business, it is subject to periodic lawsuits, investigations and claims (collectively, the “Claims”). Most of the Claims, including a putative class-action claim, relate to potential lightning damage to our flexible gas piping products, which impact legal and product liability related expenses. The Company does not believe the Claims have legal merit, and therefore has commenced a vigorous defense in response to the Claims. It is possible that the Company may incur increased litigation costs in the future due to a variety of factors, including a higher numbers of Claims, higher legal costs, and higher insurance deductibles or retentions. In 2010, the Company took its first Claim to trial in Pennsylvania, and the jury returned a verdict that the Company was not negligent in designing and selling the TracPipe ® In March 2017, a putative class action case was re-filed against the Company and other parties in Missouri state court after the predecessor case was dismissed without prejudice by the federal court. The Company successfully removed the case to federal court and is currently vigorously defending the case. The Company has in place commercial general liability insurance policies that cover most Claims, which are subject to deductibles or retentions, ranging primarily from $25,000 to $1,000,000 per claim (depending on the terms of the policy and the applicable policy year), up to an aggregate amount. 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 $1,000,000, depending upon the circumstances, and insurance deductible or retention in place for the respective claim year. The aggregate maximum exposure for all current open Claims as of December 31, 2018 is estimated to not exceed approximately $1,700,000, which represents the potential costs that may be incurred over time for the Claims within the applicable insurance policy deductibles or retentions. From time to time, depending upon the nature of a particular case, the Company may decide to spend in excess of a deductible or retention to enable more discretion regarding the defense, although this is not common. It is possible that the results of operations or liquidity of the Company, as well as the Company’s ability to procure reasonably priced insurance, could be adversely affected by the pending litigation, potentially materially. The Company is currently unable to estimate the ultimate liability, if any, that may result from the pending litigation, or potential litigation from future claims or claims that have not yet come to our attention, and accordingly, the liability in the consolidated financial statements primarily represents an accrual for legal costs for services previously rendered, and outstanding or anticipated settlements for Claims. The liabilities recorded on the Company’s books at December 31, 2018 and December 31, 2017 were $150,000 and $175,000, respectively, and are included in Other Liabilities.

Stock - Based Compensation Plan

Stock - Based Compensation Plans	12 Months Ended
	Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock - Based Compensation Plans	11. STOCK – BASED COMPENSATION PLANS Phantom Stock Plan Plan Description. ● 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, at an amount equal to the closing price of the Company’s common stock on the grant date, but are recorded at fair value using the Black-Scholes method as described below. The Units follow a vesting schedule, with a maximum vesting of three 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, Appreciation Only minus 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. Full Value Full Value 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 December 31, 2018. The total Phantom Stock related liability as of December 31, 2018 was $1,692,000 of which $599,000 is included in Other Liabilities, as it is expected to be paid in March 2019, and the balance of $1,093,000 is included in Other Long Term Liabilities. At December 31, 2017, there was a Phantom Stock liability of $2,238,000, of which $776,000 was classified in Other Liabilities, and $1,462,000 in Other Long Term Liabilities. In accordance with FASB ASC Topic 718, Stock Compensation, the Company recorded compensation expense of approximately $118,000, $1,042,000 and $996,000 related to the Phantom Stock Plan for the years ended December 31, 2018, 2017 and 2016, respectively. The following table summarizes information about the Company’s nonvested phantom stock Units at December 31, 2018: Units Weighted Average Grant Date Fair Value Number of Phantom Stock Unit Awards: Nonvested at December 31, 2017 21,296 $ 34.74 Granted 7,400 $ 57.20 Vested (10,891 ) $ 33.74 Forfeited — — Canceled — — Nonvested at December 31, 2018 17,805 $ 46.08 Phantom Stock Unit Awards Expected to Vest 17,805 $ 46.08 The total unrecognized compensation costs calculated at December 31, 2018 are $521,000 which will be recognized through August of 2021. The Company will recognize the related expense over the weighted average period of 1.0 years.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2018
Related Party Transactions [Abstract]
Related Party Transactions	12. RELATED PARTY TRANSACTIONS From time to time the Company may have related party transactions (“RPTs”). In short, RPTs represent any transaction between the Company and any Company employee, director or officer, or any related entity, or relative, etc. The Company performs a review of transactions each year to determine if any RPTs exist. Through this investigation, the Company is currently not aware of any RPTs between the Company and any of its current directors or officers outside the scope of their normal business functions or expected contractual duties. The Company does on occasion share a small amount of services with its former parent Mestek, Inc., mostly related to board meeting expenses. Additionally, the Company is aware of transactions between a few service providers which employ individuals indirectly associated to Omega Flex employees, but these have been determined to be independent transactions with no indication that they are influenced by the related relationships. The Company currently also has note agreement assets with related parties amounting to approximately $5,000 and $147,000 at December 31, 2018 and December 31, 2017, respectively, which are contractually secured by the Company. In April 2018, a majority of the amounts due from related parties was collected.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	13. 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 consolidated financial statements.

