Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 13, 2014 | |
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-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 8,914,274 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Current Assets: | ' | ' |
Cash | $2,713,635 | $3,071,887 |
Trade accounts receivable less allowances of approximately $64,000 and $93,000, respectively | 4,217,347 | 4,413,656 |
Receivables due from affiliated companies | 832,431 | 536,402 |
Inventories, net | 7,950,359 | 7,367,894 |
Prepaid expenses and other current assets | 711,964 | 621,107 |
Deferred tax asset | 52,551 | 64,665 |
Total Current Assets | 16,478,287 | 16,075,611 |
Property, plant and equipment, net | 5,220,618 | 5,116,441 |
Other Assets: | ' | ' |
Trademarks, trade names, royalty rights, and patents, net | 885,573 | 920,269 |
Other assets | 179,173 | 130,803 |
Total Other Assets | 1,064,746 | 1,051,072 |
Total Assets | 22,763,651 | 22,243,124 |
Current Liabilities: | ' | ' |
Accounts payable - trade | 1,347,678 | 1,013,829 |
Current portion of long term debt | 419,422 | 414,525 |
Income taxes payable | 23,776 | 119,943 |
Accrued expenses payable | 1,009,565 | 1,067,355 |
Total Current Liabilities | 2,800,441 | 2,615,652 |
Deferred tax liability | 206,743 | 237,635 |
Long term debt, less current portion | 906,081 | 1,117,761 |
Total Liabilities | 3,913,265 | 3,971,048 |
Shareholders' Equity: | ' | ' |
Common stock - $.01 par value, 12,000,000 shares authorized; 8,914,274 and 8,749,888 shares issued | 89,142 | 87,499 |
Additional paid in capital | 9,131,952 | 8,805,460 |
Less cost of common stock in treasury, 0 and 79,941 shares, respectively | ' | -65,029 |
Accumulated other comprehensive loss | -262,663 | -266,456 |
Retained earnings | 9,676,343 | 9,482,128 |
Total Shareholders' Equity of Ocean Bio-Chem, Inc. | 18,634,774 | 18,043,602 |
Noncontrolling interest | 215,612 | 228,474 |
Total Shareholders' Equity | 18,850,386 | 18,272,076 |
Total Liabilities and Shareholders' Equity | $22,763,651 | $22,243,124 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Trade accounts receivable, allowance for doubtful accounts | $64,000 | $93,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 12,000,000 | 12,000,000 |
Common stock, shares issued | 8,914,274 | 8,749,888 |
Number of treasury shares delievered in connection with stock awards and stock option exercises | 0 | 79,941 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Statements of Operation [Abstract] | ' | ' | ' | ' |
Gross sales | $9,167,806 | $8,529,350 | $15,407,831 | $15,180,378 |
Less: discounts, returns, and allowances | 355,011 | 351,638 | 674,337 | 690,363 |
Net sales | 8,812,795 | 8,177,712 | 14,733,494 | 14,490,015 |
Cost of goods sold | 5,382,010 | 5,205,556 | 9,215,046 | 9,276,600 |
Gross profit | 3,430,785 | 2,972,156 | 5,518,448 | 5,213,415 |
Operating Expenses: | ' | ' | ' | ' |
Advertising and promotion | 716,294 | 820,012 | 1,300,163 | 1,386,823 |
Selling and administrative | 2,132,319 | 1,878,507 | 3,284,344 | 3,028,029 |
Total operating expenses | 2,848,613 | 2,698,519 | 4,584,507 | 4,414,852 |
Operating income | 582,172 | 273,637 | 933,941 | 798,563 |
Other expense | ' | ' | ' | ' |
Interest, net (expense) | -10,135 | -18,223 | -21,517 | -35,624 |
Income before income taxes | 572,037 | 255,414 | 912,424 | 762,939 |
Provision for income taxes | 167,835 | 91,994 | 291,055 | 271,150 |
Net income | 404,202 | 163,420 | 621,369 | 491,789 |
Loss attributable to noncontrolling interests | 6,431 | 9,196 | 12,862 | 29,879 |
Net income attributable to Ocean Bio-Chem, Inc. | $410,633 | $172,616 | $634,231 | $521,668 |
Earnings per common share - basic and diluted | $0.05 | $0.02 | $0.07 | $0.06 |
Dividends declared per common share | ' | ' | $0.05 | ' |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Statements of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net Income | $404,202 | $163,420 | $621,369 | $491,789 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustment | 7,954 | -4,463 | 3,793 | -6,613 |
Comprehensive income | 412,156 | 158,957 | 625,162 | 485,176 |
Comprehensive loss attributable to noncontrolling interests | 6,431 | 9,196 | 12,862 | 29,879 |
Comprehensive income attributable to Ocean Bio-Chem, Inc. | $418,587 | $168,153 | $638,024 | $515,055 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from operating activities: | ' | ' |
Net income | $621,369 | $491,789 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
Depreciation and amortization | 406,987 | 376,805 |
Deferred income taxes | -18,778 | 18,201 |
Stock based compensation | 356,085 | 315,412 |
Other operating non-cash items | 2,031 | 24,211 |
Changes in assets and liabilities: | ' | ' |
Trade accounts receivable | 225,308 | -939,741 |
Inventories | -582,465 | -442,666 |
Other assets | -48,370 | 2,484 |
Prepaid expenses and other current assets | -90,857 | -46,265 |
Receivables due from affiliated companies | -296,029 | 131,870 |
Accounts payable and other accrued expenses | 139,246 | 100,145 |
Net cash provided by operating activities | 714,527 | 32,245 |
Cash flows from investing activities: | ' | ' |
Purchases of property, plant and equipment | -476,468 | -327,959 |
Net cash used in investing activities | -476,468 | -327,959 |
Cash flows from financing activities: | ' | ' |
Payments on long-term debt | -206,783 | -202,488 |
Dividends paid to common shareholders | -440,016 | ' |
Proceeds from exercise of stock options | 63,250 | ' |
Net cash used in financing activities | -583,549 | -202,488 |
