Ocean Bio Chem (OBCI) 10-Q 12 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 11, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	OCEAN BIO CHEM INC
Entity Central Index Key	350,737
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		9,146,940

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current Assets:
Cash	$ 1,795,573	$ 2,468,415
Trade accounts receivable less allowances of approximately $85,000 and $78,000, respectively	5,565,906	5,092,040
Receivables due from affiliated companies	1,072,680	1,051,091
Inventories, net	8,800,462	7,914,950
Prepaid expenses and other current assets	883,804	942,820
Deferred tax asset	132,539	125,335
Total Current Assets	18,250,964	17,594,651
Property, plant and equipment, net	5,057,368	5,356,388
Intangible assets, net	1,002,828	1,037,968
Total Assets	24,311,160	23,989,007
Current Liabilities:
Accounts payable - trade	1,787,478	1,101,720
Current portion of long-term debt	457,485	451,148
Income taxes payable	79,338
Accrued expenses payable	1,309,925	1,098,721
Total Current Liabilities	3,634,226	2,651,589
Deferred tax liability	339,430	365,012
Long-term debt, less current portion	97,314	328,818
Total Liabilities	4,070,970	3,345,419
Commitments and contingencies
Shareholders' Equity:
Common stock - $.01 par value, 12,000,000 shares authorized; 9,008,855 shares and 8,983,374 shares issued, respectively	90,089	89,834
Additional paid in capital	9,308,658	9,287,313
Foreign currency translation adjustment	(284,648)	(284,442)
Retained earnings	11,126,091	11,550,883
Total Shareholders' Equity	20,240,190	20,643,588
Total Liabilities and Shareholders' Equity	$ 24,311,160	$ 23,989,007

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
CONSOLIDATED BALANCE SHEETS
Trade accounts receivable, allowance for doubtful accounts	$ 85,000	$ 78,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	12,000,000	12,000,000
Common stock, shares issued	9,008,855	8,983,374

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Gross sales	$ 9,151,446	$ 9,144,836	$ 16,223,981	$ 15,473,179
Less: discounts, returns, and allowances	427,103	406,131	749,558	732,045
Net sales	8,724,343	8,738,705	15,474,423	14,741,134
Cost of goods sold	5,053,439	5,574,607	9,421,576	9,540,387
Gross profit	3,670,904	3,164,098	6,052,847	5,200,747
Operating Expenses:
Advertising and promotion	869,648	931,633	1,585,520	1,547,505
Selling and administrative	1,793,962	2,056,828	4,279,825	3,478,374
Total operating expenses	2,663,610	2,988,461	5,865,345	5,025,879
Operating income	1,007,294	175,637	187,502	174,868
Other expense
Interest, net (expense)	(4,913)	(8,820)	(10,797)	(18,895)
Other (expense)				(12,522)
Income before income taxes	1,002,381	166,817	176,705	143,451
Provision for income taxes	345,840	53,120	60,966	45,680
Net income	$ 656,541	$ 113,697	$ 115,739	$ 97,771
Earnings per common share - basic and diluted	$ 0.07	$ 0.01	$ 0.01	$ 0.01
Dividends declared per common share			$ 0.06

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net Income	$ 656,541	$ 113,697	$ 115,739	$ 97,771
Foreign currency translation adjustment	(2,540)	2,347	(206)	(5,768)
Comprehensive income	$ 654,001	$ 116,044	$ 115,533	$ 92,003