Quarterly Consolidated Financia

Quarterly Consolidated Financial Statements (Unaudited)	12 Months Ended
	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Quarterly Consolidated Financial Statements (Unaudited)	14. QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) The table below sets forth selected quarterly information for each quarter of 2018 and 2017. For the Year-Ended December 31, 2018 First Second Third Fourth Year (dollars in thousands except per share data) Net Sales $ 25,397 $ 26,847 $ 27,199 $ 28,870 $ 108,313 Gross Profit $ 15,033 $ 16,214 $ 16,547 $ 18,302 $ 66,096 Net Income attributable to Omega Flex, Inc. $ 4,163 $ 4,776 $ 5,176 $ 6,024 $ 20,139 Basic and Diluted Earnings per common share $ 0.41 $ 0.47 $ 0.51 $ 0.60 $ 2.00 For the Year-Ended December 31, 2017 First Second Third Fourth Year (dollars in thousands except per share data) Net Sales $ 25,607 $ 23,805 $ 24,923 $ 27,464 $ 101,799 Gross Profit $ 15,336 $ 14,142 $ 15,207 $ 17,081 $ 61,766 Net Income attributable to Omega Flex, Inc. $ 4,138 $ 3,034 $ 4,014 $ 4,476 $ 15,662 Basic and Diluted Earnings per common share $ 0.41 $ 0.30 $ 0.40 $ 0.44 $ 1.55