Effect of exchange rates on cash | -12,762 | -4,670 |
Net decrease in cash | -358,252 | -502,872 |
Cash at beginning of period | 3,071,887 | 1,508,385 |
Cash at end of period | 2,713,635 | 1,005,513 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest during period | 26,703 | 35,451 |
Cash paid for income taxes during period | $406,000 | $315,100 |
Summary_of_Accounting_Policies
Summary of Accounting Policies | 6 Months Ended | |
Jun. 30, 2014 | ||
Summary of Accounting Policies [Abstract] | ' | |
SUMMARY OF ACCOUNTING POLICIES | ' | |
1 | SUMMARY OF ACCOUNTING POLICIES | |
Interim reporting | ||
The accompanying unaudited condensed consolidated financial statements include the accounts of Ocean Bio-Chem, Inc. and its subsidiaries, all of which are wholly-owned, and OdorStar Technology, LLC (“OdorStar”), a joint venture in which the Company has a controlling interest. All significant intercompany transactions and balances have been eliminated in consolidation. Certain prior-period data have been reclassified to conform to the current period presentation. Unless the context indicates otherwise, the term “Company” refers to Ocean Bio-Chem, Inc. and its subsidiaries. | ||
The unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. | ||
The financial information furnished herein reflects all adjustments, consisting of normal recurring items that, in the opinion of management, are necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014. | ||
The information included in this Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | ||
Use of estimates | ||
The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America 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 and assumptions. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 6 Months Ended | |
Jun. 30, 2014 | ||
Recent Accounting Pronouncements [Abstract] | ' | |
RECENT ACCOUNTING PRONOUNCEMENTS | ' | |
2 | RECENT ACCOUNTING PRONOUNCEMENTS | |
There have been no accounting pronouncements or changes in accounting pronouncements during the six months ended June 30, 2014 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 six months ended June 30, 2014 did not have a material impact on the Company’s financial position, results of operations or cash flows, or on financial statement disclosures made by the Company. |
Inventories
Inventories | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
3 | INVENTORIES | ||||||||
The composition of inventories at June 30, 2014 and December 31, 2013 are as follows: | |||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 3,452,636 | $ | 3,262,769 | |||||
Finished goods | 4,800,019 | 4,407,421 | |||||||
Inventories, gross | 8,252,655 | 7,670,190 | |||||||
Inventory reserves | -302,296 | ) | (302,296 | ) | |||||
Inventories, net | $ | 7,950,359 | $ | 7,367,894 | |||||
The inventory reserves shown in the table above reflect slow moving and obsolete inventory. | |||||||||
The Company manages an inventory program for one of its customers to improve the promotion of the Company's products. The Company manages the inventory levels at the 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 $444,000 and $408,000 at June 30, 2014 and December 31, 2013, respectively, and are included in inventories, net on the balance sheet. | |||||||||
Property_Plant_Equipment
Property, Plant, & Equipment | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Property, Plant, & Equipment [Abstract] | ' | |||||||||
PROPERTY, PLANT, & EQUIPMENT | ' | |||||||||
4 | PROPERTY, PLANT, & EQUIPMENT | |||||||||
The Company’s property, plant and equipment consisted of the following at June 30, 2014 and December 31, 2013: | ||||||||||
Estimate | June 30, | December 31, | ||||||||
Useful Life | 2014 | 2013 | ||||||||
Land | $ | 278,325 | $ | 278,325 | ||||||
Building and improvements | 30 years | 4,632,565 | 4,632,565 | |||||||
Manufacturing and warehouse equipment | 6-20 years | 8,232,567 | 8,160,173 | |||||||
Office equipment and furniture | 3-5 years | 906,861 | 830,950 | |||||||
Construction in process | 218,481 | 19,604 | ||||||||
Leasehold improvements | 10-15 years | 428,214 | 419,315 | |||||||
Vehicles | 3 years | 113,214 | 32,263 | |||||||
Property, plant and equipment, gross | 14,810,227 | 14,373,195 | ||||||||
Less accumulated depreciation | (9,589,609 | ) | (9,256,754 | ) | ||||||
Property, plant and equipment, net | $ | 5,220,618 | $ | 5,116,441 |
Odorstar_Joint_Venture
Odorstar Joint Venture | 6 Months Ended | |
Jun. 30, 2014 | ||
Odorstar Joint Venture [Abstract] | ' | |
ODORSTAR JOINT VENTURE | ' | |
5 | ODORSTAR JOINT VENTURE | |
In 2010, the Company and BBL Distributors, LLC (“BBL”) organized OdorStar. OdorStar owns patents relating to a device for producing chlorine dioxide (the “Patents”), which, among other things, can be used in products designed to safely prevent and eliminate odors relating to mold, mildew and other sources of unpleasant odors. OdorStar’s Operating Agreement contemplates that each of the Company and BBL will make additional capital contributions to OdorStar, to the extent required by OdorStar’s business, unless one of them is unwilling or unable to contribute such additional monies, in which case the other member may contribute the additional monies, which will be considered a loan (as described below, BBL has issued a note to the Company as a result of the Company’s contribution of such additional monies during 2013). 