Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 26, 2021 | Jun. 30, 2020 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | OCEAN BIO CHEM INC | ||
Entity Central Index Key | 0000350737 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 9,481,799 | ||
Entity File Number | 000-11102 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation State Country Code | FL | ||
Entity Voluntary Filers | No | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Public Float | $ 40,247,940 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash | $ 11,123,726 | $ 6,125,322 |
Trade accounts receivable less allowances of approximately $326,000 and $162,000, respectively | 8,326,939 | 7,132,256 |
Receivables due from affiliated companies | 1,496,104 | 962,154 |
Insurance claim receivable | 50,520 | |
Restricted cash | 477,426 | 1,885,098 |
Inventories, net | 13,175,756 | 9,555,071 |
Prepaid expenses and other current assets | 1,259,786 | 935,022 |
Total Current Assets | 35,859,737 | 26,645,443 |
Property, plant and equipment, net | 10,101,962 | 9,338,227 |
Operating lease - right to use | 268,920 | 352,190 |
Intangible assets, net | 1,665,299 | 1,949,947 |
Total Assets | 47,895,918 | 38,285,807 |
Current Liabilities: | ||
Current portion of long-term debt, net | 500,694 | 483,477 |
Current portion of operating lease liability | 86,377 | 83,270 |
Accounts payable - trade | 1,966,010 | 1,047,385 |
Accrued expenses payable | 1,142,825 | 1,214,938 |
Total Current Liabilities | 3,695,906 | 2,829,070 |
Deferred tax liability | 380,218 | 311,374 |
Operating lease liability, less current portion | 182,543 | 268,920 |
Long-term debt, less current portion and debt issuance costs | 3,730,180 | 4,142,179 |
Total Liabilities | 7,988,847 | 7,551,543 |
COMMITMENTS AND CONTINGENCIES | ||
Shareholders' Equity: | ||
Common stock - $.01 par value, 12,000,000 shares authorized; 9,481,799 shares and 9,442,809 shares issued and outstanding, respectively | 94,818 | 94,428 |
Additional paid in capital | 10,816,100 | 10,503,171 |
Accumulated other comprehensive loss | (294,324) | (294,491) |
Retained earnings | 29,290,477 | 20,431,156 |
Total Shareholders' Equity | 39,907,071 | 30,734,264 |
Total Liabilities and Shareholders' Equity | $ 47,895,918 | $ 38,285,807 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Trade accounts receivable allowance for doubtful accounts | $ 326,000 | $ 162,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 12,000,000 | 12,000,000 |
Common stock, shares issued | 9,481,799 | 9,442,809 |
Common stock, shares outstanding | 9,481,799 | 9,442,809 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 55,561,169 | $ 42,259,487 |
Cost of goods sold | 32,059,747 | 26,659,427 |
Gross profit | 23,501,422 | 15,600,060 |
Operating Expenses: | ||
Advertising and promotion | 2,980,356 | 3,147,289 |
Selling and administrative | 8,357,504 | 7,839,411 |
Total operating expenses | 11,337,860 | 10,986,700 |
Operating income | 12,163,562 | 4,613,360 |
Other income (expense) | ||
Interest (expense), net | (132,466) | (118,642) |
Gain on insurance settlement | 201,210 | |
Income before income taxes | 12,232,306 | 4,494,718 |
Provision for income taxes | (2,615,623) | (996,004) |
Net income | $ 9,616,683 | $ 3,498,714 |
Earnings per common share - basic and diluted | $ 1.02 | $ 0.37 |
Dividends declared per common share | $ 0.08 | $ 0.05 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 9,616,683 | $ 3,498,714 |
Foreign currency translation adjustment | 167 | 1,243 |
Comprehensive income | $ 9,616,850 | $ 3,499,957 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) | Common Stock | Additional Paid In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total |
Beginning balance at Dec. 31, 2018 | $ 93,382 | $ 10,235,827 | $ (295,734) | $ 17,399,776 | $ 27,433,251 |
Beginning balance, shares at Dec. 31, 2018 | 9,338,191 | ||||
Net income | 3,498,714 | 3,498,714 | |||
Dividends, common stock | (468,306) | (468,306) | |||
Options exercised | $ 279 | 13,520 | 13,799 | ||
Options exercised, shares | 27,928 | ||||
Stock based compensation | $ 830 | 274,710 | 275,540 | ||
Stock based compensation, shares | 83,000 | ||||
Shares withheld in consideration of employee tax obligations related to stock-based compensation | $ (63) | (20,886) | (20,949) | ||
Shares withheld in consideration of employee tax obligations related to stock-based compensation, shares | (6,310) | ||||
Cumulative effect adjustment on adoption of ASU 2016-02 Leases (Topic 842) | 972 | 972 | |||
Foreign currency translation adjustment | 1,243 | 1,243 | |||
Ending Balance at Dec. 31, 2019 | $ 94,428 | 10,503,171 | (294,491) | 20,431,156 | 30,734,264 |
Ending balance, shares at Dec. 31, 2019 | 9,442,809 | ||||
Net income | 9,616,683 | 9,616,683 | |||
Dividends, common stock | (757,362) | (757,362) | |||
Options exercised | $ 153 | 20,547 | 20,700 | ||
Options exercised, shares | 15,296 | ||||
Stock based compensation | $ 252 | 312,358 | 312,610 | ||
Stock based compensation, shares | 25,150 | ||||
Shares withheld in consideration of employee tax obligations related to stock-based compensation | $ (15) | (19,976) | (19,991) | ||
Shares withheld in consideration of employee tax obligations related to stock-based compensation, shares | (1,456) | ||||
Foreign currency translation adjustment | 167 | 167 | |||
Ending Balance at Dec. 31, 2020 | $ 94,818 | $ 10,816,100 | $ (294,324) | $ 29,290,477 | $ 39,907,071 |
Ending balance, shares at Dec. 31, 2020 | 9,481,799 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 9,616,683 | $ 3,498,714 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,373,337 | 1,289,531 |
Deferred income taxes | 68,844 | 31,025 |
Stock based compensation | 312,610 | 275,540 |
Provision for bad debts | 196,887 | 6,134 |
Provision for slow moving and obsolete inventory | 46,175 | (39,903) |
Impairment of equipment | 65,725 | |
Other operating non-cash items | (549) | (897) |
Cash used related to 2019 chemical incident | (200,665) | |
Gain on insurance settlement | (201,210) | |
Changes in assets and liabilities: | ||
Trade accounts receivable | (1,389,520) | (1,479,704) |
Receivables due from affiliated companies | (536,000) | 83,836 |
Inventories | (3,666,860) | 2,570,645 |
Prepaid expenses and other current assets | (324,764) | 75,619 |
Accounts payable - trade | 918,625 | (424,845) |
Accrued expenses payable | (72,113) | 106,033 |
Net cash provided by operating activities | 6,207,205 | 5,991,728 |
Cash flows from investing activities: | ||
Insurance proceeds received for damaged machinery and equipment | 486,657 | |
Purchases of property, plant and equipment | (1,836,756) | (718,474) |
Purchase of intangible assets | (75,000) | |
Net cash used in investing activities | (1,350,099) | (793,474) |
Cash flows from financing activities: | ||
Payments on long-term debt | (510,437) | (448,442) |
Borrowings on revolving line of credit | 1,000,000 | |
Repayments on revolving line of credit | (1,000,000) | |
Payments for taxes related to net share settlements of stock awards | (19,991) | (20,949) |
Proceeds from CARES Act note | 1,556,800 | |
Repayment of CARES Act note | (1,556,800) | |
Dividends paid to common shareholders | (757,362) | (468,306) |
Proceeds from exercise of stock options | 20,700 | 13,799 |
Net cash used in financing activities | (1,267,090) | (923,898) |
Effect of exchange rate on cash | 716 | 2,140 |
Net increase in cash and restricted cash | 3,590,732 | 4,276,496 |
Cash and restricted cash at beginning of period | 8,010,420 | 3,733,924 |
Cash and restricted cash at end of period | 11,601,152 | 8,010,420 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest during period | 141,021 | 156,623 |
Cash paid for income taxes during period | 2,627,384 | 778,009 |
Operating lease right to use asset exchanged for operating lease liability | 432,466 | |
Finance lease right to use assets exchanged for finance lease liabilities | 96,039 | 44,979 |
Cash paid under operating lease | 94,800 | 94,800 |
Cash | 11,123,726 | 6,125,322 |
Restricted cash | 477,426 | 1,885,098 |
Total cash and restricted cash | 11,601,152 | 8,010,420 |
Noncash investing and financing activities: | ||
Issuance of note payable for asset acquisition | 100,000 | |
Imputed interest | (2,988) | |
