Lifeway Foods (LWAY) 10-K/A 10 Apr 17 2015 FY Annual report (amended) Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 01, 2016	Jun. 30, 2015
Document And Entity Information
Entity Registrant Name	LIFEWAY FOODS INC
Entity Central Index Key	814,586
Document Type	10-K/A
Document Period End Date	Dec. 31, 2015
Amendment Flag	true
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer	No
Is Entity a Voluntary Filer	No
Is Entity's Reporting Status Current	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		16,188,376
Entity Public Float			$ 91,167,353
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015
Amendment description	Change that impacts financial statements

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 5,646	$ 3,260
Investments, at fair value	2,091	2,779
Certificates of deposits in financial institutions	513	150
Inventories	7,664	5,814
Accounts receivable, net of allowance for doubtful accounts and discounts of $1,800 and $1,050 in 2015 and 2014 respectively	9,886	10,214
Prepaid expenses and other current assets	156	252
Other receivables	45	134
Deferred income taxes	556	408
Refundable income taxes	449	1,141
Total current assets	27,006	24,152
Property and equipment, net	21,375	21,892
Intangible assets
Goodwill & indefinite-lived intangibles	14,068	14,068
Other intangible assets, net	2,344	3,060
Total intangible assets	16,412	17,128
Other Assets
Other assets	125	252
Total assets	64,918	63,424
Current liabilities
Current maturities of notes payable	840	872
Accounts payable	8,393	5,587
Accrued expenses	1,538	2,066
Accrued income taxes	52
Total current liabilities	10,823	8,525
Notes payable	7,119	8,125
Deferred income taxes	1,719	2,074
Total liabilities	19,661	18,724
Stockholders' equity
Common stock, no par value; 40,000 shares authorized; 17,274, shares issued; 16,210 and 16,346 shares outstanding at 2015 and 2014	6,509	6,509
Paid-in-capital	2,033	2,033
Treasury stock, at cost	(9,730)	(8,188)
Retained earnings	46,516	44,544
Accumulated other comprehensive loss, net of taxes	(71)	(198)
Total stockholders' equity	45,257	44,700
Total liabilities and stockholders' equity	$ 64,918	$ 63,424

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets
Allowance for doubtful accounts and discounts	$ 1,800	$ 1,050
Stockholders' equity
Common stock, par value	$ 0	$ 0
Common stock, shares authorized	40,000	40,000
Common stock, shares issued	16,210	16,346
Common stock, shares outstanding	16,210	16,346

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Consolidated Statements Of Income And Comprehensive Income
Gross Sales	$ 137,244,000	$ 130,216,000	$ 108,966,000
Less: discounts and allowances	(18,657,000)	(11,256,000)	(11,442,000)
Net sales	118,587,000	118,960,000	97,524,000
Cost of goods sold	86,292,000	87,561,000	68,275,000
Depreciation expense	2,413,000	2,536,000	1,626,000
Total cost of goods sold	88,705,000	90,097,000	69,901,000
Gross profit	29,882,000	28,863,000	27,623,000
Selling expenses	11,892,000	11,611,000	9,131,000
General and administrative	12,871,000	12,301,000	9,748,000
Amortization expense	716,000	716,000	713,000
Total operating expenses	25,479,000	24,628,000	19,592,000
Income from operations	4,403,000	4,235,000	8,031,000
Other income (expense):
Interest and dividend income	112,000	122,000	116,000
Rental income	7,000	4,000	12,000
Interest expense	(236,000)	(277,000)	(203,000)
Gain (Loss) on sale of investments, net reclassified from OCI	(72,000)	99,000	195,000
Gain (Loss) on sale of equipment	253,000	7,000	(305,000)
Impairment of investments	(475,000)
Other Income (Expense)		8,000	11,000
Total other income (expense)	(411,000)	(37,000)	(174,000)
Income before provision for income taxes	3,992,000	4,198,000	7,857,000
Provision for income taxes	2,020,000	2,242,000	2,867,000
Net income	$ 1,972,000	$ 1,956,000	$ 4,990,000
Basic and diluted earnings per common share	$ 0.12	$ 0.12	$ 0.31
Weighted average number of shares outstanding	16,331	16,346	16,346
COMPREHENSIVE INCOME
Net income	$ 1,972,000	$ 1,956,000	$ 4,990,000
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on investments, net of $30, $94 and ($50) of taxes	(47,000)	(146,000)	64,000
Reclassifications to earnings:
Other than temporary impairment of investments, net of $84 of taxes	130,000	0	0
Realized (gains) losses on investments, net of ($28), $39 and $85 of taxes	44,000	(60,000)	(110,000)
Comprehensive income	$ 2,099,000	$ 1,750,000	$ 4,944,000

Consolidated Statements of Inc5

Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Consolidated Statements Of Income And Comprehensive Income
Unrealized gain (losses) on investments, net of taxes	$ 30	$ 94	$ (50)
Temporary impairment of investments, net of taxes	84
Realized (gains) losses on investments, net of taxes	$ (28)	$ 39	$ 85

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	In treasury	Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss), Net of Tax	Total
Beginning Balance, Shares issued at Dec. 31, 2012	17,274
Beginning Balance, Treasury stock shares at Dec. 31, 2012		(928)
Beginning Balance, Amount at Dec. 31, 2012	$ 6,509	$ (8,188)	$ 2,033	$ 38,905	$ 54
Other comprehensive income					(46)	$ (46)
Net income				4,990		4,990
Dividends declared ($.08 per share)				(1,307)		(1,307)
Ending Balance, Shares issued at Dec. 31, 2013	17,274
Ending Balance, Treasury stock shares at Dec. 31, 2013		(928)
Ending Balance, Amount at Dec. 31, 2013	$ 6,509	$ (8,188)	2,033	42,588	8
Other comprehensive income					(206)	(206)
Net income				1,956		$ 1,956
Ending Balance, Shares issued at Dec. 31, 2014	17,274					16,346
Ending Balance, Treasury stock shares at Dec. 31, 2014		(928)
Ending Balance, Amount at Dec. 31, 2014	$ 6,509	$ (8,188)	2,033	44,544	(198)	$ 44,700
Other comprehensive income					127	127
Net income				1,972		1,972
Treasury stock purchased, Shares		136
Treasury stock purchased, Amount		$ (1,542)				$ (1,542)
Ending Balance, Shares issued at Dec. 31, 2015	17,274					16,210
Ending Balance, Treasury stock shares at Dec. 31, 2015		(1,064)
Ending Balance, Amount at Dec. 31, 2015	$ 6,509	$ (9,730)	$ 2,033	$ 46,516	$ (71)	$ 45,257

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income	$ 1,972	$ 1,956	$ 4,990
Adjustments to reconcile net income to operating cash flow:
Depreciation and amortization	3,129	3,252	2,339
Loss (Gain) on sale of investments, net	72	(99)	(195)
Impairment of investments	475
Deferred income taxes	(585)	(720)	(238)
Bad Debt expense	73	205	33
(Gain) Loss on sale of equipment	(253)	(7)	305
(Increase) decrease in operating assets:
Accounts receivable	507	55	(1,742)
Other receivables	89	(31)	(94)
Inventories	(1,849)	1,085	(960)
Refundable income taxes	691	(126)	(930)
Prepaid expenses and other current assets	95	(124)	(6)
Increase (decrease) in operating liabilities:
Accounts payable	2,229	(1,136)	2,466
Accrued expenses	48	782	128
Income taxes payable	52		(254)
Net cash provided by operating activities	6,745	5,092	5,841
Cash flows from investing activities:
Purchases of investments	(1,489)	(3,280)	(3,519)
Proceeds from sale of investments	1,714	2,774	3,001
Redemption of certificates of deposit	272	15	424
Investments in certificates of deposits	(635)	(150)
Purchases of property and equipment	(1,995)	(3,684)	(8,480)
Proceeds from sale of equipment	353	64	711
Net cash used in investing activities	(1,780)	(4,261)	(7,863)
Cash flows from financing activities:
Purchase of treasury stock	(1,542)
Dividends paid			(1,308)
Net proceeds from debt issuance			4,975
Repayment of notes payable	(1,037)	(877)	(625)
Net cash provided by (used in) financing activities	(2,579)	(877)	3,042
Net increase (decrease) in cash and cash equivalents	2,386	(46)	1,020
Cash and cash equivalents at the beginning of the period	3,260	3,306	2,286
Cash and cash equivalents at the end of the period	5,646	3,260	3,306
Supplemental cash flow information:
Cash paid for income taxes	2,245	3,080	4,363
Cash paid for interest	$ 235	$ 267	$ 206