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 $474,000 in assets and $0 and $16,000 in liabilities of OdorStar at June 30, 2014 and December 31, 2013, respectively. The Company’s consolidated statements of operations include OdorStar’s operating losses of approximately $13,000 and $18,000 during the three months ended June 30, 2014 and 2013, respectively, and approximately $26,000 and $59,000 during the six months ended June 30, 2014 and 2013, respectively. During 2013, the Company made additional capital contributions to OdorStar under the provisions of OdorStar’s Operating Agreement described above, and also provided $111,420 in additional funds to OdorStar, in lieu of amounts BBL would have paid as additional capital contributions had BBL been willing and able to do so. BBL issued a note to the Company in the amount of $111,420, which was outstanding on June 30, 2014 and December 31, 2013. Payments of interest only on the note are required until December 2015, at which time all principal on the note is due and payable. In the event principal is not paid when due, the Company has the right to demand an adjustment in the Company's and BBL's capital interests in OdorStar, with the unpaid amounts treated as an additional capital contribution by the Company. The Company has made additional capital contributions to OdorStar in 2014, and has provided to OdorStar additional funds in lieu of amounts BBL would have paid as additional capital contributions had BBL been willing and able to do so. Other assets shown on the balance sheet at June 30, 2014 include a receivable of approximately $61,000 due from BBL with respect to the additional funds provided by the Company. |
Revolving_Line_of_Credit
Revolving Line of Credit | 6 Months Ended | |
Jun. 30, 2014 | ||
Revolving Line of Credit and Long Term Debt [Abstract] | ' | |
REVOLVING LINE OF CREDIT | ' | |
6 | 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 and lease/rent expense) 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 June 30, 2014, the Company was in compliance with these covenants. At June 30, 2014 and December 31, 2013, the Company had no borrowings under the revolving line of credit. |
Long_Term_Debt
Long Term Debt | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Revolving Line of Credit and Long Term Debt [Abstract] | ' | ||||||||||||||||
LONG TERM DEBT | ' | ||||||||||||||||
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 on which the term loan matures. The proceeds of the term loan were used to pay the Company’s remaining obligations under a lease agreement relating to industrial revenue bonds used to fund the expansion of Kinpak’s facilities and acquisition of related equipment. At June 30, 2014, approximately $1,313,000 was outstanding under the term loan. The term loan and the revolving line of credit described in Note 6 are cross-defaulted (i.e., a default under one instrument will be deemed a default under the other). | |||||||||||||||||
At June 30, 2014 and December 31, 2013, the Company was obligated under various capital lease agreements covering equipment utilized in the Company’s operations. The capital leases, aggregating $12,505 and $19,532 at June 30, 2014 and December 31, 2013, 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 June 30, 2014 and December 31, 2013: | |||||||||||||||||
Current Portion | Long Term Portion | ||||||||||||||||
June 30, | December 31, | June 30, | December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Term loan | $ | 410,261 | $ | 403,074 | $ | 902,737 | $ | 1,109,680 | |||||||||
Capitalized equipment leases | 9,161 | 11,451 | 3,344 | 8,081 | |||||||||||||
Total long term debt | $ | 419,422 | $ | 414,525 | $ | 906,081 | $ | 1,117,761 | |||||||||
Required principal payments under the Company’s long term obligations are set forth below: | |||||||||||||||||
12 month period ending June 30, | |||||||||||||||||
2015 | $ | 419,422 | |||||||||||||||
2016 | 428,366 | ||||||||||||||||
2017 | 440,315 | ||||||||||||||||
2018 | 37,400 | ||||||||||||||||
Total | $ | 1,325,503 |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended | |
Jun. 30, 2014 | ||
Related Party Transactions [Abstract] | ' | |
RELATED PARTY TRANSACTIONS | ' | |
8 | RELATED PARTY TRANSACTIONS | |
During the three and six months ended June 30, 2014 and 2013, 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 $295,000 and $469,000 during the three months ended June 30, 2014 and 2013, respectively, and approximately $1,008,000 and $940,000 for the six months ended June 30, 2014 and 2013, respectively. Administrative fees aggregated approximately $147,000 and $134,000 during the three months ended June 30, 2014 and 2013, respectively, and approximately $239,000 and $236,000 for the six months ended June 30, 2014 and 2013, respectively. The Company had accounts receivable from the affiliated companies in connection with the product sales and administrative services aggregating approximately $832,000 and $536,000 at June 30, 2014 and December 31, 2013, respectively. Transactions with the affiliated companies were made in the ordinary course of business. While the terms of sale to the affiliated companies differed from the terms applicable 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 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 its Chairman, President and Chief Executive Officer to conduct product research and development, marketing and advertising. Under this arrangement, the Company paid the entity approximately $10,500 for each of the three month periods ended June 30, 2014 and 2013, and $21,000 for each of the six month periods ended June 30, 2014 and 2013. | ||