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net Income	$ 115,739	$ 97,771
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	491,495	446,799
Deferred income taxes	(32,786)	(27,978)
Loss on sale of property, plant and equipment		12,522
Other operating non-cash items	92,334	33,030
Changes in assets and liabilities:
Trade accounts receivable	(480,437)	852,922
Inventories	(966,496)	(1,029,911)
Prepaid expenses and other current assets	59,016	138,775
Receivables due from affiliated companies	(21,589)	(175,685)
Accounts payable and other accrued expenses	976,300	292,128
Net cash provided by operating activities	233,576	640,373
Cash flows from investing activities:
Purchases of property, plant and equipment	(157,335)	(670,525)
Cash paid for patent and trademark registration		(6,594)
Sale of property, plant, and equipment		55,000
Net cash used in investing activities	(157,335)	(622,119)
Cash flows from financing activities:
Payments on long-term debt	(225,167)	(214,865)
Dividends paid to common shareholders	(540,531)
Proceeds from exercise of stock options	21,600
Net cash used in financing activities	(744,098)	(214,865)
Effect of exchange rates on cash	(4,985)	(19,342)
Net decrease in cash	(672,842)	(215,953)
Cash at beginning of period	2,468,415	3,062,729
Cash at end of period	1,795,573	2,846,776
Supplemental disclosure of cash flow information:
Cash paid for interest during period	11,430	19,506
Cash paid for income taxes during period		$ 118,000

Summary of Accounting Policies

Summary of Accounting Policies	6 Months Ended
	Jun. 30, 2016
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 wholly-owned subsidiaries. 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. 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, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016. 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, 2015. 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 Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2016
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, 2016 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, 2016 did not have a material impact on the Company’s financial position, results of operations or cash flows, or on disclosures made by the Company.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2016
Inventories [Abstract]
INVENTORIES	3. INVENTORIES The Company’s inventories at June 30, 2016 and December 31, 2015 consisted of the following: June 30, 2016 December 31, 2015 Raw materials $ 3,678,023 $ 3,749,702 Finished goods 5,483,305 4,445,130 Inventories, gross 9,161,328 8,194,832 Inventory reserves (360,866 ) (279,882 ) Inventories, net $ 8,800,462 $ 7,914,950 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 $459,000 and $543,000 at June 30, 2016 and December 31, 2015, respectively, and are included in inventories, net on the condensed consolidated balance sheets.

Property, Plant & Equipment

Property, Plant & Equipment	6 Months Ended
	Jun. 30, 2016
Property, Plant & Equipment [Abstract]
PROPERTY, PLANT & EQUIPMENT	4. PROPERTY, PLANT & EQUIPMENT The Company’s property, plant and equipment at June 30, 2016 and December 31, 2015 consisted of the following: Estimate Useful Life June 30, 2016 December 31, 2015 Land $ 278,325 $ 278,325 Building and improvements 30 years 4,652,669 4,652,669 Manufacturing and warehouse equipment 6-20 years 9,192,385 9,072,162 Office equipment and furniture 3-5 years 1,283,045 1,293,609 Construction in process 224,558 215,155 Leasehold improvements 10-15 years 544,146 544,146 Vehicles 3 years 42,283 42,283 Property, plant and equipment, gross 16,217,411 16,098,349 Less accumulated depreciation (11,160,043 ) (10,741,961 ) Property, plant and equipment, net $ 5,057,368 $ 5,356,388

Revolving Line of Credit

Revolving Line of Credit	6 Months Ended
	Jun. 30, 2016
Revolving Line of Credit and Long Term Debt [Abstract]
REVOLVING LINE OF CREDIT	5. REVOLVING LINE OF CREDIT On August 4, 2014, the Company and Regions Bank entered into a 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, at which time all outstanding principal and interest will be due and payable. The revolving line of credit, which was to expire on July 6, 2016, has been extended through August 30, 2016 on substantially the same terms as previously in effect (the Company currently is engaged in negotiations with Regions Bank with regard to a new revolving line of credit facility). The Company’s obligations under the revolving line of credit are secured by, among other things, 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 term loan described in Note 6 and the revolving line of credit, real property and equipment at the Montgomery, Alabama facility of the Company’s subsidiary, Kinpak, Inc. ("Kinpak"). The Business Loan Agreement includes financial covenants requiring a minimum 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) of 1.75 to 1.00, calculated 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. At June 30, 2016 and December 31, 2015, the Company was in compliance with these covenants. 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. At June 30, 2016, the Company had no borrowings under the revolving line of credit. (As previously disclosed, the Company was not in compliance with the debt service coverage ratio covenant at March 31, 2016, which resulted in an event of default under the Business Loan Agreement. However, Regions Bank waived the default through May 9, 2017 and, as indicated above, at June 30, 2016, the Company regained compliance with the covenant.)