Basis of presentation, out of p

Basis of presentation, out of period adjustments and restatement of prior period	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Note 1 - Basis of presentation, out of period adjustments and restatement of prior period	Our Consolidated Financial Statements include the accounts of Lifeway Foods, Inc. and all of its wholly owned subsidiaries (collectively "Lifeway" or the "Company"). All significant intercompany accounts and transactions have been eliminated. Out-of-period adjustments recorded during fiscal 2014 During fiscal 2014, adjustments to correct the accounting for certain items related to periods prior to 2014, in the aggregate, decreased income before provision for income taxes by approximately $600,000 and net income by approximately $400,000 for the year ended December 31, 2014. These errors related to an understatement of accrued expenses and the provision for income taxes arising primarily from inaccurate accounting for certain employee, including officer, expense reports and an understatement of depreciation expense arising from assigning incorrect useful lives. The Company determined these adjustments to be immaterial, individually and in the aggregate, to our previously filed consolidated financial statements. Restatements of prior period financial statements Matters affecting the statement of income and comprehensive income During fiscal year 2015 certain indirect manufacturing overhead costs were classified as an element of General and Administrative (G&A) expense in our previously issued Statements of Income and Comprehensive Income. These indirect manufacturing overhead costs are more appropriately classified as an element of Cost of Goods Sold. Accordingly, the classification errors have been restated in the Consolidated Statements of Income and Comprehensive Income. These classification errors have no impact on the Company's previously-reported net sales, income from operations, net income, or basic and diluted earnings per common share presented in its Consolidated Statements of Income and Comprehensive Income. The Company determined the classification errors related to the 2015 Consolidated Statements of Income and Comprehensive Income were quantitatively large enough to require a restatement of 2015 and has captioned those periods as “restated.” Matters affecting the balance sheet and statement of cash flows The Company also determined that certain operating assets and liabilities at December 31, 2015 were not properly classified in our previously issued Consolidated Balance Sheets. These classification errors did not have a material impact on the Company's previously issued Consolidated Balance Sheets and Consolidated Statements of Cash Flows. To provide a higher degree of transparency and enhanced comparability between periods, these classification errors have been restated. Certain trade receivables at December 31, 2015 were reclassified from non-current assets to current assets to reflect the expected settlement of those receivables within one year; certain investments that do not meet the definition of available-for-sale securities were reclassified from investments at fair value to other assets; and we reclassified certain accounts payable amounts from accrued expenses to accounts payable. Reclassifications of prior period financial statements During the first quarter of 2015, certain executive compensation expense was classified as Selling expenses that management determined should have been classified as G&A expense. These classification changes are reflected in the Consolidated Statements of Income and Comprehensive Income for 2015. The reclassification has also been reflected in the 2014 and 2013 Consolidated Statements of Income and Comprehensive Income to conform to the 2015 presentation and such reclassifications do not change total operating expenses or net income in those periods. These adjustments had the following impact on our 2015 interim and annual Consolidated Statement of Income and Comprehensive Income: (Unaudited) Three Months Ended March 31, 2015 (Unaudited) Six Months Ended June 30, 2015 As Adjustment As As Adjustment As Net Sales $ 29,622 $ – $ 29,622 $ 59,443 $ – $ 59,443 Cost of Goods Sold 21,239 458 21,697 44,044 1,017 45,061 Gross Profit 8,383 (458 ) 7,925 15,399 (1,017 ) 14,382 Selling expenses 3,302 – 3,302 5,920 – 5,920 General & administrative 3,492 (458 ) 3,034 7,662 (1,017 ) 6,645 Amortization 179 – 179 358 – 358 Operating expenses 6,973 (458 ) 6,515 13,940 (1,017 ) 12,923 Income from Operations $ 1,410 $ – $ 1,410 $ 1,459 $ – $ 1,459 (Unaudited) Nine Months Ended September 30, 2015 Twelve Months Ended December 31, 2015 As Previously Reported (c) Adjustment (b) As As Previously Reported (d) Adjustment (b) As Net Sales $ 89,042 $ – $ 89,042 $ 118,587 $ – $ 118,587 Cost of Goods Sold 64,588 1,137 65,725 86,986 1,719 88,705 Gross Profit 24,454 (1,137 ) 23,317 31,601 (1,719 ) 29,882 Selling expenses 9,486 (860 ) 8,626 12,752 (860 ) 11,892 General & administrative 10,920 (277 ) 10,643 13,730 (859 ) 12,871 Amortization 537 – 537 716 – 716 Operating expenses 20,943 (1,137 ) 19,806 27,198 (1,719 ) 25,479 Income from Operations $ 3,511 $ – $ 3,511 $ 4,403 $ – $ 4,403 (a) As previously reported in our first and second quarter 2016 Form 10-Q filings. (b) Includes the reclassification of certain executive compensation from Selling to G&A expenses. (c) As previously reported in our third quarter 2015 Form 10-Q filed on November 9, 2015. (d) As previously reported in our 2015 Form 10-K filed on March 16, 2016. The reclassifications related to certain executive compensation had the following impact on our 2014 and 2013 Consolidated Statement of Income and Comprehensive Income: Twelve Months Ended December 31, 2014 Twelve Months Ended December 31, 2013 As Previously Reported (d) Reclassification As Revised As Previously Reported (d) Reclassification As Revised Selling expenses $ 14,534 $ (2,923 ) $ 11,611 $ 11,296 $ (2,165 ) $ 9,131 General & administrative 9,378 2,923 12,301 7,583 2,165 9,748 Amortization 716 – 716 713 – 713 Operating expenses $ 24,628 $ – $ 24,628 $ 19,592 $ – $ 19,592

Summary Of Significant Accounti

Summary Of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Note 2 - Summary Of Significant Accounting Policies	Use of estimates The preparation of 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, liabilities revenues and expenses. Actual results could differ from those estimates. Significant estimates made in preparing the consolidated financial statements include the reserve for promotional allowances, the fair value of investment securities, the valuation of goodwill and intangible assets, and deferred taxes. Revenue Recognition The Company records sales when the following four criteria have been met: (i) The product has been shipped and the Company has no significant remaining obligations; (ii) Persuasive evidence of an agreement exists; (iii) The price to the buyer is fixed or determinable and (iv) Collection is probable. In addition, amounts invoiced to customers for shipping charges are included in gross sales and the related cost in cost of goods sold. The Company routinely offers sales allowances and discounts to our customers and consumers. These programs include rebates, in-store display and demo allowances, allowances for non-salable product, coupons and other trade promotion activities. These allowances are considered reductions in the price of our products and thus are recorded as reductions to gross sales. Some of these incentives are recorded by estimating incentive costs based on our historical experience and expected levels of performance of the trade promotion. We maintain a reserve for the estimated allowances incurred but unpaid. Differences between estimated and actual allowances are normally insignificant and are recognized in earnings in the period such differences are determined. Product returns have historically not been material. Bulk cream is a by-product of the Company's fluid milk manufacturing process. The Company does not use bulk cream in any of its end products, but rather disposes of it through sales to other companies. Bulk cream by-product sales are included in gross sales. Cash and cash equivalents All highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents. Investments All investment securities are classified as available-for-sale and are carried at fair value. Unrealized gains and losses on available-for-sale securities are reported as a separate component of stockholders' equity to the extent they are considered temporary in nature. Amortization, accretion, interest and dividends, realized gains and losses, and declines in value judged to be other-than-temporary on available-for-sale securities are recorded as a component of other income. This evaluation depends on the specific facts and circumstances. Factors that we consider in determining whether an other-than-temporary decline in fair value has occurred include: the fair value of the security in relation to its cost basis; the financial condition of the investee; and the intent and ability to retain the investment for a sufficient period of time to allow for possible recovery in the fair value of the investment. Inventories Inventories are stated at the lower of first in, first out cost or market. Property and equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred; significant renewals and betterments are capitalized. Property and equipment is being depreciated over the following useful lives: Category Years Buildings and improvements 31 and 39 Machinery and equipment 5 - 12 Office equipment 5 - 7 Vehicles 5 Leasehold improvements Shorter of expected useful life or lease term Goodwill and other intangible assets Intangible assets acquired in a business combination are recorded at their estimated fair values at the date of acquisition. Goodwill represents the excess purchase price over the fair value of the net tangible and other identifiable intangible assets acquired. Goodwill is not amortized, but is reviewed for impairment at least annually. The Company amortizes other intangible assets over their estimated useful lives, as disclosed in the table below. The Company reviews intangible assets for impairment at least once per year to determine if any adverse conditions exist that would indicate the carrying value of these assets may not be recoverable. The Company conducts more frequent impairment assessments if certain conditions exist, such as a change in the competitive landscape, any internal decisions to pursue new or different strategies, a loss of a significant customer, or a significant change in the market place including changes in the prices paid for the Company's products or changes in the size of the market for the Company's products. If the estimated remaining useful life of an intangible asset is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. Intangible assets are being amortized over the following useful lives: Category Years Recipes 4 Trade names 8-15 Formula 10 Customer lists 8-10 Customer relationships 8-12 Income taxes Deferred income taxes are the result of temporary differences that arise from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of the assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. The principal sources of temporary differences are different depreciation and amortization methods for financial statement and tax purposes, unrealized gains or losses related to investments, capitalization of indirect costs for tax purposes, purchase price adjustments, and the allowance for doubtful accounts. The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. Periods subject to examination for the Company's federal income tax returns are the 2012, 2013 and 2014 tax years. The amount of unrecognized tax benefits that, if recognized, would impact the annual effective tax rate was not significant as of December 31, 2015 and 2014. The total amount of unrecognized tax benefits can change due to audit settlements, tax examination activities, statute expirations and the recognition and measurement criteria under accounting for uncertainty in income taxes. Treasury stock Treasury stock is recorded using the cost method. Advertising costs The Company expenses advertising costs as incurred. For the years ended December 31, 2015, 2014 and 2013 total advertising expenses were $5,006, $3,875, and $2,686, respectively. Earnings per common share Earnings per common share were computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. For the years ended December 31, 2015 2014, and 2013, there were no common stock equivalents outstanding. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific requirements. ASU 2014-09 establishes a five-step revenue recognition process in which an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. In August 2015 the FASB delayed the effective date for implementation of ASU 2014-09. Under the delayed effective date, the Company is required to adopt the new standard not later than January 1, 2018. Management is currently evaluating the impact the adoption of ASU 2014-09 will have on the Company's consolidated financial position, results of operations or cash flows and the method of retrospective application, either full or modified. In July 2015, the FASB issued new accounting guidance for measuring inventory. The core principal of the guidance is that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance does not apply to inventory that is being measured using the Last-In, First-Out (LIFO) or the retail inventory method. The guidance is effective for financial statements issued for annual and interim periods beginning after December 15, 2016 on a prospective basis. Early adoption is permitted. Management is currently evaluating the impact this will have on the consolidated financial statements. In November 2015, the FASB issued new guidance regarding the balance sheet classification of deferred taxes. This new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. Previous guidance required deferred tax assets and liabilities to be separated into current and noncurrent amounts on the balance sheet. The guidance is effective for fiscal years beginning on or after December 15, 2016, and interim periods within those years. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements. In January, 2016, the FASB issued new guidance regarding the recognition and measurement of financial assets and liabilities. The new guidance modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted under the equity method at fair value and recognize any changes in fair value in net income unless certain conditions exist. The new guidance will be effective for fiscal years beginning on or after December 15, 2017 and interim periods within those years. Early adoption of the guidance is not permitted. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements. In February 2016, the FASB issued new guidance regarding leases. The guidance requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those years. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements.