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 9 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. During the three months ended June 30, 2014 and 2013, the Company paid an aggregate of approximately $98,000 and $150,000, respectively, and during the six months ended June 30, 2014 and 2013, the Company paid an aggregate of approximately $315,000 and $333,000, respectively, in insurance premiums on policies obtained through the entity. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |
Jun. 30, 2014 | ||
Commitments and Contingencies [Abstract] | ' | |
COMMITMENTS AND CONTINGENCIES | ' | |
9 | 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 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 was approximately $25,000 and $24,000 for the three months ended June 30, 2014 and 2013, and was approximately $49,000 for each of the six month periods ended June 30, 2014 and 2013, respectively. | ||
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. | ||
On November 25, 2013, OdorStar and Kinpak filed a Second Amended Complaint in the United States District Court for the Southern District of Florida, alleging patent infringement by SSM Distributors LLC, d/b/a Biocide Systems, and SSM Manufacturing, Inc. SMM Distributors LLC is now defunct. The Second Amended Complaint, which amended a complaint initially filed on January 18, 2013, alleges that Biocide manufactured, used, sold and continues to sell an odor-eliminating product that infringes OdorStar's U.S. Patent No. 6,764,661 (“the ‘661 patent”), relating to a device for producing chlorine dioxide. Biocide denied infringement and both sides moved for summary judgment. On January 27, 2014, the District Court granted the defendants' motion for summary judgment of non-infringement and denied the plaintiffs' motion. | ||
OdorStar and Kinpak have appealed the judgment to the United States Court of Appeals for the Eleventh Circuit. Specifically, OdorStar and Kinpak contend that the district court erred in construing the claims of the ‘661 patent and in entering summary judgment of non-infringement based on an incorrect claim construction. The appeal is pending. | ||
On March 27, 2014, the defendants filed a motion with the District Court seeking payment by OdorStar and Kinpak of their attorneys’ fees and non-taxable costs in the amount of $259,550, based on, among other things, the defendants’ contention that the plaintiffs' patent infringement claims were vexatious and intended to intimidate the defendants into withdrawing from competition with the plaintiffs. OdorStar and Kinpak filed an opposition to the motion, essentially denying the defendants' contentions and stating that defendants were not entitled to payment of their attorneys’ fees under applicable legal standards. The District Court has not yet ruled on the motion. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||||||
10 | EARNINGS PER SHARE | ||||||||||||||||
Basic earnings per share is calculated based on net income attributable to Ocean Bio-Chem, Inc. and the weighted average number of shares outstanding during the reported 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. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Earnings per common share -Basic | |||||||||||||||||
Net income attributable to OBCI | $ | 410,633 | $ | 172,616 | $ | 634,231 | $ | 521,668 | |||||||||
Weighted average number of common shares outstanding | 8,817,846 | 8,493,559 | 8,754,313 | 8,446,235 | |||||||||||||
Earnings per common share - Basic | $ | 0.05 | $ | 0.02 | $ | 0.07 | $ | 0.06 | |||||||||
Earnings per common share – Diluted | |||||||||||||||||
Net income attributable to OBCI | $ | 410,633 | $ | 172,616 | $ | 634,231 | $ | 521,668 | |||||||||
Weighted average number of common shares outstanding | 8,817,846 | 8,493,559 | 8,754,313 | 8,446,235 | |||||||||||||
Dilutive effect of employee stock-based awards | 83,225 | 292,461 | 127,925 | 287,970 | |||||||||||||
Weighted average number of common shares outstanding - assuming dilution | 8,901,071 | 8,786,020 | 8,882,238 | 8,734,205 | |||||||||||||
Earnings per common share - Diluted | $ | 0.05 | $ | 0.02 | $ | 0.07 | $ | 0.06 | |||||||||
The Company had no stock options outstanding for each of the three and six month periods ended June 30, 2014 and 2013, respectively, that were anti-dilutive and therefore not included in the diluted earnings per common share calculation. |
Special_Dividend
Special Dividend | 6 Months Ended | |
Jun. 30, 2014 | ||
Special Dividend [Abstract] | ' | |
SPECIAL DIVIDEND | ' | |
11. | SPECIAL DIVIDEND | |
On April 15, 2014, the Company paid a special dividend of $0.05 per share to all common shareholders of record on April 1, 2014.The aggregate dividend payment was $440,016. |
Securities_Authorized_for_Issu
Securities Authorized for Issuance under Equity Compensation Plans | 6 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Securities Authorized for Issuance under Equity Compensation Plans [Abstract] | ' | ||||||||||||||
SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS | ' | ||||||||||||||
12. | SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS | ||||||||||||||
During the three months ended June 30, 2014 no stock options were exercised. | |||||||||||||||
