Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 31, 2014 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'OCEAN BIO CHEM INC | ' | ' |
Entity Central Index Key | '0000350737 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-Known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 8,800,314 | ' |
Entity Public Float | ' | ' | $7,130,201 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets: | ' | ' |
Cash | $3,071,887 | $1,508,385 |
Trade accounts receivable less allowances of approximately $93,000 and $73,000, respectively | 4,413,656 | 2,931,479 |
Receivables due from affiliated companies | 536,402 | 556,051 |
Inventories, net | 7,367,894 | 9,256,589 |
Prepaid expenses and other current assets | 621,107 | 530,305 |
Deferred tax asset | 64,665 | 56,221 |
Total Current Assets | 16,075,611 | 14,839,030 |
Property, plant and equipment, net | 5,116,441 | 5,327,909 |
Other Assets: | ' | ' |
Trademarks, trade names, royalty rights, and patents, net | 920,269 | 819,194 |
Other assets | 130,803 | 24,350 |
Total Other Assets | 1,051,072 | 843,544 |
Total Assets | 22,243,124 | 21,010,483 |
Current Liabilities: | ' | ' |
Accounts payable - trade | 1,013,829 | 1,431,457 |
Current portion of long-term debt | 414,525 | 407,095 |
Income taxes payable | 119,943 | 65,944 |
Accrued expenses payable | 1,067,355 | 913,129 |
Total Current Liabilities | 2,615,652 | 2,817,625 |
Deferred tax liability | 237,635 | 230,478 |
Long-term debt, less current portion | 1,117,761 | 1,532,286 |
Total Liabilities | 3,971,048 | 4,580,389 |
Commitments and contingencies | ' | ' |
Shareholders' Equity: | ' | ' |
Common stock - $.01 par value, 12,000,000 shares authorized; 8,749,888 shares issued | 87,499 | 87,499 |
Additional paid in capital | 8,805,460 | 8,617,081 |
Less cost of common stock in treasury, 79,941 shares and 351,503 shares respectively | -65,029 | -288,013 |
Foreign currency translation adjustment | -266,456 | -261,807 |
Retained earnings | 9,482,128 | 8,021,136 |
Total Shareholders' Equity of Ocean Bio-Chem, Inc. | 18,043,602 | 16,175,896 |
Noncontrolling interest | 228,474 | 254,198 |
Total Shareholders' Equity | 18,272,076 | 16,430,094 |
Total Liabilities and Shareholders' Equity | $22,243,124 | $21,010,483 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Balance Sheets [Abstract] | ' | ' |
Trade accounts receivable, allowance for doubtful accounts | $93,000 | $73,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 12,000,000 | 12,000,000 |
Common stock, shares issued | 8,749,888 | 8,749,888 |
Common stock in treasury, shares | 79,941 | 351,503 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Statements Of Operation [Abstract] | ' | ' |
Gross sales | $34,407,254 | $33,061,823 |
Less: discounts, returns, and allowances | 1,703,776 | 2,022,929 |
Net sales | 32,703,478 | 31,038,894 |
Cost of goods sold | 21,814,739 | 20,412,022 |
Gross profit | 10,888,739 | 10,626,872 |
Operating Expenses: | ' | ' |
Advertising and promotion | 2,647,968 | 2,417,745 |
Selling and administrative | 5,928,830 | 5,126,467 |
Total operating expenses | 8,576,798 | 7,544,212 |
Operating income | 2,311,941 | 3,082,660 |
Other income (expense) | ' | ' |
Interest (expense) | -67,180 | -97,964 |
Other income | 6,319 | 4,489 |
Income before income taxes | 2,251,080 | 2,989,185 |
Provision for income taxes | 815,812 | 1,055,078 |
Net income | 1,435,268 | 1,934,107 |
Loss attributable to noncontrolling interests | 25,724 | 28,181 |
Net income attributable to Ocean Bio-Chem, Inc. | $1,460,992 | $1,962,288 |
Income per common share - basic | $0.17 | $0.24 |
Income per common share - diluted | $0.17 | $0.23 |
Weighted average shares - basic | 8,542,686 | 8,229,720 |
Weighted average shares - diluted | 8,787,668 | 8,556,107 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Statements Of Comprehensive Income [Abstract] | ' | ' |
Net income | $1,435,268 | $1,934,107 |
Foreign currency translation adjustment | -4,649 | 6,277 |
Comprehensive income | 1,430,619 | 1,940,384 |
Comprehensive loss attributable to noncontrolling interests | 25,724 | 28,181 |
Comprehensive income attributable to Ocean Bio-Chem, Inc. | $1,456,343 | $1,968,565 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid In Capital | Foreign Currency Translation Adjustment | Retained Earnings | Treasury Stock | Non Controlling Interest |
Beginning Balance at Dec. 31, 2011 | $14,033,578 | $84,584 | $8,163,864 | ($268,084) | $6,058,848 | ($288,013) | $282,379 |
Beginning Balance, shares at Dec. 31, 2011 | ' | 8,458,389 | ' | ' | ' | ' | ' |
Net Income (loss) | 1,934,107 | ' | ' | ' | 1,962,288 | ' | -28,181 |
Options exercised | 169,496 | 1,745 | 167,751 | ' | ' | ' | ' |
Options exercised, shares | 302,800 | 174,499 | ' | ' | ' | ' | ' |
Stock based compensation - grants | 231,075 | 1,170 | 229,905 | ' | ' | ' | ' |
Stock based compensation - grants, shares | ' | 117,000 | ' | ' | ' | ' | ' |
Stock based compensation - options | 55,561 | ' | 55,561 | ' | ' | ' | ' |
Foreign currency translation adjustment | 6,277 | ' | ' | 6,277 | ' | ' | ' |
Balance at Dec. 31, 2012 | 16,430,094 | 87,499 | 8,617,081 | -261,807 | 8,021,136 | -288,013 | 254,198 |
Balance, shares at Dec. 31, 2012 | ' | 8,749,888 | ' | ' | ' | ' | ' |
Net Income (loss) | 1,435,268 | ' | ' | ' | 1,460,992 | ' | -25,724 |
Options exercised | 79,667 | ' | -44,953 | ' | ' | 124,620 | ' |
Options exercised, shares | 193,400 | ' | ' | ' | ' | ' | ' |
Stock based compensation - grants | 319,440 | ' | 221,076 | ' | ' | 98,364 | ' |
Stock based compensation - grants, shares | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation - options | 12,256 | ' | 12,256 | ' | ' | ' | ' |
Foreign currency translation adjustment | -4,649 | ' | ' | -4,649 | ' | ' | ' |
Balance at Dec. 31, 2013 | $18,272,076 | $87,499 | $8,805,460 | ($266,456) | $9,482,128 | ($65,029) | $228,474 |
Balance, shares at Dec. 31, 2013 | ' | 8,749,888 | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities: | ' | ' |
Net income | $1,435,268 | $1,934,107 |
Adjustment to reconcile net income to net cash provided by operations: | ' | ' |
Depreciation and amortization | 782,962 | 701,569 |
Deferred income taxes | -1,287 | -10,137 |
Stock based compensation | 318,110 | 276,993 |
Other operating noncash items | 61,824 | 15,457 |
Changes in assets and liabilities: | ' | ' |
Trade accounts receivable | -1,502,797 | -366,645 |
Inventories | 1,858,393 | 375,918 |
Other assets | -106,453 | 9,092 |
Prepaid expenses and other current assets | -90,802 | -106,137 |
Receivables due from affiliated companies | 19,649 | -60,921 |
Accounts payable and other accrued expenses | -209,403 | 5,335 |
Net cash provided by operating activities | 2,565,464 | 2,774,631 |
Cash flows from investing activities: | ' | ' |
Purchases of property, plant and equipment | -512,569 | -770,737 |
Purchase of royalty rights | -160,000 | ' |
Net cash used in investing activities | -672,569 | -770,737 |
Cash flows from financing activities: | ' | ' |
Net borrowings (repayments) under revolving line of credit | ' | -850,000 |
Payments on long-term debt | -407,095 | -400,411 |
Proceeds from exercise of stock options | 79,667 | 169,496 |
Net cash used in financing activities | -327,428 | -1,080,915 |
Effect of exchange rate on cash | -1,965 | 49 |
Net increase in cash | 1,563,502 | 923,028 |
Cash at beginning of period | 1,508,385 | 585,357 |
Cash at end of period | 3,071,887 | 1,508,385 |
Supplemental disclosure of cash transactions: | ' | ' |
Cash paid for interest during period | 68,327 | 100,995 |
Cash paid for income taxes during period | 763,100 | 1,352,879 |
Supplemental disclosure of non-cash investing activities | ' | ' |
Issuance of note receivable for amounts due | $111,420 | ' |
Organization_and_summary_of_si
Organization and summary of significant accounting policies | 12 Months Ended | |
Dec. 31, 2013 | ||
Organization and summary of significant accounting policies [Abstract] | ' | |
Organization and summary of significant accounting policies | ' | |
Note 1 – Organization and summary of significant accounting policies: | ||
Organization – The Company was incorporated in November 1973 under the laws of the state of Florida and operates as a manufacturer and distributor of products principally under the Star brite® brand to the marine, automotive, recreational vehicle, and outdoor power equipment aftermarkets. | ||
Basis of presentation – The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and a joint venture in which the Company has a controlling interest. All significant inter-company accounts and transactions have been eliminated in consolidation. Certain prior-period data have been reclassified to conform to the current period presentation. | ||
Revenue recognition – Revenue from product sales is recognized when persuasive evidence of a contract exists, the sales price is fixed and determinable, the title of goods passes to the customer, and collectability of the related receivable is probable. Reported net sales are net of customer prompt pay discounts, contractual allowances, authorized customer returns, consumer rebates and other sales incentives. | ||
Collectability of accounts receivable – Trade accounts receivable at December 31, 2013 and 2012 are net of allowances for doubtful accounts aggregating approximately $93,000 and $73,000, respectively. Such amounts are based on management's estimates of the creditworthiness of its customers, current economic conditions and historical information. The Company had bad debt expense of approximately $21,000 and $0 during the years ended December 31, 2013 and 2012, respectively. | ||
Inventories – Inventories are primarily composed of raw materials and finished goods and are stated at the lower of cost, using the first-in, first-out method, or market. | ||
Shipping and handling costs – All shipping and handling costs incurred by the Company are included in cost of goods sold in the consolidated statements of operations. Shipping and handling costs totaled approximately $1,188,000 and $1,165,000 for the years ended December 31, 2013 and 2012, respectively. | ||
Advertising and promotion expense – Advertising and promotion expense consists of advertising costs and marketing expenses, including catalog costs and expenses relating to participation at trade shows. Advertising costs are expensed in the period in which the advertising occurs and totaled approximately $2,648,000 and $2,418,000 in 2013 and 2012, respectively. The Company capitalizes the direct cost of producing and distributing its catalogs. Capitalized catalog costs are amortized, once a catalog is distributed, over the expected net sales period, which is generally from one to 12 months. At December 31, 2013 and 2012, the carrying value of capitalized catalog costs was not material. | ||
Property, plant and equipment – Property, plant and equipment is stated at cost, net of depreciation. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method. | ||