Intangible Assets

Intangible Assets	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Note 3 - Intangible Assets	Goodwill & indefinite-lived intangible assets consists of the following: December 31, 2015 2014 Goodwill $ 10,368 $ 10,368 Brand names 3,700 3,700 Goodwill & indefinite lived intangible assets $ 14,068 $ 14,068 Other intangible assets, net consists of the following: December 31, 2015 2014 Recipes $ 44 $ 44 Customer lists and other customer related intangibles 4,529 4,529 Customer relationship 985 985 Trade names 2,248 2,248 Formula 438 438 8,244 8,244 Accumulated amortization 5,900 5,184 Intangible assets, net $ 2,344 $ 3,060 Amortization expense is expected to be approximately the following for the years ending December 31: 2016 $ 697 2017 672 2018 635 2019 210 2020 130 $ 2,344

Investments

Investments	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Note 4 - Investments	The cost and fair value of investments classified as available for sale are as follows: December 31, 2015 Cost Unrealized Gains Unrealized Losses Fair Value Common stocks & ETF's $ 690 $ 17 $ (94 ) $ 613 Mutual Funds 27 - (1 ) 26 Preferred Securities 98 6 - 104 Corporate Bonds 1,393 43 (88 ) 1,348 Total $ 2,208 $ 66 $ (183 ) $ 2,091 December 31, 2014 Cost Unrealized Gains Unrealized Losses Fair Value Common stocks & ETF's $ 530 $ 20 $ (64 ) $ 486 Mutual Funds 445 - (11 ) 435 Preferred Securities 180 - (2 ) 178 Corporate Bonds 1,949 2 (270 ) 1,680 Total $ 3,104 $ 22 $ (347 ) $ 2,779 December 31, 2013 Cost Unrealized Gains Unrealized Losses Fair Value Common stocks & ETF's $ 1,006 $ 98 $ (32 ) $ 1,072 Mutual Funds 55 2 - 57 Preferred Securities 465 13 (16 ) 462 Corporate Bonds 973 1 (49 ) 925 Total $ 2,499 $ 114 $ (97 ) $ 2,516 Gross gains of $48, $177, and $248 and gross losses of $120, $78 and $53 were realized on the sales of investments during the years ended December, 2015, 2014 and 2013 respectively. The following table shows the gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2015, 2014 and, 2013: Less Than 12 Months 12 Months or Greater Total December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Common stocks & ETF's $ 225 $ (72 ) $ 152 $ (22 ) $ 377 $ (94 ) Mutual Funds 26 (1 ) - - 26 (1 ) Preferred Securities - - - - - - Corporate Bonds 370 (32 ) 479 (56 ) 849 (88 ) $ 621 $ (105 ) $ 631 $ (78 ) $ 1,252 $ (183 ) Less Than 12 Months 12 Months or Greater Total December 31, 2014 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Common stocks & ETF's $ 162 $ (49 ) $ 141 $ (15 ) $ 303 $ (64 ) Mutual Funds 435 (10 ) - - 435 (10 ) Preferred Securities 81 (2 ) - - 81 (2 ) Corporate Bonds 1,056 (195 ) 497 (76 ) 1,553 (271 ) $ 1,734 $ (256 ) $ 638 $ (91 ) $ 2,372 $ (347 ) Less Than 12 Months 12 Months or Greater Total December 31, 2013 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Common stocks & ETF's $ 213 $ (32 ) $ - $ - $ 213 $ (32 ) Mutual Funds - - - - - - Preferred Securities 224 (15 ) - - 224 (15 ) Corporate Bonds 616 (43 ) 97 (7 ) 713 (50 ) $ 1,053 $ (90 ) $ 97 $ (7 ) $ 1,150 $ (97 ) The Company's investments in equity securities, mutual funds, and corporate bonds consist of investments in common stock, preferred stock, structured notes and other debt securities of companies in various industries. The Company recorded other-than-temporary impairment losses of approximately $475 during fiscal 2015 with respect to certain structured notes. The impairment losses are included in "other income (expense)" in the accompanying consolidated statements of income and comprehensive income. The structured notes allow the issuer to settle at an amount less than par in certain circumstances. In reaching a conclusion to record these other-than-temporary impairment losses, the Company evaluated the near-term prospects of the issuers and determined it was probable the issuers would have the ability to settle the bonds for an amount less than par value at maturity.

Inventories

Inventories	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Note 5 - Inventories	Inventories consist of the following: December 31, 2015 2014 Finished goods $ 2,946 $ 2,373 Production supplies 2,636 2,070 Raw materials 2,082 1,371 Total inventories $ 7,664 $ 5,814

Property And Equipment

Property And Equipment	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Note 6 - Property And Equipment	Property and equipment consist of the following: December 31, 2015 2014 Land $ 1,807 $ 1,856 Buildings and improvements 16,387 15,126 Machinery and equipment 22,907 20,435 Vehicles 1,298 1,245 Office equipment 709 465 Construction in process 311 2,409 43,419 41,536 Less accumulated depreciation 22,044 19,644 Total property and equipment $ 21,375 $ 21,892

Accrued Expenses

Accrued Expenses	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Note 7 - Accrued Expenses	Accrued expenses consist of the following: December 31, 2015 2014 Accrued payroll and payroll taxes $ 859 $ 892 Accrued property tax 377 331 Other 3,027 843 $ 1,538 $ 2,066

Notes Payable

Notes Payable	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Note 8 - Notes Payable	Notes payable consist of the following: December 31, 2015 2014 Variable rate bank notes due May 31, 2018. Principal and interest payable monthly with a balloon payment due at maturity. $ 3,846 $ 4,352 Variable rate bank notes due May 31, 2019. Principal and interest payable monthly with a balloon payment due at maturity. 4,113 4,584 5.99% secured equipment notes fully paid and extinguished July, 2015 - 12 6.65% secured equipment notes fully paid and extinguished July, 2015 - 49 Total notes payable 7,959 8,997 Less current maturities 840 872 Total long-term portion $ 7,119 $ 8,125 The variable rate bank notes are subject to interest at the prime rate or at the LIBOR rate plus 2.5% and are collateralized by substantially all of the assets of the Company. In addition, under the terms of the related agreements, the Company is subject to minimum fixed charged ratio and tangible net worth thresholds, which among other things may limit the Company’s ability to pay dividends or repurchase shares of its common stock. The Company was in compliance with these financial covenants at December 31, 2015. Further, under the agreements the Company is required to deliver its annual and quarterly financial statements and related SEC filings within specified time frames. In addition, the Company has a $5 million revolving credit facility. Borrowings under the facility are subject to interest at the prime rate or LIBOR plus 2.5%. As of December 31, 2015 there were no borrowings under the facility. Unless renewed the facility expires in May 2016. Future maturities of notes payables are as follows: For the year ending December 31, 2016 $ 840 2017 840 2018 3,166 2019 3,113 Total $ 7,959

Commitments And Contingencies

Commitments And Contingencies	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Note 9 - Commitments And Contingencies	Lease obligations Litigation -The Company is a party to lawsuits in the normal course of business. In the opinion of management, the resolution of these lawsuits will not have a material adverse effect on the Company's consolidated financial position or results of operations.