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2018
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (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, accounts receivable allowances, investment valuations, inventory valuations, goodwill valuation, product liability costs, phantom stock and accounting for income taxes. Actual amounts could differ significantly from these estimates.
Revenue Recognition	Revenue Recognition Effective January 1, 2018, the Company adopted the requirements of Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective approach). The Company selected the modified retrospective approach however there was no material impact which required a cumulative effect adjustment. The principle of Topic 606 was achieved through applying the following five-step approach: ● Identification of the contract, or contracts, with a customer — ● Identification of the performance obligations in the contract — ● Determination of the transaction price ● Allocation of the transaction price to the performance obligations in the contract ● Recognition of revenue when, or as, the Company satisfies a performance obligation ● The Company has a present right to payment ● The customer has legal title to the goods ● The Company has transferred physical possession of the goods ● The customer has the significant risks and rewards of ownership of the goods ● The customer has accepted the goods It is important to note that the indicators are not a set of conditions that must be met before the Company can conclude that control of the goods has transferred to the customer. The indicators are a list of factors that are often present if a customer has control of the goods. The Company has typical, unmodified FOB shipping point terms. As the seller, the Company can determine that the shipped goods meet the agreed-upon specifications in the contract or customer purchase order (e.g. items, quantities, and prices) with the buyer, so customer acceptance would be deemed a formality, as noted in ASC 606-10-55-86. As a result, the Company has a legal right to payment upon shipment of the goods. Based upon the above, the Company has concluded that transfer of control substantively transfers to the customer upon shipment. Other considerations of Topic 606 include the following: ● Contract Costs - ● Warranties ● Returned Goods ● Volume Rebates (Promotional Incentives) ● The amount of consideration is highly susceptible to factors outside the Company’s influence. ● The uncertainty about the amount of consideration is not expected to be resolved for a long period of time. ● The Company’s experience with similar types of contracts is limited. ● The contract has a large number and broad range of possible consideration amounts. If it was concluded that the above factors were in place for the Company, it would support the probability of a significant reversal of revenue. However, as none of the four factors apply to the Company, promotional incentives are recorded as a reduction of revenue based upon estimates of the eligible products expected to be sold. Regarding disaggregated revenue disclosures, as previously noted, the Company’s business is controlled as a single operating segment that consists of the manufacture and sale of flexible metal hose. Most of the Company’s transactions are very similar in nature, contract, terms, timing, and transfer of control of goods. As indicated within Note 2, under the caption “Significant Concentration”, the majority of the Company’s sales were geographically contained within North America, with the remainder scattered internationally. All performance assessments and resource allocations are generally based upon the review of the results of the Company as a whole.
Cash Equivalents	Cash Equivalents The Company considers all highly liquid investments with an original maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents include investments in an institutional money market fund, which invests in U.S. Treasury bills, notes and bonds, and/or repurchase agreements, backed by such obligations. Carrying value approximates fair value. Cash and cash equivalents are deposited at various area banks, which at times may exceed federally insured limits. The Company monitors the viability of the banking institutions carrying its assets on a regular basis, and has the ability to transfer cash to various institutions during times of risk. The Company has not experienced any losses related to these cash balances, and believes its credit risk to be minimal.
Accounts Receivable and Provision for Doubtful Accounts	Accounts Receivable and Provision for Doubtful Accounts 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 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. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. The Company determines the allowance based on any known collection issues, historical experience, and other currently available evidence. The reserve for future credits, discounts, and doubtful accounts was $985,000 and $920,000 as of December 31, 2018 and 2017, respectively. In regards to identifying uncollectible accounts, the Company reviews an aging report on a consistent basis to determine past due accounts, and utilizes a well-established credit rating agency. The Company charges off those accounts that are deemed uncollectible once all collection efforts have been exhausted.
Investments	Investments The Company invests excess funds in liquid interest earning instruments including US Treasury bills and bank time deposits. These investments are stated at fair value, which approximates amortized cost, and are classified as available-for-sale in accordance with Accounting Standards Codification 320, Investments – Debt and Equity Securities
Inventories	Inventories Inventories are valued at the lower of cost or net realizable value. The cost of inventories is determined by the first-in, first-out (FIFO) method. The Company generally considers inventory quantities beyond two years of non-usage, measured on a historical usage basis, to be excess inventory and reduces the carrying value of inventory accordingly.
Property and Equipment	Property and Equipment Property and equipment are carried at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets or, for leasehold improvements, the life of the lease, if shorter. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in other income or expense for the period. The cost of maintenance and repairs is expensed as incurred; significant improvements are capitalized.
Goodwill	Goodwill In accordance with Financial Accounting Standards Board (FASB) ASC Topic 350, Intangibles – Goodwill and Other, the Company performed an annual impairment test in accordance with this guidance as of December 31, 2018 and also at December 31, 2017. These analyses did not indicate any impairment of goodwill at the end of either period.