Principal portion of note payable issued for asset acquisition | $ 97,012 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Note 1 Organization ® ® ® ® Basis of presentation and consolidation Revenue recognition Revenue from Contracts with Customers Leases “Leases” As permitted under ASU 2016-02, the Company has made an accounting policy election not to apply the recognition provisions of ASU 2016-02 to short term leases (leases with a lease term of 12 months or less that do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise); instead, the Company will recognize the lease payments for short term leases on a straight-line basis over the lease term. The Company did not have any short- term leases at December 31, 2020 and 2019. Collectability of accounts receivable Because we cannot predict future changes in the financial stability of our customers, actual future losses from uncollectible accounts may differ from estimates. If the financial condition of customers were to deteriorate, resulting in their inability to make payments, a larger reserve might be required. In the event we determine a smaller or larger reserve is appropriate, we would record a benefit or charge to selling and administrative expenses in the period in which such a determination was made. Inventories Shipping and handling costs Advertising and promotion expense Property, plant and equipment Research and development costs Stock based compensation Accounting for Stock Compensation Use of estimates Concentration of cash Fair value of financial instruments Fair Value Measurements and Disclosures ASC Topic 820 also sets forth a valuation hierarchy of the inputs (assumptions that market participants would use in pricing an asset or liability) used to measure fair value. The hierarchy prioritizes the three levels of inputs as follows: Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. Level 2: Inputs that include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data through correlation or other means. Level 3: Inputs that are generally unobservable. These inputs may be used with internally developed data in connection with fair value measurements. The carrying amounts of the Company’s short-term financial instruments, including cash, accounts receivable, accounts payable, certain accrued expenses and revolving line of credit, approximate their fair value due to the relatively short period to maturity for these instruments. The fair value of long-term debt is based on current rates at which the Company could borrow funds with similar remaining maturities; the carrying amount of the long-term debt approximates fair value. Impairment of long-lived assets Property, Plant and Equipment – Overall Income taxes The Company records a valuation allowance when necessary to reduce its deferred tax assets to the net amount that the Company believes is more likely than not to be realized. The Company considers available evidence, both positive and negative, and use judgments regarding past and future events, including operating results and available tax planning strategies, in assessing the need for a valuation allowance. The Company recognizes tax benefits from uncertain tax positions only if the Company believes that it is more likely than not that the tax positions will be sustained on examination by the taxing authorities based on the technical merits of the positions; otherwise, the Company establishes reserves for uncertain tax positions. The Company adjusts reserves with respect to uncertain tax positions to address developments related to these positions, such as the closing of a tax audit, the expiration of a statute of limitations or the refinement of an estimate. The provision for income taxes includes any reserves with respect to uncertain tax positions that are considered appropriate, as well as the related net interest and penalties. The Company has no uncertain tax positions as of December 31, 2020. The Company is no longer subject to income tax examinations for years before 2017. Intangible assets Foreign currency translation Earnings per share |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 2 The composition of the Company's inventories at December 31, 2020 and 2019 are as follows: 2020 2019 Raw materials $ 5,393,961 $ 3,872,752 Finished goods 8,072,176 5,926,525 Inventories, gross 13,466,137 9,799,277 Inventory reserves (290,381 ) (244,206 ) Inventories, net $ 13,175,756 $ 9,555,071 The inventory reserves shown in the table above reflect slow moving and obsolete inventory. The Company operates a vendor managed inventory program with one of its customers to improve the promotion of the Company's products. The Company manages the inventory levels at this customer's warehouses and recognizes revenue as the products are sold by the customer. The inventories managed at the customer's warehouses, which are included in inventories, net, amounted to approximately $629,000 and $562,000 at December 31, 2020 and 2019, respectively. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 3 The Company's property, plant and equipment at December 31, 2020 and 2019 consisted of the following: Estimated Useful Life 2020 2019 Land $ 278,325 $ 278,325 Building and Improvements 30 years 9,563,406 9,563,406 Manufacturing and warehouse equipment 6-20 years 11,959,563 10,699,461 Office equipment and furniture 3-5 years 1,880,387 1,778,781 Leasehold improvements 10-15 years 587,183 577,068 Finance leases – right to use 5 years 113,741 45,951 Vehicles 3 years 10,020 10,020 Construction in process 464,203 142,612 Property, plant and equipment, gross 24,856,828 23,095,624 Less accumulated depreciation (14,754,866 ) (13,757,397 ) Property, plant and equipment, net $ 10,101,962 $ 9,338,227 The Company's wholly owned subsidiary, Kinpak Inc. ("Kinpak"), has been engaged since 2017 in a project involving the expansion of its manufacturing, warehouse and distribution facilities in Montgomery, Alabama, as well as the purchase and installation of associated machinery and equipment (the "Expansion Project"). Kinpak has completed the construction of, and placed into service, an approximately 85,000 square foot addition to the facilities and an expansion of a tank farm to accommodate an additional 500,000 gallons of tank capacity. The final phase of the Expansion Project entails the evaluation, purchase and installation of additional equipment. The Company is financing the Expansion Project through a $4,500,000 industrial development bond, which is described in Note 8. At December 31, 2020, the Company had unused proceeds from the industrial development bond of approximately $477,000 in a custodial account restricted for the use of funding additional capital improvements. The Company intends to utilize the remaining proceeds to purchase machinery and equipment to expand production capacity. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 4 The Company has one operating lease and two finance leases. Under the operating lease, the Company leases its executive offices and warehouse facilities in Fort Lauderdale, Florida from an entity controlled by Peter G. Dornau, the Company's Chairman, President and Chief Executive Officer. The lease, as extended, expires on December 31, 2023. The lease requires an annual minimum base rent of $94,800 and provides for a maximum annual 2% increase in subsequent years, although the entity has not raised the minimum base rent since the Company entered into a previous lease agreement in 1998. Additionally, the leasing entity is entitled to reimbursement of all taxes, assessments, and any other expenses that arise from ownership. Each of the parties to the lease has agreed to review the terms of the lease every three years at the request of the other party. Operating lease expense was approximately $98,000 and $100,000 for the years ended December 31, 2020 and 2019, respectively. At December 31, 2020 and 2019, the Company had a right to use asset and a corresponding liability of $268,920 and $352,190, respectively related to the operating lease. Set forth below is a schedule of future minimum rent payments under the operating lease. Years ending December 31, 2021 $ 94,800 2022 94,800 2023 94,800 Total future minimum lease payments 284,400 Less imputed interest (15,480 ) Total operating lease liability $ 268,920 The Company's two finance leases relate to office equipment. See Note 3 for information regarding the Company's finance lease right to use assets and Note 8 for information regarding the finance lease payment schedule. Costs incurred with respect to the Company's leases during 2020 and 2019 are set forth below. 2020 2019 Operating lease expense $ 98,086 $ 99,792 Finance lease amortization 22,167 22,756 Finance lease interest 1,137 945 Total lease expense $ 121,390 $ 123,493 The remaining lease term with respect to the operating lease, weighted average remaining lease term with respect to the finance leases and discount rate with respect to the operating lease and finance leases at December 31, 2020 and 2019 are set forth below: December 31, Remaining lease term – operating lease 3.0 years Weighted average remaining lease term – finance leases 4.6 years Discount rate – operating lease 3.7 % Weighted average discount rate – finance leases 1.8 % December 31, Remaining lease term – operating lease 4.0 years Weighted average remaining lease term – finance leases 2.6 years Discount rate – operating lease 3.7 % Weighted average discount rate – finance leases 3.0 % |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 5 The Company's intangible assets at December 31, 2020 and 2019 consisted of the following: December 31, 2020 Intangible Assets Cost Accumulated Net Patents $ 622,733 $ 544,644 $ 78,089 Trade names and trademarks 1,715,325 626,413 1,088,912 Customer list 584,468 270,212 314,256 Product formulas 292,234 135,107 157,127 Royalty rights 160,000 133,085 26,915 Total intangible assets $ 3,374,760 $ 1,709,461 $ 1,665,299 December 31, 2019 Intangible Assets Cost Accumulated Net Patents $ 622,733 $ 492,308 $ 130,425 Trade names and trademarks 1,715,325 587,387 1,127,938 Customer list 584,468 153,319 431,149 Product formulas 292,234 76,659 215,575 Royalty rights 160,000 115,140 44,860 Total intangible assets $ 3,374,760 $ 1,424,813 $ 1,949,947 On December 27, 2019, the Company acquired intangible assets of Check Corporation, a manufacturer and distributer of mildew and humidity control products. The allocated cost of the intangible assets acquired from Check Corporation and their respective useful lives are set forth in the table below: Intangible Assets Amount Life Trademarks and trade names $ 65,445 5 years Customer list 58,805 5 years Product formulas 29,402 5 years Total intangible assets acquired from Check Corporation $ 153,652 Amortization expense related to intangible assets aggregated $284,648 and $253,917 for the years ended December 31, 2020 and 2019, respectively. |