Research and development costs – Research and development costs are expensed as incurred and recorded in selling and administrative expenses in the consolidated statements of operations. The Company incurred approximately $60,000 and $76,000 of research and development costs for the years ended December 31, 2013 and 2012 respectively. | ||
Stock based compensation – The Company records stock-based compensation in accordance with the provisions of Financial Accounting Standards Board Accounting Standards Codification (“ASC") Topic 718, "Accounting for Stock Compensation," which establishes accounting standards for transactions in which an entity exchanges its equity instruments for goods or services. Under ASC Topic 718, we recognize an expense for the fair value of our outstanding stock options as they vest and the fair value of our stock awards at the time of grant, whether held by employees or others. | ||
Use of estimates – The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Concentration of credit risk; dependence on major customers – Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of accounts receivable. The Company’s five largest unaffiliated customers represented approximately 49% and 49% of consolidated net revenues for the years ended December 31, 2013 and 2012, and 31% and 23% of consolidated accounts receivable at December 31, 2013 and 2012, respectively. The Company has a longstanding relationship with each of these entities and previously has collected all open receivable balances from these entities. The loss of any of these customers could have an adverse impact on the Company’s operations (see Note 12). | ||
Concentration of cash – At various times during the year and at December 31, 2013, the Company had a concentration of cash in one bank in excess of prevailing insurance offered through the Federal Deposit Insurance Corporation at such institution. Management does not consider the excess deposits to be a significant risk. | ||
Fair value of financial instruments – ASC Topic 820, “Fair Value Measurements and Disclosures” defines “fair value” as the 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. | ||
ASC 820 also sets forth a valuation hierarchy of the inputs (assumptions that market participants would use in pricing an asset or liability) used to measure fair value. This hierarchy prioritizes the inputs into the following three levels: | ||
Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. | ||
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | ||
Level 3: Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. | ||
The carrying amounts of the Company’s short-term financial instruments, including accounts receivable, accounts payable, certain accrued expenses, revolving line of credit, and notes payable to related parties, approximate their fair value due to the relatively short period to maturity for these instruments. The fair value of long-term debt is based on current rates at which the Company could borrow funds with similar remaining maturities, and the carrying amount of the long-term debt approximates fair value. | ||
Impairment of long-lived assets – Potential impairments of long-lived assets are reviewed annually or when events and circumstances warrant an earlier review. In accordance with ASC Subtopic 360-10, "Property, Plant and Equipment – Overall," impairment is determined when estimated future undiscounted cash flows associated with an asset are less than the asset’s carrying value. | ||
Income taxes – The Company records income taxes under the asset and liability method. The Company recognizes deferred income tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. These differences are measured using tax rates that are expected to apply to taxable income in the years in which those temporary differences are recovered or settled. We recognize in the statement of operations the effect on deferred income taxes of a change in tax rates in the period that includes the enactment date. | ||
We record a valuation allowance when necessary to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized. We consider all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing tax planning strategies in assessing the need for a valuation allowance. | ||
We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax positions will be sustained on examination by the taxing authorities based on the technical merits of the positions; otherwise, we establish reserves for uncertain tax positions. We adjust reserves with respect to uncertain tax positions to address developments related to these positions, such as the closing of a tax audit, the expiration of a statute of limitations or the refinement of an estimate. The provision for income taxes includes the effects of any reserves with respect to uncertain tax positions that are considered appropriate, as well as the related net interest and penalties. | ||
The Company has been audited by the Internal Revenue Service through the year ended December 31, 2009. | ||
Trademarks, trade names, royalty rights, and patents – The Company purchased the Star brite® trade name and trademark in 1980 for $880,000. The cost of the trade name and trademark initially were amortized on a straight-line basis over an estimated useful life of 40 years. Effective January 1, 2002 and in accordance with ASC Topic 350, "Intangibles – Goodwill and Other," the Company determined that these intangible assets have indefinite lives and therefore, the Company no longer recognizes amortization expense. The Company evaluates intangible assets for impairment every year and at other times when an event occurs or circumstances change such that it is reasonably possible that an impairment may exist. In addition, the Company’s 50% owned joint venture, OdorStar Technology, LLC, owns patents for a delivery system that enables the precise control of release rates of chlorine dioxide (ClO2) products to safely help prevent and eliminate odors caused by mold, mildew and other sources of unpleasant odors. The Company amortizes these patents over their remaining life on a straight line basis. The Company amortized approximately $51,000 for each of the years ended December 31, 2013 and 2012, respectively. On August 6, 2013, the Company purchased for $160,000 royalty rights (previously owned by an unaffiliated company that owned the patents ultimately acquired by OdorStar) relating to sales of products encompassing OdorStar's patented technology. The Company is amortizing the royalty rights over their remaining life on a straight line basis, and amortized approximately $7,000 for the year ended December 31, 2013. See Note 4. | ||
Foreign currency adjustments – Translation adjustments result from translating the Company’s Canadian subsidiary’s financial statements into U.S. dollars. The Company’s Canadian subsidiary’s functional currency is the Canadian dollar. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Income and expenses are translated at average exchange rates during the year. Resulting translation adjustments are included in Shareholders’ Equity and as a component of comprehensive income. | ||
Earnings per share – The Company computes earnings per share in accordance with the provisions of ASC Topic 260, "Earnings Per Share," which specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. Basic earnings per share are computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed assuming the exercise of dilutive stock options under the treasury stock method and the related income tax effects. See Note 13 - Earnings per share. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Note 2 – Inventories: | |||||||||
The composition of inventories at December 31, 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 3,262,769 | $ | 4,055,812 | |||||
Finished goods | 4,407,421 | 5,472,771 | |||||||
Inventories, gross | 7,670,190 | 9,528,583 | |||||||
Inventory reserves | (302,296 | ) | (271,994 | ) | |||||
Inventories, net | $ | 7,367,894 | $ | 9,256,589 | |||||
The inventory reserves shown in the table above reflect slow moving and obsolete inventory. | |||||||||
The Company operates a vendor managed inventory program with one of its customers to improve the promotion of the Company's products. The Company manages the inventory levels at this customer’s warehouses and recognizes revenue as the products are sold by the customer. The inventories managed at the customer’s warehouses amounted to approximately $408,000 and $487,000 at December 31, 2013 and 2012, respectively. |
Property_plant_and_equipment
Property, plant and equipment | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Property, plant and equipment [Abstract] | ' | |||||||||
Property, plant and equipment | ' | |||||||||
Note 3 – Property, plant and equipment: | ||||||||||
The Company’s property, plant and equipment at December 31, 2013 and 2012 consisted of the following: | ||||||||||
Estimated | ||||||||||
Useful Life | 2013 | 2012 | ||||||||
Land | $ | 278,325 | $ | 278,325 | ||||||
Building and Improvements | 30 years | 4,632,565 | 4,489,377 | |||||||
Manufacturing and warehouse equipment | 6-20 years | 8,160,173 | 7,982,669 | |||||||
Office equipment and furniture | 3-5 years | 830,950 | 738,584 | |||||||
Construction in process | 19,604 | 249,027 | ||||||||
Leasehold improvements | 10-15 years | 419,315 | 122,644 | |||||||
Automobile | 3 years | 32,263 | - | |||||||
Property, plant and equipment, gross | 14,373,195 | 13,860,626 | ||||||||
Less accumulated depreciation | 9,256,754 | 8,532,717 | ||||||||
Property, plant and equipment, net | $ | 5,116,441 | $ | 5,327,909 | ||||||
Depreciation expense for the years ended December 31, 2013 and 2012 amounted to approximately $724,000 and $650,000, respectively. |
OdorStar_Joint_Venture
OdorStar Joint Venture | 12 Months Ended |
Dec. 31, 2013 | |
OdoStar Joint Venture [Abstract] | ' |
OdorStar Joint Venture | ' |
Note 4 – OdorStar Joint Venture | |
In 2010, the Company and BBL Distributors, LLC (“BBL”) organized OdorStar. OdorStar owns patents that relate to a formula and delivery system (the “Patents”), for use with products containing chlorine dioxide, designed to safely prevent and eliminate odors relating to mold, mildew and other sources of unpleasant odors. Under OdorStar’s Operating Agreement, each of the Company and BBL are required to make monthly payments to OdorStar, based on their purchases of products incorporating the patented technology, to provide for operating expenses. In addition, prior to August 6, 2013, OdorStar paid a royalty, funded by the Company and BBL based upon their respective sales of products encompassing the patented technology, to an unaffiliated company that sold the Patents to BBL (BBL subsequently contributed the Patents to OdorStar). On August 6, 2013, the Company purchased the unaffiliated company’s royalty rights for $160,000. The Company and BBL Distributors, LLC share equally in profits or losses from OdorStar. Because the Company manages OdorStar, it has consolidated OdorStar in its financial statements. The Company’s consolidated balance sheets include approximately $474,000 and $496,000 in assets and $16,000 and $7,000 in liabilities of OdorStar at December 31, 2013 and 2012, respectively. The Company’s consolidated statements of operations include OdorStar’s operating loss of approximately $51,000 and OdorStar’s operating loss of approximately $56,000 during the years ended December 31, 2013 and 2012, respectively. At December 31, 2013 the Company had an interest only note receivable of $111,420 due in 2015 from BBL for operating expenses owed related to OdorStar. |
