Lifeway Foods (LWAY) 10-K 10 Apr 17 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 01, 2017	Jun. 30, 2016
Document And Entity Information
Entity Registrant Name	LIFEWAY FOODS INC
Entity Central Index Key	814,586
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
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	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		16,154,095
Entity Public Float			$ 44,803,227
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 8,812	$ 5,646
Investments, at fair value	0	2,091
Certificates of deposits in financial institutions	0	513
Inventories	8,042	7,664
Accounts receivable, net of allowance for doubtful accounts and discounts and allowances of $1,600 and $1,800 at December 31, 2016 and 2015, respectively	9,594	9,886
Prepaid expenses and other current assets	785	201
Deferred income taxes	662	556
Refundable income taxes	309	449
Total current assets	28,204	27,006
Property and equipment, net	21,832	21,375
Intangible assets
Goodwill & indefinite-lived intangibles	14,068	14,068
Other intangible assets, net	1,647	2,344
Total intangible assets	15,715	16,412
Other Assets	125	125
Total assets	65,876	64,918
Current liabilities
Current maturities of notes payable	840	840
Accounts payable	5,718	8,393
Accrued expenses	2,169	1,538
Accrued income taxes	654	52
Total current liabilities	9,381	10,823
Notes payable	6,279	7,119
Deferred income taxes	1,854	1,719
Total liabilities	17,514	19,661
Stockholders' equity
Common stock, no par value; 40,000 shares authorized; 17,274 shares issued; 16,154 and 16,210 shares outstanding at 2016 and 2015	6,509	6,509
Paid-in-capital	2,198	2,033
Treasury stock, at cost	(10,340)	(9,730)
Retained earnings	49,995	46,516
Accumulated other comprehensive loss, net of taxes	0	(71)
Total stockholders' equity	48,362	45,257
Total liabilities and stockholders' equity	$ 65,876	$ 64,918

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets
Allowance for doubtful accounts and discounts	$ 1,600	$ 1,800
Stockholders' equity
Common stock, par value
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	16,154,000
Common stock, shares outstanding	16,154,000	16,210,000

Consolidated Statements of Inco

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Net sales	$ 123,879	$ 118,587
Cost of goods sold	86,524	86,292
Depreciation expense	2,323	2,413
Total cost of goods sold	88,847	88,705
Gross profit	35,032	29,882
Selling expenses	14,467	11,892
General and administrative	13,783	12,871
Amortization expense	697	716
Total operating expenses	28,947	25,479
Income from operations	6,085	4,403
Other income (expense):
Interest expense	(220)	(236)
Loss on sale of investments, net reclassified from OCI	(15)	(72)
Gain (Loss) on sale of property and equipment	(284)	253
Impairment of investments	0	(475)
Other income	71	119
Total other income (expense)	(448)	(411)
Income before provision for income taxes	5,637	3,992
Provision for income taxes	2,158	2,020
Net income	$ 3,479	$ 1,972
Basic earnings per common share	$ .22	$ 0.12
Diluted earnings per common share	$ .22	$ .12
Weighted average number of shares outstanding - Basic	16,155,000	16,331,000
Weighted average number of shares outstanding - Diluted	16,160,000	16,331,000
COMPREHENSIVE INCOME
Net income	$ 3,479	$ 1,972
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on investments, net of $38 and $30 of taxes	62	(47)
Reclassifications to earnings:
Other than temporary impairment of investments, net of $84 of taxes	0	130
Realized (gains) losses on investments, net of $6 and ($28) of taxes	9	44
Comprehensive income	$ 3,550	$ 2,099

Consolidated Statements of Inc5

Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Unrealized gain (losses) on investments, net of taxes	$ 38	$ 30
Temporary impairment of investments, net of taxes	0	84
Realized (gains) losses on investments, net of taxes	$ 6	$ (28)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	In treasury	Additional Paid-In Capital	Retained Earnings / Accumulated Deficit	Other Comprehensive Income / Loss	Total
Beginning Balance, Shares issued at Dec. 31, 2014	17,274,000
Beginning Balance, Treasury stock shares at Dec. 31, 2014		(928,000)
Beginning Balance, Amount at Dec. 31, 2014	$ 6,509	$ (8,188)	$ 2,033	$ 44,544	$ (198)	$ 44,700
Other comprehensive income					127	127
Treasury stock purchased, Shares		(136,000)
Treasury stock purchased, Amount		$ (1,542)				(1,542)
Net income				1,972		1,972
Ending Balance, Shares issued at Dec. 31, 2015	17,274,000
Ending Balance, Treasury stock shares at Dec. 31, 2015		(1,064,000)
Ending Balance, Amount at Dec. 31, 2015	$ 6,509	$ (9,730)	2,033	46,516	(71)	45,257
Other comprehensive income					71	71
Treasury stock purchased, Shares		(69,000)
Treasury stock purchased, Amount		$ (738)				(738)
Issuance of common stock in connection with stock-based compensation, shares	12,000
Issuance of common stock in connection with stock-based compensation	$ 117		12			129
Issuance of common stock on exercise of stock options, shares	1,000
Issuance of common stock on exercise of stock options, value	$ 11		18			29
Share-based compensation			135			135
Net income				3,479		$ 3,479
Ending Balance, Shares issued at Dec. 31, 2016	17,274,000					16,154,000
Ending Balance, Treasury stock shares at Dec. 31, 2016		(1,120,000)
Ending Balance, Amount at Dec. 31, 2016	$ 6,509	$ (10,340)	$ 2,198	$ 49,995	$ 0	$ 48,362

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 3,479	$ 1,972
Adjustments to reconcile net income to operating cash flow:
Depreciation and amortization	3,020	3,129
Loss on sale of investments, net	15	72
Impairment of investments	0	475
Deferred income taxes	(531)	(585)
Bad Debt expense	0	73
Reserve for inventory obsolescence	200	0
Stock-based compensation	326	0
(Gain) Loss on sale of equipment	284	(253)
(Increase) decrease in operating assets:
Accounts receivable	292	507
Inventories	(579)	(1,849)
Refundable income taxes	140	691
Prepaid expenses and other current assets	(584)	184
Increase (decrease) in operating liabilities:
Accounts payable	(2,673)	2,229
Accrued expenses	599	48
Income taxes payable	1,116	52
Net cash provided by operating activities	5,104	6,745
Cash flows from investing activities:
Purchases of investments	(559)	(1,489)
Proceeds from sale of investments	2,751	1,714
Redemption of certificates of deposit	513	272
Investments in certificates of deposits	0	(635)
Purchases of property and equipment	(3,237)	(1,995)
Proceeds from sale of equipment	172	353
Net cash used in investing activities	(360)	(1,780)
Cash flows from financing activities:
Purchase of treasury stock	(738)	(1,542)
Repayment of notes payable	(840)	(1,037)
Net cash used in financing activities	(1,578)	(2,579)
Net increase in cash and cash equivalents	3,166	2,386
Cash and cash equivalents at the beginning of the period	5,646	3,260
Cash and cash equivalents at the end of the period	8,812	5,646
Supplemental cash flow information:
Cash paid for income taxes, net of refunds	1,421	1,920
Cash paid for interest	$ 220	$ 235

1. Basis of presentation

1. Basis of presentation	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of presentation	The accompanying consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company’s consolidated financial statements include all of the assets, liabilities and results of operations of the Company’s wholly owned subsidiaries (collectively “Lifeway” or the “Company”). All inter-company balances and transactions have been eliminated in the consolidated financial statements.