Revolving Line of Credit
Revolving Line of Credit | 12 Months Ended |
Dec. 31, 2020 | |
Line of Credit Facility [Abstract] | |
Revolving Line of Credit | Note 6 On August 31, 2018, the Company and Regions Bank entered into a Business Loan Agreement (the "Business Loan Agreement"), under which the Company was provided a revolving line of credit. Under the revolving line of credit, the Company may borrow up to the lesser of (i) $6,000,000 or (ii) a borrowing base equal to 85% of Eligible Accounts (as defined in the Business Loan Agreement) plus 50% of Eligible Inventory (as defined in the Business Loan Agreement). Interest on amounts borrowed under the revolving line of credit is payable monthly at the one-month LIBOR rate plus 1.35% per annum, computed on a 365/360 basis. Eligible Accounts do not include, among other things, accounts receivable from affiliated entities. Outstanding amounts under the revolving line of credit are payable on demand. If no demand is made, the Company may repay and reborrow funds from time to time until expiration of the revolving line of credit on August 31, 2021, at which time all outstanding principal and interest will be due and payable. The Company's obligations under the revolving line of credit are principally secured by the Company's accounts receivable and inventory. The Business Loan Agreement includes financial covenants requiring that the Company maintain a minimum fixed charge coverage ratio (generally, the ratio of (A) EBITDA for the most recently completed four fiscal quarters minus the sum of the Company's distributions to its shareholders, taxes paid and unfunded capital expenditures during such period to (B) prior year current maturities of Company long term debt plus interest expense incurred over the most recently completed four fiscal quarters) of 1.20 to 1, tested quarterly, and a maximum "debt to cap" ratio (generally, funded debt divided by the sum of net worth and funded debt) of 0.75 to 1, as of the end of each fiscal quarter. For purposes of computing the fixed charge coverage ratio, "EBITDA" generally is defined as net income before taxes and depreciation expense plus amortization expense, plus interest expense, plus non-recurring and/or non-cash losses and expenses, minus non-recurring and/or non-cash gains and income; "unfunded capital expenditures" generally is defined as capital expenditures made from Company funds other than funds borrowed through term debt incurred to finance such capital expenditures; "long term debt" generally is defined as "debt instruments with a maturity principal due date of one year or more in length," including, among other listed contractual debt instruments, "revolving lines of credit" and "capital leases obligations" and "prior year current maturities of long term debt" generally is defined as the principal portions of long-term debt maturing within one year as listed at the last quarter end of the prior completed four fiscal quarters. At December 31, 2020, the Company was in compliance with these financial covenants. The revolving line of credit is subject to several events of default, including a decline in the majority shareholder's ownership below 50% of all outstanding shares. At December 31, 2020 and 2019, the Company had no borrowings under the revolving line of credit provided by the Business Loan Agreement. |
Accrued Expenses Payable
Accrued Expenses Payable | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses Payable | Note 7 Accrued expenses payable at December 31, 2020 and 2019 consisted of the following: 2020 2019 Accrued customer promotions $ 342,481 $ 530,957 Accrued payroll, commissions, and benefits 440,302 417,629 Other 360,042 266,352 Total accrued expenses payable $ 1,142,825 $ 1,214,938 |
Long Term Debt
Long Term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long Term Debt | Note 8 Industrial Development Bond Financing On September 26, 2017, Kinpak indirectly obtained a $4,500,000 loan from Regions Capital Advantage, Inc. (the "Lender"). The proceeds of the loan are being used principally to pay or reimburse costs relating to the Expansion Project. The loan was funded by the Lender's purchase of a $4,500,000 industrial development bond (the "Bond") issued by The Industrial Development Board of the City of Montgomery, Alabama (the "IDB"). The Bond is a limited obligation of the IDB and is payable solely out of revenues and receipts derived from the leasing or sale of Kinpak's facilities. In this regard, Kinpak is obligated to fund the IDB's payment obligations by providing rental payments under a lease between the IDB and Kinpak (the "Lease"), under which Kinpak leases its facilities from the IDB. Kinpak inherited the lease structure when it first acquired its facilities from its predecessor-in-interest in 1996. The Lease provides that prior to the maturity date of the Bond, Kinpak may repurchase the facilities for $1,000 if the Bond has been redeemed or fully paid. The Bond bears interest at the rate of 3.07% per annum, calculated on the basis of a 360-day year and the actual number of days elapsed (subject to increase to 6.07% per annum upon the occurrence of an event of default), and is payable in 118 monthly installments of $31,324 beginning on November 1, 2017 and ending on August 1, 2027, with a final principal and interest payment to be made on September 1, 2027 in the amount of $1,799,201. The Bond provides that the interest rate will be subject to adjustment if it is determined by the United States Treasury Department, the Internal Revenue Service, or a similar government entity that the interest on the Bond is includable in the gross income of the Lender for federal income tax purposes. Under the Lease, Kinpak is required to make rental payments for the account of the IDB to the Lender in such amounts and at such times as are necessary to enable the payment of all principal and interest due on the Bond and other charges, if any, payable in respect of the Bond. The Lease also provides that Kinpak may redeem the Bond, in whole or in part, by prepaying its rental payment obligations in an amount sufficient to effect the redemption. In addition, the Lease contains provisions relating to the Expansion Project, including limitations on utilization of Bond proceeds, deposit of unused proceeds into a custodial account (as described below) and investment of monies held in the custodial account. Payment of amounts due and payable under the Bond and other related agreements are guaranteed by the Company and its other consolidated subsidiaries. In connection with a guarantee agreement under which the Company provided its guarantee, the Company is subject to certain covenants, including financial covenants requiring that the Company maintain (i) a minimum fixed charge ratio (generally, the ratio of (A) EBITDA minus the sum of Company's distributions to its shareholders, taxes paid and unfunded capital expenditures to (B) current maturities of Company long-term debt plus interest expense) of 1.2 to 1, tested quarterly, and (ii) a ratio of funded debt (as defined in the guaranty agreement) divided by the sum of net worth and funded debt of 0.75 to 1, tested quarterly. For purposes of computing the fixed charge coverage ratio, "EBITDA" generally is defined as net income before taxes and depreciation expense plus amortization expense, plus interest expense, plus non-recurring and/or non-cash losses and expenses, minus non-recurring and/or non-cash gains and income; "unfunded capital expenditures" generally is defined as capital expenditures made from Company funds other than funds borrowed through term debt incurred to finance such capital expenditures. At December 31, 2020, the Company was in compliance with these financial covenants. Through December 31, 2020, of the $4,500,000 proceeds of the Bond sale, there are unused proceeds of approximately $477,000 remaining that are held in a custodial account and may be drawn by Kinpak from time to time to fund additional expenditures related to the Expansion Project. Due to restrictions under, among other things, the Internal Revenue Code and the Lease on Kinpak's utilization of the funds held in the custodial account, such funds are classified as restricted cash on the Company's consolidated balance sheets. The Company intends to utilize the remaining proceeds to purchase machinery and equipment to expand production capacity. The Company incurred debt financing costs of $196,095 in connection with the financing. These costs are shown as a reduction of the debt balance and are being amortized under the effective interest method. Other Long- Term Obligations In connection with the Company's agreement to purchase assets of Snappy Marine, the Company provided to Snappy Marine a promissory note in the amount of $1,000,000, including interest (of the $1,000,000 amount of the promissory note, $930,528 was recorded as principal, and the remaining $69,472, representing an imputed interest rate of 2.87% per annum, is being recorded as interest expense over the term of the note). The note is payable in equal installments of $16,667 over a 60-month period that commenced on August 1, 2018, with a final payment due and payable on July 1, 2023. If the note is prepaid in full, the entire outstanding balance of the note (including all unpaid amounts allocated to interest over the remaining term of the note) must be paid. In connection with the Company's