Revolving_line_of_credit
Revolving line of credit | 12 Months Ended |
Dec. 31, 2013 | |
Revolving line of credit and Long-term debt [Abstract] | ' |
Revolving line of credit | ' |
Note 5 – Revolving line of credit: | |
On July 6, 2011, the Company, together with its subsidiary, Kinpak Inc. (“Kinpak”), entered into a Credit Agreement with Regions Bank (and, pursuant to an Equipment Finance Addendum to the Credit Agreement, Regions Equipment Finance Corporation (“REFCO”)). Under the Credit Agreement, the Company’s revolving line of credit with Regions Bank was renewed. The terms of the revolving line of credit, as renewed, provide that the Company may borrow up to the lesser of (i) $6 million or (ii) a borrowing base equal to 80% of eligible accounts receivable plus 50% of eligible inventory. Interest on the revolving line of credit is payable at the 30 day LIBOR rate plus 1.74% per annum (unless the Company’s debt service coverage ratio (net profit plus taxes, interest, depreciation, amortization and rent expense divided by debt service plus interest) falls to or below 2.0 to 1, in which case the interest is payable at the 30 day LIBOR rate plus 2.75% per annum). In no event will the interest rate be less than 2.0% per annum. Outstanding amounts under the revolving line of credit are payable on demand. If no demand is made, the Company may repay and reborrow funds from time to time. The Company’s obligations under the revolving line of credit are secured by the Company’s accounts receivable and inventory, as well as real property and equipment at Kinpak’s Montgomery, Alabama facility. The Company’s obligations under the revolving line of credit and the term loan discussed in Note 7 below are cross-collateralized. Interest on amounts borrowed under the revolving line of credit is payable in monthly installments on outstanding average balances, with all outstanding principal and interest payable on July 6, 2014. | |
The Credit Agreement includes financial covenants requiring a minimum debt service coverage ratio of 1.75 to 1.00, tested on a rolling four-quarter basis, and a maximum debt to capitalization ratio (funded debt divided by the sum of total net worth and funded debt) of 0.75 to 1, tested quarterly. At December 31, 2013, the Company was in compliance with these covenants. At December 31, 2013 and December 31, 2012, the Company had no borrowings under the revolving line of credit. |
Accrued_expenses_payable
Accrued expenses payable | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accrued expenses payable [Abstract] | ' | ||||||||
Accrued expenses payable | ' | ||||||||
Note 6 – Accrued expenses payable | |||||||||
Accrued expenses payable at December 31, 2013 and 2012 consisted of the following: | |||||||||
2013 | 2012 | ||||||||
Accrued customer promotions | $ | 415,392 | $ | 431,015 | |||||
Accrued payroll, commissions, and benefits | 317,810 | 188,645 | |||||||
Other | 334,153 | 293,469 | |||||||
Total accrued expenses payable | $ | 1,067,355 | $ | 913,129 |
Longterm_debt
Long-term debt | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Revolving line of credit and Long-term debt [Abstract] | ' | ||||||||||||||||
Long-term debt | ' | ||||||||||||||||
Note 7 – Long-term debt: | |||||||||||||||||
On July 6, 2011, under the Equipment Finance Addendum to the Credit Agreement, REFCO provided to the Company a $2,430,000 term loan with a fixed interest rate of 3.54%. Principal and interest on the term loan are payable in equal monthly installments through July 6, 2017, the date the term loan matures. The proceeds of the term loan were used to pay the Kinpak’s remaining lease obligations in connection with the previously outstanding 2002 Series of Industrial Development Revenue Bonds issued by the City of Montgomery, Alabama (the “2002 Bonds”). The 2002 Bonds were used to fund the expansion of Kinpak’s facilities and acquisition of related equipment. At December 31, 2013 approximately $1,513,000 was outstanding under the term loan. | |||||||||||||||||
At December 31, 2013 and December 31, 2012, the Company was obligated under various capital lease agreements covering equipment utilized in the Company’s operations. The capital leases, aggregating $19,532 and $37,552 at December 31, 2013 and December 31, 2012, respectively, have varying maturities through 2015 and carry interest rates ranging from 7% to 14%. | |||||||||||||||||
The following table provides information regarding the Company’s long-term debt at December 31, 2013 and 2012: | |||||||||||||||||
Current Portion | Long-term Portion | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Term loan | $ | 403,074 | $ | 389,075 | $ | 1,109,680 | $ | 1,512,754 | |||||||||
Capitalized equipment leases | 11,451 | 18,020 | 8,081 | 19,532 | |||||||||||||
Total long-term debt | $ | 414,525 | $ | 407,095 | $ | 1,117,761 | $ | 1,532,286 | |||||||||
Required principal payments under these obligations are set forth below: | |||||||||||||||||
Year ending December 31, | |||||||||||||||||
2014 | $ | 414,525 | |||||||||||||||
2015 | 425,657 | ||||||||||||||||
2016 | 432,601 | ||||||||||||||||
2017 | 259,503 | ||||||||||||||||
Total | $ | 1,532,286 |
Income_taxes
Income taxes | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Income taxes [Abstract] | ' | ||||||||||||||||
Income taxes | ' | ||||||||||||||||
Note 8 – Income taxes: | |||||||||||||||||
The components of the Company’s consolidated provision for income taxes are as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Federal – current | $ | 799,264 | $ | 1,011,543 | |||||||||||||
Federal – deferred | (333 | ) | 9,842 | ||||||||||||||
State – current | 17,835 | 33,398 | |||||||||||||||
State – deferred | (954 | ) | 295 | ||||||||||||||
Total provision for income taxes | $ | 815,812 | $ | 1,055,078 | |||||||||||||
The reconciliation of the provision for income taxes at the statutory rate to the reported provision for income taxes is as follows: | |||||||||||||||||
2013 | % | 2012 | % | ||||||||||||||
Income Tax computed at statutory rate | $ | 765,367 | 34 | % | $ | 1,016,323 | 34 | % | |||||||||
State tax, net of federal benefit | 12,344 | 0.5 | % | 21,637 | 0.7 | % | |||||||||||
Loss attributable to noncontrolling interest | 8,746 | 0.4 | % | 9,581 | 0.3 | % | |||||||||||
Share based compensation | 85,109 | 3.7 | % | 66,600 | 2.2 | % | |||||||||||
Other, permanent adjustments | (59,247 | ) | -2.6 | % | (86,666 | ) | -2.9 | % | |||||||||
Tax credits and prior year tax adj. | 3.493 | 0.2 | % | 27,603 | 1 | % | |||||||||||
Provision for income taxes | $ | 815,812 | 36.2 | % | $ | 1,055,078 | 35.3 | % | |||||||||
The Company’s deferred tax asset and liability accounts consisted of the following at December 31, 2013 and 2012: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Deferred taxes – current | |||||||||||||||||
Reserves for bad debts, inventories, and other accruals | $ | 137,821 | $ | 120,740 | |||||||||||||
Depreciation of property and equipment | -73,156 | (64,519 | ) | ||||||||||||||
Total deferred tax asset current | $ | 64,665 | $ | 56,221 | |||||||||||||
Deferred taxes - non-current | |||||||||||||||||
Depreciation of property and equipment | $ | (237,635 | ) | $ | (230,478 | ) | |||||||||||
Total deferred tax liability non-current | $ | (237,635 | ) | $ | (230,478 | ) | |||||||||||
Related_party_transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related party transactions [Abstract] | ' |
Related party transactions | ' |
Note 9 – Related party transactions: | |
During 2013, as in previous years, the Company sold products to companies affiliated with its Chairman, President and Chief Executive Officer. The affiliated companies distribute the products outside of the United States and Canada. The Company also provides administrative services to these companies. Sales to the affiliated companies aggregated approximately $1,834,000 and $1,487,000 during the years ended December 31, 2013 and 2012, respectively, and administrative fees aggregated approximately $406,000 and $335,000 during the years ended December 31, 2013 and 2012, respectively. The Company had accounts receivable from the affiliated companies in connection with the product sales and administrative services aggregating approximately $536,000 and $556,000 at December 31, 2013 and 2012, respectively. Transactions with the affiliated companies were made in the ordinary course of business. While the terms of the sales to the affiliated companies differed from the terms of sale to other customers, the affiliated companies bear their own warehousing, distribution, advertising, selling and marketing costs, as well as their own freight charges (the Company pays freight charges in connection with sales to its domestic customers on all but small orders). Moreover, the Company does not pay sales commissions with respect to products sold to the affiliated companies. As a result, the Company believes its profit margins with respect to sales to the affiliated companies are similar to the profit margins it realizes with respect to sales to its larger domestic customers.. Management believes that the sales transactions did not involve more than normal credit risk or present other unfavorable features. | |
A subsidiary of the Company currently uses the services of an entity that is owned by the Chairman, President and Chief Executive Officer of the Company to conduct product research and development. The Company paid the entity $42,000 for each of the years ended December 31, 2013 and 2012, respectively, under this arrangement. | |
The Company leases office and warehouse facilities in Fort Lauderdale, Florida from an entity controlled by its Chairman, President and Chief Executive Officer. The Company believes that the rental payments are below market rates. See Note 10 for a description of the lease terms. | |
A director of the Company is Regional Executive Vice President of an entity from which the Company sources most of its insurance needs at an arm’s length competitive basis. The Company paid in aggregate approximately $678,000 and $620,000 to the entity during the years ended December 31, 2013 and 2012, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
Note 10 – Commitments and Contingencies | |||||