Income taxes

Income taxes	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Note 10 - Income taxes	The provision for income taxes consists of the following: For the Years Ended December 31, 2015 2014 2013 Current: Federal $ 1,888 $ 2,143 $ 2,552 State and local 717 819 554 Total current 2,605 2,962 3,106 Deferred (585 ) (720 ) (239 ) Provision for income taxes $ 2,020 $ 2,242 $ 2,867 A reconciliation of the U.S. federal statutory rate to the effective tax rate used in the provision for income taxes is as follows: 2015 2014 2013 Amount Percentage Amount Percentage Amount Percentage Federal income tax expense computed at the statutory rate $ 1,357 34.0 % $ 1,428 34.0 % $ 2,666 34.0 % State and local tax expense, net 337 8.4 % 215 5.1 % 745 9.5 % U.S. domestic manufacturers' deduction & other permanent differences 300 7.5 % 464 11.0 % (455 ) (5.8 )% Additions for tax positions of prior years 50 1.3 % 215 5.1 % 0 0 % Change in tax rates -- 0 % (138 ) (3.2 )% 0 0 % Change in tax estimate (24 ) (0.6 )% 58 1.4 % (89 ) (1.1 )% Provision for income taxes $ 2,020 50.6 % $ 2,242 53.4 % $ 2,867 36.6 % A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2015 2014 2013 Balance at January 1 $ 215 $ -- $ -- Additions for tax positions of prior years 50 215 -- Balance at December 31 $ 265 $ 215 $ -- The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in general and administrative expenses. The amount of interest and penalties recognized in the consolidated statements of income and comprehensive income was approximately $--, $65, and $-during 2015, 2014 and 2013 respectively. The amount of interest and penalties recognized in the consolidated balance sheets was approximately $65 at December 31, 2015 and 2014, respectively. Amounts for deferred tax assets and liabilities are as follows: December 31, 2015 2014 2013 Non-current deferred tax assets (liabilities) arising from: Accumulated depreciation and amortization $ (1,719 ) $ (2,074 ) $ (2,896 ) Capital loss carry-forwards -- -- 53 Total non-current net deferred tax liabilities (1,719 ) (2,074 ) (2,843 ) Current deferred tax assets arising from: Capital loss carry-forward & investment impairment 164 9 -- Unrealized losses (gain) on investments 45 127 (8 ) Inventory 308 233 308 Allowances for doubtful accounts and discounts 39 39 22 Total current deferred tax assets 556 408 322 Net deferred tax liability $ (1,163 ) $ (1,666 ) $ (2,521 )

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Note 11 - Fair Value Measurements	Financial Accounting Standards Board ("FASB") Accounting Standards Codification Fair Value Measurements and Disclosures Level 1. Level 2. ● Quoted prices for similar assets or liabilities in active markets; ● Quoted prices for identical or similar assets or liabilities in inactive markets; ● Inputs other than quoted prices that are observable for the asset or liability; ● Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3. The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis. There have been no changes in the methodologies used as of December 31, 2015 and 2014. The majority of the Company's fair value measurements for investments are classified within Level 1 or Level 2 of the fair value hierarchy. The Company's Level 1 fair value measurements, which include mutual funds, common stock and exchange traded funds (ETF's), are based on quoted market prices in active markets for identical securities. The Company's Level 2 fair value measurements, which include corporate bonds, is based on quoted prices in inactive markets for identical or similar assets. The company's level 3 fair value measurements which include other than temporarily impaired bonds are based on the present value of the estimated proceeds expected to be received at maturity of the bond. Those bonds were reclassified to level 3 from level 2 during 2015. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table sets forth by level, within the fair value hierarchy, the Company's financial assets measured at fair value on a recurring basis for the years ended December 31, 2015 and 2014. The assets presented here are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: Assets at Fair Value as of December 31, 2015 Level 1 Level 2 Level 3 Total Mutual Funds $ 26 $ - $ - $ 26 Common Stocks & ETF's 613 - - 613 Preferred Securities - 104 - 104 Corporate Bonds - 1,187 161 1,348 Assets at Fair Value as of December 31, 2014 Level 1 Level 2 Level 3 Total Mutual Funds $ 435 $ -- $ -- $ 435 Common Stocks & ETF's 486 -- -- 486 Preferred Securities -- 178 -- 178 Corporate Bonds -- 1,680 -- 1,680 The Company's financial assets and liabilities which are not carried at fair value on a recurring basis include cash and cash equivalents, certificates of deposit, accounts receivable, other receivables, accounts payable and notes payable for which carrying value approximates fair value.

Stock-based Compensation

Stock-based Compensation	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Note 12 - Stock-based Compensation	In December 2015, Lifeway shareholders approved the 2015 Omnibus Incentive Plan, which authorized the issuance of an aggregate of 3.5 million shares to satisfy awards of stock options, stock appreciation rights, unrestricted stock, restricted stock, restricted stock units, performance shares and performance units. The Company has not established a pace for the frequency of awards under the Omnibus plan, and may choose to suspend the issuance of new awards in the future and may grant additional awards at any time including issuing special grants of restricted stock, restricted stock units and stock options to attract and retain new and existing executives. Pursuant to the Omnibus Incentive Plan, Lifeway granted 26 stock options to certain key employees of the company effective January 1, 2016 (the "2016 options"). The 2016 options generally vest over a three-year period, on a relatively accelerated basis. The accelerated vesting reflects the landmark nature of the awards and the relative tenure of individual participants. Total stock based compensation arising from this award, which will be recognized in periods subsequent to 2015 is approximately $60. There was no stock based compensation expense in each of the three years ending December 31, 2015, 2014 and 2013. There were no options, restricted stock or other equity instruments awarded or outstanding at any time during each of the three years ending December 31, 2015, 2014 and 2013.

Segments, Products and Customer

Segments, Products and Customers	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Note 13 - Segments, Products and Customers	The Company manufactures probiotic, cultured, functional dairy health food products. The Company's primary product is kefir, a dairy beverage similar to but distinct from yogurt, in several flavors and in several package configurations. In addition to the drinkable products, Lifeway manufactures "Lifeway Farmer Cheese," a line of various farmer cheeses. The Company has determined that it has one reportable segment based on how the Company's chief operating decision maker manages the business and in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing company performance, has been identified collectively as the Chief Financial Officer, the Chief Executive Officer and Chairman of the board of directors. Substantially all of the consolidated revenues of the Company relate to the sale of fermented dairy products which are produced using the same processes and materials and are sold to consumers through a network of distributors and retailers in the United States. Gross sales of products by category were as follows for the years ended December 31: 2015 2014 2013 Lifeway Farmer Cheese $ 9,725 $ 10,266 $ 9,388 Drinkable Kefir other than ProBugs 118,090 110,297 90,441 ProBugs 7,936 7,868 7,127 Frozen Kefir 1,493 1,785 2,010 Total sales $ 137,244 $ 130,216 $ 108,966 Significant Customers

Share repurchase program

Share repurchase program	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Note 14 - Share repurchase program	On September 24, 2015, the Company's Board of Directors authorized a stock repurchase program under which the Company may repurchase up to $3,500 of the Company's common stock not to exceed an aggregate of 250 shares, in the open market or in privately negotiated transactions, in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The extent to which the Company repurchases its shares and the timing of such repurchases will depend upon a variety of factors, including market conditions, regulatory requirements and other corporate considerations, as determined by management. The repurchase program may be suspended or discontinued at any time. Pursuant to the share repurchase program, during the three and twelve months ended December 31, 2015 the company repurchased 136 shares at a cost of $1,542, or about $11.32 per share. Approximately $1,958 remained available under this program as of December 31, 2015.

