10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x           QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

¨           TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number 0-11102

OCEAN BIO-CHEM, INC.

(Exact name of registrant as specified in its charter)

Florida	59-1564329
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

4041 SW 47 AVENUE

FORT LAUDERDALE, FLORIDA  33314

(Address of principal executive offices)

954-587-6280

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes   x    No    ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes      ¨   No      x

At November 12, 2015, 8,982,721 shares of the registrant’s Common Stock were outstanding.

OCEAN BIO-CHEM, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

		Page
PART I	Financial Information:
Item 1.	Financial Statements	3
	Condensed consolidated balance sheets at September 30, 2015 (unaudited) and December 31, 2014	3
	Condensed consolidated statements of operations (unaudited) for the three and nine months ended September 30, 2015 and 2014	4
	Condensed consolidated statements of comprehensive income (unaudited) for the three and nine months ended September 30, 2015 and 2014	5
	Condensed consolidated statements of cash flows (unaudited) for the nine months ended September 30, 2015 and 2014	6
	Notes to condensed consolidated financial statements	7-13
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14-18
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	19
Item 4.	Controls and Procedures	19
PART II	Other Information:
Item 1.	Legal Proceedings	19
Item 1A.	Risk Factors	19
Item 6.	Exhibits	20
	Signatures	21

2

PART 1 - FINANCIAL INFORMATION

Item 1. Financial Statements

OCEAN BIO-CHEM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30, 2015			December 31, 2014
	(Unaudited)
ASSETS
Current Assets:
Cash	$	932,864		$	3,062,729
Trade accounts receivable less allowances of approximately $120,000 and $76,000, respectively		7,606,643			4,850,282
Receivables due from affiliated companies		468,337			715,034
Inventories, net		9,377,242			8,109,333
Prepaid expenses and other current assets		1,008,489			851,333
Deferred tax asset		124,086			123,360
Total Current Assets		19,517,661			17,712,071
Property, plant and equipment, net		5,423,700			5,172,882
Other Assets:
Intangible assets, net		1,055,316			1,095,458
Total Other Assets		1,055,316			1,095,458
Total Assets	$	25,996,677		$	23,980,411
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable – trade	$	2,618,086		$	1,439,868
Current portion of long term debt		448,107			425,658
Income taxes payable		110,883			16,465
Accrued expenses payable		1,564,548			1,115,514
Total Current Liabilities		4,741,624			2,997,505
Deferred tax liability		236,326			258,682
Long term debt, less current portion		443,075			692,104
Total Liabilities		5,421,025			3,948,291
Commitments and contingencies
Shareholders' Equity:
Common stock - $.01 par value, 12,000,000 shares authorized; 8,982,721 and 8,914,274 shares issued		89,827			89,142
Additional paid in capital		9,287,320			9,131,952
Foreign currency translation adjustment		(285,007	)		(279,163	)
Retained earnings		11,483,512			11,090,189
Total Shareholders' Equity		20,575,652			20,032,120
Total Liabilities and Shareholders' Equity	$	25,996,677		$	23,980,411

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

OCEAN BIO-CHEM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Gross sales	$	11,339,560		$	10,934,694		$	26,812,739		$	26,342,525
Less: discounts, returns, and allowances		502,741			502,249			1,234,786			1,176,586
Net sales		10,836,819			10,432,445			25,577,953			25,165,939
Cost of goods sold		7,274,360			6,839,296			16,814,747			16,054,342
Gross profit		3,562,459			3,593,149			8,763,206			9,111,597
Operating Expenses:
Advertising and promotion		763,936			642,547			2,311,441			1,942,710
Selling and administrative		2,351,427			1,615,369			5,829,801			4,899,713
Total operating expenses		3,115,363			2,257,916			8,141,242			6,842,423
Operating income		447,096			1,335,233			621,964			2,269,174
Other expense
Interest, net (expense)		(7,888	)		(10,272	)		(26,783	)		(31,789	)
Other (expense)		---			----			(12,522	)		----
Income before income taxes		439,208			1,324,961			582,659			2,237,385
Provision for income taxes		143,656			426,155			189,336			717,210
Net income		295,552			898,806			393,323			1,520,175
Loss attributable to noncontrolling interests		---			4,287			---			17,149
Net income attributable to Ocean Bio-Chem, Inc.	$	295,552		$	903,093		$	393,323		$	1,537,324
Earnings per common share – basic and diluted	$	0.03		$	0.10		$	0.04		$	0.17
Dividends declared per common share	$	--		$	--		$	---		$	0.05

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

OCEAN BIO-CHEM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Net Income	$	295,552		$	898,806		$	393,323		$	1,520,175
Other comprehensive (loss):
Foreign currency translation adjustment		(76	)		(10,292	)		(5,844	)		(6,499	)
Comprehensive income		295,476			888,514			387,479			1,513,676
Comprehensive loss attributable to noncontrolling interests		---			4,287			---			17,149
Comprehensive income attributable to Ocean Bio-Chem, Inc.	$	295,476		$	892,801		$	387,479		$	1,530,825

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

OCEAN BIO-CHEM, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Nine Months Ended
	September 30,
	2015			2014
Cash flows from operating activities:
Net income	$	393,323		$	1,520,175
Adjustments to reconcile net income to net cash (used in ) provided by operating activities:
Depreciation and amortization		679,463			623,653
Deferred income taxes		(23,082	)		(43,945	)
Loss on sale of property, plant and equipment		12,522			–
Stock based compensation		162,225			356,085
Other operating non-cash items		94,799			29,868
Changes in assets and liabilities:
Trade accounts receivable		(2,800,873	)		(1,838,350	)
Inventories		(1,301,659	)		(1,425,735	)
Prepaid expenses and other current assets		(157,156	)		(169,592	)
Receivables due from affiliated companies		246,697			46,805
Accounts payable and other accrued expenses		1,709,060			1,192,228
Net cash (used in) provided by operating activities		(984,681	)		291,192
Cash flows from investing activities:
Purchases of property, plant and equipment		(845,567	)		(675,734	)
Cash paid for acquisition of joint venture partner's interest in OdorStar					(150,000	)
Cash paid for patent and trademark registration		(11,902	)		–
Sale of property, plant, and equipment		55,000			–
Net cash used in investing activities		(802,469	)		(825,734	)
Cash flows from financing activities:
Payments on long-term debt		(326,772	)		(310,166	)
Dividends paid to common shareholders		–			(440,016	)
Proceeds from exercise of stock options		–			63,250
Net cash used in financing activities		(326,772	)		(686,932	)
Effect of exchange rates on cash		(15,943	)		(21,980	)
Net decrease in cash		(2,129,865	)		(1,243,454	)
Cash at beginning of period		3,062,729			3,071,887
Cash at end of period	$	932,864		$	1,828,433
Supplemental disclosure of cash flow information:
Cash paid for interest during period	$	27,703		$	39,571
Cash paid for income taxes during period	$	118,000		$	840,000
Supplemental disclosure of noncash investing information:
Amounts due from joint venture partner released as part of acquisition              of joint venture partner’s interest in OdorStar	$	–		$	305,905

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

OCEAN BIO-CHEM, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. SUMMARY OF ACCOUNTING POLICIES

Interim reporting

The accompanying unaudited condensed consolidated financial statements include the accounts of Ocean Bio-Chem, Inc. and its wholly-owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. Certain prior-period data have been reclassified to conform to the current period presentation.  Unless the context indicates otherwise, the term “Company” refers to Ocean Bio-Chem, Inc. and its subsidiaries.

The unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.

The financial information furnished herein reflects all adjustments, consisting of normal recurring items that, in the opinion of management, are necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods.  The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015.

The information included in this Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

Prior to September 16, 2014, one of the Company’s subsidiaries, OdorStar Technology, LLC (“OdorStar”), was a joint venture in which the Company had a controlling interest and, therefore, OdorStar was included in the Company’s condensed consolidated financial statements for the three and nine months ended September 30, 2014. On September 16, 2014, the Company acquired the joint venture partner’s interest in OdorStar, which became a wholly–owned subsidiary of the Company.

Use of estimates

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates and assumptions.

2. RECENT ACCOUNTING PRONOUNCEMENTS

There have been no accounting pronouncements or changes in accounting pronouncements during the nine months ended September 30, 2015 that are expected to have a material impact on the Company’s financial position, results of operations or cash flows.  Accounting pronouncements that became effective during the nine months ended September 30, 2015 did not have a material impact on disclosures or on the Company’s financial position, results of operations or cash flows.

7

3. INVENTORIES

The composition of the Company’s inventories at September 30, 2015 and December 31, 2014 were as follows:

	September 30, 2015			December 31, 2014
Raw materials	$	3,888,744		$	3,365,093
Finished goods		5,799,544			5,021,536
Inventories, gross		9,688,288			8,386,629
Inventory reserves		(311,046	)		(277,296	)
Inventories, net	$	9,377,242		$	8,109,333

The inventory reserves shown in the table above reflect slow moving and obsolete inventory.

The Company manages an inventory program for one of its customers to improve the promotion of the Company's products.  The Company manages the inventory levels at the customer’s warehouses and recognizes revenue as the products are sold by the customer.  The inventories managed at the customer’s warehouses amounted to approximately $651,000 and $493,000 at September 30, 2015 and December 31, 2014, respectively, and are included in inventories, net on the condensed consolidated balance sheets.

4. PROPERTY, PLANT & EQUIPMENT

The Company’s property, plant and equipment consisted of the following at September 30, 2015 and December 31, 2014:

	Estimate Useful Life	September 30, 2015			December 31, 2014
Land		$	278,325		$	278,325
Building and improvements	30 years		4,650,349			4,648,089
Manufacturing and warehouse equipment	6-20 years		8,975,788			8,486,397
Office equipment and furniture	3-5 years		1,271,151			1,044,605
Construction in process			184,114			64,038
Leasehold improvements	10-15 years		544,145			436,659
Vehicles	3 years		42,283			131,828
Property, plant and equipment, gross			15,946,155			15,089,941
Less accumulated depreciation			(10,522,455	)		(9,917,059	)
Property, plant and equipment, net		$	5,423,700		$	5,172,882

8

5. REVOLVING LINE OF CREDIT

On August 4, 2014, the Company and Regions Bank entered into a Business Loan Agreement (the“Business Loan Agreement”), under which the Company was provided a renewed revolving line of credit. Under the renewed revolving line of credit, the Company may borrow up to the lesser of (i) $6 million or (ii) a borrowing base equal to 80% of eligible accounts receivable (as defined in the Business Loan Agreement) plus 50% of eligible inventory (as defined in the Business Loan Agreement). Interest on amounts borrowed under the revolving line of credit is payable monthly at the 30 day LIBOR rate plus 1.65% per annum, unless the Company’s debt service coverage ratio (generally, net operating profit plus depreciation, amortization and lease/rent expense divided by current maturities of long-term debt plus interest and lease/rent expense, calculated on a trailing twelve month basis) falls to or below 2.0 to 1, in which case interest is payable at the 30 day LIBOR rate plus 2.65% per annum.

Outstanding amounts under the revolving line of credit are payable on demand. If no demand is made, the Company may repay and reborrow funds from time to time until expiration of the revolving line of credit on July 6, 2016, at which time all outstanding principal and interest will be due and payable. The Company’s obligations under the revolving line of credit are secured by, among other things, the Company’s accounts receivable, inventory, contract rights and general intangibles and, as a result of cross-collateralization of the Company’s obligations under the term loan described in Note 6 and the revolving line of credit, real property and equipment at the Montgomery, Alabama facility of the Company’s subsidiary, Kinpak, Inc. ("Kinpak"). The Business Loan Agreement includes financial covenants requiring a minimum debt service coverage ratio of 1.75 to 1.00, calculated on a trailing twelve month basis, and a maximum debt to capitalization ratio (generally, funded debt divided by the sum of total net worth and funded debt) of 0.75 to 1, tested quarterly. At September 30, 2015 and December 31, 2014, the Company was in compliance with these covenants. The line of credit is subject to several events of default, including a decline in the majority shareholder’s ownership below 50% of all outstanding shares. At September 30, 2015 and December 31, 2014, the Company had no borrowings under the revolving line of credit.

6. LONG TERM DEBT

On July 6, 2011, Regions Equipment Finance Corporation, a subsidiary of Regions Bank, provided to the Company a $2,430,000 term loan with a fixed interest rate of 3.54%, subject to an increase to 4.55% in the event the Company's debt service coverage ratio (net profit plus taxes, interest, depreciation, amortization and rent expense divided by debt service plus interest and lease/rent expense, calculated on a trailing four-quarter basis) falls to or below 2.0 to 1. Principal and interest on the term loan are payable in equal monthly installments through July 6, 2017, the date on which the term loan matures. The proceeds of the term loan were used to pay the Company’s remaining obligations under a lease agreement relating to industrial revenue bonds used to fund the expansion of Kinpak’s facilities and acquisition of related equipment. At September 30, 2015, approximately $798,000 was outstanding under the term loan. The term loan and the revolving line of credit under the Bank Loan Agreement are cross-defaulted (i.e., a default under one instrument is a default under the other).

At September 30, 2015 and December 31, 2014, the Company was obligated under various capital lease agreements covering equipment utilized in the Company’s operations.  The capital leases, aggregating $93,296 and $8,081 at September 30, 2015 and December 31, 2014, respectively, have varying maturities through 2020 and carry interest rates ranging from 2% to 14%.

The following table provides information regarding the Company’s long term debt at September 30, 2015 and December 31, 2014:

	Current Portion				Long Term Portion
	September 30, 2015		December 31, 2014		September 30, 2015		December 31, 2014
Term loan	$	428,795	$	417,577	$	369,091	$	692,104
Capitalized equipment leases		19,312		8,081		73,984		---
Total long term debt	$	448,107	$	425,658	$	443,075	$	692,104

Required principal payments under the Company’s long term obligations are set forth below:

12 month period ending September 30,
2016	$	448,107
2017		387,894
2018		19,150
2019		19,503
2020		16,528
Total	$	891,182

9

7. RELATED PARTY TRANSACTIONS

During the three and nine months ended September 30, 2015 and 2014, the Company sold products to companies affiliated with its Chairman, President and Chief Executive Officer. The affiliated companies distribute the products outside of the United States and Canada. The Company also provides administrative services to these companies. Sales to the affiliated companies aggregated approximately $198,000 and $466,000 during the three months ended September 30, 2015 and 2014, respectively, and approximately $1,416,000 and $1,474,000 for the nine months ended September 30, 2015 and 2014, respectively.  Administrative fees aggregated approximately $112,000 and $143,000 during the three months ended September 30, 2015 and 2014, respectively, and approximately $381,000 and $382,000 for the nine months ended September 30, 2015 and 2014, respectively. The Company had accounts receivable from the affiliated companies in connection with the product sales and administrative services aggregating approximately $468,000 and $715,000 at September 30, 2015 and December 31, 2014, respectively. Transactions with the affiliated companies were made in the ordinary course of business.   While the terms of sale to the affiliated companies differed from the terms applicable to other customers, the affiliated companies bear their own warehousing, distribution, advertising, selling and marketing costs, as well as their own freight charges (the Company pays freight charges in connection with sales to its domestic customers on all but small orders).  Moreover, the Company does not pay sales commissions with respect to products sold to the affiliated companies.  As a result, the Company believes its profit margins with respect to sales to the affiliated companies are similar to the profit margins with respect to sales to its larger domestic customers.  Management believes that the sales transactions did not involve more than normal credit risk or present other unfavorable features.