agreement to purchase assets of Check Corporation, the Company agreed to pay Check Corporation $100,000 in equal installments of approximately $4,348 over a 23-month period that commenced on January 15, 2020 with a final payment due and payable on November 15, 2021. The Company recorded $97,012 as principal, and the remaining $2,988, representing an imputed interest rate of 3.15% per annum, will be recorded as interest expense over the 23 months. On June 22, 2020, the Company entered into a lease agreement with Canon Solutions America, Inc. to lease office equipment. The lease obligates the Company to pay $100,009 in 63 equal monthly payments of $1,587. The lease is classified as a finance lease. The Company recorded a lease liability which is included in long term debt and a corresponding right to use asset that is included in property, plant and equipment of $96,039 based on a discount rate of 1.53%. At December 31, 2020 and 2019, the Company was obligated under lease agreements covering office equipment utilized in the Company's operations (inclusive of the lease referenced in the preceding paragraph). The office equipment leases, aggregating approximately $100,000 and $26,000 at December 31, 2020 and 2019, respectively, have maturities through 2025 and carry interest rates ranging from approximately 1.53% to 3.86% per annum. The office equipment leases are classified as finance leases. During the years ended December 31, 2020 and 2019, the Company paid $23,304 ($22,167 principal and $1,137 interest) and $23,701 ($22,756 principal and $945 interest), respectively, under the lease agreements. The following table provides information regarding the Company's long-term debt at December 31, 2020 and 2019: Current Portion Long Term Portion December 31, December 31, December 31, December 31, Obligations related to industrial development bond financing $ 263,881 $ 255,471 $ 3,454,904 $ 3,718,785 Note payable related to Snappy Marine asset acquisition 188,187 182,869 309,218 497,405 Obligation related to Check Corporation asset acquisition 47,082 49,930 - 47,082 Equipment leases 21,160 14,823 78,847 11,312 Total principal of long- term debt 520,310 503,093 3,842,969 4,274,584 Debt issuance costs (19,616 ) (19,616 ) (112,789 ) (132,405 ) Total long- term debt $ 500,694 $ 483,477 $ 3,730,180 $ 4,142,179 Required principal payments under the Company's industrial development bond financing and other long- term obligations are set forth below: Year ending December 31, 2021 $ 520,310 2022 487,427 2023 418,325 2024 308,995 2025 314,577 Thereafter 2,313,645 Total $ 4,363,279 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 The components of the Company's provision for income taxes for the years ended December 31, 2020 and 2019 are as follows: 2020 2019 Federal – current $ 2,475,632 $ 921,954 Federal – deferred 65,745 29,628 State – current 71,147 43,025 State – deferred 3,099 1,397 Total provision for income taxes $ 2,615,623 $ 996,004 The reconciliation of the provision for income taxes at the statutory rate to the reported provision for income taxes is as follows: 2020 % 2019 % Income Tax computed at statutory rate $ 2,568,784 21.0 % $ 943,891 21.0 % State tax, net of federal benefit 67,569 0.5 % 33,954 0.8 % Share based compensation (2,302 ) (0.0 )% (1,149 ) (0.0 )% Permanent adjustments 9,679 0.1 % 11,911 0.3 % Tax credits and other (28,107 ) (0.2 )% 7,397 0.1 % Provision for income taxes $ 2,615,623 21.4 % $ 996,004 22.2 % The Company's deferred tax liability consisted of the following at December 31, 2020 and 2019: 2020 2019 Deferred tax liability Inventory reserves $ 63,855 $ 53,701 Trade accounts receivable allowances 71,678 35,541 Depreciation and amortization (515,751 ) (400,616 ) Total net deferred tax liability $ (380,218 ) $ (311,374 ) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 10 The Company sells products to companies affiliated with Peter G. Dornau, who is the Company's Chairman, President and Chief Executive Officer. The affiliated companies resell, outside of the United States and Canada, products they purchase from the Company. The Company also provides administrative services to these companies and pays certain business-related expenditures for the affiliated companies, for which the Company is reimbursed. Sales to the affiliated companies aggregated approximately $2,212,000 and $1,788,000 for the years ended December 31, 2020 and 2019, respectively; fees for administrative services aggregated approximately $871,000 and $779,000, respectively; and amounts billed to the affiliated companies to reimburse the Company for business related expenditures made on behalf of the affiliated companies aggregated approximately $199,000 and $113,000 during the years ended December 31, 2020 and 2019, respectively. The Company had accounts receivable from the affiliated companies in connection with the product sales, administrative services and business-related expenditures aggregating approximately $1,496,000 and $962,000 at December 31, 2020 and 2019, respectively. An entity that is owned by the Company's Chairman, President and Chief Executive Officer provides several services to the Company. Under this arrangement, the Company paid the entity an aggregate of approximately $77,000 ($48,000 for research and development, $9,000 for charter boat services that the Company used to provide sales incentives for customers and $20,000 for the production of television commercials) and $94,000 ($42,000 for research and development, $31,000 for charter boat services that the Company used to provide sales incentives for customers, and $21,000 for the production of television commercials) for the years ended December 31, 2020 and 2019, respectively. Expenditures for the research and development services are included in the consolidated statements of operations within selling and administrative expenses. Expenditures for the charter boat services and television production services are included in the consolidated statements of operations within advertising and promotion expenses. The Company leases office and warehouse facilities in Fort Lauderdale, Florida from an entity controlled by its Chairman, President and Chief Executive Officer. See Note 4 for a description of the lease terms. A director of the Company is Regional Executive Vice President of an insurance broker through which the Company sources most of its insurance needs. During the years ended December 31, 2020 and 2019, the Company paid an aggregate of approximately $1,365,000 and $1,424,000, respectively, in insurance premiums on policies obtained through the insurance broker. |
Stock Options and Awards
Stock Options and Awards | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock options and awards | Note 11 On May 29, 2015, the Company's shareholders approved the Ocean Bio-Chem, Inc. 2015 Equity Compensation Plan (the "Plan"). The Plan provides for grants of several types of awards at the discretion of the Equity Grant Committee of the Company's Board of Directors, including stock options, stock units, stock awards, stock appreciation rights and other stock-based awards. The Plan authorizes the issuance of 630,000 shares of Company common stock, subject to anti-dilution adjustments upon the occurrence of certain events affecting the common stock. During 2020 and 2019, the Company granted stock awards under the Plan aggregating 25,150 and 83,000 shares of common stock, respectively, to officers, key employees, and directors. Following the withholding of an aggregate of 1,456 and 6,310 shares of common stock, respectively, in connection with a tax withholding feature of the Plan, 23,694 and 76,690 shares were issued to the award recipients, during 2020 and 2019, respectively. The shares vested immediately upon issuance and were fully expensed in the period in which they were awarded. Compensation expense related to the stock awards was $312,610 and $275,540 in 2020 and 2019, respectively. The value of the shares the Company withheld for taxes related to the stock awards was $19,991 and $20,949 in 2020 and 2019, respectively. At December 31, 2020, 153,850 shares remained available for future issuance under the Plan. As a result of the adoption of the Plan, no further stock awards will be made under the Company's equity compensation plans previously approved by its shareholders (the "Prior Plans"). Prior to the May 29, 2015 effective date of the Plan, stock options were granted under the Prior Plans. The Company had no outstanding options under the Prior Plans on December 31, 2020. The last tranche of non-qualified options was exercised before their expiration date of April 25, 2020. There was no compensation expense attributable to stock options recognized during 2020 and 2019, and at December 31, 2020 and 2019, there was no unrecognized compensation cost related to share based compensation arrangements During 2020, stock options to purchase an aggregate of 20,000 shares of common stock were exercised. The Company received a total of $20,700, withheld 4,704 shares in connection with the net exercise feature of the stock options and issued an aggregate of 15,296 shares to the option holders who exercised their options. During 2019, stock options to purchase an aggregate of 30,000 shares of common stock were exercised. The Company received a total of $13,799, withheld 2,072 shares in connection with the net exercise feature of the stock options and issued an aggregate of 27,928 shares to the option holders who exercised their options. The following table provides information relating to stock option transactions during the years ended December 31, 2020 and 2019: 2020 2019 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Options outstanding beginning of the year 20,000 $ 2.07 50,000 $ 1.24 Options exercised (20,000 ) 2.07 (30,000 ) 0.69 Total -- $ -- 20,000 $ 2.07 |