The Company leases its executive offices and warehouse facilities in Fort Lauderdale, Florida from an entity controlled by its Chairman, President and Chief Executive Officer. On May 16, 2013, the term of the lease, which was scheduled to expire on May 1, 2018, was extended through December 31, 2023. The lease requires an annual minimum base rent of $94,800 and provides for a maximum annual 2% increase in subsequent years, although the entity has not raised the minimum rent since the Company entered into a previous lease agreement in 1998. Additionally, the leasing entity is entitled to reimbursement of all taxes, assessments, and any other expenses that arise from ownership. Each of the parties to the lease has agreed to review the terms of the lease every three years at the request of the other party. Rent expense under the lease during each of the years ended December 31, 2013 and 2012 was approximately $96,000. | |||||
The Company leases from the Alabama State Port Authority a 1.5 acre docking facility on the Alabama River, located approximately eleven miles from the Company’s Alabama manufacturing facility. The lease expires on September 30, 2014, and requires the Company to pay rent and additional expenses totaling approximately $8,000 annually. | |||||
The following is a schedule of minimum future rentals on the Company’s non-cancelable operating leases. | |||||
12 month period ending December 31, | |||||
2014 | $ | 96,064 | |||
2015 | 97,985 | ||||
2016 | 99,945 | ||||
2017 | 101,944 | ||||
2018 | 103,983 | ||||
Thereafter | 551,953 | ||||
Total | $ | 1,051,874 | |||
From time to time the Company will actively defend its patents through legal action. Odorstar, the Company’s 50% owned joint venture, is currently the plaintiff in two separate lawsuits. During 2013, Odorstar filed a claim of patent infringement against another party. This claim was denied by the court in January 2014 and Odorstar has filed an appeal in Federal Court. The defendant has filed a motion for attorneys’ fees of $250,000, however there is no determination at this time as to the likelihood of success of Odorstar’s appeal or the defendant’s motion. Based on the facts from the Company’s attorneys we do not expect the court to grant the defendant’s motion. | |||||
The defendants in the second lawsuit have filed counter-claims, however at this time the outcome of these matters cannot be determined. |
Stock_options_and_awards
Stock options and awards | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Stock options and awards [Abstract] | ' | |||||||||||||||||||
Stock options and awards | ' | |||||||||||||||||||
Note 11 - Stock options and awards: | ||||||||||||||||||||
On June 3, 2011, the Company’s shareholders approved the Ocean Bio-Chem, Inc. Omnibus Equity Compensation Plan (the “Plan”). The Plan is designed (i) to meet the Nasdaq listing requirements, (ii) to enable compensation attributable to grants under the Plan to qualify for an exemption from the deduction limit under section 162(m) of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder (the “Code”) and (iii) to enable incentive stock options to meet the requirements of the Code. | ||||||||||||||||||||
As a result of the adoption of the Plan, no further stock option grants will be made under the Company’s 2002 Non-Qualified Stock Option Plan, 2002 Incentive Stock Option Plan, 2007 Incentive Stock Option Plan, 2008 Non-Qualified Stock Option Plan and 2008 Incentive Stock Option Plan. | ||||||||||||||||||||
The Plan authorizes 750,000 shares of the Company’s common stock for issuance, subject to antidilution adjustments upon the occurrence of certain events affecting the common stock. The Company issued stock awards under the Plan to officers, key employees and a consultant totaling 121,000 and 117,000 shares of common stock in the aggregate during the years ended December 31, 2013 and 2012, respectively. At December 31, 2013, 373,000 shares remained available for future issuance under the Plan. Compensation expense related to the stock awards was approximately $306,000 and $223,000 for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||||||||||
During 2013, stock options to purchase an aggregate of 193,400 shares were exercised and stock options to purchase an aggregate of 3,000 shares were forfeited. Following the withholding of an aggregate of 42,838 shares in connection with the net exercise feature of the stock options, the Company delivered an aggregate of 150,562 shares to the option holders who exercised their options. | ||||||||||||||||||||
The following tables provide information at December 31, 2013 and 2012 regarding outstanding options under the Company’s stock option plans as well as a grant made outside of the Company’s stock option plans. As used in the table below, “2002 ISO” refers to the Company’s 2002 Incentive Stock Option Plan, “2007 ISO” refers to the Company’s 2007 Incentive Stock Option Plan, “2008 ISO” refers to the Company’s 2008 Incentive Stock Option Plan, “2002 NQ” refers to the Company’s 2002 Non-Qualified Stock Option Plan and “2008 NQ” refers to the Company’s 2008 Non-Qualified Stock Option Plan. | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Plan | Date | Options | Exercisable | Exercise | Expiration | Weighted Average | ||||||||||||||
Granted | Outstanding | Options | Price | Date | Remaining Life | |||||||||||||||
Non Plan | 3/25/09 | 115,000 | 115,000 | $ | 0.55 | 3/24/14 | 0.2 | |||||||||||||
2002 NQ | 5/25/04 | 30,000 | 30,000 | $ | 1.46 | 5/24/14 | 0.4 | |||||||||||||
2002 NQ | 4/3/06 | 40,000 | 40,000 | $ | 1.08 | 4/2/16 | 2.3 | |||||||||||||
2002 NQ | 12/17/07 | 40,000 | 40,000 | $ | 1.32 | 12/16/17 | 4 | |||||||||||||
2008 NQ | 1/11/09 | 40,000 | 40,000 | $ | 0.69 | 1/10/19 | 5.1 | |||||||||||||
2008 NQ | 4/26/10 | 20,000 | 20,000 | $ | 2.07 | 4/25/20 | 6.4 | |||||||||||||
285,000 | 285,000 | $ | 0 .95 | 2.2 | ||||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Plan | Date | Options | Exercisable | Exercise | Expiration | Weighted | ||||||||||||||
Granted | Outstanding | Options | Price | Date | Remaining Life | |||||||||||||||
Non Plan | 3/25/09 | 115,000 | 115,000 | $ | 0.55 | 3/24/14 | 1.2 | |||||||||||||
2008 ISO | 8/25/08 | 141,400 | 107,680 | $ | 0.97 | 8/21/13 | 0.7 | |||||||||||||
2002 NQ | 6/20/03 | 30,000 | 30,000 | $ | 1.03 | 6/19/13 | 0.5 | |||||||||||||
2002 NQ | 5/25/04 | 30,000 | 30,000 | $ | 1.46 | 5/24/14 | 1.4 | |||||||||||||
2002 NQ | 4/3/06 | 40,000 | 40,000 | $ | 1.08 | 4/2/16 | 3.3 | |||||||||||||
2002 NQ | 12/17/07 | 50,000 | 50,000 | $ | 1.32 | 12/16/17 | 5 | |||||||||||||
2008 NQ | 1/11/09 | 50,000 | 50,000 | $ | 0.69 | 1/10/19 | 6.1 | |||||||||||||
2008 NQ | 4/26/10 | 25,000 | 25,000 | $ | 2.07 | 4/25/20 | 7.4 | |||||||||||||
481,400 | 447,680 | $ | 0.98 | 2.4 | ||||||||||||||||
The following table shows the number of options outstanding under each stock option plan at December 31, 2013: | ||||||||||||||||||||
Plan | Options | |||||||||||||||||||
Outstanding | ||||||||||||||||||||
Non Plan | 115,000 | |||||||||||||||||||
2002 NQ | 110,000 | |||||||||||||||||||
2008 NQ | 60,000 | |||||||||||||||||||
Totals | 285,000 | |||||||||||||||||||
The following table provides information relating to stock option transactions during the years ended December 31, 2013 and 2012: | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Weighted | Weighted | |||||||||||||||||||
Average | Average | |||||||||||||||||||
Exercise | Exercise | |||||||||||||||||||
Shares | Price | Shares | Price | |||||||||||||||||
Options outstanding beginning of the year | 366,400 | $ | 1.11 | 680,700 | $ | $1.27 | ||||||||||||||
Options exercised | (193,400 | ) | $ | 1.01 | (302,800 | ) | $ | 1.46 | ||||||||||||
Options forfeited or expired | (3,000 | ) | $ | 0.97 | (11,500 | ) | $ | 1.51 | ||||||||||||
Options outstanding end of the year | 170,000 | $ | 1.23 | 366,400 | $ | 1.11 | ||||||||||||||
Non plan options | 115,000 | $ | 0.55 | 115,000 | $ | 0.55 | ||||||||||||||
Totals | 285,000 | $ | 0.95 | 481,400 | $ | $0.98 | ||||||||||||||
Stock options may be awarded as part of compensation to executives, employees, directors and others, pursuant to the terms of the Company’s Omnibus Equity Compensation Plan, but no options were awarded under the plan in 2013 or 2012. Grants of stock options or other equity awards are made at the discretion of the Equity Grant Committee of the Board of Directors. Options previously were granted under the Company’s other stock option plans. Qualified options previously granted typically had a five-year term with vesting in equal 20% increments on each anniversary of the date of grant. No qualified options were outstanding on December 31, 2013. Non-qualified options were previously granted to outside directors have a 10-year term and are immediately exercisable. The last tranche of non-qualified options previously granted terminate on April 25, 2020. Compensation cost recognized during the year ended December 31, 2013 and 2012 attributable to stock options amounted to approximately $12,000 and $54,000, respectively. | ||||||||||||||||||||
At December 31, 2013 and 2012, there was $0 and $12,000 of unrecognized compensation cost related to unvested share based compensation arrangements. |
Major_customers
Major customers | 12 Months Ended |
Dec. 31, 2013 | |
Major customers [Abstract] | ' |
Major customers | ' |
Note 12 – Major customers: | |
The Company had sales to each of two major customers, that constituted in excess of 10% of the Company’s consolidated net revenues for each of the years ended December 31, 2013 and 2012. Sales to these customers aggregated approximately 39% and 37% of consolidated net revenues for 2013 and 2012, respectively. | |
The Company’s top five unaffiliated customers represented approximately 49% and 49%, of consolidated net revenues for the years ended December 31, 2013 and 2012, respectively, and 31% and 23% of consolidated trade accounts receivables at December 31, 2013 and 2012, respectively. While the Company enjoys good relations with these customers, the loss of any of these customers could have an adverse impact on the Company’s operations. |
Earnings_per_share
Earnings per share | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings per share [Abstract] | ' | ||||||||
Earnings per share | ' | ||||||||
Note 13 – Earnings per share: | |||||||||
Basic earnings per share is calculated by dividing net income attributable to Ocean-Bio Chem, Inc. by the weighted average number of shares outstanding during the reporting period. Diluted earnings per share reflect additional dilution from potential common stock issuable upon the exercise of outstanding stock options. The following table sets forth the computation of basic and diluted earnings per common share, as well as a reconciliation of the weighted average number of common shares outstanding to the weighted average number of shares outstanding on a diluted basis. | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Earnings per common share –Basic | |||||||||