2. Summary Of Significant Accou

2. Summary Of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Summary Of Significant Accounting Policies	Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP 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 consolidated financial statements and reported amounts of revenues and expenses during the reporting period. 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 income 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, shipping costs invoiced to the customers are included in net sales and the related costs are included in cost of sales. 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-saleable product, coupons and other trade promotional activities. These allowances are considered reductions in the price of our products and thus are recorded as reductions to 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 income 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 net sales. Cash and cash equivalents The Company considers cash and all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at cost, which approximates or equals fair value due to their short-term nature. The Company from time to time may have bank deposits in excess of insurance limits of the Federal Deposit Insurance Corporation. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to its cash and 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 cost or market, valued on a first in, first out basis (“FIFO”). The costs of finished goods inventories include raw materials, direct labor, and overhead costs. Inventories are stated net of reserves for obsolete or excess inventory. Property, plant and equipment Property, plant 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 that do not improve or extend the life of the assets are charged to expense as incurred; significant renewals and betterments are capitalized. Property, plant 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 3 - 7 Vehicles 5 Leasehold improvements Shorter of expected useful life or lease term Goodwill and other intangible assets Goodwill represents the excess purchase price over the fair value of the net tangible and other identifiable intangible assets acquired. Goodwill and indefinite lived intangible assets are not amortized, but are reviewed for impairment at least annually. Intangible assets acquired in a business combination are recorded at their estimated fair values at the date of acquisition. The Company amortizes other intangible assets over their estimated useful lives, as disclosed in the table below. Category Years Recipes 4 Trade names 8-15 Formula 10 Customer lists 8-10 Customer relationships 8-12 Impairment 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. Long-lived assets, including property, plant, and equipment, and cost method investments, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and prior to any goodwill impairment test. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. There were no indicators of impairment in 2016 or 2015. 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 tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the deferred tax assets or liabilities are expected to be realized or settled. 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 the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. We recognize the income tax benefit from an uncertain tax position when it is more likely than not that, based on technical merits, the position will be sustained upon examination, including resolutions of any related appeals or litigation processes. We apply a more likely than not threshold to the recognition and derecognition of uncertain tax positions. Accordingly, we recognize the amount of tax benefit that has a greater than 50 percent likelihood of being ultimately realized upon settlement. Future changes in judgment related to the expected ultimate resolution of uncertain tax positions will affect earnings in the quarter of such change. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. 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. The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in general and administrative expenses. 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, 2016 and 2015 total advertising expenses were $6,859 and $5,006, respectively. Earnings per common share Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares issued and outstanding during each period. Diluted earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares issued and outstanding and the effect of all dilutive common stock equivalents outstanding during each period. For the year ended December 31, 2016, there were 5 common stock equivalents outstanding. There were no common stock equivalents outstanding for the year ended December 31, 2015. Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. The new guidance simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The new guidance will be effective for annual periods or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The amendment should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this amendment is not expected to have a material impact on the consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. The new guidance is intended to address the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows, such as debt prepayment or debt extinguishment costs, contingent consideration payments made after an acquisition, proceeds from the settlement of insurance claims, and other topics. 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 permitted. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation – Improvements to Employee Share-Based Payment Accounting. The new guidance simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification in the statement of cash flows. The new guidance will be effective for fiscal years beginning on or after December 15, 2016 and interim periods within those years. Early adoption of the guidance is permitted. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases. The guidance requires lessees to recognize lease assets and lease liabilities in the balance sheet and disclose key information about leasing arrangements, such as information about variable lease payments and options to renew and terminate leases. The amended guidance will require both operating and finance leases to be recognized in 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. Early adoption is permitted. The amendments in this ASU should be adopted using a modified retrospective transition approach, which requires application of the new guidance at the beginning of the earliest comparative period presented in the year of adoption. We do not intend to early adopt the standard. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements. In January, 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial 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. The adoption of this amendment is not expected to have an impact on the consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes – Balance Sheet Classification of Deferred Taxes. This new guidance simplifies the presentation of deferred income taxes and 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. The adoption of this amendment is not expected to have a material impact on the consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory – Simplifying the Measurement of 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. 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. The adoption of this amendment is not expected to have a material impact on the consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances, such as the existence of substantial doubt. The Company is required to evaluate going concern uncertainties at each annual and interim reporting period, considering the entity’s ability to continue as a going concern within one year after the issuance date. This guidance was effective on December 31, 2016. The adoption of this amendment had no impact on the consolidated financial statements. 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. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all of the periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. ASU 2014-09 also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. On August 12, 2015 the FASB approved a one year delay of the effective date to reporting periods beginning after December 15, 2017, while permitting companies to voluntarily adopt the new standard as of the original effective date. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which clarifies narrow aspects of ASC 606 or corrects unintended application of the guidance. The effective date and transition requirements for ASU 2016-20 are the same as the effective date and transition requirements for 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 this amendment 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. Our completed evaluation will include the impact of the new standard on certain common practices currently employed by us, such as rebates, in-store display and demo allowances, allowances for non-saleable product, and coupons. We currently expect to utilize the modified retrospective transition method and to adopt the ASU on January 1, 2018. Based on our findings to date, we do not expect the standard to have a material impact on our results of operations or financial position; however, our assessment is not yet complete. During 2017, we plan to finalize our review and method of adoption.

3. Intangible Assets

3. Intangible Assets	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Goodwill and indefinite-lived intangible assets consisted of the following: December 31, 2016 2015 Goodwill $ 10,368 $ 10,368 Brand names 3,700 3,700 Goodwill and indefinite lived intangible assets $ 14,068 $ 14,068 Other intangible assets, net consisted of the following: December 31, 2016 2015 Recipes $ 44 $ 44 Customer lists and other customer related intangibles 4,529 4,529 Customer relationships 985 985 Trade names 2,248 2,248 Formula 438 438 8,244 8,244 Accumulated amortization (6,597 ) (5,900 ) Intangible assets, net $ 1,647 $ 2,344 The estimated annual intangible asset amortization expense related to amortizable intangible assets as of December 31, 2016 is as follows: 2017 $ 672 2018 635 2019 210 2020 130 Total $ 1,647

4. Investments

4. Investments	12 Months Ended
	Dec. 31, 2016
Investments, All Other Investments [Abstract]
Investments	The cost and fair value of investments classified as available for sale are as follows: December 31, 2015 Cost Unrealized Unrealized Fair 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 Gross gains of $185 and $48, and gross losses of $200 and $120 were realized on the sales of investments during the years ended December 31, 2016 and 2015, 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: 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 ) The Company's investments in equity securities, mutual funds, preferred securities 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 related to certain structured notes of $0 and $475 during the years ended December 31, 2016 and 2015, respectively. 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.