Long Term Debt

Long Term Debt	6 Months Ended
	Jun. 30, 2016
Revolving Line of Credit and Long Term Debt [Abstract]
LONG TERM DEBT	6. LONG TERM DEBT On July 6, 2011, REFCO provided to the Company a $2,430,000 term loan with a fixed interest rate of 3.54%, subject to an increase to 4.55% in the event 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, calculated on a trailing four-quarter basis) falls to or below 2.0 to 1. 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, 2016, approximately $478,000 was outstanding under the term loan. The term loan and the revolving line of credit under the Bank Loan Agreement are cross-defaulted (i.e., a default under one instrument is a default under the other). At June 30, 2016 and December 31, 2015, the Company was obligated under capital lease agreements covering equipment utilized in the Company’s operations. The capital leases, aggregating approximately $77,000 and $88,000 at June 30, 2016 and December 31, 2015, respectively, mature on July 1, 2020 and carry an interest rate of 2%. The following table provides information regarding the Company’s long term debt at June 30, 2016 and December 31, 2015: Current Portion Long Term Portion June 30, December 31, 2015 June 30, December 31, Term loan $ 440,315 $ 432,601 $ 37,400 $ 259,503 Capitalized equipment leases 17,170 18,547 59,914 69,315 Total long term debt $ 457,485 $ 451,148 $ 97,314 $ 328,818 Required principal payments under the Company’s long term obligations are set forth below: 12 month period ending June 30, 2017 $ 457,485 2018 56,463 2019 19,414 2020 19,773 2021 1,664 Total $ 554,799

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	7. RELATED PARTY TRANSACTIONS During the three and six months ended June 30, 2016 and 2015, 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 $460,000 and $493,000 during the three months ended June 30, 2016 and 2015, respectively, and approximately $1,006,000 and $1,218,000 for the six months ended June 30, 2016 and 2015, respectively. Administrative fees aggregated approximately $179,000 and $162,000 during the three months ended June 30, 2016 and 2015, respectively, and $302,000 and $269,000 for the six months ended June 30, 2016 and 2015, respectively. The Company had accounts receivable from the affiliated companies in connection with the product sales and administrative services aggregating approximately $1,073,000 and $1,051,000 at June 30, 2016 and December 31, 2015, 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 of its products to the affiliated companies are similar to the profit margins it realizes with respect to sales of the same products to its larger domestic customers. Management believes that the sales transactions did not involve more than normal credit risk or present other unfavorable features. An entity that is owned by the Company’s Chairman, President and Chief Executive Officer provides several services to the Company. Under this arrangement, the Company paid the entity $10,500 for each of the three month periods ended June 30, 2016 and 2015, and $21,000 for each of the six month periods ended June 30, 2016 and 2015, for research and development services. In addition, during the three and six month periods ending June 30, 2016, the Company paid this entity $25,000 for the production of television commercials and $9,000 for providing charter boat services for entertainment of Company customers. 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 its rental payments under the lease are below market rates. See Note 8 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, 2016 and 2015, the Company paid an aggregate of approximately $121,000 and $177,000, respectively, and during the six months ended June 30, 2016 and 2015, the Company paid an aggregate of approximately $181,000 and $393,000, respectively, in insurance premiums on policies obtained through the entity. The decrease in 2016 is primarily attributable to the Company’s prepayment of the entire annual premium for its general liability policy rather than paying the premium in installments.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	8. 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. The lease, as extended, expires on 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 was approximately $25,000 for each of the three months ended June 30, 2016 and 2015, respectively, and was approximately $49,000 for each of the six month periods ended June 30, 2016 and 2015, respectively.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
EARNINGS PER SHARE	9. EARNINGS PER SHARE Basic earnings per share is calculated by dividing net income 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. Three Months Ended Six Months Ended 2016 2015 2016 2015 Earnings per common share – Basic Net income $ 656,541 $ 113,697 $ 115,739 $ 97,771 Weighted average number of common shares outstanding 9,008,855 8,922,118 8,997,357 8,921,208 Earnings per common share – Basic $ 0.07 $ 0.01 $ 0.01 $ 0.01 Earnings per common share – Diluted Net income $ 656,541 $ 113,697 $ 115,739 $ 97,771 Weighted average number of common shares outstanding 9,008,855 8,922,118 8,997,357 8,921,208 Dilutive effect of employee stock-based awards 47,931 89,603 53,061 94,980 Weighted average number of common shares outstanding - Diluted 9,056,786 9,011,721 9,050,418 9,016,188 Earnings per common share – Diluted $ 0.07 $ 0.01 $ 0.01 $ 0.01 The Company had no stock options outstanding during each of the three and six month periods ended June 30, 2016 and 2015, respectively, that were anti-dilutive and therefore not included in the diluted earnings per common share calculation.