Net income attributable to OBCI | $ | 1,460,992 | $ | 1,962,288 | |||||
Weighted average number of common shares outstanding | 8,542,686 | 8,229,720 | |||||||
Earnings per common share – Basic | $ | 0.17 | $ | 0.24 | |||||
Earnings per common share – Diluted | |||||||||
Net income attributable to OBCI | $ | 1,460,992 | $ | 1,962,288 | |||||
Weighted average number of common shares outstanding | 8,542,686 | 8,229,720 | |||||||
Effect of employee stock-based awards | 244,982 | 326,387 | |||||||
Weighted average number of common shares outstanding - assuming dilution | 8,787,668 | 8,556,107 | |||||||
Earnings per common share - Diluted | $ | 0.17 | $ | 0.23 | |||||
The Company had no stock options outstanding at December 31, 2013 and 2012, respectively, that were anti-dilutive and therefore not included in the diluted earnings per common share calculation. |
Shareholders_equity
Shareholders' equity | 12 Months Ended |
Dec. 31, 2013 | |
Shareholders' equity [Abstract] | ' |
Shareholders' equity | ' |
Note 14 – Shareholders’ equity: | |
On June 8, 2012, the Company’s shareholders approved an amendment to the Company’s Articles of Incorporation to increase the Company’s authorized common stock, $.01 par value, from 10,000,000 shares to 12,000,000 shares and enable the Company to issue shares for such consideration as is permitted under the Florida Business Corporation Act. | |
During the years ended December 31, 2013 and 2012, the Company granted stock awards of 121,000 and 117,000 shares of common stock, respectively, to certain executives, key employees and a consultant. Compensation expense recorded in connection with the stock awards for the years ended December 31, 2013 and 2012 aggregated approximately $306,000 and $223,000, respectively. | |
During 2013, several employees of the Company and a consultant exercised options to purchase 193,400 shares of the Company’s common stock for approximately $80,000 in cash and the withholding of 42,838 shares. As a result, 150,562 shares were issued, and approximately $80,000 is reflected as paid in capital on the consolidated balance sheet. | |
During 2012, several employees of the Company and a consultant exercised options to purchase 302,800 shares of the Company’s common stock for approximately $169,500 in cash and the withholding of 128,301 shares. As a result, 174,499 shares were issued, and approximately $169,500 is reflected as paid in capital on the consolidated balance sheet. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2013 | |
Recent Accounting Pronouncements [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Note -15 – Recent Accounting Pronouncements | |
There have been no accounting pronouncements or changes in accounting pronouncements during the year ended December 31, 2013 that are expected to have a material impact on the Company’s financial position, results of operations or cash flows. Accounting pronouncements that became effective during the year ended December 31, 2013 did not have a material impact on disclosures or on the Company’s financial position, results of operations or cash flows. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Note-16 – Subsequent Events | |
On March 18, 2014, the Board of Directors of Ocean Bio-Chem, Inc. declared a special dividend of $0.05 per share payable on April 15, 2014 to shareholders of record on April 1, 2014. | |
Organization_and_summary_of_si1
Organization and summary of significant accounting policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Organization and summary of significant accounting policies [Abstract] | ' | |
Organization | ' | |
Organization – The Company was incorporated in November 1973 under the laws of the state of Florida and operates as a manufacturer and distributor of products principally under the Star brite® brand to the marine, automotive, recreational vehicle, and outdoor power equipment aftermarkets. | ||
Basis of presentation | ' | |
Basis of presentation – The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and a joint venture in which the Company has a controlling interest. All significant inter-company accounts and transactions have been eliminated in consolidation. Certain prior-period data have been reclassified to conform to the current period presentation. | ||
Revenue recognition | ' | |
Revenue recognition – Revenue from product sales is recognized when persuasive evidence of a contract exists, the sales price is fixed and determinable, the title of goods passes to the customer, and collectability of the related receivable is probable. Reported net sales are net of customer prompt pay discounts, contractual allowances, authorized customer returns, consumer rebates and other sales incentives. | ||
Collectability of accounts receivable | ' | |
Collectability of accounts receivable – Trade accounts receivable at December 31, 2013 and 2012 are net of allowances for doubtful accounts aggregating approximately $93,000 and $73,000, respectively. Such amounts are based on management's estimates of the creditworthiness of its customers, current economic conditions and other historical information. The Company had bad debt expense of approximately $21,000 and $0 during the years ended December 31, 2013 and 2012, respectively. | ||
Inventories | ' | |
Inventories – Inventories are primarily composed of raw materials and finished goods and are stated at the lower of cost, using the first-in, first-out method, or market. | ||
Shipping and handling costs | ' | |
Shipping and handling costs – All shipping and handling costs incurred by the Company are included in cost of goods sold in the consolidated statements of operations. Shipping and handling costs totaled approximately $1,188,000 and $1,165,000 for the years ended December 31, 2013 and 2012, respectively. | ||
Advertising and promotion expense | ' | |
Advertising and promotion expense – Advertising and promotion expense consists of advertising costs and marketing expenses, including catalog costs and expenses relating to participation at trade shows. Advertising costs are expensed in the period in which the advertising occurs and totaled approximately $2,648,000 and $2,418,000 in 2013 and 2012, respectively. The Company capitalizes the direct cost of producing and distributing its catalogs. Capitalized catalog costs are amortized, once a catalog is distributed, over the expected net sales period, which is generally from one to 12 months. At December 31, 2013 and 2012, the carrying value of capitalized catalog costs was not material. | ||
Property, plant and equipment | ' | |
Property, plant and equipment – Property, plant and equipment is stated at cost, net of depreciation. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method. | ||
Research and development costs | ' | |
Research and development costs – Research and development costs are expensed as incurred and recorded in selling and administrative expenses in the consolidated statements of operations. The Company incurred approximately $60,000 and $76,000 of research and development costs for the years ended December 31, 2013 and 2012 respectively. | ||
Stock based compensation | ' | |
Stock based compensation – The Company records stock-based compensation in accordance with the provisions of Financial Accounting Standards Board Accounting Standards Codification (“ASC") Topic 718, "Accounting for Stock Compensation," which establishes accounting standards for transactions in which an entity exchanges its equity instruments for goods or services. Under ASC Topic 718, we recognize an expense for the fair value of our outstanding stock options as they vest and the fair value of our stock awards at the time of grant, whether held by employees or others. | ||
Use of estimates | ' | |
Use of estimates – The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Concentration of credit risk; dependence on major customers | ' | |
Concentration of credit risk; dependence on major customers – Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of accounts receivable. The Company’s five largest unaffiliated customers represented approximately 49% and 49% of consolidated net revenues for the years ended December 31, 2013 and 2012, and 31% and 23% of consolidated accounts receivable at December 31, 2013 and 2012, respectively. The Company has a longstanding relationship with each of these entities and previously has collected all open receivable balances from these entities. The loss of any of these customers could have an adverse impact on the Company’s operations (see Note 11). | ||
Concentration of cash | ' | |
Concentration of cash – At various times during the year and at December 31, 2013, the Company had a concentration of cash in one bank in excess of prevailing insurance offered through the Federal Deposit Insurance Corporation at such institution. Management does not consider the excess deposits to be a significant risk. | ||
Fair value of financial instruments | ' | |
Fair value of financial instruments – ASC Topic 820, “Fair Value Measurements and Disclosures” defines “fair value” as the 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. | ||
ASC 820 also sets forth a valuation hierarchy of the inputs (assumptions that market participants would use in pricing an asset or liability) used to measure fair value. This hierarchy prioritizes the inputs into the following three levels: | ||
Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. | ||
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. | ||
Level 3: Inputs that are generally unobservable. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. | ||
The carrying amounts of the Company’s short-term financial instruments, including accounts receivable, accounts payable, certain accrued expenses, revolving line of credit, and notes payable to related parties, approximate their fair value due to the relatively short period to maturity for these instruments. The fair value of long-term debt is based on current rates at which the Company could borrow funds with similar remaining maturities, and the carrying amount of the long-term debt approximates fair value. | ||
Impairment of long-lived assets | ' | |
Impairment of long-lived assets – Potential impairments of long-lived assets are reviewed annually or when events and circumstances warrant an earlier review. In accordance with ASC Subtopic 360-10, "Property, Plant and Equipment – Overall," impairment is determined when estimated future undiscounted cash flows associated with an asset are less than the asset’s carrying value. | ||
Income taxes | ' | |
Income taxes – The Company records income taxes under the asset and liability method. The Company recognizes deferred income tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. These differences are measured using tax rates that are expected to apply to taxable income in the years in which those temporary differences are recovered or settled. We recognize in the statement of operations the effect on deferred income taxes of a change in tax rates in the period that includes the enactment date. | ||