Related party transactions

Related party transactions	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Note 15 - Related party transactions	The Company obtained consulting services from the Chairman of its board of directors. Fees paid to the chairperson were $1,000, $747 and $408 during the fiscal years ended December 31, 2015, 2014 and 2013 respectively and were included in general and administrative expense in the accompanying consolidated statements of income and comprehensive income. On December 14, 2015, the Company entered into a stock purchase agreement (the "Stock Purchase Agreement") with Ludmila Smolyansky, the Company's Chairman of the Board pursuant to which Ms. Smolyansky agreed to sell to the Company 30 and the Company agreed to purchase such shares under its previously disclosed repurchase plan at a purchase price equal to the product of (a) 30 multiplied by (b) the average of the last reported closing sale price of the Common Stock on the Nasdaq Global Market for each of the five (5) Trading Days (as defined in the Stock Purchase Agreement) immediately preceding the date of the Stock Purchase Agreement. The transaction was consummated on December 15, 2015. On March 14, 2016, the Company entered into an endorsement agreement (the "Agreement") with Ludmila Smolyansky, the Company's Chairman of the Board. Under the terms and conditions of the Agreement, Ms. Smolyansky grants an unlimited, perpetual, non-exclusive, worldwide and, except as set forth therein, royalty free, right to use, reuse, publish, reproduce, perform, copy, create derivative works, exhibit, broadcast and display Ms. Smolyansky's name, image and likeness in Marketing Materials (as defined in the Agreement). As consideration for such license, the Company agrees to pay Ms. Smolyansky a royalty equal to $0.02 for each Company product or item sold by Lifeway during each calendar month bearing Ms. Smolyansky's first name, last name or other identifying personal characteristics; provided however that such royalty will not exceed $50 in any month and such royalty payments will cease upon the death of Ms. Smolyansky.

Summary Of Significant Accoun23

Summary Of Significant Accounting Policies (Policy)	12 Months Ended
	Dec. 31, 2015
Summary Of Significant Accounting Policies Policy
Use Of Estimates	The preparation of 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, liabilities revenues and expenses. Actual results could differ from those estimates. Significant estimates made in preparing the consolidated financial statements include the reserve for promotional allowances, the fair value of investment securities, the valuation of goodwill and intangible assets, and deferred taxes.
Revenue Recognition	The Company records sales when the following four criteria have been met: (i) The product has been shipped and the Company has no significant remaining obligations; (ii) Persuasive evidence of an agreement exists; (iii) The price to the buyer is fixed or determinable and (iv) Collection is probable. In addition, amounts invoiced to customers for shipping charges are included in gross sales and the related cost in cost of goods sold. The Company routinely offers sales allowances and discounts to our customers and consumers. These programs include rebates, in-store display and demo allowances, allowances for non-salable product, coupons and other trade promotion activities. These allowances are considered reductions in the price of our products and thus are recorded as reductions to gross sales. Some of these incentives are recorded by estimating incentive costs based on our historical experience and expected levels of performance of the trade promotion. We maintain a reserve for the estimated allowances incurred but unpaid. Differences between estimated and actual allowances are normally insignificant and are recognized in earnings in the period such differences are determined. Product returns have historically not been material. Bulk cream is a by-product of the Company's fluid milk manufacturing process. The Company does not use bulk cream in any of its end products, but rather disposes of it through sales to other companies. Bulk cream by-product sales are included in gross sales.
Cash And Cash Equivalents	All highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents.
Investments	All investment securities are classified as available-for-sale and are carried at fair value. Unrealized gains and losses on available-for-sale securities are reported as a separate component of stockholders' equity to the extent they are considered temporary in nature. Amortization, accretion, interest and dividends, realized gains and losses, and declines in value judged to be other-than-temporary on available-for-sale securities are recorded as a component of other income. This evaluation depends on the specific facts and circumstances. Factors that we consider in determining whether an other-than-temporary decline in fair value has occurred include: the fair value of the security in relation to its cost basis; the financial condition of the investee; and the intent and ability to retain the investment for a sufficient period of time to allow for possible recovery in the fair value of the investment.
Inventories	Inventories are stated at the lower of first in, first out cost or market.
Property And Equipment	Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred; significant renewals and betterments are capitalized. Property and equipment is being depreciated over the following useful lives: Category Years Buildings and improvements 31 and 39 Machinery and equipment 5 - 12 Office equipment 5 - 7 Vehicles 5 Leasehold improvements Shorter of expected useful life or lease term
Goodwill and other intangible assets	Intangible assets acquired in a business combination are recorded at their estimated fair values at the date of acquisition. Goodwill represents the excess purchase price over the fair value of the net tangible and other identifiable intangible assets acquired. Goodwill is not amortized, but is reviewed for impairment at least annually. The Company amortizes other intangible assets over their estimated useful lives, as disclosed in the table below. The Company reviews intangible assets for impairment at least once per year to determine if any adverse conditions exist that would indicate the carrying value of these assets may not be recoverable. The Company conducts more frequent impairment assessments if certain conditions exist, such as a change in the competitive landscape, any internal decisions to pursue new or different strategies, a loss of a significant customer, or a significant change in the market place including changes in the prices paid for the Company's products or changes in the size of the market for the Company's products. If the estimated remaining useful life of an intangible asset is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. Intangible assets are being amortized over the following useful lives: Category Years Recipes 4 Trade names 8-15 Formula 10 Customer lists 8-10 Customer relationships 8-12
Income Taxes	Deferred income taxes are the result of temporary differences that arise from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of the assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. The principal sources of temporary differences are different depreciation and amortization methods for financial statement and tax purposes, unrealized gains or losses related to investments, capitalization of indirect costs for tax purposes, purchase price adjustments, and the allowance for doubtful accounts. The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. Periods subject to examination for the Company's federal income tax returns are the 2012, 2013 and 2014 tax years. The amount of unrecognized tax benefits that, if recognized, would impact the annual effective tax rate was not significant as of December 31, 2015 and 2014. The total amount of unrecognized tax benefits can change due to audit settlements, tax examination activities, statute expirations and the recognition and measurement criteria under accounting for uncertainty in income taxes.
Treasury Stock	Treasury stock is recorded using the cost method.
Advertising costs	The Company expenses advertising costs as incurred. For the years ended December 31, 2015, 2014 and 2013 total advertising expenses were $5,006, $3,875, and $2,686, respectively.
Earnings Per Common Share	Earnings per common share were computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. For the years ended December 31, 2015 2014, and 2013, there were no common stock equivalents outstanding.
Recent Accounting Pronouncements	In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific requirements. ASU 2014-09 establishes a five-step revenue recognition process in which an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. In August 2015 the FASB delayed the effective date for implementation of ASU 2014-09. Under the delayed effective date, the Company is required to adopt the new standard not later than January 1, 2018. Management is currently evaluating the impact the adoption of ASU 2014-09 will have on the Company's consolidated financial position, results of operations or cash flows and the method of retrospective application, either full or modified. In July 2015, the FASB issued new accounting guidance for measuring inventory. The core principal of the guidance is that an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance does not apply to inventory that is being measured using the Last-In, First-Out (LIFO) or the retail inventory method. The guidance is effective for financial statements issued for annual and interim periods beginning after December 15, 2016 on a prospective basis. Early adoption is permitted. Management is currently evaluating the impact this will have on the consolidated financial statements. In November 2015, the FASB issued new guidance regarding the balance sheet classification of deferred taxes. This new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. Previous guidance required deferred tax assets and liabilities to be separated into current and noncurrent amounts on the balance sheet. The guidance is effective for fiscal years beginning on or after December 15, 2016, and interim periods within those years. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements. In January, 2016, the FASB issued new guidance regarding the recognition and measurement of financial assets and liabilities." The new guidance modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted under the equity method at fair value and recognize any changes in fair value in net income unless certain conditions exist. The new guidance will be effective for fiscal years beginning on or after December 15, 2017 and interim periods within those years. Early adoption of the guidance is not permitted. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements. In February 2016, the FASB issued new guidance regarding leases. The guidance requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those years. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements.

Basis of presentation, out of24

Basis of presentation, out of period adjustments and restatements of prior periods (Tables)	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Restated financials	These adjustments had the following impact on our 2015 quarterly and annual Consolidated Statement of Income and Comprehensive Income (dollars in thousands): (Unaudited) Three Months Ended March 31, 2015 (Unaudited) Six Months Ended June 30, 2015 As Adjustment As As Adjustment As Net Sales $ 29,622 $ – $ 29,622 $ 59,443 $ – $ 59,443 Cost of Goods Sold 21,239 458 21,697 44,044 1,017 45,061 Gross Profit 8,383 (458 ) 7,925 15,399 (1,017 ) 14,382 Selling expenses 3,302 – 3,302 5,920 – 5,920 General & administrative 3,492 (458 ) 3,034 7,662 (1,017 ) 6,645 Amortization 179 – 179 358 – 358 Operating expenses 6,973 (458 ) 6,515 13,940 (1,017 ) 12,923 Income from Operations $ 1,410 $ – $ 1,410 $ 1,459 $ – $ 1,459 (Unaudited) Nine Months Ended September 30, 2015 Twelve Months Ended December 31, 2015 As Previously Reported (c) Adjustment (b) As As Previously Reported (d) Adjustment (b) As Net Sales $ 89,042 $ – $ 89,042 $ 118,587 $ – $ 118,587 Cost of Goods Sold 64,588 1,137 65,725 86,986 1,719 88,705 Gross Profit 24,454 (1,137 ) 23,317 31,601 (1,719 ) 29,882 Selling expenses 9,486 (860 ) 8,626 12,752 (860 ) 11,892 General & administrative 10,920 (277 ) 10,643 13,730 (859 ) 12,871 Amortization 537 – 537 716 – 716 Operating expenses 20,943 (1,137 ) 19,806 27,198 (1,719 ) 25,479 Income from Operations $ 3,511 $ – $ 3,511 $ 4,403 $ – $ 4,403 (a) As previously reported in our first and second quarter 2016 Form 10-Q filings. (b) Includes the reclassification of certain executive compensation from Selling to G&A expenses. (c) As previously reported in our third quarter 2015 Form 10-Q filed on November 9, 2015. (d) As previously reported in our 2015 Form 10-K filed on March 16, 2016. The reclassifications related to certain executive compensation had the following impact on our 2014 and 2013 Consolidated Statement of Income and Comprehensive Income (dollars in thousands): Twelve Months Ended December 31, 2014 Twelve Months Ended December 31, 2013 As Previously Reported (d) Reclassification As Revised As Previously Reported (d) Reclassification As Revised Selling expenses $ 14,534 $ (2,923 ) $ 11,611 $ 11,296 $ (2,165 ) $ 9,131 General & administrative 9,378 2,923 12,301 7,583 2,165 9,748 Amortization 716 – 716 713 – 713 Operating expenses $ 24,628 $ – $ 24,628 $ 19,592 $ – $ 19,592