Stock-Based Compensation Plans	Stock-Based Compensation Plans In 2006, the Company adopted a Phantom Stock Plan (the “Plan”), which allows the Company to grant phantom stock units (Units) to certain key employees, officers or directors. The Units each represent a contractual right to payment of compensation in the future based upon the market value of the Company’s common stock. The Units follow a vesting schedule of three years from the grant date, and are then paid upon maturity. In accordance with FASB ASC Topic 718, Stock Compensation, the Company uses the Black-Scholes option pricing model as its method for determining the fair value of the Units. Further details of the Plan are provided in Note 11.
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 Note 10, Commitments and Contingencies, for various product liability claims covered under the Company’s general liability insurance policies, the Company must pay certain defense and settlement costs within its deductible or self-insured retention limits, ranging primarily from $25,000 to $1,000,000 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	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 upon Level 1 inputs in determining the fair value of investments and the fair value of the Company’s reporting unit in its annual impairment test as described in the FASB ASC Topic 350, Intangibles - Goodwill and Other.
Advertising Expense	Advertising Expense Advertising costs are charged to operations as incurred and are included in selling expenses in the accompanying consolidated Statement of Operations. Such charges aggregated $1,037,000, $1,075,000 and $1,047,000 for the years ended December 31, 2018, 2017, and 2016, respectively.
Research and Development Expense	Research and Development Expense Research and development expenses are charged to operations as incurred. Such charges totaled $1,531,000, $923,000 and $788,000 for the years ended December 31, 2018, 2017 and 2016, respectively and are included in engineering expense in the accompanying consolidated statements of operations.
Shipping Costs	Shipping Costs Shipping costs are included in selling expense on the consolidated statements of operations. The expense relating to shipping was $2,973,000, $2,562,000 and $2,339,000 for the years ended December 31, 2018, 2017 and 2016, respectively.
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.
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 Operations 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 the Statements of Operations (other income (expense)) in the period in which they occur.
Income Taxes	Income Taxes The Company accounts for tax liabilities in accordance with the FASB ASC Topic 740, Income Taxes. Under this method the Company recorded tax expense, related deferred taxes and tax benefits, and uncertainties in tax positions. 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 that includes the enactment date. 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. The FASB ASC Topic 740, Income Taxes, clarifies the criteria that an individual tax position must satisfy for some or all of the benefits of that position to be recognized in a company’s financial statements. This guidance prescribes a recognition threshold of more-likely than-not, and a measurement attribute for all tax positions taken or expected to be taken on a tax return, in order for those tax positions to be recognized in the financial statements. The Company follows the provisions of ASC 740-10 relative to accounting for uncertainties in tax positions. These provisions provide guidance on the recognition, de-recognition and measurement of potential tax benefits associated with tax positions. The Company reflected the effects of the Tax Cuts and Jobs Act (the “Act”), in its 2017 financial statements. This included the effects of the change in the US corporate tax rate from 35% to 21% on deferred tax assets and liabilities, and a provision related to previously deferred taxes on earnings of the Company’s foreign subsidiary. The Company’s tax expense for the period ended December 31, 2018 includes the effect of the reduction in the US corporate tax rate from 35% to 21%, effective for the Company’s 2018 tax year. The Company’s tax provision also reflects other changes as a result of the Act, including the impact of the Global Intangible Low Taxed Income (“GILTI”) provisions, and changes affecting the deductibility of certain executive compensation.
Other Comprehensive Income	Other Comprehensive Income For the years ended December 31, 2018, 2017 and 2016, respectively, the components of other comprehensive income consisted solely of foreign currency translation adjustments.
Significant Concentrations	Significant Concentrations One customer represented 13% to 15% of sales during the period from 2016 to 2018, and that same customer accounted for approximately 19% to 22% of the Accounts Receivable balance over the last three years. No other customer represented more that 10% of Accounts Receivable or Sales. Geographically, North America accounted for approximately 90% of the Company’s sales during the last three years. The remaining portion of sales for each respective year was scattered among other countries, with the United Kingdom being the Company’s most dominant market outside North America.
Subsequent Events	Subsequent Events The Company evaluates all events or transactions through the date of the related filing that may have a material impact on its consolidated financial statements. Refer to Note 13 of the consolidated financial statements.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) The new standard provides a number of optional practical expedients throughout the transition. The Company elected the “package of practical expedients,” which permits the Company to not reassess under the new standard the Company’s prior conclusions about lease identification, lease classification, and initial direct costs. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases that qualify as pursuant to the above definition. This means, for those leases that qualify, the Company will not recognize right-of-use assets or lease liabilities, and this includes not recognizing right-of-use assets or lease liabilities for existing short-term leases of those assets in transition. The impact of adoption is expected to be an increase to the Company’s operating lease assets and liabilities on January 1, 2019 of approximately $800,000. The guidance will not have a material impact on our consolidated statements of operations and statements of cash flows. In January 2017, the FASB amended ASC Topic 350, Intangibles – Goodwill and Other