We record a valuation allowance when necessary to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized. We consider all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing tax planning strategies in assessing the need for a valuation allowance. | ||
We recognize tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax positions will be sustained on examination by the taxing authorities based on the technical merits of the positions; otherwise, we establish reserves for uncertain tax positions. We adjust reserves with respect to uncertain tax positions to address developments related to these positions, such as the closing of a tax audit, the expiration of a statute of limitations or the refinement of an estimate. The provision for income taxes includes the effects of any reserves with respect to uncertain tax positions that are considered appropriate, as well as the related net interest and penalties. | ||
The Company has been audited by the Internal Revenue Service through the year ended December 31, 2009. | ||
Trademarks, trade names, royalty rights, and patents | ' | |
Trademarks, trade names, royalty rights, and patents – The Company purchased the Star brite® trade name and trademark in 1980 for $880,000. The cost of the trade name and trademark initially were amortized on a straight-line basis over an estimated useful life of 40 years. Effective January 1, 2002 and in accordance with ASC Topic 350, "Intangibles – Goodwill and Other," the Company determined that these intangible assets have indefinite lives and therefore, the Company no longer recognizes amortization expense. The Company evaluates intangible assets for impairment every year and at other times when an event occurs or circumstances change such that it is reasonably possible that an impairment may exist. In addition, the Company’s 50% owned joint venture, OdorStar Technology, LLC, owns patents for a delivery system that enables the precise control of release rates of chlorine dioxide (ClO2) products to safely help prevent and eliminate odors caused by mold, mildew and other sources of unpleasant odors. The Company amortizes these patents over their remaining life on a straight line basis. The Company amortized approximately $51,000 for each of the years ended December 31, 2013 and 2012, respectively. On August 6, 2013, the Company purchased for $160,000 royalty rights (previously owned by an unaffiliated company that owned the patents ultimately acquired by OdorStar) relating to sales of products encompassing OdorStar's patented technology. The Company is amortizing the royalty rights over their remaining life on a straight line basis, and amortized approximately $7,000 for the year ended December 31, 2013. See Note 4. | ||
Foreign currency adjustments | ' | |
Foreign currency adjustments – Translation adjustments result from translating the Company’s Canadian subsidiary’s financial statements into U.S. dollars. The Company’s Canadian subsidiary’s functional currency is the Canadian dollar. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Income and expenses are translated at average exchange rates during the year. Resulting translation adjustments are included in Shareholders’ Equity and as a component of comprehensive income. | ||
Earnings per share | ' | |
Earnings per share – The Company computes earnings per share in accordance with the provisions of ASC Topic 260, "Earnings Per Share," which specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. Basic earnings per share are computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed assuming the exercise of dilutive stock options under the treasury stock method and the related income tax effects. See Note 13 - Earnings per share. |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Summary of composition of inventories | ' | ||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 3,262,769 | $ | 4,055,812 | |||||
Finished goods | 4,407,421 | 5,472,771 | |||||||
Inventories, gross | 7,670,190 | 9,528,583 | |||||||
Inventory reserves | (302,296 | ) | (271,994 | ) | |||||
Inventories, net | $ | 7,367,894 | $ | 9,256,589 | |||||
Property_plant_and_equipment_T
Property, plant and equipment (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Property, plant and equipment [Abstract] | ' | |||||||||
Summary of property, plant and equipment | ' | |||||||||
Estimated | ||||||||||
Useful Life | 2013 | 2012 | ||||||||
Land | $ | 278,325 | $ | 278,325 | ||||||
Building and Improvements | 30 years | 4,632,565 | 4,489,377 | |||||||
Manufacturing and warehouse equipment | 6-20 years | 8,160,173 | 7,982,669 | |||||||
Office equipment and furniture | 3-5 years | 830,950 | 738,584 | |||||||
Construction in process | 19,604 | 249,027 | ||||||||
Leasehold improvements | 10-15 years | 419,315 | 122,644 | |||||||
Automobile | 3 years | 32,263 | - | |||||||
Property, plant and equipment, gross | 14,373,195 | 13,860,626 | ||||||||
Less accumulated depreciation | 9,256,754 | 8,532,717 | ||||||||
Property, plant and equipment, net | $ | 5,116,441 | $ | 5,327,909 | ||||||
Accrued_expenses_payable_Table
Accrued expenses payable (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accrued expenses payable [Abstract] | ' | ||||||||
Summary of accrued expenses payable | ' | ||||||||
2013 | 2012 | ||||||||
Accrued customer promotions | $ | 415,392 | $ | 431,015 | |||||
Accrued payroll, commissions, and benefits | 317,810 | 188,645 | |||||||
Other | 334,153 | 293,469 | |||||||
Total accrued expenses payable | $ | 1,067,355 | $ | 913,129 | |||||
Longterm_debt_Tables
Long-term debt (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Revolving line of credit and Long-term debt [Abstract] | ' | ||||||||||||||||
Summary of company's long term debt | ' | ||||||||||||||||
Current Portion | Long-term Portion | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Term loan | $ | 403,074 | $ | 389,075 | $ | 1,109,680 | $ | 1,512,754 | |||||||||
Capitalized equipment leases | 11,451 | 18,020 | 8,081 | 19,532 | |||||||||||||
Total long-term debt | $ | 414,525 | $ | 407,095 | $ | 1,117,761 | $ | 1,532,286 | |||||||||
Summary of principal payments under Company's long term obligations | ' | ||||||||||||||||
Year ending December 31, | |||||||||||||||||
2014 | $ | 414,525 | |||||||||||||||
2015 | 425,657 | ||||||||||||||||
2016 | 432,601 | ||||||||||||||||
2017 | 259,503 | ||||||||||||||||
Total | $ | 1,532,286 | |||||||||||||||
Income_taxes_Tables
Income taxes (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Income taxes [Abstract] | ' | ||||||||||||||||
Summary of provision for income taxes | ' | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Federal – current | $ | 799,264 | $ | 1,011,543 | |||||||||||||
Federal – deferred | (333 | ) | 9,842 | ||||||||||||||
State – current | 17,835 | 33,398 | |||||||||||||||
State – deferred | (954 | ) | 295 | ||||||||||||||
Total provision for income taxes | $ | 815,812 | $ | 1,055,078 | |||||||||||||
Summary of reconciliation of the provision for income taxes at the statutory rate to the reported provision for income taxes | ' | ||||||||||||||||
2013 | % | 2012 | % | ||||||||||||||
Income Tax computed at statutory rate | $ | 765,367 | 34 | % | $ | 1,016,323 | 34 | % | |||||||||
State tax, net of federal benefit | 12,344 | 0.5 | % | 21,637 | 0.7 | % | |||||||||||
Loss attributable to noncontrolling interest | 8,746 | 0.4 | % | 9,581 | 0.3 | % | |||||||||||
Share based compensation | 85,109 | 3.7 | % | 66,600 | 2.2 | % | |||||||||||
Other, permanent adjustments | (59,247 | ) | -2.6 | % | (86,666 | ) | -2.9 | % | |||||||||
Tax credits and prior year tax adj. | 3.493 | 0.2 | % | 27,603 | 1 | % | |||||||||||
Provision for income taxes | $ | 815,812 | 36.2 | % | $ | 1,055,078 | 35.3 | % | |||||||||
Summary of deferred tax asset and liability | ' | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Deferred taxes – current | |||||||||||||||||
Reserves for bad debts, inventories, and other accruals | $ | 137,821 | $ | 120,740 | |||||||||||||
Depreciation of property and equipment | -73,156 | (64,519 | ) | ||||||||||||||
Total deferred tax asset current | $ | 64,665 | $ | 56,221 | |||||||||||||
Deferred taxes - non-current | |||||||||||||||||
Depreciation of property and equipment | $ | (237,635 | ) | $ | (230,478 | ) | |||||||||||
Total deferred tax liability non-current | $ | (237,635 | ) | $ | (230,478 | ) | |||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies [Abstract] | ' | ||||
Schedule of minimum future rentals on the Company's non-cancelable operating leases | ' | ||||
12 month period ending December 31, | |||||
2014 | $ | 96,064 | |||
2015 | 97,985 | ||||
2016 | 99,945 | ||||
2017 | 101,944 | ||||
2018 | 103,983 | ||||
Thereafter | 551,953 | ||||
Total | $ | 1,051,874 | |||
Stock_options_and_awards_Table
Stock options and awards (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Stock options and awards [Abstract] | ' | |||||||||||||||||||
Schedule of options outstanding and granted under stock option plans | ' | |||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Plan | Date | Options | Exercisable | Exercise | Expiration | Weighted Average | ||||||||||||||
Granted | Outstanding | Options | Price | Date | Remaining Life | |||||||||||||||
Non Plan | 3/25/09 | 115,000 | 115,000 | $ | 0.55 | 3/24/14 | 0.2 | |||||||||||||
2002 NQ | 5/25/04 | 30,000 | 30,000 | $ | 1.46 | 5/24/14 | 0.4 | |||||||||||||
2002 NQ | 4/3/06 | 40,000 | 40,000 | $ | 1.08 | 4/2/16 | 2.3 | |||||||||||||
2002 NQ | 12/17/07 | 40,000 | 40,000 | $ | 1.32 | 12/16/17 | 4 | |||||||||||||
2008 NQ | 1/11/09 | 40,000 | 40,000 | $ | 0.69 | 1/10/19 | 5.1 | |||||||||||||
2008 NQ | 4/26/10 | 20,000 | 20,000 | $ | 2.07 | 4/25/20 | 6.4 | |||||||||||||
285,000 | 285,000 | $ | 0 .95 | 2.2 | ||||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Plan | Date | Options | Exercisable | Exercise | Expiration | Weighted | ||||||||||||||
Granted | Outstanding | Options | Price | Date | Remaining Life | |||||||||||||||
Non Plan | 3/25/09 | 115,000 | 115,000 | $ | 0.55 | 3/24/14 | 1.2 | |||||||||||||
2008 ISO | 8/25/08 | 141,400 | 107,680 | $ | 0.97 | 8/21/13 | 0.7 | |||||||||||||
2002 NQ | 6/20/03 | 30,000 | 30,000 | $ | 1.03 | 6/19/13 | 0.5 | |||||||||||||
2002 NQ | 5/25/04 | 30,000 | 30,000 | $ | 1.46 | 5/24/14 | 1.4 | |||||||||||||
2002 NQ | 4/3/06 | 40,000 | 40,000 | $ | 1.08 | 4/2/16 | 3.3 | |||||||||||||
2002 NQ | 12/17/07 | 50,000 | 50,000 | $ | 1.32 | 12/16/17 | 5 | |||||||||||||
2008 NQ | 1/11/09 | 50,000 | 50,000 | $ | 0.69 | 1/10/19 | 6.1 | |||||||||||||
2008 NQ | 4/26/10 | 25,000 | 25,000 | $ | 2.07 | 4/25/20 | 7.4 | |||||||||||||
481,400 | 447,680 | $ | 0.98 | 2.4 | ||||||||||||||||
Summary of number of options outstanding under each stock option plan | ' | |||||||||||||||||||