A subsidiary of the Company currently uses the services of an entity that is owned by its Chairman, President and Chief Executive Officer to conduct product research and development and to assist in the production of television commercials.  Under this arrangement, the Company paid the entity $10,500 for each of the three month periods ended September 30, 2015 and 2014, and $31,500 for each of the nine month periods ended September 30, 2015 and 2014, for research and development services. In addition, during the year ended December 31, 2014, the Company made a $40,000 prepayment to this entity for the production of television commercials, which was included in prepaid expenses and other current assets in the Company’s balance sheet at December 31, 2014. During the three and nine months ended September 30, 2015, the entity provided the services covered by the prepayment, and the $40,000 is included in advertising and promotion expenses in the Company’s condensed consolidated statement of operations for those periods.

The Company leases office and warehouse facilities in Fort Lauderdale, Florida from an entity controlled by its Chairman, President and Chief Executive Officer.  The Company believes that the rental payments are below market rates.  See Note 8 for a description of the lease terms.

A director of the Company is Regional Executive Vice President of an entity from which the Company sources most of its insurance needs at an arm’s length competitive basis.  During the three months ended September 30, 2015 and 2014, the Company paid an aggregate of approximately $490,000 and $203,000, respectively, and during the nine months ended September 30, 2015 and 2014, the Company paid an aggregate of approximately $883,000 and $518,000, respectively in insurance premiums on policies obtained through the entity. The increase in 2015 is primarily attributable to the Company’s prepayment of the entire annual premium for its general liability policy rather than paying the premium in installments.

8. COMMITMENTS AND CONTINGENCIES

The Company leases its executive offices and warehouse facilities in Fort Lauderdale, Florida from an entity controlled by its Chairman, President and Chief Executive Officer. The lease, as extended, expires on December 31, 2023. The lease requires an annual minimum base rent of $94,800 and provides for a maximum annual 2% increase in subsequent years, although the entity has not raised the minimum rent since the Company entered into a previous lease agreement in 1998. Additionally, the leasing entity is entitled to reimbursement of all taxes, assessments, and any other expenses that arise from ownership. Each of the parties to the lease has agreed to review the terms of the lease every three years at the request of the other party.  Rent expense under the lease was approximately $24,000 for each of the three months ended September 30, 2015 and 2014, respectively, and was approximately $73,000 for each of the nine month periods ended September 30, 2015 and 2014, respectively.

10

On August 13, 2014, Star-Brite Distributing, Inc. (“Star-Brite”), a wholly-owned subsidiary of the Company, filed a complaint for injunctive relief and damages against Gold Eagle Co. (“Gold Eagle”) in the United States District Court for the Southern District of Florida. The complaint alleges that Gold Eagle, in violation of Section 43(a) of the Lanham Act, the Florida Deceptive and Unfair Trade Practices Act, and the Florida False Advertising Statute, made false and/or misleading statements in a comparative marketing campaign against Star Tron® Enzyme Fuel Treatment, an enzyme based fuel additive for the marine market, used to treat ethanol gasoline, commonly referred to as E10 fuel. The complaint also constitutes a claim for common law unfair competition.

Specifically, the complaint alleges, among other things, that Gold Eagle commenced a marketing campaign for its STA-BIL® Marine ethanol fuel treatment and stabilizer (“STA-BIL Marine”) that included a product information tag attached to the neck of the STA-BIL Marine product bottle; that the product information tag contained a comparison advertisement purportedly establishing that, based on a fuel stability test and a corrosion control test, STA-BIL Marine outperformed Star Tron; and that the tests used were not appropriate for fuel additives treating E10 fuel.

The complaint seeks a preliminary and permanent injunction enjoining Gold Eagle from further publishing the alleged false and/or misleading statements and requiring Gold Eagle to issue corrective advertising sufficient to dispel the lingering harmful effects of specified product information tags; the entry of a judgment against Gold Eagle for actual damages and enhanced damages up to three times actual damages; disgorgement of profits to Star-Brite that Gold Eagle made as a result of the alleged unlawful actions; and costs and attorney’s fees.

Gold Eagle filed an answer to complaint and counterclaim, generally denying the allegations in Star-Brite’s complaint and asserting, among other things, that original equipment manufacturers recognize the fuel stability test it used as reliable for testing E10 fuel treatment additives and that the corrosion protection test it used is applicable to most boat engine fuel systems. Gold Eagle also asserted affirmative defenses to Star-Brite’s claims. Gold Eagle’s counterclaim alleges, among other things, that in various advertising and marketing materials for Star Tron, which Star-Brite markets for use in various types of engines, Star-Brite makes false and misleading claims that are causing harm to Gold Eagle, which markets competitive products under the STA-BIL brand, thereby violating the same statutory provisions as Gold Eagle is alleged to have violated in Star-Brite’s complaint, and also constituting common law unfair competition. Among other things, the counterclaim references several tests conducted by a laboratory hired by Gold Eagle and alleges that, given the results of these tests, Star-Brite’s claims that Star Tron improves the performance of E10 fuel, provides cleaning and restorative benefits, and provides benefits with respect to ethanol fuel problems are false and misleading.

Gold Eagle seeks, among other things, a permanent injunction enjoining Star-Brite from further using, displaying and distributing marketing materials that include the alleged false and misleading claims and requiring Star-Brite to issue corrective statements sufficient to dispel any residual harmful effects of the alleged false and misleading statements; and that the Court issue a judgment against Star-Brite for actual damages to be enhanced up to three times; disgorgement of profits to Gold Eagle that Star-Brite made as a result of its alleged unlawful actions; and attorney’s fees, costs and interest.

Star-Brite filed an answer to the counterclaim, generally denying the allegations, and asserting affirmative defenses, including that Star-Brite’s subject advertising is based on reliable tests, data and results, and that the counterclaim is barred by, among other things, the applicable statutes of limitations and the doctrine of laches.

Star-Brite and Gold Eagle each filed motions for summary judgment; the Court has not yet ruled on the motions.

The trial, which previously was scheduled to commence in November 2015, has been rescheduled. A jury trial is now scheduled to take place during the two week period commencing on February 8, 2016.

The Company believes that, based on information available, the outcome of this legal matter will not ultimately have a material adverse effect on the financial position or results of operation of the Company. However, in the event of unexpected further developments, it is possible that the ultimate resolution of this matter, or other matters that may arise, if unfavorable, may be materially adverse to the Company’s business, financial condition, results of operations or liquidity.