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2018
Inventory Disclosure [Abstract]
Schedule of Inventories, Net of Reserves	Inventories, net of reserves of $363,000 and $479,000, respectively, consisted of the following at December 31: 2018 2017 (in thousands) Finished Goods $ 4,756 $ 5,461 Raw Materials 3,220 2,546 Total Inventories - Net $ 7,976 $ 8,007

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consisted of the following at December 31: 2018 2017 Depreciation and Amortization Est. Useful Lives (in thousands) Land $ 1,205 $ 1,205 Buildings 6,452 6,293 39 Years Leasehold Improvements 403 411 3-10 Years (Lesser of Life or Lease) Equipment 11,960 10,242 3-10 Years 20,020 18,151 Accumulated Depreciation (11,642 ) (11,153 ) Property and Equipment - Net $ 8,378 $ 6,698

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit)	Income tax expense consisted of the following: December 31, 2018 2017 2016 (in thousands) Federal Income Tax: Current $ 4,618 $ 6,848 $ 5,788 Deferred 306 48 (311 ) State Income Tax: Current 885 667 652 Deferred 50 16 (23 ) Foreign Income Tax: Current 575 863 791 Deferred 17 8 78 Income Tax Expense $ 6,451 $ 8,450 $ 6,975
Schedule of Effective Income Tax Rate Reconciliation	Total income tax expense differed from statutory income tax expense, computed by applying the U.S. federal income tax rate of 21% (2018) and 35% (2017 and 2016) to earnings before income tax, as follows: December 31, 2018 2017 2016 (in thousands) Computed Statutory Income Tax Expense $ 5,584 $ 8,440 $ 7,475 State Income Tax, Net of Federal Tax Benefit 760 447 386 Foreign Tax Rate Differential (63 ) (713 ) (592 ) Impact of Deemed Repatriation due to Tax Reform — 827 — Manufacturing Deduction — (401 ) (385 ) Impact of Federal Tax Rate Reduction on Deferred Taxes — (118 ) — Executive Compensation Limitation 440 — — Foreign Derived Intangible Income Deduction (100 ) — — Research Credit (143 ) (47 ) (33 ) Increase/(Reduction) in Tax Uncertainties — — (70 ) Valuation Allowance for Foreign Loss Carryover — — 70 Other - Net (27 ) 15 124 Income Tax Expense $ 6,451 $ 8,450 $ 6,975
Schedule of Deferred Tax Assets and Liabilities	The components of and changes in the net deferred tax assets (liabilities) which give rise to this deferred income tax (expense) benefit for the years ended December 31, 2018 and 2017 are as follows: December 31, 2018 2017 (in thousands) Deferred Tax Assets: Compensation Assets $ 103 $ 98 Inventory Valuation 164 195 Accounts Receivable Valuation 232 215 Deferred Litigation Costs 12 24 Foreign Net Operating Losses 70 70 Valuation Allowance for Loss Carryover (70 ) (70 ) Other 71 78 Compensation Liabilities 510 648 Total Deferred Assets $ 1,092 $ 1,258 Deferred Tax Liabilities: Prepaid Expenses (409 ) (417 ) Depreciation and Amortization (1,246 ) (1,038 ) Total Deferred Liabilities ($ 1,655 ) ($ 1,455 ) Total Deferred Tax Liability ($ 563 ) ($ 197 )

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2018
Leases [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases	Future minimum lease payments under non-cancelable leases as of December 31, 2018 is as follows: Year Ending December 31, Operating Leases (in thousands) 2019 $ 412 2020 319 2021 115 2022 33 2023 — Thereafter — Total Minimum Lease Payments $ 879

Stock - Based Compensation Pl_2

Stock - Based Compensation Plans (Tables)	12 Months Ended
	Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Nonvested Phantom Stock Units	The following table summarizes information about the Company’s nonvested phantom stock Units at December 31, 2018: Units Weighted Average Grant Date Fair Value Number of Phantom Stock Unit Awards: Nonvested at December 31, 2017 21,296 $ 34.74 Granted 7,400 $ 57.20 Vested (10,891 ) $ 33.74 Forfeited — — Canceled — — Nonvested at December 31, 2018 17,805 $ 46.08 Phantom Stock Unit Awards Expected to Vest 17,805 $ 46.08

Quarterly Consolidated Financ_2

Quarterly Consolidated Financial Statements (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Schedule of Quarterly Financial Information	The table below sets forth selected quarterly information for each quarter of 2018 and 2017. For the Year-Ended December 31, 2018 First Second Third Fourth Year (dollars in thousands except per share data) Net Sales $ 25,397 $ 26,847 $ 27,199 $ 28,870 $ 108,313 Gross Profit $ 15,033 $ 16,214 $ 16,547 $ 18,302 $ 66,096 Net Income attributable to Omega Flex, Inc. $ 4,163 $ 4,776 $ 5,176 $ 6,024 $ 20,139 Basic and Diluted Earnings per common share $ 0.41 $ 0.47 $ 0.51 $ 0.60 $ 2.00 For the Year-Ended December 31, 2017 First Second Third Fourth Year (dollars in thousands except per share data) Net Sales $ 25,607 $ 23,805 $ 24,923 $ 27,464 $ 101,799 Gross Profit $ 15,336 $ 14,142 $ 15,207 $ 17,081 $ 61,766 Net Income attributable to Omega Flex, Inc. $ 4,138 $ 3,034 $ 4,014 $ 4,476 $ 15,662 Basic and Diluted Earnings per common share $ 0.41 $ 0.30 $ 0.40 $ 0.44 $ 1.55