Securities Authorized for Issua

Securities Authorized for Issuance under Equity Compensation Plans	6 Months Ended
	Jun. 30, 2016
Securities Authorized for Issuance Under Equity Compensation Plans [Abstract]
SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS	10. SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS During the three months ended June 30, 2016 no stock options were exercised. During the six months ended June 30, 2016, stock options to purchase an aggregate of 30,000 shares were exercised. The Company received a total of $21,600, withheld 4,519 shares in connection with the net exercise feature of the stock options and delivered an aggregate of 25,481 shares to the option holders who exercised their options. No stock compensation expense was recognized during the three and six months ended June 30, 2016 and 2015. At June 30, 2016, there was no unrecognized compensation expense related to stock No stock awards were issued during the three and six months ended June 30, 2016 and 2015. The following table provides information at June 30, 2016 regarding outstanding Plan Date Granted Shares Underlying Options Outstanding Shares Underlying Exercisable Options Exercise Price Expiration Date Weighted Average Remaining Term 2002NQ 12/17/07 40,000 40,000 $ 1.32 12/16/17 1.5 2008NQ 1/11/09 40,000 40,000 $ 0.69 1/10/19 2.6 2008NQ 4/26/10 20,000 20,000 $ 2.07 4/25/20 3.9 100,000 100,000 $ 1.22 2.4

Special Cash Dividend

Special Cash Dividend	6 Months Ended
	Jun. 30, 2016
Special Cash Dividend [Abstract]
SPECIAL CASH DIVIDEND	11. SPECIAL CASH DIVIDEND On April 26, 2016, the Company paid a special cash dividend of $0.06 per common share to all shareholders of record on April 12, 2016. The dividend aggregated $540,531.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENT	12. SUBSEQUENT EVENT On August 4, 2016, the Company issued stock awards under the Ocean Bio-Chem, Inc. 2015 Equity Compensation Plan to officers, other employees and a consultant. The stock awards aggregated 139,000 shares of Company common stock.

Summary of Accounting Policies

Summary of Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
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 wholly-owned subsidiaries. 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. 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, 2016 are not necessarily indicative of the results to be expected for the year ending December 31, 2016. 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, 2015.
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, 2016
Inventories [Abstract]
Summary of composition of inventories	June 30, 2016 December 31, 2015 Raw materials $ 3,678,023 $ 3,749,702 Finished goods 5,483,305 4,445,130 Inventories, gross 9,161,328 8,194,832 Inventory reserves (360,866 ) (279,882 ) Inventories, net $ 8,800,462 $ 7,914,950