11

9. EARNINGS PER SHARE

Basic earnings per share is calculated based on net income attributable to Ocean Bio-Chem, Inc. and the weighted average number of shares outstanding during the reported period.  Diluted earnings per share reflect additional dilution from potential common stock issuable upon the exercise of outstanding stock options.  The following table sets forth the computation of basic and diluted earnings per common share, as well as a reconciliation of the weighted average number of common shares outstanding to the weighted average number of shares outstanding on a diluted basis.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Earnings per common share –Basic
Net income attributable to OBCI	$	295,552	$	903,093	$	393,323	$	1,537,324
Weighted average number of common shares outstanding		8,935,951		8,914,274		8,926,176		8,808,219
Earnings per common share – Basic	$	0.03	$	0.10	$	0.04	$	0.17
Earnings per common share – Diluted
Net income attributable to OBCI	$	295,552	$	903,093	$	393,323	$	1,537,324
Weighted average number of common shares outstanding		8,935,951		8,914,274		8,926,176		8,808,219
Dilutive effect of employee stock-based awards		77,889		86,900		90,411		114,372
Weighted average number of common shares outstanding - assuming dilution		9,013,840		9,001,174		9,016,587		8,922,591
Earnings per common share – Diluted	$	0.03	$	0.10	$	0.04	$	0.17

The Company had no stock options outstanding during each of the three and nine month periods ended September 30, 2015 and 2014, respectively, that were anti-dilutive and therefore not included in the diluted earnings per common share calculation. 

12

10.  SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

During the three months ended September 30, 2015, no stock options were exercised.

During the nine months ended September 30, 2015, stock options to purchase an aggregate of 10,000 shares were exercised.  Following the withholding of an aggregate of 2,156 shares in connection with the net exercise feature of the stock options, the Company delivered an aggregate of 7,844 shares to the option holder who exercised his options.  

Stock compensation expense during the three months ended September 30, 2015 and 2014 attributable to stock awards was approximately $162,000 and $0, respectively. Stock compensation expense during the nine months ended September 30, 2015 and 2014 attributable to stock awards was approximately $162,000 and $356,000, respectively. There was no stock compensation expense attributable to stock options during the three and nine months ended September 30, 2015 and 2014.

At September 30, 2015, there was no unrecognized compensation expense related to stock options.  

The following table provides information at September 30, 2015 regarding outstanding stock options under the Company’s stock option plans. As used in the table below, “2002 NQ” refers to the Company’s 2002 Non-Qualified Stock Option Plan and “2008 NQ” refers to the Company’s 2008 Non-Qualified Stock Option Plan.

Plan	Date Granted	Shares Underlying Options Outstanding		Shares Underlying Exercisable Options		Exercise Price		Expiration Date	Weighted Average Remaining Term
2002NQ	4/03/06		30,000		30,000	$	1.08	4/02/16		0.5
2002NQ	12/17/07		40,000		40,000	$	1.32	12/16/17		2.2
2008NQ	1/11/09		40,000		40,000	$	0.69	1/10/19		3.3
2008NQ	4/26/10		20,000		20,000	$	2.07	4/25/20		4.6
			130,000		130,000	$	1.19			2.5

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-looking Statements:

Certain statements contained in this Quarterly Report on Form 10-Q, including without limitation, our anticipation that we will continue to incur higher legal expenses in connection with the litigation matter described in Note 8 to the condensed consolidated financial statements included in this report, our projected income tax rate for the full 2015 year, our ability to provide required capital to support inventory levels, the effect of price increases in raw materials that are petroleum or chemical based or commodity chemicals on our margins, and the sufficiency of funds provided through operations and existing sources of financing to satisfy our cash requirements constitute forward-looking statements. For this purpose, any statements contained in this report that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "believe," "may," "will," "expect," "anticipate," "intend," or "could," including the negative or other variations thereof or comparable terminology, are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those expressed or implied by such forward-looking statements. Factors that may affect these results include, but are not limited to, the highly competitive nature of our industry; reliance on certain key customers; changes in consumer demand for marine, recreational vehicle and automotive products; advertising and promotional efforts; unanticipated litigation developments; exposure to market risks relating to changes in interest rates, foreign exchange rates, prices for raw materials that are petroleum or chemical based and other factors addressed in Part I, Item 1A (“Risk Factors”) in our annual report on Form 10-K for the year ended December 31, 2014. 

Overview:

We are principally engaged in manufacturing, marketing and distributing a broad line of appearance, performance and maintenance products for the marine, automotive, power sports, recreational vehicle and outdoor power equipment markets, under the Star brite®, StarTron® and other trademarks within the United States of America and Canada. We also manufacture, market and distribute a line of disinfectant, sanitizing and deodorizing products. In addition, we produce private label formulations of many of our products for various customers and provide custom blending and packaging services for these and other products. We sell our products to national retailers and to national and regional distributors who sell our products to specialized retail outlets.

Critical accounting estimates:

See “Management's Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates" in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2014 for information regarding our critical accounting estimates.

Results of Operations:

Three Months Ended September 30, 2015 Compared to the Three Months Ended September 30, 2014

The following table provides a summary of our financial results for the three months ended September 30, 2015 and 2014:

	For The Three Months Ended September 30,
							Percent			Percentage of Net Sales
	2015			2014			Change			2015			2014
Net sales	$	10,836,819		$	10,432,445			3.9	%		100.0	%		100.0	%
Cost of goods sold		7,274,360			6,839,296			6.4	%		67.1	%		65.6	%
Gross profit		3,562,459			3,593,149			(0.9	)%		32.9	%		34.4	%
Advertising and promotion		763,936			642,547			18.9	%		7.0	%		6.2	%
Selling and administrative		2,351,427			1,615,369			45.6	%		21.7	%		15.5	%
Operating income		447,096			1,335,233			(66.5	)%		4.1	%		12.8	%
Interest (expense), net		(7,888	)		(10,272	)		(23.2	)%		0.1	%		0.1	%
Provision for income taxes		(143,656	)		(426,155	)		(66.3	)%		1.3	%		4.1	%
Net income	$	295,552		$	898,806			(67.1	)%		2.7	%		8.6	%
Net income attributable to Ocean Bio-Chem, Inc.	$	295,552		$	903,093			(67.3	)%		2.7	%		8.7	%

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Net sales increased by approximately $404,000 or 3.9% to approximately $10,836,000 for the three months ended September 30, 2015 from approximately $10,432,000 during the same period in 2014. The increase is primarily attributable to sales of antifreeze, marine products, and private label products, partially offset by decreased sales of our fuel additive products.

Cost of goods sold increased by approximately $435,000 or 6.4% to approximately $7,274,000 for the three months ended September 30, 2015, from approximately $6,839,000 for the same period in 2014.  The increase in cost of goods sold is a result of higher sales volume and a less favorable mix of products sold during the 2015 period.

Gross profit decreased by approximately $31,000 or 0.9% to approximately $3,562,000 for the three months ended September 30, 2015, from approximately $3,593,000 for the same period in 2014. Despite increased sales, gross profit declined due to a less favorable product mix. As a percentage of net sales, gross profit was approximately 32.9% and 34.4% for the three month periods ended September 30, 2015 and 2014, respectively. The lower gross profit percentage is a result of the less favorable product mix.

Advertising and promotion expenses increased by approximately $121,000 or 18.9% to approximately $764,000 for the three months ended September 30, 2015 from approximately $643,000 for the same period in 2014.  As a percentage of net sales, advertising and promotion expense was approximately 7.0% for the three months ended September 30, 2015 compared to approximately 6.2% for the same period in 2014.  The increase is a result of increased customer cooperative advertising allowances provided to select customers, primarily based on the volume of our sales to these customers, as well as increases in magazine and television advertising and expenses relating to trade shows.