Plan | Options | |||||||||||||||||||
Outstanding | ||||||||||||||||||||
Non Plan | 115,000 | |||||||||||||||||||
2002 NQ | 110,000 | |||||||||||||||||||
2008 NQ | 60,000 | |||||||||||||||||||
Totals | 285,000 | |||||||||||||||||||
Schedule of information relating to stock option transactions | ' | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Weighted | Weighted | |||||||||||||||||||
Average | Average | |||||||||||||||||||
Exercise | Exercise | |||||||||||||||||||
Shares | Price | Shares | Price | |||||||||||||||||
Options outstanding beginning of the year | 366,400 | $ | 1.11 | 680,700 | $ | $1.27 | ||||||||||||||
Options exercised | (193,400 | ) | $ | 1.01 | (302,800 | ) | $ | 1.46 | ||||||||||||
Options forfeited or expired | (3,000 | ) | $ | 0.97 | (11,500 | ) | $ | 1.51 | ||||||||||||
Options outstanding end of the year | 170,000 | $ | 1.23 | 366,400 | $ | 1.11 | ||||||||||||||
Non plan options | 115,000 | $ | 0.55 | 115,000 | $ | 0.55 | ||||||||||||||
Totals | 285,000 | $ | 0.95 | 481,400 | $ | $0.98 | ||||||||||||||
Earnings_per_share_Tables
Earnings per share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings per share [Abstract] | ' | ||||||||
Summary of computation of basic and diluted earnings per common share | ' | ||||||||
Year Ended | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Earnings per common share –Basic | |||||||||
Net income attributable to OBCI | $ | 1,460,992 | $ | 1,962,288 | |||||
Weighted average number of common shares outstanding | 8,542,686 | 8,229,720 | |||||||
Earnings per common share – Basic | $ | 0.17 | $ | 0.24 | |||||
Earnings per common share – Diluted | |||||||||
Net income attributable to OBCI | $ | 1,460,992 | $ | 1,962,288 | |||||
Weighted average number of common shares outstanding | 8,542,686 | 8,229,720 | |||||||
Effect of employee stock-based awards | 244,982 | 326,387 | |||||||
Weighted average number of common shares outstanding - assuming dilution | 8,787,668 | 8,556,107 | |||||||
Earnings per common share - Diluted | $ | 0.17 | $ | 0.23 | |||||
Organization_and_summary_of_si2
Organization and summary of significant accounting policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 1980 | |
Summary of accounting policies (Textual) | ' | ' | ' |
Trade accounts receivable, allowance for doubtful accounts | $93,000 | $73,000 | ' |
Bad debt expense | 21,000 | 0 | ' |
Shipping, handling and costs | 1,188,000 | 1,165,000 | ' |
Advertising and promotion expense | 2,648,000 | 2,418,000 | ' |
Capitalized Catalog Costs Amortized Period, Description | 'One to 12 months. | ' | ' |
Research and development costs | 60,000 | 76,000 | ' |
Percentage of consolidated net revenues from the Company's top five unaffiliated customers | 49.00% | 49.00% | ' |
Percentage of consolidated accounts receivable from the Company's top five unaffiliated customers | 31.00% | 23.00% | ' |
Number of top unaffiliated customers | 5 | 5 | ' |
Purchase of royalty rights | 160,000 | ' | ' |
Amortization of royalty | 7,000 | ' | ' |
Star brite trade name and trademark [Member] | ' | ' | ' |
Summary of accounting policies (Textual) | ' | ' | ' |
Indefinite-lived intangible assets, acquired during period | ' | ' | 880,000 |
Finite-lived intangible asset, useful life | ' | ' | '40 years |
Equity method investment, ownership percentage in OdorStar Technology, LLC | 50.00% | ' | ' |
Amortization of acquired intangible assets | $51,000 | $51,000 | ' |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of composition of inventories | ' | ' |
Raw materials | $3,262,769 | $4,055,812 |
Finished goods | 4,407,421 | 5,472,771 |
Inventories, gross | 7,670,190 | 9,528,583 |
Inventory reserves | -302,296 | -271,994 |
Inventories, net | $7,367,894 | $9,256,589 |
Inventories_Details_Textual
Inventories (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Inventories (Textual) | ' | ' |
Inventories managed at the customer's warehouses | $408,000 | $487,000 |
Property_plant_and_equipment_D
Property, plant and equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Building and Improvements [Member] | Manufacturing and warehouse equipment [Member] | Manufacturing and warehouse equipment [Member] | Office equipment and furniture [Member] | Office equipment and furniture [Member] | Leasehold improvements [Member] | Leasehold improvements [Member] | Automobile [Member] | |||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||
Summary of property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Land | $278,325 | $278,325 | ' | ' | ' | ' | ' | ' | ' | ' |
Building and Improvements | 4,632,565 | 4,489,377 | ' | ' | ' | ' | ' | ' | ' | ' |
Manufacturing and warehouse equipment | 8,160,173 | 7,982,669 | ' | ' | ' | ' | ' | ' | ' | ' |
Office equipment and furniture | 830,950 | 738,584 | ' | ' | ' | ' | ' | ' | ' | ' |
Construction in process | 19,604 | 249,027 | ' | ' | ' | ' | ' | ' | ' | ' |
Leasehold improvements | 419,315 | 122,644 | ' | ' | ' | ' | ' | ' | ' | ' |
Automobile | 32,263 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 14,373,195 | 13,860,626 | ' | ' | ' | ' | ' | ' | ' | ' |
Less accumulated depreciation | 9,256,754 | 8,532,717 | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | $5,116,441 | $5,327,909 | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Useful Life | ' | ' | '30 years | '6 years | '20 years | '3 years | '5 years | '10 years | '15 years | '3 years |
Property_plant_and_equipment_D1
Property, plant and equipment (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property, plant and equipment (Textual) | ' | ' |
Depreciation expense on property, plant and equipment | $724,000 | $650,000 |
OdorStar_Joint_Venture_Details
OdorStar Joint Venture (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Aug. 06, 2013 | |
Related Party Transaction [Line Items] | ' | ' | ' |
Operating Income (Loss) | $2,311,941 | $3,082,660 | ' |
Issuance of note receivable for amounts due in 2015 | 111,420 | ' | ' |
OdorStar [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Equity method investment royalty rights | ' | ' | 160,000 |
Consolidated Assets in Joint venture | 474,000 | 496,000 | ' |
Consolidated Liability in Joint venture | 16,000 | 7,000 | ' |
Operating Income (Loss) | 51,000 | 56,000 | ' |
Issuance of note receivable for amounts due in 2015 | $111,420 | ' | ' |
Revolving_line_of_credit_Detai
Revolving line of credit (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revolving line of credit (Textual) | ' | ' |
Term of revolving line of credit | 'The company may borrow up to the lesser of (i) $6 million or (ii) a borrowing base equal to 80% of eligible accounts receivable plus 50% of eligible inventory. | ' |
Maximum borrowing capacity of the company | $6 | ' |
Percentage of eligible accounts receivables as part of borrowing base | 80.00% | ' |
Percentage of eligible inventory as part of the borrowing base | 50.00% | ' |
Description of interest on the revolving line of credit | '30 day LIBOR rate plus 1.74% per annum. | ' |
Minimum debt service coverage ratio to qualify for LIBOR plus 1.74% | 2 | ' |
Alternate interest rate condition if it doesn't satisfy the debt coverage ratio | '30 day LIBOR rate plus 2.75% per annum. | ' |
Interest rate minimum | 2.00% | ' |
Due date of outstanding principal and interest borrowed under revolving line of credit | 6-Jul-14 | ' |
Financial covenants under credit agreement | 'A minimum debt service coverage ratio of 1.75 to 1.00, tested on a rolling four-quarter basis, and a maximum debt to capitalization ratio (funded debt divided by the sum of total net worth and funded debt) of 0.75 to 1, tested quarterly. | ' |
Debt service coverage ratio | 1.75 | ' |
Debt capitalization ratio | 0.75 | ' |
Company's principal obligation under the revolving line of credit | ' | ' |
Accrued_expenses_payable_Detai
Accrued expenses payable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of accrued expenses payable | ' | ' |
Accrued customer promotions | $415,392 | $431,015 |
Accrued payroll, commissions, and benefits | 317,810 | 188,645 |
Other | 334,153 | 293,469 |
Total accrued expenses payable | $1,067,355 | $913,129 |
Longterm_debt_Details
Long-term debt (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of long term debt | ' | ' |
Total long term debt, Current Portion | $414,525 | $407,095 |
Total long term debt, Long Term Portion | 1,117,761 | 1,532,286 |
Term loan [Member] | ' | ' |
Summary of long term debt | ' | ' |
Total long term debt, Current Portion | 403,074 | 389,075 |
Total long term debt, Long Term Portion | 1,109,680 | 1,512,754 |
Capitalized equipment leases [Member] | ' | ' |
Summary of long term debt | ' | ' |
Total long term debt, Current Portion | 11,451 | 18,020 |
Total long term debt, Long Term Portion | $8,081 | $19,532 |
Longterm_debt_Details_1
Long-term debt (Details 1) (USD $) | Dec. 31, 2013 |
Summary of principal payments under Company's long term obligations | ' |
2014 | $414,525 |
2015 | 425,657 |
2016 | 432,601 |
2017 | 259,503 |
Total | $1,532,286 |
Longterm_debt_Details_Textual
Long-term debt (Details Textual) (USD $) | 12 Months Ended | 0 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Jul. 06, 2011 | |
REFCO [Member] | |||
Long Term Debt (Textual) | ' | ' | ' |
Term loan | $1,513,000 | ' | $2,430,000 |
Interest rate | ' | ' | 3.54% |
Term loan maturity date | ' | ' | 6-Jul-17 |
Aggregate capital lease | $19,532 | $37,552 | ' |
Maturity period for capital lease | 'Through 2015 | ' | ' |
Interest rates minimum | 7.00% | ' | ' |
Interest rates maximum | 14.00% | ' | ' |
Income_taxes_Details
Income taxes (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of provision for income taxes | ' | ' |
Federal - current | $799,264 | $1,011,543 |
Federal - deferred | -333 | 9,842 |
State - current | 17,835 | 33,398 |
State - deferred | -954 | 295 |
Total provision for income taxes | $815,812 | $1,055,078 |
Income_taxes_Details_1
Income taxes (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of reconciliation of the provision for income taxes at the statutory rate to the reported provision for income taxes | ' | ' |
Income Tax computed at statutory rate | $765,367 | $1,016,323 |
State tax, net of federal benefit | 12,344 | 21,637 |
Loss attributable to noncontrolling interest | 8,746 | 9,581 |
Share based compensation | 85,109 | 66,600 |
Other, permanent adjustments | -59,247 | -86,666 |
Tax credits and prior year tax adj. | 3,493 | 27,603 |
Provision for income taxes | $815,812 | $1,055,078 |
Income Tax computed at statutory rate, percentage | 34.00% | 34.00% |
State tax, net of federal benefit, percentage | 0.50% | 0.70% |
Loss attributable to noncontrolling interest, percentage | 0.40% | 0.30% |
Share based compensation, percentage | 3.70% | 2.20% |
Other, permanent adjustments, percentage | -2.60% | -2.90% |
Tax credits and prior year tax adj., percentage | 0.20% | 1.00% |
Provision for income taxes, percentage | 36.20% | 35.30% |