Property, Plant & Equipment (Ta

Property, Plant & Equipment (Tables)	6 Months Ended
	Jun. 30, 2016
Property, Plant & Equipment [Abstract]
Summary of property, plant and equipment	Estimate Useful Life June 30, 2016 December 31, 2015 Land $ 278,325 $ 278,325 Building and improvements 30 years 4,652,669 4,652,669 Manufacturing and warehouse equipment 6-20 years 9,192,385 9,072,162 Office equipment and furniture 3-5 years 1,283,045 1,293,609 Construction in process 224,558 215,155 Leasehold improvements 10-15 years 544,146 544,146 Vehicles 3 years 42,283 42,283 Property, plant and equipment, gross 16,217,411 16,098,349 Less accumulated depreciation (11,160,043 ) (10,741,961 ) Property, plant and equipment, net $ 5,057,368 $ 5,356,388

Long Term Debt (Tables)

Long Term Debt (Tables)	6 Months Ended
	Jun. 30, 2016
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, 2015 June 30, December 31, Term loan $ 440,315 $ 432,601 $ 37,400 $ 259,503 Capitalized equipment leases 17,170 18,547 59,914 69,315 Total long term debt $ 457,485 $ 451,148 $ 97,314 $ 328,818
Summary of principal payments under Company's long term obligations	12 month period ending June 30, 2017 $ 457,485 2018 56,463 2019 19,414 2020 19,773 2021 1,664 Total $ 554,799

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Summary of computation of basic and diluted earnings per common share	Three Months Ended Six Months Ended 2016 2015 2016 2015 Earnings per common share – Basic Net income $ 656,541 $ 113,697 $ 115,739 $ 97,771 Weighted average number of common shares outstanding 9,008,855 8,922,118 8,997,357 8,921,208 Earnings per common share – Basic $ 0.07 $ 0.01 $ 0.01 $ 0.01 Earnings per common share – Diluted Net income $ 656,541 $ 113,697 $ 115,739 $ 97,771 Weighted average number of common shares outstanding 9,008,855 8,922,118 8,997,357 8,921,208 Dilutive effect of employee stock-based awards 47,931 89,603 53,061 94,980 Weighted average number of common shares outstanding - Diluted 9,056,786 9,011,721 9,050,418 9,016,188 Earnings per common share – Diluted $ 0.07 $ 0.01 $ 0.01 $ 0.01

Securities Authorized for Iss24

Securities Authorized for Issuance under Equity Compensation Plans (Tables)	6 Months Ended
	Jun. 30, 2016
Securities Authorized for Issuance Under Equity Compensation Plans [Abstract]
Schedule of outstanding stock options under company's stock options plans	Plan Date Granted Shares Underlying Options Outstanding Shares Underlying Exercisable Options Exercise Price Expiration Date Weighted Average Remaining Term 2002NQ 12/17/07 40,000 40,000 $ 1.32 12/16/17 1.5 2008NQ 1/11/09 40,000 40,000 $ 0.69 1/10/19 2.6 2008NQ 4/26/10 20,000 20,000 $ 2.07 4/25/20 3.9 100,000 100,000 $ 1.22 2.4

Inventories (Details)

Inventories (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Summary of composition of inventories
Raw materials	$ 3,678,023	$ 3,749,702
Finished goods	5,483,305	4,445,130
Inventories, gross	9,161,328	8,194,832
Inventory reserves	(360,866)	(279,882)
Inventories, net	$ 8,800,462	$ 7,914,950

Inventories (Details Textual)

Inventories (Details Textual) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Inventories (Textual)
Inventories managed at the customer's warehouses	$ 459,000	$ 543,000