5. Inventories, net

5. Inventories, net	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Inventories	Inventories consisted of the following: December 31, 2016 2015 Ingredients $ 2,256 $ 2,082 Packaging 2,770 2,636 Finished goods 3,016 2,946 Total inventories, net $ 8,042 $ 7,664

6. Property, Plant and Equipmen

6. Property, Plant and Equipment, net	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, net	Property, plant and equipment consisted of the following: December 31, 2016 2015 Land $ 1,747 $ 1,807 Buildings and improvements 16,428 16,387 Machinery and equipment 23,122 22,907 Vehicles 848 1,298 Office equipment 709 709 Construction in process 1,873 311 44,727 43,419 Less accumulated depreciation (22,895 ) (22,044 ) Total property, plant and equipment, net $ 21,832 $ 21,375

7. Accrued Expenses

7. Accrued Expenses	12 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued Expenses	Accrued expenses consisted of the following: December 31, 2016 2015 Payroll and incentive compensation $ 1,560 $ 859 Real estate tax 394 377 Other 215 302 Total accrued expenses $ 2,169 $ 1,538

8. Notes Payable

8. Notes Payable	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Notes Payable	Notes payable consisted of the following: December 31, 2016 2015 Variable rate term loan due May 31, 2018. Principal and interest (3.11% at December 31, 2016) payable monthly with a balloon payment due at maturity. $ 3,339 $ 3,846 Variable rate term loan due May 31, 2019. Principal and interest (3.12% at December 31, 2016) payable monthly with a balloon payment due at maturity. 3,780 4,113 Total notes payable 7,119 7,959 Less current portion (840 ) (840 ) Total long-term portion $ 6,279 $ 7,119 The variable rate term loans 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. Further, under the agreements the Company is required to deliver its annual and quarterly financial statements and related SEC filings within specified timeframes. The Company was in compliance with these financial covenants at December 31, 2016. 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, 2016 there were no borrowings under the facility. Unless renewed the facility expires in July 2017. Future maturities of notes payable at December 31, 2016, are as follows: 2017 $ 840 2018 3,165 2019 3,114 Total $ 7,119

9. Commitments And Contingencie

9. Commitments And Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments And Contingencies	Lease obligations The Company leases certain machinery and equipment, office space and three retail stores for its Lifeway Kefir Shop subsidiary under operating leases. Total rent expense was $509 and $278 for the years ended December 31, 2016 and 2015, respectively. Future annual minimum base rental payments under non-cancelable leases with a lease term in excess of one year as of December 31, 2016 were as follows: Year Operating 2017 $ 170 2018 110 2019 67 2020 45 2021 13 Thereafter 1 Total minimum lease payments $ 406 Litigation The Company is engaged in various legal actions, claims and proceedings arising in the normal course of business, including commercial disputes, product liabilities, intellectual property matters and employment-related matters resulting from the Company’s business activities. The Company records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred and the amount of such loss can be reasonably estimated. The Company evaluates, on a periodic basis, developments in legal matters that could affect the amount of any accrual and developments that would make a loss contingency both probable and reasonably estimable. If a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. Currently, none of the Company’s accruals for outstanding legal matters are material individually or in the aggregate to the Company’s financial position and it is management’s opinion that the ultimate resolution of these outstanding legal matters will not have a material adverse effect on our business, financial condition, results of operations, or cash flows. However, if the Company ultimately is required to make payments in connection with an adverse outcome, it is possible that it could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. The Company’s contingencies are subject to substantial uncertainties, including for each such contingency the following, among other factors: (i) the procedural status of the case; (ii) whether the case has or may be certified as a class action suit; (iii) the outcome of preliminary motions; (iv) the impact of discovery; (v) whether there are significant factual issues to be determined or resolved; (vi) whether the proceedings involve a large number of parties and/or parties and claims in multiple jurisdictions or jurisdictions in which the relevant laws are complex or unclear; (vii) the extent of potential damages, which are often unspecified or indeterminate; and (viii) the status of settlement discussions, if any, and the settlement posture of the parties. Consequently, the Company cannot predict with any reasonable certainty the timing or outcome of such contingencies, and the Company is unable to estimate a possible loss or range of loss.

10. Income taxes

10. Income taxes	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income taxes	The provision for income taxes consists of the following: For the Years Ended December 31, 2016 2015 Current: Federal $ 2,117 $ 1,888 State and local 572 717 Total current 2,689 2,605 Deferred (531 ) (585 ) Provision for income taxes $ 2,158 $ 2,020 A reconciliation of the U.S. federal statutory rate to the effective tax rate used in the provision for income taxes is as follows: 2016 2015 Amount Percentage Amount Percentage Federal income tax expense computed at the statutory rate $ 1,917 34.0% $ 1,357 34.0% State and local tax expense, net 320 5.7% 337 8.4% U.S. domestic manufacturers' deduction & other permanent differences 113 2.0% 300 7.5% Changes for tax positions of prior years (202 ) (3.5 )% 50 1.3% Change in tax rates 2 0.0% – —% Change in tax estimate 8 0.1% (24 ) (0.6 )% Provision for income taxes $ 2,158 38.3% $ 2,020 50.6% Amounts for deferred tax assets and liabilities are as follows: December 31, 2016 2015 Non-current deferred tax assets (liabilities) arising from: Accumulated depreciation and amortization $ (1,854 ) $ (1,719 ) Total non-current net deferred tax liabilities (1,854 ) (1,719 ) Current deferred tax assets arising from: Capital loss carry-forward & investment impairment 166 164 Unrealized losses (gain) on investments – 45 Share-based and other compensation 126 – Inventory 331 308 Allowances for doubtful accounts and discounts 39 39 Total current deferred tax assets 662 556 Net deferred tax liability $ (1,192 ) $ (1,163 ) A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2016 2015 Balance at January 1 $ 265 $ 215 Additions for tax positions of prior years 63 50 Release for tax positions of prior years (265 ) – Balance at December 31 $ 63 $ 265 Periods subject to examination for the Company's federal income tax returns are the 2014 and 2015 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, 2016 and not significant as of December 31, 2015. The amount of interest and penalties recognized in the consolidated statements of income and comprehensive income was approximately $19 and $-- during 2016 and 2015, respectively. The amount of interest and penalties recognized in the consolidated balance sheets was approximately $19 and $65 at December 31, 2016 and 2015, respectively.