Significant Accounting Polici_3

Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended			36 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018
Allowance for doubtful accounts receivable	$ 985	$ 920		$ 985
Investment	14,944			14,944
Advertising expense	1,037	1,075	$ 1,047
Research and development expense	1,531	923	788
Cost of goods gold	$ 42,217	$ 40,033	$ 36,167
Income tax rate examination description	The Company's tax expense for the period ended December 31, 2018 includes the effect of the reduction in the US corporate tax rate from 35% to 21%, effective for the Company's 2018 tax year.
Corporate tax rate percentage	21.00%	35.00%	35.00%
Concentration risk percentage description	No other customer represented more that 10% of Accounts Receivable or Sales.
January 1, 2019 [Member]
Operating lease assets	$ 800			800
Operating lease liability	800			$ 800
Sales Revenue Net [Member] | Geographic Concentration Risk [Member]
Concentration risk percentage				90.00%
Concentration risk term				3 years
Accounts Receivable [Member] | Customer One [Member] | Customer Concentration Risk [Member]
Concentration risk term				3 years
Shipping Costs [Member]
Cost of goods gold	2,973	$ 2,562	$ 2,339
Minimum [Member]
Defense costs per claim	25
Minimum [Member] | Sales Revenue Net [Member] | Customer One [Member] | Customer Concentration Risk [Member]
Concentration risk percentage				13.00%
Minimum [Member] | Accounts Receivable [Member] | Customer One [Member] | Customer Concentration Risk [Member]
Concentration risk percentage				19.00%
Maximum [Member]
Defense costs per claim	$ 1,000
Maximum [Member] | Sales Revenue Net [Member] | Customer One [Member] | Customer Concentration Risk [Member]
Concentration risk percentage				15.00%
Maximum [Member] | Accounts Receivable [Member] | Customer One [Member] | Customer Concentration Risk [Member]
Concentration risk percentage				22.00%

Inventories (Details Narrative)

Inventories (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Inventory valuation reserves	$ 363	$ 479

Inventories - Schedule of Inven

Inventories - Schedule of Inventories, Net of Reserves (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Finished Goods	$ 4,576	$ 5,461
Raw Materials	3,220	2,546
Total Inventories - Net	$ 7,976	$ 8,007

Property and Equipment (Details

Property and Equipment (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Construction in progress, gross	$ 511	$ 0
Depreciation and amortization expense	$ 543	$ 502	$ 459

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Property and Equipment - Gross	$ 20,020	$ 18,151
Accumulated depreciation	(11,642)	(11,153)
Property and Equipment - Net	8,378	6,998
Land [Member]
Property and Equipment - Gross	1,205	1,205
Buildings [Member]
Property and Equipment - Gross	$ 6,452	6,293
Property and Equipment, Useful Lives	39 years
Leasehold Improvements [Member]
Property and Equipment - Gross	$ 403	411
Leasehold Improvements [Member] | Minimum [Member]
Property and Equipment, Useful Lives	3 years
Leasehold Improvements [Member] | Maximum [Member]
Property and Equipment, Useful Lives	10 years
Equipment [Member]
Property and Equipment - Gross	$ 11,960	$ 10,242
Equipment [Member] | Minimum [Member]
Property and Equipment, Useful Lives	3 years
Equipment [Member] | Maximum [Member]
Property and Equipment, Useful Lives	10 years

Line of Credit (Details Narrati

Line of Credit (Details Narrative) - USD ($) $ in Thousands	Dec. 01, 2017	Dec. 31, 2018	Dec. 31, 2017
Line of credit facility, fair value of amount outstanding
Loan Agreement [Member]
Line of credit facility, description	On December 1, 2017, the Company agreed to a new Amended and Restated Revolving Line of Credit Note and Third Amendment to the Loan Agreement with Santander Bank, N.A. (the "Bank").
Line of credit facility, maximum borrowing capacity	$ 15,000
Line of credit facility, expiration date	Dec. 1, 2022
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 0.75% to plus 1.75% (for borrowings with a fixed term of 30, 60, or 90 days), or, Prime Rate up to Prime Rate plus 0.50% (for borrowings with no fixed term other than the December 1, 2022 maturity date), depending upon the Company's then existing financial ratios. Currently, the Company's ratio would allow for the most favorable rate under the agreement's range, which would be a rate of 3.5%.
Line of credit facility, commitment fee description	The Company is also required to pay on a quarterly basis an unused facility fee of 10 basis points of the average unused balance of the note. The Company may terminate the line at any time during the five year term, as long as there are no amounts outstanding.
Line of credit period	5 years