Property, Plant & Equipment (De

Property, Plant & Equipment (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Summary of property, plant and equipment
Land	$ 278,325	$ 278,325
Building and improvements	4,652,669	4,652,669
Manufacturing and warehouse equipment	9,192,385	9,072,162
Office equipment and furniture	1,283,045	1,293,609
Construction in process	224,558	215,155
Leasehold improvements	544,146	544,146
Vehicles	42,283	42,283
Property, plant and equipment, gross	16,217,411	16,098,349
Less accumulated depreciation	(11,160,043)	(10,741,961)
Property, plant and equipment, net	$ 5,057,368	$ 5,356,388
Building and Improvements [Member]
Summary of property, plant and equipment
Estimate Useful Life	30 years
Manufacturing and warehouse equipment [Member] | Minimum [Member]
Summary of property, plant and equipment
Estimate Useful Life	6 years
Manufacturing and warehouse equipment [Member] | Maximum [Member]
Summary of property, plant and equipment
Estimate Useful Life	20 years
Office equipment and furniture [Member] | Minimum [Member]
Summary of property, plant and equipment
Estimate Useful Life	3 years
Office equipment and furniture [Member] | Maximum [Member]
Summary of property, plant and equipment
Estimate Useful Life	5 years
Leasehold improvements [Member] | Minimum [Member]
Summary of property, plant and equipment
Estimate Useful Life	10 years
Leasehold improvements [Member] | Maximum [Member]
Summary of property, plant and equipment
Estimate Useful Life	15 years
Vehicles [Member]
Summary of property, plant and equipment
Estimate Useful Life	3 years

Revolving Line of Credit (Detai

Revolving Line of Credit (Details) - USD ($) $ in Millions	Aug. 04, 2014	Jun. 30, 2016
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 (as defined in the Business Loan Agreement) plus 50% of eligible inventory (as defined in the Business Loan Agreement).
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 1.65% per annum
Minimum debt service coverage ratio to qualify for LIBOR plus 1.65 %	2.0 to 1
Alternate interest rate condition if it doesn't satisfy the debt coverage ratio	30 day LIBOR rate plus 2.65% per annum
Due date of outstanding principal and interest borrowed under revolving line of credit	Jul. 6, 2016
Extended due date of outstanding principal and interest borrowed under revolving line of credit	Aug. 30, 2016
Financial covenants under credit agreement	A minimum 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) of 1.75 to 1.00, calculated 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
Debt capitalization ratio	0.75 to 1
Ownership requirement of majority shareholder to prevent default		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.

Long Term Debt (Details)

Long Term Debt (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Summary of long term debt
Total long term debt, Current Portion	$ 457,485	$ 451,148
Total long term debt, Long Term Portion	97,314	328,818
Term loan [Member]
Summary of long term debt
Term loan, Current Portion	440,315	432,601
Term loan, Long-term Portion	37,400	259,503
Capitalized equipment leases [Member]
Summary of long term debt
Capitalized equipment leases, Current Portion	17,170	18,547
Capitalized equipment leases, Long-term Portion	$ 59,914	$ 69,315

Long Term Debt (Details 1)

Long Term Debt (Details 1)	Jun. 30, 2016USD ($)
Summary of principal payments under Company's long term obligations
2,017	$ 457,485
2,018	56,463
2,019	19,414
2,020	19,773
2,021	1,664
Total	$ 554,799

Long Term Debt (Details Textual

Long Term Debt (Details Textual) - USD ($)	Jul. 06, 2011	Jun. 30, 2016	Dec. 31, 2015
Long Term Debt (Textual)
Term loan		$ 478,000
Aggregate capital lease		$ 77,000	$ 88,000
Maturity period for capital lease		Mature on July 1, 2020
Debt service coverage ratio		2.0 to 1
REFCO [Member]
Long Term Debt (Textual)
Term loan	$ 2,430,000
Interest rate	3.54%
Term loan maturity date	Jul. 6, 2017
Percentage of interest rates	2.00%
Term loan description	Term loan with a fixed interest rate of 3.54%, subject to an increase to 4.55% in the event 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, calculated on a trailing four-quarter basis) falls to or below 2.0 to 1.