11. Fair Value Measurements

11. Fair Value Measurements	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	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, 2016 and 2015. 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 and common stock, is based on quoted market prices in active markets for identical securities. The Company's Level 2 fair value measurements, which include corporate bonds and preferred securities, 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 year ended December 31, 2015. Assets and liabilities 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 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, accrued expenses and notes payable for which carrying value approximates fair value.

12. Stock-based Compensation

12. Stock-based Compensation	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation	Stock Options 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. At December 31, 2016, 3.448 million shares remain available under the Omnibus Incentive Plan. 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 and 24 stock options on July 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. For the years ended December 31, 2016 and 2015 total pre-tax stock-based compensation expense recognized in the consolidated statements of income and comprehensive income was $134 and $0, respectively. For the years ended December 31, 2016 and 2015 tax-related benefits of $51 and $0 were also recognized. As of December 31, 2016, the total remaining unearned compensation related to non-vested stock options was $60, which is expected to be amortized over the weighted-average remaining service period of 1.41 years. The following table summarizes stock option activity during the year ended December 31, 2016: Options Weighted Weighted Aggregate Outstanding at December 31,2015 – $ Granted 50 $ 10.37 Exercised (5 ) $ 9.57 Forfeited – $ – Outstanding at December 31, 2016 45 $ 10.45 9.20 $ 48 Exercisable at December 31, 2016 3 $ 9.57 9.50 $ 6 We measure the fair value of stock options using the Black-Scholes option pricing model. The expected term of options granted was based on the weighted average time of vesting and the end of the contractual term. We utilized this simplified method as we do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. The following assumptions were used for the 2016 stock option grants: Risk free interest rate 1.00 - 1.11% Expected dividend yield 0.27% Expected volatility 38.96 - 39.94% Expected term (years) 5.03 - 5.88 Restricted Stock Units Pursuant to the 2015 Omnibus Incentive Plan, Lifeway granted 2 Restricted Stock Units (“RSUs”) to certain key employees in December 2016. An RSU represents the right to receive one share of common stock in the future. RSUs have no exercise price. The following table summarizes RSU activity during the year ended December 31, 2016: RSU’s Outstanding at December 31,2015 – Granted 2 Shares issued upon vesting – Forfeited – Outstanding at December 31, 2016 2 Weighted average grant date fair value per share $ 10.54 We expense RSU’s over the service period. For the years ended December 31, 2016 and 2015 total pre-tax stock-based compensation expense recognized in the consolidated statements of income and comprehensive income was $1 and $0, respectively. For the years ended December 31, 2016 and 2015 tax-related benefits of $0 were also recognized. As of December 31, 2016, the total remaining unearned compensation related to non-vested RSU’s was $20, which is expected to be amortized over the weighted-average remaining service period of 1.46 years. Incentive Compensation In March 2016 Lifeway established an incentive-based compensation program (the “2016 Plan”) for certain senior executives and key employees (the “participants”). The incentive compensation was based on the achievement of certain sales and EBITDA performance levels versus respective targets in 2016. Under the 2016 Plan, the senior executives had the opportunity to earn cash and equity-based incentive compensation in amounts ranging from $0 to $11,363 for fiscal 2016 depending on the performance levels compared to the respective targets. For the year ended December 31, 2016, senior executive participants earned bonuses of $1,720 under the 2016 Plan, all of which was paid or was payable in cash at December 31, 2016. In December 2016 Lifeway awarded 12 shares of fully vested common stock to key employee participants. Stock-based compensation of $191 was recognized in 2016. In January 2017 Lifeway established an incentive-based compensation program (the “2017 Plan”) for certain senior executives and key employees (the “participants”). Under the 2017 Plan, incentive compensation is based on the achievement of certain sales and EBITDA performance levels versus respective targets in 2017. Under the 2017 Plan, collectively the participants may earn cash and equity based incentive compensation in amounts ranging from $0 to $4,000 depending on the performance levels compared to the respective targets. The equity portion of the incentive compensation is payable in restricted stock that vests one-third in each of the three years from the 2017 grant dates. No compensation expense has been recognized for the 2017 Plan. Retirement Benefits The Company has a defined contribution plan which is available to substantially all full-time employees. Under the terms of the plan the Company matches employee contributions under a prescribed formula. For the years ended December 31, 2016 and 2015 total contribution expense recognized in the consolidated statements of income and comprehensive income was $368 and $316, respectively.

13. Segments, Products and Cust

13. Segments, Products and Customers	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
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 Operating Officer, the Chief Executive Officer and Chairperson 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. Net sales of products by category were as follows for the years ended December 31: 2016 2015 Drinkable Kefir other than ProBugs $ 105,983 $ 100,812 Lifeway cheese products 10,258 9,725 ProBugs Kefir products 6,383 6,775 Frozen Kefir 1,255 1,275 Net sales $ 123,879 $ 118,587 Significant Customers

14. Share repurchase program

14. Share repurchase program	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
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 year ended December 31, 2016, the Company repurchased 69 shares at a cost of $738, or approximately $10.68 per share. During the year ended December 31, 2015, the Company repurchased 136 shares at a cost of $1,542, or about $11.32 per share. Approximately $1,220 remained available under this program as of December 31, 2016.

15. Related party transactions

15. Related party transactions	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Related party transactions	The Company obtains consulting services from the Chairperson of its board of directors. Fees earned by the Chairperson are included in general and administrative expenses in the accompanying consolidated statements of income and comprehensive income and were $1,000 during the years ended December 31, 2016 and 2015. On December 14, 2015, the Company entered into a stock purchase agreement (the "Stock Purchase Agreement") with Ludmila Smolyansky, the Company's Chairperson 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 Chairperson 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. The Agreement was effective as of January 1, 2016. Royalties earned by the Chairperson are included in selling expenses in the accompanying consolidated statements of income and comprehensive income and were $600 during the year ended December 31, 2016.