During the six months ended June 30, 2014, stock options to purchase an aggregate of 145,000 shares were exercised. Following the withholding of an aggregate of 14,633 shares in connection with the net exercise feature of the stock options, the Company delivered an aggregate of 130,367 shares to the option holders who exercised their options. | |||||||||||||||
Stock compensation expense recognized during the three and six months ended June 30, 2014 and 2013 attributable to stock awards totaled approximately $356,000 and $306,000, respectively. Stock compensation expense attributable to stock options was $0 and $4,000 for the three months ended June 30, 2014 and 2013, respectively, and $0 and $9,000 for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||
At June 30, 2014, there was no unrecognized compensation expense related to stock options. | |||||||||||||||
The following table provides information at June 30, 2014 regarding outstanding stock options under the Company’s stock option plans. As used in the table below, “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. | |||||||||||||||
Plan | Date | Options Outstanding | Exercisable | Exercise | Expiration | Weighted | |||||||||
Granted | Options | Price | Date | Average | |||||||||||
Remaining Life | |||||||||||||||
2002NQ | 4/3/06 | 40,000 | 40,000 | $ | 1.08 | 4/2/16 | 1.8 | ||||||||
2002NQ | 12/17/07 | 40,000 | 40,000 | $ | 1.32 | 12/16/17 | 3.5 | ||||||||
2008NQ | 1/11/09 | 40,000 | 40,000 | $ | 0.69 | 1/10/19 | 4.6 | ||||||||
2008NQ | 4/26/10 | 20,000 | 20,000 | $ | 2.07 | 4/25/20 | 5.9 | ||||||||
140,000 | 140,000 | $ | 1.18 | 3.7 | |||||||||||
Subsequent_Event
Subsequent Event | 6 Months Ended | |
Jun. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
SUBSEQUENT EVENT | ' | |
13. | SUBSEQUENT EVENT | |
The revolving line of credit issued under the Credit Agreement expired on July 6, 2014. Following a brief extension of the revolving line of credit initially provided under the Credit Agreement, in August 2014 the Company and Regions Bank entered into a new Business Loan Agreement (the "Business Loan Agreement"), under which the Company was provided a renewed revolving line of credit. Under the renewed 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 (as defined in the Business Loan Agreement) plus 50% of eligible inventory (as defined in the Business Loan Agreement). Interest on amounts borrowed under the revolving line of credit is payable monthly at the 30 day LIBOR rate plus 1.65% per annum (unless the Company’s debt service coverage ratio (generally, net operating profit plus depreciation, amortization and lease/rent expense divided by current maturities of long-term debt plus interest and lease/rent expense, calculated on a trailing twelve month basis) falls to or below 2.0 to 1, in which case interest is payable at the 30 day LIBOR rate plus 2.65% 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 until expiration of the revolving line of credit on July 6, 2016, at which time all outstanding principal and interest will be due and payable. The Company’s obligations under the revolving line of credit are secured by the Company’s accounts receivable, inventory, contract rights and general intangibles, and, as a result of cross-collateralization of the Company’s obligations under the renewed revolving line of credit and the term loan discussed in Note 7 above, real property and equipment at Kinpak’s Montgomery, Alabama facility. The Business Loan Agreement includes financial covenants requiring a minimum debt service coverage ratio of 1.75 to 1.00, tested on a trailing twelve month basis, and a maximum debt to capitalization ratio (generally, funded debt divided by the sum of total net worth and funded debt) of 0.75 to 1, tested quarterly. The line of credit is subject to several events of default, including a decline in the majority shareholder’s ownership below 50% of all outstanding shares. |
Summary_of_Accounting_Policies1
Summary of Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Summary of Accounting Policies [Abstract] | ' |
Interim reporting | ' |
Interim reporting | |
The accompanying unaudited condensed consolidated financial statements include the accounts of Ocean Bio-Chem, Inc. and its subsidiaries, all of which are wholly-owned, and OdorStar Technology, LLC (“OdorStar”), a joint venture in which the Company has a controlling interest. All significant intercompany transactions and balances have been eliminated in consolidation. Certain prior-period data have been reclassified to conform to the current period presentation. Unless the context indicates otherwise, the term “Company” refers to Ocean Bio-Chem, Inc. and its subsidiaries. | |
The unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. | |
The financial information furnished herein reflects all adjustments, consisting of normal recurring items that, in the opinion of management, are necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results to be expected for the year ending December 31, 2014. | |
The information included in this Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
Use of estimates | ' |
Use of estimates | |
The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America 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 and assumptions. |
Inventories_Tables
Inventories (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
Summary of composition of inventories | ' | ||||||||
June 30, | December 31, | ||||||||
2014 | 2013 | ||||||||
Raw materials | $ | 3,452,636 | $ | 3,262,769 | |||||
Finished goods | 4,800,019 | 4,407,421 | |||||||
Inventories, gross | 8,252,655 | 7,670,190 | |||||||
Inventory reserves | -302,296 | ) | (302,296 | ) | |||||