Selling and administrative expenses increased by approximately $736,000 or 45.6%, to approximately $2,351,000 during the three months ended September 30, 2015 from approximately $1,615,000 for the same period in 2014.  The increase primarily is a result of higher legal fees that are largely attributable to the litigation matter described in Note 8 to the condensed consolidated financial statements included in this report. The Company anticipates that it will continue to incur higher legal expenses until the litigation matter is resolved. The Company also recorded approximately $162,000 in stock based compensation expense during the three months ended September 30, 2015; no stock compensation expense was recorded during the same period in 2014. As a percentage of net sales, selling and administrative expenses increased to 21.7% for the three months ended September 30, 2015, compared to 15.5% for the same period in 2014. 

Operating income – As a result of the foregoing factors, operating income was approximately $447,000 for the three months ended September 30, 2015 compared to operating income of approximately $1,335,000 for the same period in 2014, a decrease of approximately $888,000 or 66.5%.

Interest expense, net decreased by approximately $2,000 to approximately $8,000 for the three months ended September 30, 2015, compared to approximately $10,000 for the same period in 2014. The decrease reflects the declining outstanding principal on our term loan.

Income taxes – Our income tax expense for the three months ended September 30, 2015 was approximately $144,000 or 32.7% of our pretax income, compared to income tax expense of approximately $426,000 or 32.2% of pretax income, for the same period in 2014. The 2015 tax rate reflects our projected rate for the full year of 2015.   

Net income and Net income attributable to Ocean Bio-Chem, Inc. – As a result of the factors described above, net income for the three months ended September 30, 2015 decreased by approximately $603,000 or 67.1% to approximately $296,000 from approximately $899,000 for the same period in 2014. Net income attributable to Ocean Bio-Chem. Inc. for the three months ended September 30, 2015 decreased by approximately $607,000 or 67.3% to $296,000, compared to approximately $903,000 for the same period in 2014.  Net income attributable to Ocean Bio-Chem, Inc. for the 2014 period does not include a loss of approximately $4,000 that is attributable to the ownership interest of our former joint venture partner in OdorStar Technology, LLC (“OdorStar”).

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Nine Months Ended September 30, 2015 Compared to the Nine Months Ended September 30, 2014

The following table provides a summary of our financial results for the nine months ended September 30, 2015 and 2014:

	For The Nine Months Ended September, 30
							Percent			Percentage of Net Sales
	2015			2014			Change			2015			2014
Net sales	$	25,577,953		$	25,165,939			1.6	%		100.0	%		100.0	%
Cost of goods sold		16,814,747			16,054,342			4.7	%		65.7	%		63.8	%
Gross profit		8,763,206			9,111,597			(3.8	)%		34.3	%		36.2	%
Advertising and promotion		2,311,441			1,942,710			19.0	%		9.0	%		7.7	%
Selling and administrative		5,829,801			4,899,713			19.0	%		22.8	%		19.5	%
Operating income		621,964			2,269,174			(72.6	)%		2.4	%		9.0	%
Interest (expense), net		(26,783	)		(31,789	)		(15.7	)%		0.1	%		0.1	%
Other (expense)		(12,522	)		---			N/A			0.0	%		0.0	%
Provision for income taxes		(189,336	)		(717,210	)		(73.6	)%		0.7	%		2.8	%
Net income	$	393,323		$	1,520,175			(74.1	)%		1.5	%		6.0	%
Net income attributable to Ocean Bio-Chem, Inc.	$	393,323		$	1,537,324			(74.4	)%		1.5	%		6.1	%

Net sales increased by approximately $412,000 or 1.6% to approximately $25,578,000 for the nine months ended September 30, 2015 compared to approximately $25,166,000 during the same period in 2014. The increase is attributable to sales of our marine products, partially offset by decreased sales of our fuel additive products.   

Cost of goods sold – increased by approximately $760,000 or 4.7% to approximately $16,814,000 for the nine months ended September 30, 2015, from approximately $16,054,000 during the same period in 2014, as a result of higher sales volume and a less favorable mix of products sold during the 2015 period.

Gross profit decreased by approximately $348,000 or 3.8% to approximately $8,763,000 for the nine months ended September 30, 2015, from approximately $9,112,000 for the same period in 2014. Despite increased sales, gross profit declined due to a less favorable product mix. As a percentage of net sales, gross profit was approximately 34.3% and 36.2% for the nine months ended September 30, 2015 and 2014, respectively. The lower gross profit percentage is a result of the less favorable product mix.

Advertising and promotion expenses increased to approximately $2,311,000 for the nine months ended September 30, 2015 from approximately $1,943,000 for the same period in 2014, an increase of approximately $369,000 or 19.0%.  As a percentage of net sales, advertising and promotion expense was approximately 9.0% for the nine months ended September 30, 2015 compared to approximately 7.7% for the same period in 2014.   The increase is a result of increased customer cooperative advertising allowances provided to select customers, primarily based on the volume of our sales to these customers, as well as increases in internet, magazine and television advertising and expenses relating to trade shows.

Selling and administrative expenses increased by approximately $930,000 or 19.0%, to approximately $5,830,000 for the nine months ended September 30, 2015 from approximately $4,900,000 for the same period in 2014. The increase is primarily due to legal fees that are largely attributable to the litigation matter described in Note 8 to the condensed consolidated financial statements included in this report, salaries and expenses related to the development of our new Outdoor Collection for outdoor furniture care and our new recreational vehicle care product line, partially offset by the lower stock based compensation in the nine months ended September 30, 2015 compared to the same period in 2014. The Company anticipates that it will continue to incur higher legal expenses until the legal matter is resolved. As a percentage of net sales, selling and administrative expenses increased to 22.8% for the nine months ended September 30, 2015 as compared to 19.5% during same period in 2014,

Operating income – As a result of the foregoing factors, operating income was approximately $622,000 for the nine months ended September 30, 2015 compared to approximately $2,269,000 for the same period in 2014, a decrease of approximately $1,647,000 or 72.6%.

Interest expense, net decreased by approximately $5,000 to approximately $27,000 during the nine months ended September 30, 2015, compared to approximately $32,000 during the same period in 2014. The decrease reflects the declining outstanding principal on our term loan.

Income taxes - Our income tax expense for the nine months ended September 30, 2015 was approximately $189,000, or 32.5% of pretax income, compared to approximately $717,000, or 32.1% of pretax income, during the same period in 2014.  

Net income and Net income attributable to Ocean Bio-Chem, Inc. - As a result of the factors described above, net income for the nine months ended September 30, 2015 decreased by approximately $1,127,000, or 74.1%, to $393,000 from approximately $1,520,000 for the same period in 2014.  Net income attributable to Ocean Bio-Chem. Inc. decreased by approximately $1,144,000, or 74.4%, to approximately $393,000 for the nine months ended September 30, 2015 from approximately $1,537,000 for the same period in 2014.  Net income attributable to Ocean Bio-Chem, Inc. for the 2014 period does not include a loss of approximately $17,000 that is attributable to the ownership interest of our former joint venture partner in OdorStar.

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Liquidity and capital resources:

Our cash balance was approximately $933,000 at September 30, 2015 compared to approximately $3,063,000 at December 31, 2014. At September 30, 2015 and December 31, 2014, we had no borrowings under our revolving line of credit.