2. Summary Of Significant Acc23

2. Summary Of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Use Of Estimates	Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP 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 consolidated financial statements and reported amounts of revenues and expenses during the reporting period. 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 income taxes.
Revenue Recognition	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, shipping costs invoiced to the customers are included in net sales and the related costs are included in cost of sales. 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-saleable product, coupons and other trade promotional activities. These allowances are considered reductions in the price of our products and thus are recorded as reductions to 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 income 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 net sales.
Cash And Cash Equivalents	Cash and cash equivalents The Company considers cash and all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at cost, which approximates or equals fair value due to their short-term nature. The Company from time to time may have bank deposits in excess of insurance limits of the Federal Deposit Insurance Corporation. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to its cash and cash equivalents.
Investments	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 Inventories are stated at the lower of cost or market, valued on a first in, first out basis (“FIFO”). The costs of finished goods inventories include raw materials, direct labor, and overhead costs. Inventories are stated net of reserves for obsolete or excess inventory.
Property And Equipment	Property, plant and equipment Property, plant 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 that do not improve or extend the life of the assets are charged to expense as incurred; significant renewals and betterments are capitalized. Property, plant 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 3 - 7 Vehicles 5 Leasehold improvements Shorter of expected useful life or lease term
Goodwill and other intangible assets	Goodwill and other intangible assets Goodwill represents the excess purchase price over the fair value of the net tangible and other identifiable intangible assets acquired. Goodwill and indefinite lived intangible assets are not amortized, but are reviewed for impairment at least annually. Intangible assets acquired in a business combination are recorded at their estimated fair values at the date of acquisition. The Company amortizes other intangible assets over their estimated useful lives, as disclosed in the table below. Category Years Recipes 4 Trade names 8-15 Formula 10 Customer lists 8-10 Customer relationships 8-12
Impairment	Impairment 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. Long-lived assets, including property, plant, and equipment, and cost method investments, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and prior to any goodwill impairment test. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. There were no indicators of impairment in 2016 or 2015.
Income Taxes	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 tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which the deferred tax assets or liabilities are expected to be realized or settled. 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 the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. We recognize the income tax benefit from an uncertain tax position when it is more likely than not that, based on technical merits, the position will be sustained upon examination, including resolutions of any related appeals or litigation processes. We apply a more likely than not threshold to the recognition and derecognition of uncertain tax positions. Accordingly, we recognize the amount of tax benefit that has a greater than 50 percent likelihood of being ultimately realized upon settlement. Future changes in judgment related to the expected ultimate resolution of uncertain tax positions will affect earnings in the quarter of such change. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. 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. The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in general and administrative expenses.
Treasury Stock	Treasury stock Treasury stock is recorded using the cost method.
Advertising costs	Advertising costs The Company expenses advertising costs as incurred. For the years ended December 31, 2016 and 2015 total advertising expenses were $6,859 and $5,006, respectively.
Earnings Per Common Share	Earnings per common share Basic earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares issued and outstanding during each period. Diluted earnings per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares issued and outstanding and the effect of all dilutive common stock equivalents outstanding during each period. For the year ended December 31, 2016, there were 5 common stock equivalents outstanding. There were no common stock equivalents outstanding for the year ended December 31, 2015.
Recent Accounting Pronouncements	Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment. The new guidance simplifies the subsequent measurement of goodwill by removing the second step of the two-step impairment test. The amendment requires an entity to perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The new guidance will be effective for annual periods or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The amendment should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this amendment is not expected to have a material impact on the consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments. The new guidance is intended to address the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows, such as debt prepayment or debt extinguishment costs, contingent consideration payments made after an acquisition, proceeds from the settlement of insurance claims, and other topics. 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 permitted. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation – Improvements to Employee Share-Based Payment Accounting. The new guidance simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification in the statement of cash flows. The new guidance will be effective for fiscal years beginning on or after December 15, 2016 and interim periods within those years. Early adoption of the guidance is permitted. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases. The guidance requires lessees to recognize lease assets and lease liabilities in the balance sheet and disclose key information about leasing arrangements, such as information about variable lease payments and options to renew and terminate leases. The amended guidance will require both operating and finance leases to be recognized in 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. Early adoption is permitted. The amendments in this ASU should be adopted using a modified retrospective transition approach, which requires application of the new guidance at the beginning of the earliest comparative period presented in the year of adoption. We do not intend to early adopt the standard. Management is currently evaluating the impact that the new guidance will have on the consolidated financial statements. In January, 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial 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. The adoption of this amendment is not expected to have an impact on the consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes – Balance Sheet Classification of Deferred Taxes. This new guidance simplifies the presentation of deferred income taxes and 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. The adoption of this amendment is not expected to have a material impact on the consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory – Simplifying the Measurement of 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. 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. The adoption of this amendment is not expected to have a material impact on the consolidated financial statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which requires management to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances, such as the existence of substantial doubt. The Company is required to evaluate going concern uncertainties at each annual and interim reporting period, considering the entity’s ability to continue as a going concern within one year after the issuance date. This guidance was effective on December 31, 2016. The adoption of this amendment had no impact on the consolidated financial statements. 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. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all of the periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. ASU 2014-09 also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. On August 12, 2015 the FASB approved a one year delay of the effective date to reporting periods beginning after December 15, 2017, while permitting companies to voluntarily adopt the new standard as of the original effective date. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which clarifies narrow aspects of ASC 606 or corrects unintended application of the guidance. The effective date and transition requirements for ASU 2016-20 are the same as the effective date and transition requirements for 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 this amendment 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. Our completed evaluation will include the impact of the new standard on certain common practices currently employed by us, such as rebates, in-store display and demo allowances, allowances for non-saleable product, and coupons. We currently expect to utilize the modified retrospective transition method and to adopt the ASU on January 1, 2018. Based on our findings to date, we do not expect the standard to have a material impact on our results of operations or financial position; however, our assessment is not yet complete. During 2017, we plan to finalize our review and method of adoption.

2. Summary Of Significant Acc24

2. Summary Of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Schedule Of Property And Equipment, Estimated Useful Lives	Category Years Buildings and improvements 31 and 39 Machinery and equipment 5 - 12 Office equipment 3 - 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

3. Intangible Assets (Tables)

3. Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill & indefinite-lived intangible assets	December 31, 2016 2015 Goodwill $ 10,368 $ 10,368 Brand names 3,700 3,700 Goodwill and indefinite lived intangible assets $ 14,068 $ 14,068
Schedule of other intangible assets	December 31, 2016 2015 Recipes $ 44 $ 44 Customer lists and other customer related intangibles 4,529 4,529 Customer relationships 985 985 Trade names 2,248 2,248 Formula 438 438 8,244 8,244 Accumulated amortization (6,597 ) (5,900 ) Intangible assets, net $ 1,647 $ 2,344
Amortization Expense On Future Intangible Assets	2017 $ 672 2018 635 2019 210 2020 130 Total $ 1,647

4. Investments (Tables)

4. Investments (Tables)	12 Months Ended
	Dec. 31, 2016
Investments, All Other Investments [Abstract]
Schedule Of Cost And Fair Value Of Available For Sale Investments	December 31, 2015 Cost Unrealized Unrealized Fair 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
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 )

5. Inventories (Tables)

5. Inventories (Tables)	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Schedule Of Inventories	December 31, 2016 2015 Ingredients $ 2,256 $ 2,082 Packaging 2,770 2,636 Finished goods 3,016 2,946 Total inventories, net $ 8,042 $ 7,664