Customer Concentration
Customer Concentration | 12 Months Ended |
Dec. 31, 2020 | |
Customer Concentration [Abstract] | |
Customer Concentration | Note 12 During the years ended December 31, 2020 and 2019, the Company had net sales to each of three major customers that constituted in excess of 10% of its net sales. Net sales to these three customers respectively represented approximately 41.5% (16.0%, 15.0%, and 10.5%) and 43.2% (21.7%, 11.2%, and 10.3%) of the Company's net sales, respectively, for the years ended December 31, 2020 and 2019. At December 31, 2020 and 2019, three customers constituted at least 10% of the Company's gross trade accounts receivable. The gross trade accounts receivable balances for these customers represented approximately 63.6% (28.8%, 21.1%, and 13.7%) and 56.8% (28.0%, 15.3%, and 13.5%) of the Company's gross trade accounts receivable, respectively, at December 31, 2020, and 2019. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 13 Basic earnings per share are calculated by dividing net income by the weighted average number of shares outstanding during the reporting period. Diluted earnings per share reflect additional dilution from potential common stock issuable upon the exercise of outstanding stock options. The following table sets forth the computation of basic and diluted earnings per common share, as well as a reconciliation of the weighted average number of common shares outstanding to the weighted average number of shares outstanding on a diluted basis. Years Ended December 31, 2020 2019 Earnings per common share –Basic Net income $ 9,616,683 $ 3,498,714 Weighted average number of common shares outstanding 9,460,659 9,391,264 Earnings per common share – Basic $ 1.02 $ 0.37 Earnings per common share – Diluted Net income $ 9,616,683 $ 3,498,714 Weighted average number of common shares outstanding 9,460,659 9,391,264 Dilutive effect of employee stock-based awards 3,687 8,170 Weighted average number of common shares outstanding – Diluted 9,464,346 9,399,434 Earnings per common share – Diluted $ 1.02 $ 0.37 The Company had no stock options outstanding at December 31, 2020 and 2019, respectively that were anti-dilutive and therefore not included in the diluted earnings per common share calculation. |
Cash Dividends
Cash Dividends | 12 Months Ended |
Dec. 31, 2020 | |
Cash Dividends [Abstract] | |
Cash Dividends | Note 14 The Company's board of directors declared the following cash dividends during the years ended December 31, 2020 and 2019: Year ended December 31, 2020 Declaration Date Type Record Date Payment Date Dividend Amount 05/26/20 Special 06/09/20 06/23/20 $ 0.02 $ 189,242 05/26/20 Quarterly 06/09/20 06/23/20 0.02 189,242 08/26/20 Quarterly 09/09/20 09/23/20 0.02 189,242 11/23/20 Quarterly 12/03/20 12/17/20 0.02 189,636 Total $ 0.08 $ 757,362 Year ended December 31, 2019 Declaration Date Type Record Date Payment Date Dividend Amount 03/22/19 Special 04/05/19 04/19/19 $ 0.05 $ 468,306 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 15 Accounting Guidance Adopted by the Company In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, " Financial Instruments – Credit Losses |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Organization | Organization ® ® ® ® |
Basis of presentation and consolidation | Basis of presentation and consolidation |
Revenue recognition | Revenue recognition Revenue from Contracts with Customers |
Leases | Leases "Leases" As permitted under ASU 2016-02, the Company has made an accounting policy election not to apply the recognition provisions of ASU 2016-02 to short term leases (leases with a lease term of 12 months or less that do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise); instead, the Company will recognize the lease payments for short term leases on a straight-line basis over the lease term. The Company did not have any short- term leases at December 31, 2020 and 2019. |
Collectability of accounts receivable | Collectability of accounts receivable |
Inventories | Inventories |
Shipping and handling costs | Shipping and handling costs |
Advertising and promotion expense | Advertising and promotion expense |
Property, plant and equipment | Property, plant and equipment |
Research and development costs | Research and development costs |
Stock based compensation | Stock based compensation Accounting for Stock Compensation |
Use of estimates | Use of estimates |
Concentration of cash | Concentration of cash |
Fair value of financial instruments | Fair value of financial instruments Fair Value Measurements and Disclosures ASC Topic 820 also sets forth a valuation hierarchy of the inputs (assumptions that market participants would use in pricing an asset or liability) used to measure fair value. The hierarchy prioritizes the three levels of inputs as follows: Level 1: Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets. Level 2: Inputs that include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data through correlation or other means. Level 3: Inputs that are generally unobservable. These inputs may be used with internally developed data in connection with fair value measurements. The carrying amounts of the Company's short-term financial instruments, including cash, accounts receivable, accounts payable, certain accrued expenses and revolving line of credit, approximate their fair value due to the relatively short period to maturity for these instruments. The fair value of long-term debt is based on current rates at which the Company could borrow funds with similar remaining maturities; the carrying amount of the long-term debt approximates fair value. |
Impairment of long-lived assets | Impairment of long-lived assets Property, Plant and Equipment – Overall |
Income taxes | Income taxes The Company records a valuation allowance when necessary to reduce its deferred tax assets to the net amount that the Company believes is more likely than not to be realized. The Company considers available evidence, both positive and negative, and use judgments regarding past and future events, including operating results and available tax planning strategies, in assessing the need for a valuation allowance. The Company recognizes tax benefits from uncertain tax positions only if the Company believes that it is more likely than not that the tax positions will be sustained on examination by the taxing authorities based on the technical merits of the positions; otherwise, the Company establishes reserves for uncertain tax positions. The Company adjusts reserves with respect to uncertain tax positions to address developments related to these positions, such as the closing of a tax audit, the expiration of a statute of limitations or the refinement of an estimate. The provision for income taxes includes any reserves with respect to uncertain tax positions that are considered appropriate, as well as the related net interest and penalties. The Company has no uncertain tax positions as of December 31, 2020. The Company is no longer subject to income tax examinations for years before 2017. |
Intangible assets | Intangible assets |
Foreign currency translation | Foreign currency translation |
Earnings per share | Earnings per share |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | 2020 2019 Raw materials $ 5,393,961 $ 3,872,752 Finished goods 8,072,176 5,926,525 Inventories, gross 13,466,137 9,799,277 Inventory reserves (290,381 ) (244,206 ) Inventories, net $ 13,175,756 $ 9,555,071 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Estimated Useful Life 2020 2019 Land $ 278,325 $ 278,325 Building and Improvements 30 years 9,563,406 9,563,406 Manufacturing and warehouse equipment 6-20 years 11,959,563 10,699,461 Office equipment and furniture 3-5 years 1,880,387 1,778,781 Leasehold improvements 10-15 years 587,183 577,068 Finance leases – right to use 5 years 113,741 45,951 Vehicles 3 years 10,020 10,020 Construction in process 464,203 142,612 Property, plant and equipment, gross 24,856,828 23,095,624 Less accumulated depreciation (14,754,866 ) (13,757,397 ) Property, plant and equipment, net $ 10,101,962 $ 9,338,227 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of future minimum rent payments | Years ending December 31, 2021 $ 94,800 2022 94,800 2023 94,800 Total future minimum lease payments 284,400 Less imputed interest (15,480 ) Total operating lease liability $ 268,920 |
Schedule of costs incurred with respect to the company's leases | 2020 2019 Operating lease expense $ 98,086 $ 99,792 Finance lease amortization 22,167 22,756 Finance lease interest 1,137 945 Total lease expense $ 121,390 $ 123,493 |