Net cash used in operating activities during the nine months ended September 30, 2015 was approximately $985,000 compared to net cash provided by operating activities of approximately $291,000 for the nine months ended September 30, 2014.  The increase in cash used is principally attributable to lower net income.

Net trade accounts receivable aggregated approximately $7,606,000 at September 30, 2015, an increase of approximately $2,756,000 or 56.8% compared to net trade accounts receivable of $4,850,000 at December 31, 2014. The higher trade accounts receivable balance at September 30, 2015 principally reflects the increase in our third quarter sales volume as compared to the quarter ended June 30, 2015.

Inventories, net increased by approximately $1,268,000 or 15.6% from approximately $8,109,000 at December 31, 2014 to approximately $9,377,000 at September 30, 2015. The increase in inventories at September 30, 2015 was due to anticipated October sales volume.

Net cash used in investing activities was approximately $802,000 for the nine months ended September 30, 2015 compared to approximately $826,000 for the nine months ended September 30, 2014.  During the 2015 period, the Company used approximately $170,000 more cash for purchases of plant, property and equipment than in the 2014 period. The 2015 purchases of plant, property and equipment primarily consist of purchases for the manufacturing facilities of our Kinpak, Inc. subsidiary, including additional storage tanks for storage of propylene glycol, which we use principally for antifreeze, as well as expenditures for leasehold improvements to expand office space at our corporate headquarters. However, these expenditures were partially offset by the proceeds of our sale of a recreational vehicle we purchased in 2014 for advertising and exhibiting our products at trade shows and other events. In addition we made a $150,000 payment in the nine months ended September 30, 2014 to acquire our former joint venture partner’s interest in OdorStar.

Net cash used in financing activities was approximately $327,000 for the nine months ended September 30, 2015 compared to net cash used of approximately $687,000 for the nine months ended September 30, 2014. While cash used in both periods reflect repayments under our term loan, cash used in the 2014 period included a $440,000 dividend payment, partially offset by $63,000 in cash proceeds resulting from the exercise of stock options.

On July 6, 2011, we, together with our subsidiary, Kinpak Inc. (“Kinpak”), entered into a Credit Agreement with Regions Bank (and, pursuant to an Equipment Finance Addendum to the Credit Agreement, Regions Equipment Finance Corporation (“REFCO”)) under which (a) Regions Bank provided a revolving line of credit to us (which was replaced by the revolving line of credit described below), and (b) REFCO provided a term loan in the amount of $2,430,000, the proceeds of which were used to pay Kinpak’s remaining lease obligations in connection with the previously outstanding 2002 Series of Industrial Development Revenue Bonds issued by the City of Montgomery, Alabama (the “2002 Bonds”).  The 2002 Bonds were used to fund the expansion of Kinpak’s facilities and acquisition of related equipment.

Under the term loan, we pay principal, together with interest at the fixed rate of 3.54% per annum, in 72 consecutive monthly payments of $37,511 over the six year period beginning on August 6, 2011, with the final payment due on July 6, 2017. In the event our debt service coverage ratio (net profit plus taxes, interest, depreciation, amortization and rent expense divided by debt service plus interest and lease/rent expense, calculated on a trailing four quarter basis), falls to or below 2.0 to 1, interest on the term loan will increase to 4.55% per annum. At September 30, 2015, our debt service coverage ratio was approximately 4.0 to 1.

On August 4, 2014, we entered into a new Business Loan Agreement with Regions Bank (the "Business Loan Agreement") under which we were provided a new revolving line of credit. Under the revolving line of credit, we may borrow up to the lesser of (i) $6 million and (ii) a borrowing base equal to 80% of eligible accounts receivable (as defined in the Business Loan Agreement) plus 50% of eligible inventory (as defined in the Business Loan Agreement). Interest on the revolving line of credit is payable monthly at the 30 day LIBOR rate plus 1.65% per annum (unless our debt service coverage ratio (generally, net operating profit plus depreciation, amortization and lease/rent expense divided by current maturities of long-term debt plus interest and lease/rent expense, calculated on a trailing twelve month basis) falls to or below 2.0 to 1, in which case in which case the interest is payable at the 30 day LIBOR rate plus 2.65% per annum). Outstanding amounts under the revolving line of credit are payable on demand. If no demand is made, we may repay and reborrow funds from time to time, until expiration of the revolving line of credit on July 6, 2016, at which time all outstanding principal and interest is due and payable.

The Business Loan Agreement contains various covenants, including financial covenants requiring a minimum debt coverage ratio of 1.75 to 1.00, tested on a rolling four-quarter basis, and a maximum debt to capitalization ratio (generally, funded debt divided by the sum of total net worth and funded debt) of 0.75 to 1, tested quarterly. At September 30, 2015, our debt coverage ratio was approximately 4.0 to 1, and our debt to capitalization ratio was approximately 0.04 to 1.

Our obligations under the revolving line of credit are secured by our accounts receivable, inventory, contract rights and general intangibles and, as a result of the cross-collateralization of our obligations under the term loan and the revolving line of credit, by real property and equipment at Kinpak’s Montgomery, Alabama facility. 

17

In addition to the revolving line of credit and term loan, we have obtained financing through capital leases for office equipment, totaling approximately $93,000 and $8,000 at September 30, 2015 and December 31, 2014, respectively. See Note 6 to the condensed consolidated financial statements included in this report for additional information regarding our capital lease obligations.

At September 30, 2015, we had no borrowings under our revolving line of credit. See Notes 5 and 6 to the condensed consolidated financial statements included in this report for additional information regarding our debt obligations.

Some of our assets and liabilities are in the Canadian dollars and are subject to currency fluctuations relating to the Canadian dollar. We do not engage in currency hedging and address currency risk as a pricing issue. In the nine months ended September 30, 2015, we recorded approximately $6,000 in foreign currency translation adjustments (decreasing shareholders’ equity by $6,000).

During the past few years, we have introduced a number of new products.  At times, new product introductions have required us to increase our overall inventory and have resulted in lower inventory turnover rates.  The effects of reduced inventory turnover have not been material to our overall operations.  We believe that all required capital to maintain such increases will continue to be provided by operations and, if necessary, our current revolving line of credit or a renewal or replacement of the facility.  However, we cannot assure that we will be able to secure such a renewal or replacement of our revolving line of credit.

Many of the raw materials that we use in the manufacturing process are petroleum or chemical based and commodity chemicals that are subject to fluctuating prices. The nature of our business does not enable us to pass through the price increases to our national retailer customers and to our distributors as promptly as we experience increases in raw material costs. This may, at times, adversely affect our margins.

At September 30, 2015 and through the date of this report, we did not and do not have any material commitments for capital expenditures.

We believe that funds provided through operations and our existing sources of financing will be sufficient to satisfy our cash requirements over at least the next twelve months.

18

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not applicable

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures:

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Company’s disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") at the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures as of the end of the period covered by this report are effective to provide reasonable assurance that the information required to be disclosed by the Company in reports filed under the Exchange Act are (i) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and (ii) accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding the disclosure.

Change in Internal Controls over Financial Reporting:

No change in internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

See the description of a pending legal proceeding included in Note 8 to the condensed consolidated financial statements included in this report, which is incorporated herein by reference.

Item 1A. Risk Factors

In addition to the information set forth in this report, you should carefully consider the factors discussed in Part I -Item 1A, "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, which could materially affect the Company’s business, financial condition or future results. 