Inventories, net | $ | 7,950,359 | $ | 7,367,894 |
Property_Plant_Equipment_Table
Property, Plant, & Equipment (Tables) | 6 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
Property, Plant, & Equipment [Abstract] | ' | |||||||||
Summary of property, plant and equipment | ' | |||||||||
June 30, | December 31, | |||||||||
Estimate | 2014 | 2013 | ||||||||
Useful Life | ||||||||||
Land | $ | 278,325 | $ | 278,325 | ||||||
Building and improvements | 30 years | 4,632,565 | 4,632,565 | |||||||
Manufacturing and warehouse equipment | 6-20 years | 8,232,567 | 8,160,173 | |||||||
Office equipment and furniture | 3-5 years | 906,861 | 830,950 | |||||||
Construction in process | 218,481 | 19,604 | ||||||||
Leasehold improvements | 10-15 years | 428,214 | 419,315 | |||||||
Vehicles | 3 years | 113,214 | 32,263 | |||||||
Property, plant and equipment, gross | 14,810,227 | 14,373,195 | ||||||||
Less accumulated depreciation | (9,589,609 | ) | (9,256,754 | ) | ||||||
Property, plant and equipment, net | $ | 5,220,618 | $ | 5,116,441 |
Long_Term_Debt_Tables
Long Term Debt (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Revolving Line of Credit and Long Term Debt [Abstract] | ' | ||||||||||||||||
Summary of company's long term debt | ' | ||||||||||||||||
Current Portion | Long Term Portion | ||||||||||||||||
June 30, | December 31, | June 30, | December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Term loan | $ | 410,261 | $ | 403,074 | $ | 902,737 | $ | 1,109,680 | |||||||||
Capitalized equipment leases | 9,161 | 11,451 | 3,344 | 8,081 | |||||||||||||
Total long term debt | $ | 419,422 | $ | 414,525 | $ | 906,081 | $ | 1,117,761 | |||||||||
Summary of principal payments under Company's long term obligations | ' | ||||||||||||||||
12 month period ending June 30, | |||||||||||||||||
2015 | $ | 419,422 | |||||||||||||||
2016 | 428,366 | ||||||||||||||||
2017 | 440,315 | ||||||||||||||||
2018 | 37,400 | ||||||||||||||||
Total | $ | 1,325,503 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Summary of computation of basic and diluted earnings per common share | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Earnings per common share -Basic | |||||||||||||||||
Net income attributable to OBCI | $ | 410,633 | $ | 172,616 | $ | 634,231 | $ | 521,668 | |||||||||
Weighted average number of common shares outstanding | 8,817,846 | 8,493,559 | 8,754,313 | 8,446,235 | |||||||||||||
Earnings per common share - Basic | $ | 0.05 | $ | 0.02 | $ | 0.07 | $ | 0.06 | |||||||||
Earnings per common share – Diluted | |||||||||||||||||
Net income attributable to OBCI | $ | 410,633 | $ | 172,616 | $ | 634,231 | $ | 521,668 | |||||||||
Weighted average number of common shares outstanding | 8,817,846 | 8,493,559 | 8,754,313 | 8,446,235 | |||||||||||||
Dilutive effect of employee stock-based awards | 83,225 | 292,461 | 127,925 | 287,970 | |||||||||||||
Weighted average number of common shares outstanding - assuming dilution | 8,901,071 | 8,786,020 | 8,882,238 | 8,734,205 | |||||||||||||
Earnings per common share - Diluted | $ | 0.05 | $ | 0.02 | $ | 0.07 | $ | 0.06 | |||||||||
Securities_Authorized_for_Issu1
Securities Authorized for Issuance under Equity Compensation Plans (Tables) | 6 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Securities Authorized for Issuance under Equity Compensation Plans [Abstract] | ' | ||||||||||||||
Schedule of outstanding stock options under Company's stock option plans | ' | ||||||||||||||
Plan | Date | Options Outstanding | Exercisable | Exercise | Expiration | Weighted | |||||||||
Granted | Options | Price | Date | Average | |||||||||||
Remaining Life | |||||||||||||||
2002NQ | 4/3/06 | 40,000 | 40,000 | $ | 1.08 | 4/2/16 | 1.8 | ||||||||
2002NQ | 12/17/07 | 40,000 | 40,000 | $ | 1.32 | 12/16/17 | 3.5 | ||||||||
2008NQ | 1/11/09 | 40,000 | 40,000 | $ | 0.69 | 1/10/19 | 4.6 | ||||||||
2008NQ | 4/26/10 | 20,000 | 20,000 | $ | 2.07 | 4/25/20 | 5.9 | ||||||||
140,000 | 140,000 | $ | 1.18 | 3.7 | |||||||||||
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Summary of composition of inventories | ' | ' |
Raw materials | $3,452,636 | $3,262,769 |
Finished goods | 4,800,019 | 4,407,421 |
Inventories, gross | 8,252,655 | 7,670,190 |
Inventory reserves | -302,296 | -302,296 |
Inventories, net | $7,950,359 | $7,367,894 |
Inventories_Details_Textual
Inventories (Details Textual) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Inventories (Textual) | ' | ' |
Inventories managed at the customer's warehouses | $444,000 | $408,000 |
Property_Plant_Equipment_Detai
Property, Plant, & Equipment (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
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] | Vehicles [Member] | |||
Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | |||||
Summary of property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Land | $278,325 | $278,325 | ' | ' | ' | ' | ' | ' | ' | ' |
Building and improvements | 4,632,565 | 4,632,565 | ' | ' | ' | ' | ' | ' | ' | ' |
Manufacturing and warehouse equipment | 8,232,567 | 8,160,173 | ' | ' | ' | ' | ' | ' | ' | ' |
Office equipment and furniture | 906,861 | 830,950 | ' | ' | ' | ' | ' | ' | ' | ' |
Construction in process | 218,481 | 19,604 | ' | ' | ' | ' | ' | ' | ' | ' |
Leasehold improvements | 428,214 | 419,315 | ' | ' | ' | ' | ' | ' | ' | ' |
Vehicles | 113,214 | 32,263 | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, gross | 14,810,227 | 14,373,195 | ' | ' | ' | ' | ' | ' | ' | ' |