Schedule of components lease costs, lease term and discount rate | December 31, Remaining lease term – operating lease 3.0 years Weighted average remaining lease term – finance leases 4.6 years Discount rate – operating lease 3.7 % Weighted average discount rate – finance leases 1.8 % December 31, Remaining lease term – operating lease 4.0 years Weighted average remaining lease term – finance leases 2.6 years Discount rate – operating lease 3.7 % Weighted average discount rate – finance leases 3.0 % |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | December 31, 2020 Intangible Assets Cost Accumulated Net Patents $ 622,733 $ 544,644 $ 78,089 Trade names and trademarks 1,715,325 626,413 1,088,912 Customer list 584,468 270,212 314,256 Product formulas 292,234 135,107 157,127 Royalty rights 160,000 133,085 26,915 Total intangible assets $ 3,374,760 $ 1,709,461 $ 1,665,299 December 31, 2019 Intangible Assets Cost Accumulated Net Patents $ 622,733 $ 492,308 $ 130,425 Trade names and trademarks 1,715,325 587,387 1,127,938 Customer list 584,468 153,319 431,149 Product formulas 292,234 76,659 215,575 Royalty rights 160,000 115,140 44,860 Total intangible assets $ 3,374,760 $ 1,424,813 $ 1,949,947 |
Schedule of allocated cost of intangible assets acquired from Snappy Marine and their respective useful lives | Intangible Assets Amount Life Trademarks and trade names $ 65,445 5 years Customer list 58,805 5 years Product formulas 29,402 5 years Total intangible assets acquired from Check Corporation $ 153,652 |
Accrued Expenses Payable (Table
Accrued Expenses Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of summary of accrued expenses payable | 2020 2019 Accrued customer promotions $ 342,481 $ 530,957 Accrued payroll, commissions, and benefits 440,302 417,629 Other 360,042 266,352 Total accrued expenses payable $ 1,142,825 $ 1,214,938 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of company's long term debt | Current Portion Long Term Portion December 31, December 31, December 31, December 31, Obligations related to industrial development bond financing $ 263,881 $ 255,471 $ 3,454,904 $ 3,718,785 Note payable related to Snappy Marine asset acquisition 188,187 182,869 309,218 497,405 Obligation related to Check Corporation asset acquisition 47,082 49,930 - 47,082 Equipment leases 21,160 14,823 78,847 11,312 Total principal of long- term debt 520,310 503,093 3,842,969 4,274,584 Debt issuance costs (19,616 ) (19,616 ) (112,789 ) (132,405 ) Total long- term debt $ 500,694 $ 483,477 $ 3,730,180 $ 4,142,179 |
Schedule of principal payments under long term obligations | Year ending December 31, 2021 $ 520,310 2022 487,427 2023 418,325 2024 308,995 2025 314,577 Thereafter 2,313,645 Total $ 4,363,279 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of summary of provision for income taxes | 2020 2019 Federal – current $ 2,475,632 $ 921,954 Federal – deferred 65,745 29,628 State – current 71,147 43,025 State – deferred 3,099 1,397 Total provision for income taxes $ 2,615,623 $ 996,004 |
Schedule of summary of reconciliation of the provision for income taxes at the statutory rate to the reported provision for income taxes | 2020 % 2019 % Income Tax computed at statutory rate $ 2,568,784 21.0 % $ 943,891 21.0 % State tax, net of federal benefit 67,569 0.5 % 33,954 0.8 % Share based compensation (2,302 ) (0.0 )% (1,149 ) (0.0 )% Permanent adjustments 9,679 0.1 % 11,911 0.3 % Tax credits and other (28,107 ) (0.2 )% 7,397 0.1 % Provision for income taxes $ 2,615,623 21.4 % $ 996,004 22.2 % |
Schedule of summary of deferred tax asset (liability) | 2020 2019 Deferred tax liability Inventory reserves $ 63,855 $ 53,701 Trade accounts receivable allowances 71,678 35,541 Depreciation and amortization (515,751 ) (400,616 ) Total net deferred tax liability $ (380,218 ) $ (311,374 ) |
Stock options and awards (Table
Stock options and awards (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of information relating to stock option transactions | 2020 2019 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Options outstanding beginning of the year 20,000 $ 2.07 50,000 $ 1.24 Options exercised (20,000 ) 2.07 (30,000 ) 0.69 Total -- $ -- 20,000 $ 2.07 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per common share | Years Ended December 31, 2020 2019 Earnings per common share –Basic Net income $ 9,616,683 $ 3,498,714 Weighted average number of common shares outstanding 9,460,659 9,391,264 Earnings per common share – Basic $ 1.02 $ 0.37 Earnings per common share – Diluted Net income $ 9,616,683 $ 3,498,714 Weighted average number of common shares outstanding 9,460,659 9,391,264 Dilutive effect of employee stock-based awards 3,687 8,170 Weighted average number of common shares outstanding – Diluted 9,464,346 9,399,434 Earnings per common share – Diluted $ 1.02 $ 0.37 |
Cash Dividends (Tables)
Cash Dividends (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash Dividends [Abstract] | |
Schedule of declared cash dividends | Year ended December 31, 2020 Declaration Date Type Record Date Payment Date Dividend Amount 05/26/20 Special 06/09/20 06/23/20 $ 0.02 $ 189,242 05/26/20 Quarterly 06/09/20 06/23/20 0.02 189,242 08/26/20 Quarterly 09/09/20 09/23/20 0.02 189,242 11/23/20 Quarterly 12/03/20 12/17/20 0.02 189,636 Total $ 0.08 $ 757,362 Year ended December 31, 2019 Declaration Date Type Record Date Payment Date Dividend Amount 03/22/19 Special 04/05/19 04/19/19 $ 0.05 $ 468,306 |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Organization and Summary of Significant Accounting Policies (Textual) | ||
Trade accounts receivable, allowance for doubtful accounts | $ 326,000 | $ 162,000 |
Bad debt expense | 197,000 | 6,000 |
Shipping and handling costs | 1,456,000 | 1,148,000 |
Advertising and promotion expense | 2,980,356 | 3,147,289 |
Research and development costs | 54,000 | 59,000 |
Depreciation included in cost of goods sold | 1,069,073 | 1,015,998 |
Intangible assets cost | 3,374,760 | 3,374,760 |
Finite lives intangible assets | 2,793,000 | |
Indefinite lived intangible assets gross excluding goodwill | 582,000 | |
Selling, General and Administrative Expenses [Member] | ||
Organization and Summary of Significant Accounting Policies (Textual) | ||
Depreciation included in selling and administrative expenses | 98,852 | 106,587 |
Cost of Goods Sold [Member] | ||
Organization and Summary of Significant Accounting Policies (Textual) | ||
Depreciation included in cost of goods sold | $ 970,221 | $ 909,411 |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of inventories | ||
Raw materials | $ 5,393,961 | $ 3,872,752 |
Finished goods | 8,072,176 | 5,926,525 |
Inventories, gross | 13,466,137 | 9,799,277 |
Inventory reserves | (290,381) | (244,206) |
Inventories, net | $ 13,175,756 | $ 9,555,071 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Inventories (Textual) | ||
Inventories managed at the customer's warehouses | $ 629,000 | $ 562,000 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of property, plant and equipment | ||
Land | $ 278,325 | $ 278,325 |
Building and Improvements | 9,563,406 | 9,563,406 |
Manufacturing and warehouse equipment | 11,959,563 | 10,699,461 |
Office equipment and furniture | 1,880,387 | 1,778,781 |
Leasehold improvements | 587,183 | 577,068 |
Finance leases - right to use | 113,741 | 45,951 |
Vehicles | 10,020 | 10,020 |
Construction in process | 464,203 | 142,612 |
Property, plant and equipment, gross | 24,856,828 | 23,095,624 |
Less accumulated depreciation | (14,754,866) | (13,757,397) |
Property, plant and equipment, net | $ 10,101,962 | $ 9,338,227 |
Building and Improvements [Member] | ||
Summary of property, plant and equipment | ||
Estimated Useful Life | 30 years | |
Manufacturing and warehouse equipment [Member] | Minimum [Member] | ||
Summary of property, plant and equipment | ||
Estimated Useful Life | 6 years | |
Manufacturing and warehouse equipment [Member] | Maximum [Member] | ||
Summary of property, plant and equipment | ||
Estimated Useful Life | 20 years | |
Office equipment and furniture [Member] | Minimum [Member] | ||
Summary of property, plant and equipment | ||
Estimated Useful Life | 3 years | |
Office equipment and furniture [Member] | Maximum [Member] | ||
Summary of property, plant and equipment | ||
Estimated Useful Life | 5 years | |
Leasehold improvements [Member] | Minimum [Member] | ||
Summary of property, plant and equipment | ||
Estimated Useful Life | 10 years | |
Leasehold improvements [Member] | Maximum [Member] | ||
Summary of property, plant and equipment | ||
Estimated Useful Life | 15 years | |
Finance leases - right to use [Member] | ||
Summary of property, plant and equipment | ||
Estimated Useful Life | 5 years | |
Vehicles [Member] | ||
Summary of property, plant and equipment | ||
Estimated Useful Life | 3 years |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details Textual) - Kinpak Inc [Member] | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Property, Plant & Equipment (Textual) | |
Project involving the expansion of manufacturing, warehouse and distribution facilities, description | Kinpak has completed the construction of, and placed into service, an approximately 85,000 square foot addition to the facilities and an expansion of a tank farm to accommodate an additional 500,000 gallons of tank capacity. The final phase of the Expansion Project entails the evaluation, purchase and installation of additional equipment. |
Industrial development bond | $ 4,500,000 |
Restricted cash | $ 477,000 |
Leases (Details)
Leases (Details) - Operating lease [Member] | Dec. 31, 2020USD ($) |
2021 | $ 94,800 |
2022 | 94,800 |
2023 | 94,800 |
Total future minimum lease payments | 284,400 |
Less imputed interest | (15,480) |
Total operating lease liability | $ 268,920 |
Leases (Details 1)
Leases (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease expense | $ 98,086 | $ 99,792 |
Finance lease amortization | 22,167 | 22,756 |
Finance lease interest | 1,137 | 945 |
Total lease expense | $ 121,390 | $ 123,493 |
Leases (Details 2)
Leases (Details 2) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Remaining lease term - operating lease | 3 years | 4 years |