19

Item 6. Exhibits

Exhibit No.	Description
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act.
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act.
32.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(b) under the Exchange Act and 18 U.S.C. Section 1350.
32.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(b) under the Exchange Act and 18 U.S.C. Section 1350.
101	The following materials from Ocean Bio-Chem, Inc.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of September 30, 2015 and December 31, 2014, (ii) Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2015 and 2014, (iii) Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2015 and 2014; (iv) Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2015 and 2014 and (v) Notes  to Condensed Consolidated Financial Statements.

20

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the Undersigned thereunto duly authorized.

	OCEAN BIO-CHEM, INC.
Dated: November 13, 2015	/s/ Peter G. Dornau
	Peter G. Dornau
	Chairman of the Board, President and
	Chief Executive Officer
Dated: November 13, 2015	/s/ Jeffrey S. Barocas
	Jeffrey S. Barocas
	Vice President and
	Chief Financial Officer

21

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Peter G. Dornau certify that:

1.  I have reviewed this quarterly report on Form 10-Q of Ocean Bio-Chem, Inc.;

2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.  The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:  November 13, 2015	By:	/s/ Peter G. Dornau
		Peter G. Dornau
		Chairman of the Board, President and
		Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Jeffrey S. Barocas certify that:

1. I have reviewed this quarterly report on Form 10-Q of Ocean Bio-Chem, Inc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:  November 13, 2015	By:	/s/ Jeffrey S. Barocas
		Jeffrey S. Barocas
		Vice President
		Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO RULE 13a-14(b)

UNDER THE SECURITIES EXCHANGE ACT AND 18 U.S.C. 1350

I, Peter G. Dornau, Chief Executive Officer of Ocean Bio-Chem, Inc. (the "Company"), hereby certify that, based on my knowledge:

1. The Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  November 13, 2015	By:	/s/ Peter G. Dornau
		Peter G. Dornau
		Chairman of the Board, President and
		Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO RULE 13a-14(b)

UNDER THE SECURITIES EXCHANGE ACT AND 18 U.S.C. 1350

I, Jeffrey S. Barocas, Chief Financial Officer of Ocean Bio-Chem, Inc. (the "Company"), hereby certify that, based on my knowledge:

1. The Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  November 13, 2015	By:	/s/ Jeffrey S. Barocas
		Jeffrey S. Barocas
		Vice President
		Chief Financial Officer

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Earnings Per Share (Details Textual) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share (Textual)
Anti-dilutive stock options outstanding	0	0	0	0

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Property, Plant and Equipment (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Summary of property, plant and equipment
Land	$ 278,325	$ 278,325
Building and improvements	4,650,349	4,648,089
Manufacturing and warehouse equipment	8,975,788	8,486,397
Office equipment and furniture	1,271,151	1,044,605
Construction in process	184,114	64,038
Leasehold improvements	544,145	436,659
Vehicles	42,283	131,828
Property, plant and equipment, gross	15,946,155	15,089,941
Less accumulated depreciation	(10,522,455)	(9,917,059)
Property, plant and equipment, net	$ 5,423,700	$ 5,172,882
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
Vehicles [Member]
Summary of property, plant and equipment
Estimated Useful Life	3 years

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Inventories

9 Months Ended

Sep. 30, 2015

Inventories [Abstract]

INVENTORIES

3. INVENTORIES

The composition of the Company’s inventories at September 30, 2015 and December 31, 2014 were as follows:

	September 30, 2015			December 31, 2014
Raw materials	$	3,888,744		$	3,365,093
Finished goods		5,799,544			5,021,536
Inventories, gross		9,688,288			8,386,629
Inventory reserves		(311,046	)		(277,296	)
Inventories, net	$	9,377,242		$	8,109,333

The inventory reserves shown in the table above reflect slow moving and obsolete inventory.

The Company manages an inventory program for one of its customers to improve the promotion of the Company's products.  The Company manages the inventory levels at the customer’s warehouses and recognizes revenue as the products are sold by the customer.  The inventories managed at the customer’s warehouses amounted to approximately $651,000 and $493,000 at September 30, 2015 and December 31, 2014, respectively, and are included in inventories, net on the condensed consolidated balance sheets.

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Long-term Debt (Details Textual) - USD ($)		9 Months Ended
	Jul. 06, 2011	Sep. 30, 2015	Dec. 31, 2014
Long Term Debt (Textual)
Term loan		$ 798,000
Aggregate capital lease		$ 93,296	$ 8,081
Maturity period for capital lease		Through 2020
Minimum [Member]
Long Term Debt (Textual)
Percentage of interest rates		2.00%
Maximum [Member]
Long Term Debt (Textual)
Percentage of interest rates		14.00%
REFCO [Member]
Long Term Debt (Textual)
Term loan	$ 2,430,000
Interest rate	3.54%
Term loan maturity date	Jul. 06, 2017
Term loan, Description	Term loan with a fixed interest rate of 3.54%, subject to an increase to 4.55% in the event the Company's debt service coverage ratio (net profit plus taxes, interest, depreciation, amortization and rent expense divided by debt service plus interest and lease/rent expense, calculated on a trailing four-quarter basis) falls to or below 2.0 to 1.

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Long-term Debt (Details 1)	Sep. 30, 2015 USD ($)
Summary of principal payments under Company's long term obligations
2016	$ 448,107
2017	387,894
2018	19,150
2019	19,503
2020	16,528
Total	$ 891,182

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Related Party Transactions (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Related Party Transactions (Textual)
Sales to the affiliated companies	$ 198,000	$ 466,000	$ 1,416,000	$ 1,474,000
Receivables due from affiliated companies	468,337		468,337		$ 715,034
Administrative fees	112,000	143,000	381,000	382,000
Amount paid to entity for services	10,500	10,500	31,500	31,500
Insurance premiums paid	490,000	$ 203,000	883,000	$ 518,000
Advance for the production of television commercials					40,000
Advertising and promotion expenses	$ 40,000		$ 40,000
Prepaid Advertising					$ 40,000

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Commitments and Contingencies (Details) - Fort Lauderdale Florida Facility [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Commitments (Textual)
Extended expiration date of lease			Dec. 31, 2023
Minimum base rent			$ 94,800
Maximum annual percentage increase in base rent			2.00%
Period to review term of lease			3 years
Rent expense under the lease	$ 24,000	$ 24,000	$ 73,000	$ 73,000

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2015

Recent Accounting Pronouncements [Abstract]

RECENT ACCOUNTING PRONOUNCEMENTS

2. RECENT ACCOUNTING PRONOUNCEMENTS

There have been no accounting pronouncements or changes in accounting pronouncements during the nine months ended September 30, 2015 that are expected to have a material impact on the Company’s financial position, results of operations or cash flows.  Accounting pronouncements that became effective during the nine months ended September 30, 2015 did not have a material impact on disclosures or on the Company’s financial position, results of operations or cash flows.