6. Property, Plant and Equipm28

6. Property, Plant and Equipment, net (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment	December 31, 2016 2015 Land $ 1,747 $ 1,807 Buildings and improvements 16,428 16,387 Machinery and equipment 23,122 22,907 Vehicles 848 1,298 Office equipment 709 709 Construction in process 1,873 311 44,727 43,419 Less accumulated depreciation (22,895 ) (22,044 ) Total property, plant and equipment, net $ 21,832 $ 21,375

7. Accrued Expenses (Tables)

7. Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
Schedule Of Accrued Expenses	December 31, 2016 2015 Payroll and incentive compensation $ 1,560 $ 859 Real estate tax 394 377 Other 215 302 Total accrued expenses $ 2,169 $ 1,538

8. Notes Payable (Tables)

8. Notes Payable (Tables)	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Schedule Of Notes Payable	December 31, 2016 2015 Variable rate term loan due May 31, 2018. Principal and interest (3.11% at December 31, 2016) payable monthly with a balloon payment due at maturity. $ 3,339 $ 3,846 Variable rate term loan due May 31, 2019. Principal and interest (3.12% at December 31, 2016) payable monthly with a balloon payment due at maturity. 3,780 4,113 Total notes payable 7,119 7,959 Less current portion (840 ) (840 ) Total long-term portion $ 6,279 $ 7,119
Maturities Of Notes Payable	2017 $ 840 2018 3,165 2019 3,114 Total $ 7,119

9. Commitments And Contingenc31

9. Commitments And Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Future minimum operating lease schedule	Year Operating 2017 $ 170 2018 110 2019 67 2020 45 2021 13 Thereafter 1 Total minimum lease payments $ 406

10. Income taxes (Tables)

10. Income taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Provision for income taxes	For the Years Ended December 31, 2016 2015 Current: Federal $ 2,117 $ 1,888 State and local 572 717 Total current 2,689 2,605 Deferred (531 ) (585 ) Provision for income taxes $ 2,158 $ 2,020
Reconciliation to effective rate for income taxes	2016 2015 Amount Percentage Amount Percentage Federal income tax expense computed at the statutory rate $ 1,917 34.0% $ 1,357 34.0% State and local tax expense, net 320 5.7% 337 8.4% U.S. domestic manufacturers' deduction & other permanent differences 113 2.0% 300 7.5% Changes for tax positions of prior years (202 ) (3.5 )% 50 1.3% Change in tax rates 2 0.0% – —% Change in tax estimate 8 0.1% (24 ) (0.6 )% Provision for income taxes $ 2,158 38.3% $ 2,020 50.6%
Schedule of deferred tax assets and liabilities	December 31, 2016 2015 Non-current deferred tax assets (liabilities) arising from: Accumulated depreciation and amortization $ (1,854 ) $ (1,719 ) Total non-current net deferred tax liabilities (1,854 ) (1,719 ) Current deferred tax assets arising from: Capital loss carry-forward & investment impairment 166 164 Unrealized losses (gain) on investments – 45 Share-based and other compensation 126 – Inventory 331 308 Allowances for doubtful accounts and discounts 39 39 Total current deferred tax assets 662 556 Net deferred tax liability $ (1,192 ) $ (1,163 )
Reconciliation of amount of unrecognized tax benefits	2016 2015 Balance at January 1 $ 265 $ 215 Additions for tax positions of prior years 63 50 Release for tax positions of prior years (265 ) – Balance at December 31 $ 63 $ 265

11. Fair Value Measurements (Ta

11. Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Schedule Of Fair Value Assets And Liabilities	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

12. Stock-based Compensation (T

12. Stock-based Compensation (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock option activity table	Options Weighted Weighted Aggregate Outstanding at December 31,2015 – $ Granted 50 $ 10.37 Exercised (5 ) $ 9.57 Forfeited – $ – Outstanding at December 31, 2016 45 $ 10.45 9.20 $ 48 Exercisable at December 31, 2016 3 $ 9.57 9.50 $ 6
Assumptions used	Risk free interest rate 1.00 - 1.11% Expected dividend yield 0.27% Expected volatility 38.96 - 39.94% Expected term (years) 5.03 - 5.88
RSU activity table	RSU’s Outstanding at December 31,2015 – Granted 2 Shares issued upon vesting – Forfeited – Outstanding at December 31, 2016 2 Weighted average grant date fair value per share $ 10.54

13.Segments, Products and Custo

13.Segments, Products and Customers (Tables)	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Schedule of sales of products by category	2016 2015 Drinkable Kefir other than ProBugs $ 105,983 $ 100,812 Lifeway cheese products 10,258 9,725 ProBugs Kefir products 6,383 6,775 Frozen Kefir 1,255 1,275 Net sales $ 123,879 $ 118,587

2. Summary Of Significant Acc36

2. Summary Of Significant Accounting Policies (Details - Property useful lives)	12 Months Ended
	Dec. 31, 2016
Buildings And improvements [Member]
Property and equipment, useful life	31 and 39 years
Machinery And Equipment [Member]
Property and equipment, useful life	5-12 years
Office Equipment [Member]
Property and equipment, useful life	3-7 years
Vehicles [Member]
Property and equipment, useful life	5 years
Leasehold improvements [Member]
Property and equipment, useful life	Shorter of expected useful life or lease term

2. Summary Of Significant Acc37

2. Summary Of Significant Accounting Policies (Details - Intangible Useful lives)	12 Months Ended
	Dec. 31, 2016
Recipes [Member]
Intangible assets, useful lives	4 years
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 lists [Member] | Minimum [Member]
Intangible assets, useful lives	8 years
Customer lists [Member] | Maximum [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

2. Summary Of Significant Acc38

2. Summary Of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Impairment of assets	$ 0	$ 0
Advertising expenses	$ 6,859	$ 5,006
Antidilutive shares excluded from EPS computation	5,000	0

3. Intangible Assets (Details -

3. Intangible Assets (Details - Indefinite assets) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 10,368	$ 10,368
Brand names	3,700	3,700
Goodwill & indefinite lived intangible assets	$ 14,068	$ 14,068

3. Intangible Assets (Details40

3. Intangible Assets (Details - Finite lived) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Cost	$ 8,244	$ 8,244
Accumulated Amortization	(6,597)	(5,900)
Intangible assets, net	1,647	2,344
Recipes [Member]
Cost	44	44
Customer Lists And Other Customer Related Intangibles [Member]
Cost	4,529	4,529
Customer Relationships [Member]
Cost	985	985
Trade Names [Member]
Cost	2,248	2,248
Formula [Member]
Cost	$ 438	$ 438

3. Intangible Assets (Details41

3. Intangible Assets (Details - Amortization schedule) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
2,017	$ 672
2,018	635
2,019	210
2,020	130
Total	$ 1,647	$ 2,344