Weighted average remaining lease term - finance leases | 4 years 7 months 6 days | 2 years 7 months 6 days |
Discount rate - operating lease | 3.70% | 3.70% |
Weighted average discount rate - finance leases | 1.80% | 3.00% |
Leases (Details Textual)
Leases (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases (Textual) | ||
Expires date | Dec. 31, 2023 | |
Annual minimum base rent | $ 94,800 | |
Operating lease expense | $ 98,000 | $ 100,000 |
Percentage of maximum annual increase from base rent | 2.00% | |
Operating lease right to use asset and corresponding liability | $ 268,920 | $ 352,190 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, Cost | $ 3,374,760 | $ 3,374,760 |
Intangible assets, Accumulated Amortization | 1,709,461 | 1,424,813 |
Intangible assets, Net | 1,665,299 | 1,949,947 |
Patents [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, Cost | 622,733 | 622,733 |
Intangible assets, Accumulated Amortization | 544,644 | 492,308 |
Intangible assets, Net | 78,089 | 130,425 |
Trade names and trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, Cost | 1,715,325 | 1,715,325 |
Intangible assets, Accumulated Amortization | 626,413 | 587,387 |
Intangible assets, Net | 1,088,912 | 1,127,938 |
Customer list [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, Cost | 584,468 | 584,468 |
Intangible assets, Accumulated Amortization | 270,212 | 153,319 |
Intangible assets, Net | 314,256 | 431,149 |
Product formulas [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, Cost | 292,234 | 292,234 |
Intangible assets, Accumulated Amortization | 135,107 | 76,659 |
Intangible assets, Net | 157,127 | 215,575 |
Royalty rights [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, Cost | 160,000 | 160,000 |
Intangible assets, Accumulated Amortization | 133,085 | 115,140 |
Intangible assets, Net | $ 26,915 | $ 44,860 |
Intangible Assets (Details 1)
Intangible Assets (Details 1) - Check Corporation [Member] | 1 Months Ended |
Dec. 27, 2019USD ($) | |
Indefinite-lived Intangible Assets [Line Items] | |
Total intangible assets acquired from Check Corporation | $ 153,652 |
Trademarks and Trade Names [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Total intangible assets acquired from Check Corporation | $ 65,445 |
Estimated useful life of intangible assets | 5 years |
Customer Lists [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Total intangible assets acquired from Check Corporation | $ 58,805 |
Estimated useful life of intangible assets | 5 years |
Product Formulas [Member] | |
Indefinite-lived Intangible Assets [Line Items] | |
Total intangible assets acquired from Check Corporation | $ 29,402 |
Estimated useful life of intangible assets | 5 years |
Intangible Assets (Details Text
Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets (Textual) | ||
Amortization expense related to intangible assets | $ 284,648 | $ 253,917 |
Revolving Line of Credit (Detai
Revolving Line of Credit (Details) - Business Loan Agreement [Member] - USD ($) | 1 Months Ended | |
Aug. 31, 2018 | Dec. 31, 2020 | |
Revolving Line of Credit (Textual) | ||
Term of revolving line of credit, description | The Company was provided a revolving line of credit. Under the revolving line of credit, the Company may borrow up to the lesser of (i) $6,000,000 or (ii) a borrowing base equal to 85% of Eligible Accounts (as defined in the Business Loan Agreement) plus 50% of Eligible Inventory (as defined in the Business Loan Agreement). | |
Maximum revolving credit line of credit provided in business loan agreement | $ 6,000,000 | |
Percentage of eligible accounts receivables as part of borrowing base | 85.00% | |
Percentage of eligible inventory as part of the borrowing base | 50.00% | |
Description of interest on the revolving line of credit | Interest on amounts borrowed under the revolving line of credit is payable monthly at the one-month LIBOR rate plus 1.35% per annum, computed on a 365/360 basis. | |
Due date of outstanding principal and interest borrowed under revolving line of credit | Aug. 31, 2021 | |
Financial covenants under credit agreement, description | The Company maintain a minimum fixed charge coverage ratio (generally, the ratio of (A) EBITDA for the most recently completed four fiscal quarters minus the sum of the Company's distributions to its shareholders, taxes paid and unfunded capital expenditures during such period to (B) prior year current maturities of Company long term debt plus interest expense incurred over the most recently completed four fiscal quarters) of 1.20 to 1, tested quarterly, and a maximum "debt to cap" ratio (generally, funded debt divided by the sum of net worth and funded debt) of 0.75 to 1, as of the end of each fiscal quarter. | |
Majority shareholder's ownership, percentage | 50.00% |
Accrued Expenses Payable (Detai
Accrued Expenses Payable (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued customer promotions | $ 342,481 | $ 530,957 |
Accrued payroll, commissions, and benefits | 440,302 | 417,629 |
Other | 360,042 | 266,352 |
Total accrued expenses payable | $ 1,142,825 | $ 1,214,938 |
Long Term Debt (Details)
Long Term Debt (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of long term debt | ||
Total principal of long- term debt, Current Portion | $ 520,310 | $ 503,093 |
Total principal of long- term debt, Long Term Portion | 3,842,969 | 4,274,584 |
Debt issuance costs, Current Portion | (19,616) | (19,616) |
Debt issuance costs, Long Term Portion | (112,789) | (132,405) |
Total long- term debt, Current Portion | 500,694 | 483,477 |
Total long- term debt, Long Term Portion | 3,730,180 | 4,142,179 |
Obligations related to industrial development bond financing [Member] | ||
Summary of long term debt | ||
Obligations related to industrial development bond financing, Current Portion | 263,881 | 255,471 |
Obligations related to industrial development bond financing, Long Term portion | 3,454,904 | 3,718,785 |
Note payable related to Snappy Marine asset acquisition [Member] | ||
Summary of long term debt | ||
Note payable related to Snappy Marine asset acquisition, Current Portion | 188,187 | 182,869 |
Note payable related to Snappy Marine asset acquisition, Long Term Portion | 309,218 | 497,405 |
Obligation related to Check Corporation asset acquisition [Member] | ||
Summary of long term debt | ||
Obligation related to Check Corporation asset acquisition, Current Portion | 47,082 | 49,930 |
Obligation related to Check Corporation asset acquisition, Long Term portion | 47,082 | |
Office equipment leases [Member] | ||
Summary of long term debt | ||
Equipment leases, Current Portion | 21,160 | 14,823 |
Equipment leases, Long Term Portion | $ 78,847 | $ 11,312 |
Long Term Debt (Details 1)
Long Term Debt (Details 1) | Dec. 31, 2020USD ($) |
Year ending December 31, | |
2021 | $ 520,310 |
2022 | 487,427 |
2023 | 418,325 |
2024 | 308,995 |
2025 | 314,577 |
Thereafter | 2,313,645 |
Total | $ 4,363,279 |
Long Term Debt (Details Textual
Long Term Debt (Details Textual) | 1 Months Ended | 12 Months Ended | ||
Jun. 22, 2020 | Sep. 26, 2017USD ($) | Dec. 31, 2020USD ($)Installments | Dec. 31, 2019USD ($) | |
Industrial Development Bond Financing [Member] | ||||
Long Term Debt (Textual) | ||||
Term loan, description | The $4,500,000 proceeds of the Bond sale, there are unused proceeds of approximately $477,000 remaining that are held in a custodial account and may be drawn by Kinpak from time to time to fund additional expenditures related to the Expansion Project. | |||
Lender's purchase of industrial development bond | $ 4,500,000 | |||
Repurchase price of facilities if bond has been redeemed or fully paid | $ 1,000 | |||
Bond redemptions, description | The Bond bears interest at the rate of 3.07% per annum, calculated on the basis of a 360-day year and the actual number of days elapsed (subject to increase to 6.07% per annum upon the occurrence of an event of default), and is payable in 118 monthly installments of $31,324 beginning on November 1, 2017 and ending on August 1, 2027, with a final principal and interest payment to be made on September 1, 2027 in the amount of $1,799,201. | |||
Number of installments | Installments | 118 | |||
Proceeds of the bond sale | $ 4,500,000 | |||
Payments for debt issuance costs | $ 196,095 | |||
Financial covenants under credit agreement, description | The Company is subject to certain covenants, including financial covenants requiring that the Company maintain (i) a minimum fixed charge ratio (generally, the ratio of (A) EBITDA minus the sum of Company's distributions to its shareholders, taxes paid and unfunded capital expenditures to (B) current maturities of Company long-term debt plus interest expense) of 1.2 to 1, tested quarterly, and (ii) a ratio of funded debt (as defined in the guaranty agreement) divided by the sum of net worth and funded debt of 0.75 to 1, tested quarterly. For purposes of computing the fixed charge coverage ratio, "EBITDA" generally is defined as net income before taxes and depreciation expense plus amortization expense, plus interest expense, plus non-recurring and/or non-cash losses and expenses, minus non-recurring and/or non-cash gains and income; "unfunded capital expenditures" generally is defined as capital expenditures made from Company funds other than funds borrowed through term debt incurred to finance such capital expenditures. | |||
Payments of lease agreement | $ 23,304 | $ 23,701 | ||
Principal under lease agreement | 22,167 | 22,756 | ||