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Related Party Transactions (Textual)
Sales to the affiliated companies	$ 460,000	$ 493,000	$ 1,006,000	$ 1,218,000
Administrative fees	179,000	162,000	302,000	269,000
Receivables due from affiliated companies	1,073,000		1,073,000		$ 1,051,000
Amount paid to entity for research and development services	10,500	10,500	21,000	21,000
Insurance premiums paid	121,000	$ 177,000	181,000	$ 393,000
Production of television commercials expense	25,000		25,000
Marketing expense	$ 9,000		$ 9,000

Commitments and Contingencies (

Commitments and Contingencies (Details) - Fort Lauderdale Florida Facility [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Commitments (Textual)
Extended expiration date of lease			Dec. 31, 2023
Minimum base rent			$ 94,800
Maximum annual percentage increase in base rent			2.00%
Period to review term of lease			3 years
Rent expense under the lease	$ 25,000	$ 25,000	$ 49,000	$ 49,000

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings per common share - Basic
Net income	$ 656,541	$ 113,697	$ 115,739	$ 97,771
Weighted average number of common shares outstanding	9,008,855	8,922,118	8,997,357	8,997,357
Earnings per common share - Basic	$ 0.07	$ 0.01	$ 0.01	$ 0.01
Earnings per common share - Diluted
Net income	$ 656,541	$ 113,697	$ 115,739	$ 97,771
Weighted average number of common shares outstanding	9,008,855	8,922,118	8,997,357	8,997,357
Dilutive effect of employee stock-based awards	47,931	89,603	53,061	94,980
Weighted average number of common shares outstanding - Diluted	9,056,786	9,011,721	9,050,418	9,016,188
Earnings per common share - Diluted	$ 0.07	$ 0.01	$ 0.01	$ 0.01

Securities Authorized for Iss35

Securities Authorized for Issuance under Equity Compensation Plans (Details)	6 Months Ended
	Jun. 30, 2016$ / sharesshares
Summary of outstanding options, exercisable options, exercise price, expiration date, weighted average remaining life under company stock option plans
Shares Underlying Options Outstanding	100,000
Shares Underlying Exercisable Options	100,000
Exercise Price | $ / shares	$ 1.22
Weighted Average Remaining Term	2 years 4 months 24 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	Dec. 17, 2007
Shares Underlying Options Outstanding	40,000
Shares Underlying Exercisable Options	40,000
Exercise Price | $ / shares	$ 1.32
Expiration Date	Dec. 16, 2017
Weighted Average Remaining Term	1 year 6 months
2008NQ One [Member]
Summary of outstanding options, exercisable options, exercise price, expiration date, weighted average remaining life under company stock option plans
Date Granted	Jan. 11, 2009
Shares Underlying Options Outstanding	40,000
Shares Underlying Exercisable Options	40,000
Exercise Price | $ / shares	$ 0.69
Expiration Date	Jan. 10, 2019
Weighted Average Remaining Term	2 years 7 months 6 days
2008NQ Two [Member]
Summary of outstanding options, exercisable options, exercise price, expiration date, weighted average remaining life under company stock option plans
Date Granted	Apr. 26, 2010
Shares Underlying Options Outstanding	20,000
Shares Underlying Exercisable Options	20,000
Exercise Price | $ / shares	$ 2.07
Expiration Date	Apr. 25, 2020
Weighted Average Remaining Term	3 years 10 months 24 days

Securities Authorized for Iss36

Securities Authorized for Issuance under Equity Compensation Plans (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Securities Authorized for Issuance Under Equity Compensation Plans (Textual)
Stock option exercised	0		30,000
Amount received from exercise of stock options			$ 21,600
Number of shares withhold in connection with net exercise feature of options	4,519		4,519
Shares received from exercise of options			25,481
Stock compensation expense	$ 0	$ 0	$ 0	$ 0
Unrecognized compensation expense related to stock options	$ 0		$ 0
Stock awards issued	0	0	0	0

Special Cash Dividend (Details)

Special Cash Dividend (Details)	6 Months Ended
	Jun. 30, 2016USD ($)$ / shares
Special Cash Dividend [Abstract]
Dividends paid to common shareholders per share | $ / shares	$ 0.06
Dividends paid to common shareholders | $	$ 540,531

Subsequent Event (Details)

Subsequent Event (Details)	1 Months Ended
	Aug. 04, 2016shares
Subsequent Event [Member]
Subsequent Event (Textual)
Stock awards granted	139,000