Shareholders' Equity (Details N

Shareholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Dec. 14, 2016	Apr. 04, 2014	Oct. 31, 2018	Jul. 31, 2018	Apr. 30, 2018	Jan. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2017	Jun. 30, 2017
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, common, shares							61,811	61,811
Dividends payable, amount per share	$ 0.85							$ 0.22				$ 0.22	$ 0.22
Dividend paid						$ 8,578	$ 9,775	$ 13,018	$ 8,578
Dividends payable, record date	Dec. 26, 2016
Dividends payable, payable date	Jan. 6, 2017
Stock repurchase program, authorized amount		$ 1,000
Restricted Stock Unit Awards [Member]
Share based payment award, granted							2,000
Compensation cost
December 2007 [Member]
Stock repurchase program, authorized amount		$ 5,000
December 2007 [Member] | Since Inception [Member]
Stock repurchased during period, shares		61,811
Stock repurchased during period, value		$ 932
Stock repurchased during period, value per share		$ 15
Foreign Subsidiary's [Member]
Dividend paid					$ 491
July 2017 [Member]
Dividend paid								2,220
October 2017 [Member]
Dividend paid								2,220
January 2018 [Member]
Dividend paid								$ 2,220
Board of Directors [Member]
Dividends payable, amount per share					$ 0.22		$ 0.24			$ 0.24	$ 0.24
Dividend paid			$ 2,422	$ 2,422	$ 2,220
Board of Directors [Member] | January 2019 [Member]
Dividend paid							$ 2,422

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($) $ in Thousands	Dec. 22, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Federal income tax percentage		21.00%	35.00%	35.00%
Income tax examination description		The Company's tax expense for the period ended December 31, 2018 includes the effect of the reduction in the US corporate tax rate from 35% to 21%, effective for the Company's 2018 tax year.
Taxes on unremitted foreign earnings			$ 822
Tax rate, net of foreign tax credits			8.00%
Income tax impact lower tax rate decreased		21.00%
Foreign income included in pre-tax income		$ 3,123	$ 4,528	$ 3,944
Unrecognized tax benefits
Reduction Corporate Tax [Member] | 2018 [Member]
Federal income tax percentage	21.00%

Income Taxes - Schedule of Comp

Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Federal Income Tax, Current	$ 4,618	$ 6,848	$ 5,788
Federal Income Tax, Deferred	306	48	(311)
State Income Tax, Current	885	667	652
State Income Tax, Deferred	50	16	(23)
Foreign Income Tax, Current	575	863	791
Foreign Income Tax, Deferred	17	8	78
Income Tax Expense	$ 6,451	$ 8,450	$ 6,975

Income Taxes - Schedule of Effe

Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Computed Statutory Income Tax Expense	$ 5,584	$ 8,440	$ 7,475
State Income Tax, Net of Federal Tax Benefit	760	447	386
Foreign Tax Rate Differential	(63)	(713)	(592)
Impact of Deemed Repatriation due to Tax Reform		827
Manufacturing Deduction		(401)	(385)
Impact of Federal Tax Rate Reduction on Deferred Taxes		(118)
Executive Compensation Limitation	440
Foreign Derived Intangible Income Deduction	(100)
Research Credit	(143)	(47)	(33)
Increase/(Reduction) in Tax Uncertainties			(70)
Valuation Allowance for Foreign Loss Carryover			70
Other - Net	(27)	15	124
Income Tax Expense	$ 6,451	$ 8,450	$ 6,975

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Compensation Assets	$ 103	$ 98
Inventory Valuation	164	195
Accounts Receivable Valuation	232	215
Deferred Litigation Costs	12	24
Foreign Net Operating Losses	70	70
Valuation Allowance for Loss Carryover	(70)	(70)
Other	71	78
Compensation Liabilities	510	648
Total Deferred Assets	1,092	1,258
Prepaid Expenses	(409)	(417)
Depreciation and Amortization	(1,246)	(1,038)
Total Deferred Liabilities	(1,655)	(1,455)
Total Deferred Tax Liability	$ (563)	$ (197)

Leases (Details Narrative)

Leases (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Rent expense	$ 377	$ 393	$ 486
Houston [Member]
Operating leases term, description	The Houston lease runs through October 2019.
Middletown [Member]
Operating leases term, description	Additionally, the Company leases its corporate office space in Middletown, CT, with the lease term expiring in 2022
Banbury [Member]
Operating leases term, description	The lease in Banbury was effective April 1, 2006 and has a 15-year term ending in March 2021.

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands	Dec. 31, 2018USD ($)
Leases [Abstract]
2019	$ 412
2020	319
2021	115
2022	33
2023
Thereafter
Total Minimum Lease Payments	$ 879

Employee Benefit Plans (Details

Employee Benefit Plans (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Qualified Non-contributory Profit-sharing [Member]
Employee contribution	$ 361	$ 338	$ 323
Employee contributions, description	Contributions to the Plan are defined as three percent (3%) of gross wages up to the current Old Age, Survivors, and Disability (OASDI) limit and six percent (6%) of the excess over the OASDI limit, subject to the maximum allowed under the Employee Retirement Income Security Act (ERISA). Participants vest over six years.
Savings and Retirement [Member]
Employee contribution	$ 256	$ 227	$ 196
Employee contributions, description	The Company also maintains a savings and retirement plan qualified under Internal Revenue Code Section 401(k) for all employees. Employees are eligible to participate in the Plan the first day of the month following date of hire. Participants may elect to have up to fifty percent (50%) of their compensation withheld, up to the maximum allowed by the Internal Revenue Code. After completing one year of service, the Company contributed an additional amount equal to 50% of all employee contributions, up to a maximum of 6% of an employee's gross wages.