Summary Of Significant Accoun25

Summary Of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Summary Of Significant Accounting Policies Tables
Schedule Of Property And Equipment, Estimated Useful Lives	Category Years Buildings and improvements 31 and 39 Machinery and equipment 5 - 12 Office equipment 5 - 7 Vehicles 5 Leasehold improvements Shorter of expected useful life or lease term
Schedule Of Intangible Assets Useful Lives	Category Years Recipes 4 Trade names 8-15 Formula 10 Customer lists 8-10 Customer relationships 8-12
Schedule of corrections and adjustments	These adjustments had the following impact on our 2015 quarterly and annual Consolidated Statement of Income and Comprehensive Income (dollars in thousands): (Unaudited) Three Months Ended March 31, 2015 (Unaudited) Six Months Ended June 30, 2015 As Adjustment As As Adjustment As Net Sales $ 29,622 $ – $ 29,622 $ 59,443 $ – $ 59,443 Cost of Goods Sold 21,239 458 21,697 44,044 1,017 45,061 Gross Profit 8,383 (458 ) 7,925 15,399 (1,017 ) 14,382 Selling expenses 3,302 – 3,302 5,920 – 5,920 General & administrative 3,492 (458 ) 3,034 7,662 (1,017 ) 6,645 Amortization 179 – 179 358 – 358 Operating expenses 6,973 (458 ) 6,515 13,940 (1,017 ) 12,923 Income from Operations $ 1,410 $ – $ 1,410 $ 1,459 $ – $ 1,459 (Unaudited) Nine Months Ended September 30, 2015 Twelve Months Ended December 31, 2015 As Previously Reported (c) Adjustment (b) As As Previously Reported (d) Adjustment (b) As Net Sales $ 89,042 $ – $ 89,042 $ 118,587 $ – $ 118,587 Cost of Goods Sold 64,588 1,137 65,725 86,986 1,719 88,705 Gross Profit 24,454 (1,137 ) 23,317 31,601 (1,719 ) 29,882 Selling expenses 9,486 (860 ) 8,626 12,752 (860 ) 11,892 General & administrative 10,920 (277 ) 10,643 13,730 (859 ) 12,871 Amortization 537 – 537 716 – 716 Operating expenses 20,943 (1,137 ) 19,806 27,198 (1,719 ) 25,479 Income from Operations $ 3,511 $ – $ 3,511 $ 4,403 $ – $ 4,403 (a) As previously reported in our first and second quarter 2016 Form 10-Q filings. (b) Includes the reclassification of certain executive compensation from Selling to G&A expenses. (c) As previously reported in our third quarter 2015 Form 10-Q filed on November 9, 2015. (d) As previously reported in our 2015 Form 10-K filed on March 16, 2016. The reclassifications related to certain executive compensation had the following impact on our 2014 and 2013 Consolidated Statement of Income and Comprehensive Income (dollars in thousands): Twelve Months Ended December 31, 2014 Twelve Months Ended December 31, 2013 As Previously Reported (d) Reclassification As Revised As Previously Reported (d) Reclassification As Revised Selling expenses $ 14,534 $ (2,923 ) $ 11,611 $ 11,296 $ (2,165 ) $ 9,131 General & administrative 9,378 2,923 12,301 7,583 2,165 9,748 Amortization 716 – 716 713 – 713 Operating expenses $ 24,628 $ – $ 24,628 $ 19,592 $ – $ 19,592

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Intangible Assets Tables
Goodwill & indefinite-lived intangible assets	December 31, 2015 2014 Goodwill $ 10,368 $ 10,368 Brand names 3,700 3,700 Goodwill & indefinite lived intangible assets $ 14,068 $ 14,068
Schedule Of Accumulated Amortization Of Intangible Assets	December 31, 2015 2014 Recipes $ 44 $ 44 Customer lists and other customer related intangibles 4,529 4,529 Customer relationship 985 985 Trade names 2,248 2,248 Formula 438 438 8,244 8,244 Accumulated amortization 5,900 5,184 Intangible assets, net $ 2,344 $ 3,060
Amortization Expense On Future Intangible Assets	2016 $ 697 2017 672 2018 635 2019 210 2020 130 $ 2,344

Investments (Tables)

Investments (Tables)	12 Months Ended
	Dec. 31, 2015
Investments Tables
Schedule Of Cost And Fair Value Of Available For Sale Investments	December 31, 2015 Cost Unrealized Gains Unrealized Losses Fair Value Common stocks & ETF's $ 690 $ 17 $ (94 ) $ 613 Mutual Funds 27 - (1 ) 26 Preferred Securities 98 6 - 104 Corporate Bonds 1,393 43 (88 ) 1,348 Total $ 2,208 $ 66 $ (183 ) $ 2,091 December 31, 2014 Cost Unrealized Gains Unrealized Losses Fair Value Common stocks & ETF's $ 530 $ 20 $ (64 ) $ 486 Mutual Funds 445 - (11 ) 435 Preferred Securities 180 - (2 ) 178 Corporate Bonds 1,949 2 (270 ) 1,680 Total $ 3,104 $ 22 $ (347 ) $ 2,779 December 31, 2013 Cost Unrealized Gains Unrealized Losses Fair Value Common stocks & ETF's $ 1,006 $ 98 $ (32 ) $ 1,072 Mutual Funds 55 2 - 57 Preferred Securities 465 13 (16 ) 462 Corporate Bonds 973 1 (49 ) 925 Total $ 2,499 $ 114 $ (97 ) $ 2,516
Schedule Of Gross Unrealized Loss On Investments	Less Than 12 Months 12 Months or Greater Total December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Common stocks & ETF's $ 225 $ (72 ) $ 152 $ (22 ) $ 377 $ (94 ) Mutual Funds 26 (1 ) - - 26 (1 ) Preferred Securities - - - - - - Corporate Bonds 370 (32 ) 479 (56 ) 849 (88 ) $ 621 $ (105 ) $ 631 $ (78 ) $ 1,252 $ (183 ) Less Than 12 Months 12 Months or Greater Total December 31, 2014 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Common stocks & ETF's $ 162 $ (49 ) $ 141 $ (15 ) $ 303 $ (64 ) Mutual Funds 435 (10 ) - - 435 (10 ) Preferred Securities 81 (2 ) - - 81 (2 ) Corporate Bonds 1,056 (195 ) 497 (76 ) 1,553 (271 ) $ 1,734 $ (256 ) $ 638 $ (91 ) $ 2,372 $ (347 ) Less Than 12 Months 12 Months or Greater Total December 31, 2013 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Common stocks & ETF's $ 213 $ (32 ) $ - $ - $ 213 $ (32 ) Mutual Funds - - - - - - Preferred Securities 224 (15 ) - - 224 (15 ) Corporate Bonds 616 (43 ) 97 (7 ) 713 (50 ) $ 1,053 $ (90 ) $ 97 $ (7 ) $ 1,150 $ (97 )

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2015
Inventories Tables
Schedule Of Inventories	December 31, 2015 2014 Finished goods $ 2,946 $ 2,373 Production supplies 2,636 2,070 Raw materials 2,082 1,371 Total inventories $ 7,664 $ 5,814

Property And Equipment (Tables)

Property And Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Property And Equipment Tables
Schedule Of Property And Equipment	December 31, 2015 2014 Land $ 1,807 $ 1,856 Buildings and improvements 16,387 15,126 Machinery and equipment 22,907 20,435 Vehicles 1,298 1,245 Office equipment 709 465 Construction in process 311 2,409 43,419 41,536 Less accumulated depreciation 22,044 19,644 Total property and equipment $ 21,375 $ 21,892

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2015
Accrued Expenses Tables
Schedule Of Accrued Expenses	December 31, 2015 2014 Accrued payroll and payroll taxes $ 859 $ 892 Accrued property tax 377 331 Other 3,027 843 $ 1,538 $ 2,066