Less accumulated depreciation | -9,589,609 | -9,256,754 | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | $5,220,618 | $5,116,441 | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Useful Life | ' | ' | '30 years | '20 years | '6 years | '5 years | '3 years | '15 years | '10 years | '3 years |
Odorstar_Joint_Venture_Details
Odorstar Joint Venture (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | |||
Aug. 06, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Odorstar Joint Venture (Textual) | ' | ' | ' | ' | ' | ' |
Assets | ' | $22,763,651 | ' | $22,763,651 | ' | $22,243,124 |
Liabilities | ' | 3,913,265 | ' | 3,913,265 | ' | 3,971,048 |
Operating losses | ' | 582,172 | 273,637 | 933,941 | 798,563 | ' |
OdorStar [Member] | ' | ' | ' | ' | ' | ' |
Odorstar Joint Venture (Textual) | ' | ' | ' | ' | ' | ' |
Assets | ' | 474,000 | ' | 474,000 | ' | 474,000 |
Liabilities | ' | 0 | ' | 0 | ' | 16,000 |
Operating losses | ' | 13,000 | 18,000 | 26,000 | 59,000 | ' |
Purchased rights to royalties | 160,000 | ' | ' | ' | ' | ' |
Notes payable | ' | 111,420 | ' | 111,420 | ' | 111,420 |
Due date of notes payable | ' | ' | ' | 'December 2015 | ' | ' |
Due from BBL with respect to obligation to fund | ' | $61,000 | ' | $61,000 | ' | ' |
Revolving_Line_of_Credit_Detai
Revolving Line of Credit (Details) (USD $) | 0 Months Ended | 6 Months Ended |
In Millions, unless otherwise specified | Jul. 06, 2011 | Jun. 30, 2014 |
Revolving Line of Credit (Textual) | ' | ' |
Term of revolving line of credit | ' | 'The revolving line of credit issued under the Credit Agreement expired on July 6, 2014. |
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 | $6 |
Percentage of eligible accounts receivables as part of borrowing base | 80.00% | 80.00% |
Percentage of eligible inventory as part of the borrowing base | 50.00% | 50.00% |
Description of interest on the revolving line of credit | '30 day LIBOR rate plus 1.74% per annum | '30 day LIBOR rate plus 1.65% per annum |
Minimum debt service coverage ratio to qualify for LIBOR | '2.0 to 1 | '2.0 to 1 |
Alternate interest rate condition if it doesn't satisfy the debt coverage ratio | '30 day LIBOR rate plus 2.75% per annum | ' |
30 day LIBOR rate plus 2.65% per annum. | ||
Interest rate minimum | 2.00% | ' |
Due date of outstanding principal and interest borrowed under revolving line of credit | 6-Jul-14 | 6-Jul-16 |
Financial covenants under credit agreement | ' | ' |
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. | Minimum debt service coverage ratio of 1.75 to 1.00, tested on a trailing twelve month basis, and a maximum debt to capitalization ratio (generally, 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 to 1.00 | '1.75 to 1.00 |
Debt capitalization ratio | '0.75 to 1 | '0.75 to 1 |
Long_Term_Debt_Details
Long Term Debt (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Summary of long-term debt | ' | ' |
Total long term debt, Current Portion | $419,422 | $414,525 |
Total long term debt, Long Term Portion | 906,081 | 1,117,761 |
Term loan [Member] | ' | ' |
Summary of long-term debt | ' | ' |
Total long term debt, Current Portion | 410,261 | 403,074 |
Total long term debt, Long Term Portion | 902,737 | 1,109,680 |
Capitalized equipment leases [Member] | ' | ' |
Summary of long-term debt | ' | ' |
Total long term debt, Current Portion | 9,161 | 11,451 |
Total long term debt, Long Term Portion | $3,344 | $8,081 |
Long_Term_Debt_Details_1
Long Term Debt (Details 1) (USD $) | Jun. 30, 2014 |
Summary of principal payments under Company's long term obligations | ' |
2015 | $419,422 |
2016 | 428,366 |
2017 | 440,315 |
2018 | 37,400 |
Total | $1,325,503 |
Long_Term_Debt_Details_Textual
Long Term Debt (Details Textual) (USD $) | 6 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jul. 06, 2011 | |
REFCO [Member] | REFCO [Member] | |||
Long Term Debt (Textual) | ' | ' | ' | ' |
Term loan | $1,313,000 | ' | ' | $2,430,000 |
Interest rate | ' | ' | ' | 3.54% |
Term loan maturity date | ' | ' | 6-Jul-17 | ' |
Aggregate capital lease | $12,505 | $19,532 | ' | ' |
Maturity period for capital lease | 'Through 2015 | ' | ' | ' |
Interest rates minimum | 7.00% | ' | ' | ' |
Interest rates maximum | 14.00% | ' | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Related Party Transactions (Textual) | ' | ' | ' | ' | ' |
Sales to the affiliated companies | $295,000 | $469,000 | $1,008,000 | $940,000 | ' |
Administrative fees | 147,000 | 134,000 | 239,000 | 236,000 | ' |
Accounts receivable from the affiliated companies | 832,431 | ' | 832,431 | ' | 536,402 |
Amount paid to entity for services | 10,500 | 10,500 | 21,000 | 21,000 | ' |
Insurance premiums paid | $98,000 | $150,000 | $315,000 | $333,000 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Commitments (Textual) | ' | ' | ' | ' |
Attorneys' fees and non-taxable costs | ' | ' | $259,550 | ' |
Fort Lauderdale Florida Facility [Member] | ' | ' | ' | ' |
Commitments (Textual) | ' | ' | ' | ' |
Scheduled expiration date of lease | ' | ' | 1-May-18 | ' |
Extended 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 | 25,000 | 24,000 | 49,000 | 49,000 |
Alabama River Facility [Member] | ' | ' | ' | ' |
Commitments (Textual) | ' | ' | ' | ' |
Leased area for docking facility (in Acres) | ' | ' | 1.5 | ' |
Lease expiration date | ' | ' | 30-Sep-14 | ' |
Rent expense under the lease | ' | ' | $8,000 | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings per common share - Basic | ' | ' | ' | ' |