Interest under lease agreement | 1,137 | 945 | ||
Other Long Term Obligations [Member] | ||||
Long Term Debt (Textual) | ||||
Aggregate equipment lease | $ 100,000 | $ 26,000 | ||
Maturity period for capital lease | Maturities through 2025 | |||
Promissory note, description | The Company's agreement to purchase assets of Snappy Marine, the Company provided to Snappy Marine a promissory note in the amount of $1,000,000, including interest (of the $1,000,000 amount of the promissory note, $930,528 was recorded as principal, and the remaining $69,472, representing an imputed interest rate of 2.87% per annum, is being recorded as interest expense over the term of the note). | |||
Notes payable equal installment | $ 16,667 | |||
Debt payment, terms | Over a 60-month period that commenced on August 1, 2018, with a final payment due and payable on July 1, 2023. | |||
Other Long Term Obligations [Member] | Minimum [Member] | ||||
Long Term Debt (Textual) | ||||
Percentage of interest rates | 1.53% | |||
Other Long Term Obligations [Member] | Maximum [Member] | ||||
Long Term Debt (Textual) | ||||
Percentage of interest rates | 3.86% | |||
Other Long Term Obligations [Member] | Check Corporation [Member] | ||||
Long Term Debt (Textual) | ||||
Promissory note, description | The Company's agreement to purchase assets of Check Corporation, the Company agreed to pay Check Corporation $100,000 in equal installments of approximately $4,348 over a 23-month period that commenced on January 15, 2020 with a final payment due and payable on November 15, 2021. The Company recorded $97,012 as principal, and the remaining $2,988, representing an imputed interest rate of 3.15% per annum, will be recorded as interest expense over the 23 months. | |||
Other Long Term Obligations [Member] | Canon Solutions America, Inc [Member] | ||||
Long Term Debt (Textual) | ||||
Promissory note, description | The Company entered into a lease agreement with Canon Solutions America, Inc. to lease office equipment. The lease obligates the Company to pay $100,009 in 63 equal monthly payments of $1,587. The lease is classified as a finance lease. The Company recorded a lease liability which is included in long term debt and a corresponding right to use asset that is included in property, plant and equipment of $96,039 based on a discount rate of 1.53%. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal – current | $ 2,475,632 | $ 921,954 |
Federal – deferred | 65,745 | 29,628 |
State – current | 71,147 | 43,025 |
State – deferred | 3,099 | 1,397 |
Total provision for income taxes | $ 2,615,623 | $ 996,004 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income Tax computed at statutory rate | $ 2,568,784 | $ 943,891 |
State tax, net of federal benefit | 67,569 | 33,954 |
Share based compensation | (2,302) | (1,149) |
Permanent adjustments | 9,679 | 11,911 |
Tax credits and other | (28,107) | 7,397 |
Provision for income taxes | $ 2,615,623 | $ 996,004 |
Income Tax computed at statutory rate, percentage | 21.00% | 21.00% |
State tax, net of federal benefit, percent | 0.50% | 0.80% |
Share based compensation, percent | 0.00% | 0.00% |
Permanent adjustments, percent | 0.10% | 0.30% |
Tax credits and other, percent | (0.20%) | 0.10% |
Provision for income taxes | 21.40% | 22.20% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Inventory reserves | $ 63,855 | $ 53,701 |
Trade accounts receivable allowances | 71,678 | 35,541 |
Depreciation and amortization | (515,751) | (400,616) |
Total net deferred tax liability | $ 380,218 | $ 311,374 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions (Textual) | ||
Sales to the affiliated companies | $ 2,212,000 | $ 1,788,000 |
Charges to the affiliated companies for services | 871,000 | 779,000 |
Receivables due from affiliated companies | 1,496,000 | 962,000 |
Reimburse business related expenditures | 199,000 | 113,000 |
Research and development costs | 54,000 | 59,000 |
Insurance Broker [Member] | ||
Related Party Transactions (Textual) | ||
Insurance premiums paid | 1,365,000 | 1,424,000 |
Service [Member] | ||
Related Party Transactions (Textual) | ||
The production of television commercials | 20,000 | 21,000 |
Charter boat services | 9,000 | 31,000 |
Research and development costs | 48,000 | 42,000 |
Total payments to affiliated company | $ 77,000 | $ 94,000 |
Stock Options and Awards (Detai
Stock Options and Awards (Details) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Information Relating To Stock Option Transactions [Abstract] | ||
Shares, Options outstanding beginning of the year | 20,000 | 50,000 |
Shares, Options exercised | (20,000) | (30,000) |
Shares, Options outstanding end of the year | 20,000 | |
Weighted Average Exercise Price, Options outstanding beginning | $ 2.07 | $ 1.24 |
Weighted Average Exercise Price, Options exercised | 2.07 | 0.69 |
Weighted Average Exercise Price, Options outstanding ending | $ 2.07 |
Stock Options and Awards (Det_2
Stock Options and Awards (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
May 29, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock Options and Awards (Textual) | |||
Number of shares authorized under equity compensation plan | 630,000 | ||
Stock awards granted | 25,150 | 83,000 | |
Aggregate shares of common stock in connection with a tax withholding feature of the plan | 1,456 | 6,310 | |
Number of shares withhold in connection with net exercise feature of options | 4,704 | 2,072 | |
Shares issued to option holders shares | 15,296 | 27,928 | |
Common stock available for future issuance under equity compensation plan | 153,850 | ||
Shares issued to award recipients | 23,694 | 76,690 | |
Stock based compensation attributable to stock award | $ 312,610 | $ 275,540 | |
Withheld for taxes related to the stock award | $ 19,991 | 20,949 | |
Termination period of previously non-qualified options | Apr. 25, 2020 | ||
Option exercised | $ 20,700 | $ 13,799 | |
Employee Stock Option [Member] | |||
Stock Options and Awards (Textual) | |||
Stock option exercised | 20,000 | 30,000 |
Customer Concentration (Details
Customer Concentration (Details) - Customers | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net Sales [Member] | ||
Customer Concentration (Textual) | ||
Concentration risk, percentage | 41.50% | 43.20% |
Number of customers | 3 | 3 |
Concentration risk, description | Constituted in excess of 10% of its net sales. | Constituted in excess of 10% of its net sales. |
Net Sales [Member] | Customer One [Member] | ||
Customer Concentration (Textual) | ||
Concentration risk, percentage | 16.00% | 21.70% |
Net Sales [Member] | Customer Two [Member] | ||
Customer Concentration (Textual) | ||
Concentration risk, percentage | 15.00% | 11.20% |
Net Sales [Member] | Customer Three [Member] | ||
Customer Concentration (Textual) | ||
Concentration risk, percentage | 10.50% | 10.30% |
Trade accounts receivable [Member] | ||
Customer Concentration (Textual) | ||
Concentration risk, percentage | 63.60% | 56.80% |
Number of customers | 3 | 3 |
Concentration risk, description | Constituted at least 10% of the Company's gross trade accounts receivable. | Constituted at least 10% of the Company's gross trade accounts receivable. |
Trade accounts receivable [Member] | Customer One [Member] | ||
Customer Concentration (Textual) | ||
Concentration risk, percentage | 28.80% | 28.00% |
Trade accounts receivable [Member] | Customer Two [Member] | ||
Customer Concentration (Textual) | ||
Concentration risk, percentage | 21.10% | 15.30% |
Trade accounts receivable [Member] | Customer Three [Member] | ||
Customer Concentration (Textual) | ||
Concentration risk, percentage | 13.70% | 13.50% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings per common share -Basic | ||
Net income | $ 9,616,683 | $ 3,498,714 |
Weighted average number of common shares outstanding | 9,460,659 | 9,391,264 |
Earnings per common share - Basic | $ 1.02 | $ 0.37 |
Earnings per common share - Diluted | ||
Net income | $ 9,616,683 | $ 3,498,714 |
Weighted average number of common shares outstanding | 9,460,659 | 9,391,264 |
Dilutive effect of employee stock-based awards | 3,687 | 8,170 |
Weighted average number of common shares outstanding - Diluted | 9,464,346 | 9,399,434 |
Earnings per common share - Diluted | $ 1.02 | $ 0.37 |
Cash Dividends (Details)
Cash Dividends (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Dividend Per Share | $ 0.08 | |
Amount | $ 757,362 | $ 468,306 |
Dividend Declared [Member] | ||
Related Party Transaction [Line Items] | ||
Declaration Date | May 26, 2020 | Mar. 22, 2019 |
Type | Special | Special |
Record Date | Jun. 9, 2020 | Apr. 5, 2019 |
Payment Date | Jun. 23, 2020 | Apr. 19, 2019 |
Dividend Per Share | $ 0.02 | $ 0.05 |
Amount | $ 189,242 | $ 468,306 |
Dividend Declared One [Member] | ||
Related Party Transaction [Line Items] | ||
Declaration Date | May 26, 2020 | |
Type | Quarterly | |
Record Date | Jun. 9, 2020 | |
Payment Date | Jun. 23, 2020 | |
Dividend Per Share | $ 0.02 | |
Amount | $ 189,242 | |
Dividend Declared Two [Member] | ||
Related Party Transaction [Line Items] | ||
Declaration Date | Aug. 26, 2020 | |
Type | Quarterly | |
Record Date | Sep. 9, 2020 | |
Payment Date | Sep. 23, 2020 | |
Dividend Per Share | $ 0.02 | |
Amount | $ 189,242 | |
Dividend Declared Three [Member] | ||
Related Party Transaction [Line Items] | ||
Declaration Date | Nov. 23, 2020 | |
Type | Quarterly | |
Record Date | Dec. 3, 2020 | |
Payment Date | Dec. 17, 2020 | |
Dividend Per Share | $ 0.02 | |
Amount | $ 189,636 |