4. Investments (Details - Inves

4. Investments (Details - Investment schedule) - USD ($) $ in Thousands	12 Months Ended	132 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2005
Cost	$ 2,208	$ 2,208
Unrealized Gains	66
Unrealized Losses	(183)
Fair Value	$ 2,091	2,091
Common Stocks and ETF's [Member]
Cost			$ 690
Unrealized Gains		17
Unrealized Losses		(94)
Fair Value			613
Mutual Fund [Member]
Cost			27
Unrealized Gains		0
Unrealized Losses		(1)
Fair Value			26
Preferred Securities [Member]
Cost			98
Unrealized Gains		6
Unrealized Losses		0
Fair Value			104
Corporate Bonds [Member]
Cost			1,393
Unrealized Gains		43
Unrealized Losses		$ (88)
Fair Value			$ 1,348

4. Investments (Details - Unrea

4. Investments (Details - Unrealized losses) - USD ($) $ in Thousands	12 Months Ended	132 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2005
Less Than 12 Months, Fair Value	$ 621	$ 621
12 Months or Greater, Fair Value	631	631
Total, Fair Value	1,252	1,252
Unrealized Losses	$ (183)
Common Stocks and ETF's [Member]
Less Than 12 Months, Fair Value			$ 225
12 Months or Greater, Fair Value			152
Total, Fair Value			377
Unrealized Losses		(94)
Common Stocks and ETF's [Member] | Less Than 12 Months [Member]
Unrealized Losses		(72)
Common Stocks and ETF's [Member] | 12 Months or Greater [Member]
Unrealized Losses		(22)
Mutual Fund [Member]
Less Than 12 Months, Fair Value			26
12 Months or Greater, Fair Value			0
Total, Fair Value			26
Unrealized Losses		(1)
Mutual Fund [Member] | Less Than 12 Months [Member]
Unrealized Losses		(1)
Mutual Fund [Member] | 12 Months or Greater [Member]
Unrealized Losses		0
Preferred Securities [Member]
Less Than 12 Months, Fair Value			0
12 Months or Greater, Fair Value			0
Total, Fair Value			0
Unrealized Losses		0
Preferred Securities [Member] | Less Than 12 Months [Member]
Unrealized Losses		0
Preferred Securities [Member] | 12 Months or Greater [Member]
Unrealized Losses		0
Corporate Bonds [Member]
Less Than 12 Months, Fair Value			370
12 Months or Greater, Fair Value			479
Total, Fair Value			$ 849
Unrealized Losses		(88)
Corporate Bonds [Member] | Less Than 12 Months [Member]
Unrealized Losses		(32)
Corporate Bonds [Member] | 12 Months or Greater [Member]
Unrealized Losses		$ (56)

4. Investments (Details Narrati

4. Investments (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Investments, All Other Investments [Abstract]
Gross realized gains	$ 185	$ 48
Gross realized losses	200	120
Impairment losses	$ 0	$ 475

5. Inventories (Details)

5. Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Finished goods	$ 2,256	$ 2,082
Production supplies	2,770	2,636
Raw materials	3,016	2,946
Total inventories	$ 8,042	$ 7,664

6. Property And Equipment (Deta

6. Property And Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property and equipment, gross	$ 44,727	$ 43,419
Less accumulated depreciation	(22,895)	(22,044)
Total property and equipment	21,832	21,375
Land [Member]
Property and equipment, gross	1,747	1,807
Buildings And improvements [Member]
Property and equipment, gross	16,428	16,387
Machinery And Equipment [Member]
Property and equipment, gross	23,122	22,907
Vehicles [Member]
Property and equipment, gross	848	1,298
Office Equipment [Member]
Property and equipment, gross	709	709
Construction In Progress [Member]
Property and equipment, gross	$ 1,873	$ 311

7. Accrued Expenses (Details)

7. Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Payroll and incentive compensation	$ 1,560	$ 859
Real estate tax	394	377
Other	215	302
Total accrued expenses	$ 2,169	$ 1,538

8. Notes Payable (Details - Not

8. Notes Payable (Details - Notes payable) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Total notes payable	$ 7,119
Less current maturities	(840)	$ (840)
Total long-term portion	6,279	7,119
Term Loan 1 [Member]
Total notes payable	$ 3,339	$ 3,846
Debt maturity date	May 31, 2018
Debt interest rate		3.11%
Term Loan 2 [Member]
Total notes payable	$ 3,780	$ 4,113
Debt maturity date	May 31, 2019
Debt interest rate		3.12%

8. Notes Payable (Details - Fut

8. Notes Payable (Details - Future maturities) $ in Thousands	Dec. 31, 2016USD ($)
Debt Disclosure [Abstract]
2,017	$ 840
2,018	3,165
2,019	3,114
Total notes payable	$ 7,119

8. Notes Payable (Details Narra

8. Notes Payable (Details Narrative) - Revolving Credit Facility [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)
Revolving credit facility maximum borrowing capacity	$ 5,000
Credit facility interest rate	LIBOR plus 2.5%
Credit facility expiration date	Jul. 31, 2017

9. Commitments And Contingenc51

9. Commitments And Contingencies (Details - Operating lease) $ in Thousands	Dec. 31, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Future minimum lease payment, 2017	$ 170
Future minimum lease payment, 2018	110
Future minimum lease payment, 2019	67
Future minimum lease payment, 2020	45
Future minimum lease payment, 2021	13
Future minimum lease payment, thereafter	1
Total minimum lease payments	$ 406

9. Commitments And Contingenc52

9. Commitments And Contingencies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Total rent expense	$ 509	$ 278

10. Income taxes (Details - Pro

10. Income taxes (Details - Provision) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Current:
Federal	$ 2,117	$ 1,888
State and local	572	717
Total current	2,689	2,605
Deferred	(531)	(585)
Provision for income taxes	$ 2,158	$ 2,020

10. Inccome taxes (Details - Re

10. Inccome taxes (Details - Reconciliation) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Federal income tax expense computed at the statutory rate	$ 1,917	$ 1,357
State and local tax expense, net	320	337
U.S. domestic manufacturers' deduction & other permanent differences	113	300
Additions for tax positions of prior years	(202)	50
Change in tax rates	2	0
Change in tax estimate	8	(24)
Provision for income taxes	$ 2,158	$ 2,020
Federal income tax expense computed at the statutory rate, percentage	34.00%	34.00%
State and local tax expense, net, percentage	5.70%	8.40%
U.S. domestic manufacturers' deduction & other permanent differences, percentage	2.00%	7.50%
Additions for tax positions of prior years, percentage	(3.50%)	1.30%
Change in tax rates, percentage	0.00%	0.00%
Change in tax estimate, percentage	0.10%	(0.60%)
Provision for income taxes, percentage	38.30%	50.60%