Notes Payable (Tables)

Notes Payable (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Payable Tables
Schedule Of Notes Payable	December 31, 2015 2014 Variable rate bank notes due May 31, 2018. Principal and interest payable monthly with a balloon payment due at maturity. $ 3,846 $ 4,352 Variable rate bank notes due May 31, 2019. Principal and interest payable monthly with a balloon payment due at maturity. 4,113 4,584 5.99% secured equipment notes fully paid and extinguished July, 2015 - 12 6.65% secured equipment notes fully paid and extinguished July, 2015 - 49 Total notes payable 7,959 8,997 Less current maturities 840 872 Total long-term portion $ 7,119 $ 8,125
Maturities Of Notes Payable	For the year ending December 31, 2016 $ 840 2017 840 2018 3,166 2019 3,113 Total $ 7,959

Income taxes (Tables)

Income taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Taxes Tables
Summary Of The Provision For Income Taxes	For the Years Ended December 31, 2015 2014 2013 Current: Federal $ 1,888 $ 2,143 $ 2,552 State and local 717 819 554 Total current 2,605 2,962 3,106 Deferred (585 ) (720 ) (239 ) Provision for income taxes $ 2,020 $ 2,242 $ 2,867
Reconciliation Of Provision For Income Taxes At Statutory Rate	2015 2014 2013 Amount Percentage Amount Percentage Amount Percentage Federal income tax expense computed at the statutory rate $ 1,357 34.0 % $ 1,428 34.0 % $ 2,666 34.0 % State and local tax expense, net 337 8.4 % 215 5.1 % 745 9.5 % U.S. domestic manufacturers' deduction & other permanent differences 300 7.5 % 464 11.0 % (455 ) (5.8 )% Additions for tax positions of prior years 50 1.3 % 215 5.1 % 0 0 % Change in tax rates -- 0 % (138 ) (3.2 )% 0 0 % Change in tax estimate (24 ) (0.6 )% 58 1.4 % (89 ) (1.1 )% Provision for income taxes $ 2,020 50.6 % $ 2,242 53.4 % $ 2,867 36.6 %
Reconciliation of amount of unrecognized tax benefits	2015 2014 2013 Balance at January 1 $ 215 $ - $ - Additions for tax positions of prior years 50 215 - Balance at December 31 $ 265 $ 215 $ -
Schedule Of Deferred Tax Assets And Liabilities	December 31, 2015 2014 2013 Non-current deferred tax assets (liabilities) arising from: Accumulated depreciation and amortization $ (1,719 ) $ (2,074 ) $ (2,896 ) Capital loss carry-forwards -- -- 53 Total non-current net deferred tax liabilities (1,719 ) (2,074 ) (2,843 ) Current deferred tax assets arising from: Capital loss carry-forward & investment impairment 164 9 -- Unrealized losses (gain) on investments 45 127 (8 ) Inventory 308 233 308 Allowances for doubtful accounts and discounts 39 39 22 Total current deferred tax assets 556 408 322 Net deferred tax liability $ (1,163 ) $ (1,666 ) $ (2,521 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Measurements Tables
Schedule Of Fair Value Assets And Liabilities As Classified	Assets at Fair Value as of December 31, 2015 Level 1 Level 2 Level 3 Total Mutual Funds $ 26 $ - $ - $ 26 Common Stocks & ETF's 613 - - 613 Preferred Securities - 104 - 104 Corporate Bonds - 1,187 161 1,348 Assets at Fair Value as of December 31, 2014 Level 1 Level 2 Level 3 Total Mutual Funds $ 435 $ -- $ -- $ 435 Common Stocks & ETF's 486 -- -- 486 Preferred Securities -- 178 -- 178 Corporate Bonds -- 1,680 -- 1,680

Segments, Products and Custom34

Segments, Products and Customers (Tables)	12 Months Ended
	Dec. 31, 2015
Segments Products And Customers Tables
Schedule of sales of products by category	2015 2014 2013 Lifeway Farmer Cheese $ 9,725 $ 10,266 $ 9,388 Drinkable Kefir other than ProBugs 118,090 110,297 90,441 ProBugs 7,936 7,868 7,127 Frozen Kefir 1,493 1,785 2,010 Total sales $ 137,244 $ 130,216 $ 108,966

Basis of presentation, out of35

Basis of presentation, out of period adjustments and restatements of prior periods (Details - Restatement) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2015	Jun. 30, 2015	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net sales	$ 29,622	$ 59,443	$ 89,042	$ 118,587	$ 118,960	$ 97,524
Cost of goods sold	21,697	45,061	65,725	88,705	90,097	69,901
Gross profit	7,925	14,382	23,317	29,882	28,863	27,623
Selling expenses	3,302	5,920	8,626	11,892	11,611	9,131
General and administrative	3,034	6,645	10,643	12,871	12,301	9,748
Amortization expense	179	358	537	716	716	713
Total operating expenses	6,515	12,923	19,806	25,479	24,628	19,592
Income from operations	1,410	1,459	3,511	4,403	4,235	8,031
Scenario Previously Reported [Member]
Net sales	29,622	59,443	89,042	118,587
Cost of goods sold	21,239	44,044	64,588	86,986
Gross profit	8,383	15,399	24,454	31,601
Selling expenses	3,302	5,920	9,486	12,752	14,534	11,296
General and administrative	3,492	7,662	10,920	13,730	(9,378)	7,583
Amortization expense	179	358	537	716	716	713
Total operating expenses	6,973	13,940	20,943	27,198	24,628	19,592
Income from operations	1,410	1,459	3,511	4,403
Restatement Adjustment [Member]
Net sales	0	0	0	0
Cost of goods sold	458	1,017	1,137	1,719
Gross profit	(458)	(1,017)	(1,137)	(1,719)
Selling expenses	0	0	(860)	(860)	(2,923)	(2,165)
General and administrative	(458)	(1,017)	(277)	(859)	2,923	2,165
Amortization expense	0	0	0	0	0	0
Total operating expenses	(458)	(1,017)	(1,137)	(1,719)	$ 0	$ 0
Income from operations	$ 0	$ 0	$ 0	$ 0

Summary Of Significant Accoun36

Summary Of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2015
Buildings And improvements [Member] | Maximum [Member]
Property and equipment, useful life	39 years
Buildings And improvements [Member] | Minimum [Member]
Property and equipment, useful life	31 years
Machinery And Equipment [Member] | Maximum [Member]
Property and equipment, useful life	12 years
Machinery And Equipment [Member] | Minimum [Member]
Property and equipment, useful life	5 years
Office Equipment [Member] | Maximum [Member]
Property and equipment, useful life	7 years
Office Equipment [Member] | Minimum [Member]
Property and equipment, useful life	5 years
Vehicles [Member]
Property and equipment, useful life	5 years
Leasehold improvements [Member]
Property and equipment, expacted usefull life	Shorter of expected useful life or lease term

Summary Of Significant Accoun37

Summary Of Significant Accounting Policies (Details 1)	12 Months Ended
	Dec. 31, 2015
Trade Names [Member] | Minimum [Member]
Intangible assets, useful lives	8 years
Trade Names [Member] | Maximum [Member]
Intangible assets, useful lives	15 years
Formula [Member]
Intangible assets, useful lives	10 years
Customer Relationships [Member] | Minimum [Member]
Intangible assets, useful lives	8 years
Customer Relationships [Member] | Maximum [Member]
Intangible assets, useful lives	12 years
Customer lists [Member] | Minimum [Member]
Intangible assets, useful lives	8 years
Customer lists [Member] | Maximum [Member]
Intangible assets, useful lives	10 years
Recipes [Member]
Intangible assets, useful lives	4 years

Summary Of Significant Accoun38

Summary Of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Summary Of Significant Accounting Policies Details Narrative
Advertising expenses	$ 5,006	$ 3,875	$ 2,686

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Intangible Assets Details
Goodwill	$ 10,368	$ 10,368
Brand names	3,700	3,700
Goodwill & indefinite lived intangible assets	$ 14,068	$ 14,068

Intangible Assets (Details 1)

Intangible Assets (Details 1) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Cost	$ 8,244	$ 8,244
Accumulated Amortization	5,900	5,184
Intangible assets, net	2,344	3,060
Trade Names [Member]
Cost	2,248	2,248
Customer Relationships [Member]
Cost	985	985
Customer Lists And Other Customer Related Intangibles [Member]
Cost	4,529	4,529
Recipes [Member]
Cost	44	44
Formula [Member]
Cost	$ 438	$ 438

Intangible Assets (Details 2)

Intangible Assets (Details 2) $ in Thousands	Dec. 31, 2015USD ($)
Intangible Assets Details 2
2,016	$ 697
2,017	672
2,018	635
2,019	210
2,020	130
Thereafter	$ 2,344

Investments (Details)

Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cost	$ 2,208	$ 3,104	$ 2,499
Unrealized Gains	66	22	114
Unrealized Losses	(183)	(347)	(97)
Fair Value	2,091	2,779	2,516
Corporate Bond [Member]
Cost	1,393	1,949	973
Unrealized Gains	43	2	1
Unrealized Losses	(88)	(270)	(49)
Fair Value	1,348	1,680	925
Preferred Securities [Member]
Cost	98	180	465
Unrealized Gains	6		13
Unrealized Losses		(2)	(16)
Fair Value	104	178	462
Common stocks & ETF's [Member]
Cost	690	530	1,006
Unrealized Gains	17	20	98
Unrealized Losses	(94)	(64)	(32)
Fair Value	613	486	1,072
Mutual Funds [Member]
Cost	27	445	55
Unrealized Gains			2
Unrealized Losses	(1)	(11)
Fair Value	$ 26	$ 435	$ 57

Investments (Details 1)

Investments (Details 1) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Less Than 12 Months, Fair Value	$ 621	$ 1,734	$ 1,053
Less Than 12 Months, Unrealized Losses	(105)	(256)	(90)
12 Months or Greater, Fair Value	631	638	97
12 Months or Greater, Unrealized Losses	(78)	(91)	(7)
Total, Fair Value	1,252	2,372	1,150
Total, Unrealized Losses	(183)	(347)	(97)
Corporate Bond [Member]
Less Than 12 Months, Fair Value	370	1,056	616
Less Than 12 Months, Unrealized Losses	(32)	(195)	(43)
12 Months or Greater, Fair Value	479	497	97
12 Months or Greater, Unrealized Losses	(56)	(76)	(7)
Total, Fair Value	849	1,553	713
Total, Unrealized Losses	(88)	(271)	(50)
Preferred Securities [Member]
Less Than 12 Months, Fair Value		81	224
Less Than 12 Months, Unrealized Losses		(2)	(15)
12 Months or Greater, Fair Value
12 Months or Greater, Unrealized Losses
Total, Fair Value		81	224
Total, Unrealized Losses		(2)	(15)
Common stocks & ETF's [Member]
Less Than 12 Months, Fair Value	225	162	213
Less Than 12 Months, Unrealized Losses	(72)	(49)	(32)
12 Months or Greater, Fair Value	152	141
12 Months or Greater, Unrealized Losses	(22)	(15)
Total, Fair Value	377	303	213
Total, Unrealized Losses	(94)	(64)	(32)
Mutual Funds [Member]
Less Than 12 Months, Fair Value	26	435
Less Than 12 Months, Unrealized Losses	(1)	(10)
12 Months or Greater, Fair Value
12 Months or Greater, Unrealized Losses
Total, Fair Value	26	435
Total, Unrealized Losses	$ (1)	$ (10)

Investments (Details Narrative)

Investments (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Investments Details Narrative
Gross realized gains	$ 48	$ 177	$ 248
Gross realized losses	120	78	53
Impairment losses	$ 475

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Inventories Details
Finished goods	$ 2,946	$ 2,373
Production supplies	2,636	2,070
Raw materials	2,082	1,371
Total inventories	$ 7,664	$ 5,814

Property And Equipment (Details

Property And Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Property and equipment, gross	$ 43,419	$ 41,536
Less accumulated depreciation	22,044	19,644
Total property and equipment	21,375	21,892
Office Equipment [Member]
Property and equipment, gross	709	465
Vehicles [Member]
Property and equipment, gross	1,298	1,245
Machinery And Equipment [Member]
Property and equipment, gross	22,907	20,435
Buildings And improvements [Member]
Property and equipment, gross	16,387	15,126
Land [Member]
Property and equipment, gross	1,807	1,856
Construction In Progress [Member]
Property and equipment, gross	$ 311	$ 2,409

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Accrued Expenses Details
Accrued payroll and payroll taxes	$ 859	$ 892
Accrued property tax	377	331
Other	3,027	843
Total accrued expenses	$ 1,538	$ 2,066

Notes Payable (Details)

Notes Payable (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Total notes payable	$ 7,959	$ 8,997
Less current maturities	840	872
Total long-term portion	7,119	8,125
5.99% secured equipment [Member]
Total notes payable		12
Variable rate bank notes due May 31, 2019 [Member]
Total notes payable	4,113	4,584
Variable rate bank notes due May 31, 2018 [Member]
Total notes payable	3,846	4,352
6.65% secured equipment [Member]
Total notes payable		$ 49

Notes Payable (Details 1)

Notes Payable (Details 1) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Notes Payable Details 1
2,015	$ 840
2,016	840
2,017	3,166
2,018	3,113
2,019	7,959
Total notes payable	$ 7,959	$ 8,997

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) $ in Thousands	Dec. 31, 2015USD ($)
Notes Payable Details Narrative
Revolving credit facility	$ 5,000

Commitments And Contingencies (

Commitments And Contingencies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Commitments And Contingencies Details Narrative
Total expenses on leases	$ 124	$ 143	$ 347

Provision For Income Taxes (Det

Provision For Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current:
Federal	$ 1,888	$ 2,143	$ 2,552
State and local	717	819	554
Total current	2,605	2,962	3,106
Deferred	(585)	(720)	(238)
Provision for income taxes	$ 2,020	$ 2,242	$ 2,867

Provision For Income Taxes (D53

Provision For Income Taxes (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Provision For Income Taxes Details 1
Federal income tax expense computed at the statutory rate	$ 1,357,000	$ 1,428,000	$ 2,666,000
Federal income tax expense computed at the statutory rate, percentage	34.00%	34.00%	34.00%
State and local tax expense, net	$ 337,000	$ 215,000	$ 745,000
State and local tax expense, net, percentage	8.40%	5.10%	9.50%
U.S. domestic manufacturers' deduction & other permanent differences	$ 300,000	$ 464,000	$ (455,000)
U.S. domestic manufacturers' deduction & other permanent differences, percentage	7.50%	11.00%	5.80%
Additions for tax positions of prior years	$ 50,000	$ 215,000	$ 0
Additions for tax positions of prior years, percentage	1.30%	5.10%	0.00%
Change in tax rates	$ (24,000)	$ (138,000)	$ 0
Change in tax rates, percentage	0.00%	3.20%	0.00%
Change in tax estimate	$ (24,000)	$ 58,000	$ (89,000)
Change in tax estimate, percentage	(0.60%)	1.40%	1.10%
Provision for income taxes	$ 2,020,000	$ 2,242,000	$ 2,867,000
Provision for income taxes, percentage	50.60%	53.40%	36.60%

Provision For Income Taxes (D54

Provision For Income Taxes (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Provision For Income Taxes Details 2
Balance at January 1	$ 215
Additions for tax positions of prior years	50	215	0
Balance at December 31	$ 265	$ 215

Provision For Income Taxes (D55

Provision For Income Taxes (Details 3) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Non-current deferred tax assets (liabilities) arising from:
Accumulated depreciation and amortization	$ (1,719)	$ (2,075)	$ (2,896)
Capital loss carry-forwards			53
Total non-current net deferred tax liabilities	(1,719)	(2,074)
Current deferred tax assets arising from:
Capital loss carry-forward & investment impairment	164	9
Unrealized losses (gain) on investments	45	127	(8)
Inventory	308	233	308
Allowance for doubtful accounts and discounts	39	39	22
Total current deferred tax assets	556	408
Net deferred tax liability	$ (1,163)	$ (1,667)	$ (2,521)

Provision For Income Taxes (D56

Provision For Income Taxes (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Provision For Income Taxes Details Narrative
Interest and penalties		$ 65

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Mutual Funds	$ 26	$ 435
Common Stocks & ETF's	613	486
Preferred Securities	104	178
Corporate Bonds	1,348	1,680
Level3 [Member]
Mutual Funds
Common Stocks & ETF's
Preferred Securities
Corporate Bonds	161
Level2 [Member]
Mutual Funds
Common Stocks & ETF's
Preferred Securities	104	178
Corporate Bonds	1,187	1,680
Level 1 [Member]
Mutual Funds	26	435
Common Stocks & ETF's	613	486
Preferred Securities
Corporate Bonds

Segments And Products (Details)

Segments And Products (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Total sales	$ 137,244	$ 130,216	$ 108,966
ProBugs[Member]
Total sales	7,936	7,868	7,127
Drinkable Kefir Other Than ProBugs [Member]
Total sales	118,090	110,297	90,441
Lifeway Farmer Cheese [Member]
Total sales	9,725	10,266	9,388
Frozen Kefir [Member]
Total sales	$ 1,493	$ 1,785	$ 2,010

Share RepurchaseProgram (Detail

Share RepurchaseProgram (Detail Narrative)	Dec. 31, 2015USD ($)$ / sharesshares
Share Repurchaseprogram Detail Narrative
Repurchase of Common Stock,Shares | shares	136
Repurchase of Common Stock,Amount	$ 1,542
Repurchase of Common Stock per share | $ / shares	$ 11.32
Remaining Common Stock Available for Repurchase	$ 1,958

Related party transactions (Det

Related party transactions (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Related Party Transactions [Abstract]
Fees paid	$ 1,000	$ 747