Income_taxes_Details_2
Income taxes (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred taxes-current | ' | ' |
Reserves for bad debts, inventories, and other accruals | $137,821 | $120,740 |
Depreciation of property and equipment | -73,156 | -64,519 |
Total deferred tax asset current | 64,665 | 56,221 |
Deferred taxes - non-current | ' | ' |
Depreciation of property and equipment | -237,635 | -230,478 |
Total deferred tax liability non-current | ($237,635) | ($230,478) |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transactions (Textual) | ' | ' |
Sales to the affiliated companies | $1,834,000 | $1,487,000 |
Administrative fees | 406,000 | 335,000 |
Accounts receivable from the affiliated companies | 536,402 | 556,051 |
Amount paid to entity for services | 42,000 | 42,000 |
Insurance premiums paid | $678,000 | $620,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2013 |
Schedule of minimum future rentals on the Company's non-cancelable operating leases | ' |
2014 | $96,064 |
2015 | 97,985 |
2016 | 99,945 |
2017 | 101,944 |
2018 | 103,983 |
Thereafter | 551,953 |
Total | $1,051,874 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Fort Lauderdale Florida Facility [Member] | ' | ' |
Commitments (Textual) | ' | ' |
Scheduled expiration date of lease | 1-May-18 | ' |
Extended expiration date of lease | 31-Dec-23 | ' |
Minimum base rent | $94,800 | ' |
Maximum percentage increase in base rent | 2.00% | ' |
Period to review term of lease | '3 years | ' |
Rent expense under the lease | 96,000 | 96,000 |
Attorneys fees | 250,000 | ' |
Description of patents through legal action | 'Odorstar, the Company's 50% owned joint venture, is currently the plaintiff in two separate lawsuits | ' |
Alabama River Facility [Member] | ' | ' |
Commitments (Textual) | ' | ' |
Leased area for docking facility (in Acres) | 1.5 | ' |
Lease expiration date | 30-Sep-14 | ' |
Distance of docking facility from company (in Miles) | 11 | ' |
Rent expense under the lease | $8,000 | ' |
Stock_options_and_awards_Detai
Stock options and awards (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of options outstanding and granted under stock option plans | ' | ' |
Exercisable options | 285,000 | 447,680 |
Weighted Average Remaining life | '2 years 2 months 12 days | '2 years 4 months 24 days |
Non Plan [Member] | ' | ' |
Schedule of options outstanding and granted under stock option plans | ' | ' |
Date granted | 25-Mar-09 | 25-Mar-09 |
Options Outstanding | 115,000 | 115,000 |
Exercisable options | 115,000 | 115,000 |
Exercise Price | 0.55 | 0.55 |
Expiration date | 24-Mar-14 | 24-Mar-14 |
Weighted Average Remaining life | '2 months 12 days | '1 year 2 months 12 days |
2008 ISO [Member] | ' | ' |
Schedule of options outstanding and granted under stock option plans | ' | ' |
Date granted | ' | 25-Aug-08 |
Options Outstanding | ' | 141,400 |
Exercisable options | ' | 107,680 |
Exercise Price | ' | 0.97 |
Expiration date | ' | 21-Aug-13 |
Weighted Average Remaining life | ' | '8 months 12 days |
2002 NQ [Member] | ' | ' |
Schedule of options outstanding and granted under stock option plans | ' | ' |
Date granted | ' | 20-Jun-03 |
Options Outstanding | ' | 30,000 |
Exercisable options | ' | 30,000 |
Exercise Price | ' | 1.03 |
Expiration date | ' | 19-Jun-13 |
Weighted Average Remaining life | ' | '6 months |
2002 NQ 1 [Member] | ' | ' |
Schedule of options outstanding and granted under stock option plans | ' | ' |
Date granted | 25-May-04 | 25-May-04 |
Options Outstanding | 30,000 | 30,000 |
Exercisable options | 30,000 | 30,000 |
Exercise Price | 1.46 | 1.46 |
Expiration date | 24-May-14 | 24-May-14 |
Weighted Average Remaining life | '4 months 24 days | '1 year 4 months 24 days |
2002 NQ 2 [Member] | ' | ' |
Schedule of options outstanding and granted under stock option plans | ' | ' |
Date granted | 3-Apr-06 | 3-Apr-06 |
Options Outstanding | 40,000 | 40,000 |
Exercisable options | 40,000 | 40,000 |
Exercise Price | 1.08 | 1.08 |
Expiration date | 2-Apr-16 | 2-Apr-16 |
Weighted Average Remaining life | '2 years 3 months 18 days | '3 years 3 months 18 days |
2002 NQ 3 [Member] | ' | ' |
Schedule of options outstanding and granted under stock option plans | ' | ' |
Date granted | 17-Dec-07 | 17-Dec-07 |
Options Outstanding | 40,000 | 50,000 |
Exercisable options | 40,000 | 50,000 |
Exercise Price | 1.32 | 1.32 |
Expiration date | 16-Dec-17 | 16-Dec-17 |
Weighted Average Remaining life | '4 years | '5 years |
2008 NQ [Member] | ' | ' |
Schedule of options outstanding and granted under stock option plans | ' | ' |
Date granted | 11-Jan-09 | 11-Jan-09 |
Options Outstanding | 40,000 | 50,000 |
Exercisable options | 40,000 | 50,000 |
Exercise Price | 0.69 | 0.69 |
Expiration date | 10-Jan-19 | 10-Jan-19 |
Weighted Average Remaining life | '5 years 1 month 6 days | '6 years 1 month 6 days |
2008 NQ 1 [Member] | ' | ' |
Schedule of options outstanding and granted under stock option plans | ' | ' |
Date granted | 26-Apr-10 | 26-Apr-10 |
Options Outstanding | 20,000 | 25,000 |
Exercisable options | 20,000 | 25,000 |
Exercise Price | 2.07 | 2.07 |
Expiration date | 25-Apr-20 | 25-Apr-20 |
Weighted Average Remaining life | '6 years 4 months 24 days | '7 years 4 months 24 days |
Stock_options_and_awards_Detai1
Stock options and awards (Details 1) | Dec. 31, 2013 | Dec. 31, 2012 |
Non Plan [Member] | ' | ' |
Summary of options outstanding and granted under stock option plans | ' | ' |
Options Outstanding | 115,000 | 115,000 |
2002 NQ [Member] | ' | ' |
Summary of options outstanding and granted under stock option plans | ' | ' |
Options Outstanding | 110,000 | ' |
2008 NQ [Member] | ' | ' |
Summary of options outstanding and granted under stock option plans | ' | ' |
Options Outstanding | 60,000 | ' |
Stock_options_and_awards_Detai2
Stock options and awards (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of information relating to stock option transactions | ' | ' |
Options outstanding beginning of the year | 366,400 | 680,700 |
Options exercised | -193,400 | -302,800 |
Options outstanding end of the year | 170,000 | 366,400 |
Options outstanding beginning of the year, Weighted Average Exercise Price | $1.11 | $1.27 |
Options outstanding ending of the year, Weighted Average Exercise Price | $1.23 | $1.11 |
Stock Option [Member] | ' | ' |
Summary of information relating to stock option transactions | ' | ' |
Options outstanding beginning of the year | 366,400 | 680,700 |
Options exercised | -193,400 | -302,800 |
Options forfeited or expired | -3,000 | -11,500 |
Options outstanding end of the year | 170,000 | 366,400 |
Non plan options | 115,000 | 115,000 |
Options Outstanding | 285,000 | 481,400 |
Options outstanding beginning of the year, Weighted Average Exercise Price | $1.11 | $1.27 |
Options exercised, Weighted Average Exercise Price | $1.01 | $1.46 |
Options forfeited or expired, Weighted Average Exercise Price | $0.97 | $1.51 |
Options outstanding ending of the year, Weighted Average Exercise Price | $1.23 | $1.11 |
Non plan options, Weighted Average Exercise Price | $0.55 | $0.55 |
Exercise Price | $0.95 | $0.98 |
Stock_options_and_awards_Detai3
Stock options and awards (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Stock options and awards (Textual) | ' | ' |
Common stock authorize under equity compensation plan | 750,000 | ' |
Common stock available for future issuance under Equity Compensation Plan | 373,000 | ' |
Stock based compensation attributable to stock award | $306,000 | $223,000 |
Stock option exercised | 193,400 | 302,800 |
Number of shares withhold in connection with net exercise feature of options | 42,838 | ' |
Shares issued to option holders shares | 150,562 | ' |
Term of previously qualified options granted | '5 years | ' |
Qualified options vesting percentage | 20.00% | ' |
Term of previously non-qualified options granted | '10 years | ' |
Termination period of previously non-qualified options | 25-Apr-20 | ' |
Compensation cost attributable to stock options | 12,000 | 54,000 |
Unrecognized compensation expense related to unvested share based compensation arrangements | $0 | $12,000 |
Major_customers_Details
Major customers (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Customers | Customers | |
Major customers (Textual) | ' | ' |
Percentage of consolidated net revenues by customers with sales in excess of 10% of consolidated net revenues | 39.00% | 37.00% |
Number of customers with sales in excess of 10% of consolidated net revenues | 2 | 2 |
Percentage of consolidated net revenues from the Company's top five unaffiliated customers | 49.00% | 49.00% |
Percentage of consolidated accounts receivable from the Company's top five unaffiliated customers | 31.00% | 23.00% |
Number of top unaffiliated customers | 5 | 5 |
Earnings_per_share_Details
Earnings per share (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings per common share - Basic | ' | ' |
Net income attributable to OBCI | $1,460,992 | $1,962,288 |
Weighted average number of common shares outstanding | 8,542,686 | 8,229,720 |
Earnings per common share - basic | $0.17 | $0.24 |
Earnings per common share - Diluted | ' | ' |
Net income attributable to OBCI | $1,460,992 | $1,962,288 |
Weighted average number of common shares outstanding | 8,542,686 | 8,229,720 |
Effect of employee stock-based awards | 244,982 | 326,387 |
Weighted average number of common shares outstanding - assuming dilution | 8,787,668 | 8,556,107 |
Earnings per common share - diluted | $0.17 | $0.23 |
Earnings per share (Textual) | ' | ' |
Anti-dilutive stock options outstanding | ' | ' |
Shareholders_equity_Details
Shareholders' equity (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Jun. 08, 2012 | |
Shareholders' equity (Textual) | ' | ' | ' |
Compensation cost attributable to stock options | $12,000 | $54,000 | ' |
Options exercised, shares | 193,400 | 302,800 | ' |
Total cash received by stock option exercised during period | 79,667 | 169,496 | ' |
Common stock, par value | $0.01 | $0.01 | ' |
Common stock authorized before amendment | ' | ' | 10,000,000 |
Common stock authorized after amendment | 12,000,000 | 12,000,000 | ' |
Employees and Consultant [Member] | ' | ' | ' |
Shareholders' equity (Textual) | ' | ' | ' |
Stock awards granted | 121,000 | 117,000 | ' |
Compensation cost attributable to stock options | 306,000 | 223,000 | ' |
Options exercised, shares | 193,400 | 302,800 | ' |
Total cash received by stock option exercised during period | 80,000 | 169,500 | ' |
Stock issued during period, Value | $80,000 | $169,500 | ' |
Stock issued during period, Shares | 150,562 | 174,499 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], Board of Director [Member], USD $) | 1 Months Ended |
Mar. 18, 2014 | |
Subsequent Event [Member] | Board of Director [Member] | ' |
Subsequent Event [Line Items] | ' |
Dividends payable per share | $0.05 |
Dividends payable, date to be paid | 15-Apr-14 |
Dividends payable, date of record | 1-Apr-14 |