Net income attributable to OBCI | $410,633 | $172,616 | $634,231 | $521,668 |
Weighted average number of common shares outstanding | 8,817,846 | 8,493,559 | 8,754,313 | 8,446,235 |
Earnings per common share - Basic | $0.05 | $0.02 | $0.07 | $0.06 |
Earnings per common share - Diluted | ' | ' | ' | ' |
Net income attributable to OBCI | $410,633 | $172,616 | $634,231 | $521,668 |
Weighted average number of common shares outstanding | 8,817,846 | 8,493,559 | 8,754,313 | 8,446,235 |
Dilutive effect of employee stock-based awards | 83,225 | 292,461 | 127,925 | 287,970 |
Weighted average number of common shares outstanding - assuming dilution | 8,901,071 | 8,786,020 | 8,882,238 | 8,734,205 |
Earnings per common share - Diluted | $0.05 | $0.02 | $0.07 | $0.06 |
Earnings_Per_Share_Details_Tex
Earnings Per Share (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share (Textual) | ' | ' | ' | ' |
Anti-dilutive stock options outstanding | ' | ' | ' | ' |
Special_Dividend_Details
Special Dividend (Details) (USD $) | Apr. 15, 2014 |
Special Dividend [Abstract] | ' |
Dividend per share | $0.05 |
Dividends payable | $440,016 |
Securities_Authorized_for_Issu2
Securities Authorized for Issuance under Equity Compensation Plans (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Summary of outstanding options, exercisable options, exercise price, expiration date, weighted average remaining life under company stock option plans | ' |
Options Outstanding | 140,000 |
Exercisable Options | 140,000 |
Exercise Price | $1.18 |
Weighted Average Remaining Life | '3 years 8 months 12 days |
2002NQ One [Member] | ' |
Summary of outstanding options, exercisable options, exercise price, expiration date, weighted average remaining life under company stock option plans | ' |
Date Granted | 3-Apr-06 |
Options Outstanding | 40,000 |
Exercisable Options | 40,000 |
Exercise Price | $1.08 |
Expiration Date | 2-Apr-16 |
Weighted Average Remaining Life | '1 year 9 months 18 days |
2002NQ Two [Member] | ' |
Summary of outstanding options, exercisable options, exercise price, expiration date, weighted average remaining life under company stock option plans | ' |
Date Granted | 17-Dec-07 |
Options Outstanding | 40,000 |
Exercisable Options | 40,000 |
Exercise Price | $1.32 |
Expiration Date | 16-Dec-17 |
Weighted Average Remaining Life | '3 years 6 months |
2002NQ Three [Member] | ' |
Summary of outstanding options, exercisable options, exercise price, expiration date, weighted average remaining life under company stock option plans | ' |
Date Granted | 11-Jan-09 |
Options Outstanding | 40,000 |
Exercisable Options | 40,000 |
Exercise Price | $0.69 |
Expiration Date | 10-Jan-19 |
Weighted Average Remaining Life | '4 years 7 months 6 days |
2002NQ Four [Member] | ' |
Summary of outstanding options, exercisable options, exercise price, expiration date, weighted average remaining life under company stock option plans | ' |
Date Granted | 26-Apr-10 |
Options Outstanding | 20,000 |
Exercisable Options | 20,000 |
Exercise Price | $2.07 |
Expiration Date | 25-Apr-20 |
Weighted Average Remaining Life | '5 years 10 months 24 days |
Securities_Authorized_for_Issu3
Securities Authorized for Issuance under Equity Compensation Plans (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Securities Authorized for Issuance under Equity Compensation Plans (Textual) | ' | ' | ' | ' |
Stock options exercised | ' | ' | 145,000 | ' |
Number of shares withhold in connection with net exercise feature of options | ' | ' | 14,633 | ' |
Shares issued to option holders | ' | ' | 130,367 | ' |
Stock compensation expense attributable to stock awards | $356,000 | $306,000 | $356,000 | $306,000 |
Unrecognized compensation expense related to stock options awarded to employees | ' | ' | ' | ' |
Stock option [Member] | ' | ' | ' | ' |
Securities Authorized for Issuance under Equity Compensation Plans (Textual) | ' | ' | ' | ' |
Stock compensation expense attributable to stock awards | $0 | $4,000 | $0 | $9,000 |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 0 Months Ended | 6 Months Ended |
In Millions, unless otherwise specified | Jul. 06, 2011 | Jun. 30, 2014 |
Subsequent Event (Textual) | ' | ' |
Term of revolving line of credit | ' | 'The revolving line of credit issued under the Credit Agreement expired on July 6, 2014. |
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 | $6 |
Percentage of eligible accounts receivables as part of borrowing base | 80.00% | 80.00% |
Percentage of eligible inventory as part of the borrowing base | 50.00% | 50.00% |
Description of interest on the revolving line of credit | '30 day LIBOR rate plus 1.74% per annum | '30 day LIBOR rate plus 1.65% per annum |
Minimum debt service coverage ratio to qualify for LIBOR | '2.0 to 1 | '2.0 to 1 |
Alternate interest rate condition if it doesn't satisfy the debt coverage ratio | '30 day LIBOR rate plus 2.75% per annum | ' |
30 day LIBOR rate plus 2.65% per annum. | ||
Interest rate minimum | 2.00% | ' |
Due date of outstanding principal and interest borrowed under revolving line of credit | 6-Jul-14 | 6-Jul-16 |
Financial covenants under credit agreement | ' | ' |
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. | Minimum debt service coverage ratio of 1.75 to 1.00, tested on a trailing twelve month basis, and a maximum debt to capitalization ratio (generally, 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 to 1.00 | '1.75 to 1.00 |
Debt capitalization ratio | '0.75 to 1 | '0.75 to 1 |
Line of credit ownership percentage | ' | 50.00% |