10. Income taxes (Details - Def

10. Income taxes (Details - Deferred tax assets) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Non-current deferred tax assets (liabilities) arising from:
Accumulated depreciation and amortization	$ (1,854)	$ (1,719)
Total non-current net deferred tax liabilities	(1,854)	(1,719)
Current deferred tax assets arising from:
Capital loss carry-forward & investment impairment	166	164
Unrealized losses (gain) on investments	0	45
Share-based and other compensation	126	0
Inventory	331	308
Allowance for doubtful accounts and discounts	39	39
Total current deferred tax assets	662	556
Net deferred tax liability	$ (1,192)	$ (1,163)

10. Income taxes (Details - Unr

10. Income taxes (Details - Unrecognized tax benefits) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Unrecognized tax benefits, beginning balance	$ 265	$ 215
Additions for tax positions of prior years	63	50
Release for tax positions of prior years	(265)	0
Unrecognized tax benefits, ending balance	$ 63	$ 265

10. Income taxes (Details Narra

10. Income taxes (Details Narrative) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Interest and penalties	$ 0	$ 19,000

11. Fair Value Measurements (De

11. Fair Value Measurements (Details) $ in Thousands	Dec. 31, 2015USD ($)
Mutual Fund [Member]
Investments, fair value disclosure	$ 26
Common Stocks and ETF's [Member]
Investments, fair value disclosure	613
Preferred Securities [Member]
Investments, fair value disclosure	104
Corporate Bonds [Member]
Investments, fair value disclosure	1,348
Level 1 [Member] | Mutual Fund [Member]
Investments, fair value disclosure	26
Level 1 [Member] | Common Stocks and ETF's [Member]
Investments, fair value disclosure	613
Level 1 [Member] | Preferred Securities [Member]
Investments, fair value disclosure	0
Level 1 [Member] | Corporate Bonds [Member]
Investments, fair value disclosure	0
Level 2 [Member] | Mutual Fund [Member]
Investments, fair value disclosure	0
Level 2 [Member] | Common Stocks and ETF's [Member]
Investments, fair value disclosure	0
Level 2 [Member] | Preferred Securities [Member]
Investments, fair value disclosure	104
Level 2 [Member] | Corporate Bonds [Member]
Investments, fair value disclosure	1,187
Level 3 [Member] | Mutual Fund [Member]
Investments, fair value disclosure	0
Level 3 [Member] | Common Stocks and ETF's [Member]
Investments, fair value disclosure	0
Level 3 [Member] | Preferred Securities [Member]
Investments, fair value disclosure	0
Level 3 [Member] | Corporate Bonds [Member]
Investments, fair value disclosure	$ 161

12. Stock-based Compensation (D

12. Stock-based Compensation (Details - Option Activity) - Options [Member] $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares
Options outstanding, beginning balance	0
Options granted	50,000
Options exercised	(5,000)
Options forfeited	0
Options outstanding, ending balance	45,000
Options exercisable	3,000
Weighted average exercise price, options granted | $ / shares	$ 10.37
Weighted average exercise price, options exercised | $ / shares	9.57
Weighted average exercise price, options forfeited | $ / shares
Weighted average exercise price, options outstanding, ending balance | $ / shares	10.45
Weighted average exercise price, options exercisable | $ / shares	$ 9.57
Weighted average remaining contractural life, outstanding	9 years 6 months 26 days
Weighted average remaining contractural life, exercisable	9 years 6 months 26 days
Aggregate intrinsic value, options outstanding | $	$ 48
Aggregate intrinsic value, options exercisable | $	$ 6

12. Stock-based Compensation 60

12. Stock-based Compensation (Details - Assumptions) - Options [Member]	12 Months Ended
	Dec. 31, 2016
Risk-free interest rate, minimum	1.00%
Risk-free interest rate, maximum	1.10%
Expected dividend yield	0.27%
Expected volatility, minimum	38.96%
Expected volatility, maximum	39.94%
Expected term (years)	5.03-5.88 years

12. Stock-based Compensation 61

12. Stock-based Compensation (Details - RSU Activity) - Restricted Stock Units (RSUs) [Member]	12 Months Ended
	Dec. 31, 2016$ / sharesshares
RSU's outstanding, beginning balance	0
RSU's granted	2,000
Shares issued upon vesting	0
RSU's forfeited	0
RSU's outstanding, ending balance	2,000
Weighted average grant date fair value per share | $ / shares	$ 10.54

12. Stock-based Compensation 62

12. Stock-based Compensation (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Contribution expense	$ 368	$ 316
Options [Member]
Options granted	50,000
Share-based compensation	$ 134	0
Tax benefits	51	0
Unearned compensation related to non-vested stock options	$ 60
Weighted average period for unrecognized compensation	1 year 4 months 28 days
Restricted Stock Units (RSUs) [Member]
Share-based compensation	$ 1	0
Tax benefits	0	$ 0
Unearned compensation related to non-vested RSU's	$ 20
Weighted average period for unrecognized compensation	1 year 5 months 16 days
Cash Incentive - Bonus [Member]
Share-based compensation	$ 1,720
Fully Vested Common Stock [Member]
Share-based compensation	$ 191
Shares issued for compensation, shares	12,000
2015 Omnibus Incentive Plan [Member]
Stock authorized for issuance	3,500,000
Shares available for issuance	3,448,000
2015 Omnibus Incentive Plan [Member] | Key Employees [Member]
Options granted	26,000

13. Segments, Products and Cu63

13. Segments, Products and Customers (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Total sales	$ 123,879	$ 118,587
Drinkable Kefir Other Than ProBugs [Member]
Total sales	105,983	100,812
Lifeway Cheese Products [Member]
Total sales	10,258	9,725
ProBugs[Member]
Total sales	6,383	6,775
Frozen Kefir [Member]
Total sales	$ 1,255	$ 1,275

13. Segments, Products and Cu64

13. Segments, Products and Customers (Details Narrative) - Two Customers [Member]	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Sales Revenue, Net [Member]
Concentration percentage	23.00%	23.00%
Accounts Receivable [Member]
Concentration percentage	25.00%	16.00%

14. Share RepurchaseProgram (De

14. Share RepurchaseProgram (Detail Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Number of shares authorized to be repurchased	250,000
Amount of shares authorized to be repurchased	$ 3,500,000
Amount remaining available under the repurchase plan	1,220,000
Stock repurchased during period, amount	$ 738,000	$ 1,542,000
Treasury Stock, Common [Member]
Stock repurchased during period, shares	69,000	136,000
Stock repurchased during period, amount	$ 738,000	$ 1,542,000

15. Related party transactions

15. Related party transactions (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
General and administrative expenses	$ 13,783	$ 12,871
Selling expenses	14,467	11,892
Consulting Fees [Member]
General and administrative expenses	1	1
Royalty Expense [Member]
General and administrative expenses	$ 600	$ 0