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	May 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Other compensation liabilities		$ 462	$ 496
Other compensation liabilities, noncurrent		450	484
Other compensation liabilities, current		12	12
Cash surrender value of life insurance		1,296	1,281
Amount of security to proceed current appeal	$ 1,600
Contingency, closed and settled date	This case was finally settled and closed on August 7, 2018.
Maximum aggregate claim amount		1,700
Liabilities recorded		$ 150	$ 175
Weighted average period		1 year
Minimum [Member]
Payment benefit to employee's		$ 1
Deductibles per claim		25
Minimum [Member] | Insurance Claims [Member]
Potential liability per claim		0
Maximum [Member]
Payment benefit to employee's		3
Deductibles per claim		1,000
Maximum [Member] | Insurance Claims [Member]
Potential liability per claim		$ 1,000

Stock Based Compensation Plans

Stock Based Compensation Plans (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Aug. 27, 2018	Feb. 12, 2018	Feb. 28, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share based compensation, description				through August of 2021
Unvested units outstanding				17,805	21,296
Share based compensation grants in period	950	6,450
Share based compensation weighted average grant date fair value	$ 85.43	$ 53.04		$ 57.20
Share based compensation paid in period			$ 664
Share based compensation grants paid in period			$ 10,460
Forfeiture rate of plan				0.00%
Share based compensation liability				$ 1,692	$ 2,238
Share based compensation liability, current				599	776
Share based compensation liability, non current				1,093	1,462
Compensation expense				118	$ 1,042	$ 996
Unrecognized compensation costs				$ 521
Compensation expense, weighted average recognize period				1 year
Phantom Stock Plan [Member]
Share based compensation, 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 1 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.
Share based compensation number of shares authorized				1,000,000
Share based compensation vesting rights				The Units follow a vesting schedule, with a maximum vesting of three years after the grant date. Upon vesting, the Units represent a contractual right of payment for the value of the Unit.

Stock Based Compensation Plan_2

Stock Based Compensation Plans - Summary of Nonvested Phantom Stock Units (Details) - $ / shares	Aug. 27, 2018	Feb. 12, 2018	Dec. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Nonvested Units, Beginning balance			21,296
Nonvested Units, Granted			7,400
Nonvested Units, Vested			(10,891)
Nonvested Units, Forfeited
Nonvested Units, Cancelled
Nonvested Units, Ending Balance			17,805
Phantom Stock Unit Awards Expected to Vest, Units			17,805
Nonvested Weighted Average Grant Date Fair Value, Beginning balance			$ 34.74
Nonvested Weighted Average Grant Date Fair Value, Granted	$ 85.43	$ 53.04	57.20
Nonvested Weighted Average Grant Date Fair Value, Vested			33.74
Nonvested Weighted Average Grant Date Fair Value, Forfeited
Nonvested Weighted Average Grant Date Fair Value, Cancelled
Nonvested Weighted Average Grant Date Fair Value, Ending Balance			46.08
Phantom Stock Unit Awards Expected to Vest, Weighted Average Grant Date Fair Value			$ 46.08

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Related Party Transactions [Abstract]
Related parties amount secured by company	$ 5	$ 147

Quarterly Consolidated Financ_3

Quarterly Consolidated Financial Statements (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]
Net Sales	$ 28,870	$ 27,199	$ 26,847	$ 25,397	$ 27,464	$ 24,923	$ 23,805	$ 25,607	$ 108,313	$ 101,799	$ 94,051
Gross Profit	18,302	16,547	16,214	15,033	17,081	15,207	14,142	15,336	66,096	61,766	57,884
Net Income attributable to Omega Flex, Inc.	$ 6,024	$ 5,176	$ 4,776	$ 4,163	$ 4,476	$ 4,014	$ 3,034	$ 4,138	$ 20,139	$ 15,662	$ 14,377
Basic and Diluted Earnings per common share	$ 0.60	$ 0.51	$ 0.47	$ 0.41	$ 0.44	$ 0.40	$ 0.30	$ 0.41	$ 2	$ 1.55	$ 1.42