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Earnings Per Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings per common share - Basic
Net income attributable to OBCI	$ 295,552	$ 903,093	$ 393,323	$ 1,537,324
Weighted average number of common shares outstanding	8,935,951	8,914,274	8,926,176	8,808,219
Earnings per common share - Basic	$ 0.03	$ 0.1	$ 0.04	$ 0.17
Earnings per common share - Diluted
Net income attributable to OBCI	$ 295,552	$ 903,093	$ 393,323	$ 1,537,324
Weighted average number of common shares outstanding	8,935,951	8,914,274	8,926,176	8,808,219
Dilutive effect of employee stock-based awards	77,889	86,900	90,411	114,372
Weighted average number of common shares outstanding - assuming dilution	9,013,840	9,001,174	9,016,587	8,922,591
Earnings per common share - Diluted	$ 0.03	$ 0.1	$ 0.04	$ 0.17

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Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current Assets:
Cash	$ 932,864	$ 3,062,729
Trade accounts receivable less allowances of approximately $120,000 and $76,000, respectively	7,606,643	4,850,282
Receivables due from affiliated companies	468,337	715,034
Inventories, net	9,377,242	8,109,333
Prepaid expenses and other current assets	1,008,489	851,333
Deferred tax asset	124,086	123,360
Total Current Assets	19,517,661	17,712,071
Property, plant and equipment, net	5,423,700	5,172,882
Other Assets:
Intangible assets, net	1,055,316	1,095,458
Total Other Assets	1,055,316	1,095,458
Total Assets	25,996,677	23,980,411
Current Liabilities:
Accounts payable - trade	2,618,086	1,439,868
Current portion of long term debt	448,107	425,658
Income taxes payable	110,883	16,465
Accrued expenses payable	1,564,548	1,115,514
Total Current Liabilities	4,741,624	2,997,505
Deferred tax liability	236,326	258,682
Long term debt, less current portion	443,075	692,104
Total Liabilities	$ 5,421,025	$ 3,948,291
Commitments and contingencies
Shareholders' Equity:
Common stock - $.01 par value, 12,000,000 shares authorized; 8,982,721 and 8,914,274 shares issued	$ 89,827	$ 89,142
Additional paid in capital	9,287,320	9,131,952
Foreign currency translation adjustment	(285,007)	(279,163)
Retained earnings	11,483,512	11,090,189
Total Shareholders' Equity	20,575,652	20,032,120
Total Liabilities and Shareholders' Equity	$ 25,996,677	$ 23,980,411

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 393,323	$ 1,520,175
Adjustments to reconcile net income to net cash (used in ) provided by operating activities:
Depreciation and amortization	679,463	623,653
Deferred income taxes	(23,082)	$ (43,945)
Loss on sale of property, plant and equipment	12,522
Stock based compensation	162,225	$ 356,085
Other operating non-cash items	94,799	29,868
Changes in assets and liabilities:
Trade accounts receivable	(2,800,873)	(1,838,350)
Inventories	(1,301,659)	(1,425,735)
Prepaid expenses and other current assets	(157,156)	(169,592)
Receivables due from affiliated companies	246,697	46,805
Accounts payable and other accrued expenses	1,709,060	1,192,228
Net cash (used in) provided by operating activities	(984,681)	291,192
Cash flows from investing activities:
Purchases of property, plant and equipment	$ (845,567)	(675,734)
Cash paid for acquisition of joint venture partner's interest in OdorStar		$ (150,000)
Cash paid for patent and trademark registration	$ (11,902)
Sale of property, plant, and equipment	55,000
Net cash used in investing activities	(802,469)	$ (825,734)
Cash flows from financing activities:
Payments on long-term debt	$ (326,772)	(310,166)
Dividends paid to common shareholders		(440,016)
Proceeds from exercise of stock options		63,250
Net cash used in financing activities	$ (326,772)	(686,932)
Effect of exchange rates on cash	(15,943)	(21,980)
Net decrease in cash	(2,129,865)	(1,243,454)
Cash at beginning of period	3,062,729	3,071,887
Cash at end of period	932,864	1,828,433
Supplemental disclosure of cash flow information:
Cash paid for interest during period	27,703	39,571
Cash paid for income taxes during period	$ 118,000	840,000
Supplemental disclosure of noncash investing information:
Amounts due from joint venture partner released as part of acquisition of joint venture partner's interest in OdorStar		$ 305,905

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Securities Authorized for Issuance under Equity Compensation Plans (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Securities Authorized for Issuance Under Equity Compensation Plans (Textual)
Stock option exercised			10,000
Number of shares withhold in connection with net exercise feature of options	2,156		2,156
Shares issued to option holders			7,844
Stock compensation expense attributable to stock awards	$ 162,000	$ 0	$ 162,000	$ 356,000
Unrecognized compensation expense related to stock options	$ 0		$ 0

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Securities Authorized for Issuance under Equity Compensation Plans (Tables)

9 Months Ended

Sep. 30, 2015

Securities Authorized for Issuance Under Equity Compensation Plans [Abstract]

Schedule of outstanding stock options under company's stock options plans

Plan	Date Granted	Shares Underlying Options Outstanding		Shares Underlying Exercisable Options		Exercise Price		Expiration Date	Weighted Average Remaining Term
2002NQ	4/03/06		30,000		30,000	$	1.08	4/02/16		0.5
2002NQ	12/17/07		40,000		40,000	$	1.32	12/16/17		2.2
2008NQ	1/11/09		40,000		40,000	$	0.69	1/10/19		3.3
2008NQ	4/26/10		20,000		20,000	$	2.07	4/25/20		4.6
			130,000		130,000	$	1.19			2.5

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Inventories (Details Textual) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Inventories (Textual)
Inventories managed at the customer's warehouses	$ 651,000	$ 493,000

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Summary of Accounting Policies

9 Months Ended

Sep. 30, 2015

Summary of Accounting Policies [Abstract]

SUMMARY OF ACCOUNTING POLICIES

1. SUMMARY OF ACCOUNTING POLICIES

Interim reporting

The accompanying unaudited condensed consolidated financial statements include the accounts of Ocean Bio-Chem, Inc. and its wholly-owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. Certain prior-period data have been reclassified to conform to the current period presentation.  Unless the context indicates otherwise, the term “Company” refers to Ocean Bio-Chem, Inc. and its subsidiaries.

The unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.

The financial information furnished herein reflects all adjustments, consisting of normal recurring items that, in the opinion of management, are necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods.  The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015.

The information included in this Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

Prior to September 16, 2014, one of the Company’s subsidiaries, OdorStar Technology, LLC (“OdorStar”), was a joint venture in which the Company had a controlling interest and, therefore, OdorStar was included in the Company’s condensed consolidated financial statements for the three and nine months ended September 30, 2014. On September 16, 2014, the Company acquired the joint venture partner’s interest in OdorStar, which became a wholly–owned subsidiary of the Company.

Use of estimates

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates and assumptions.

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Balance Sheets [Abstract]
Trade accounts receivable, allowance for doubtful accounts	$ 120,000	$ 76,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	12,000,000	12,000,000
Common stock, shares issued	8,982,721	8,914,274

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Summary of Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Summary of Accounting Policies [Abstract]

Interim reporting

Interim reporting

The accompanying unaudited condensed consolidated financial statements include the accounts of Ocean Bio-Chem, Inc. and its wholly-owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. Certain prior-period data have been reclassified to conform to the current period presentation.  Unless the context indicates otherwise, the term “Company” refers to Ocean Bio-Chem, Inc. and its subsidiaries.

The unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.

The financial information furnished herein reflects all adjustments, consisting of normal recurring items that, in the opinion of management, are necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the interim periods.  The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015.

The information included in this Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

Prior to September 16, 2014, one of the Company’s subsidiaries, OdorStar Technology, LLC (“OdorStar”), was a joint venture in which the Company had a controlling interest and, therefore, OdorStar was included in the Company’s condensed consolidated financial statements for the three and nine months ended September 30, 2014. On September 16, 2014, the Company acquired the joint venture partner’s interest in OdorStar, which became a wholly–owned subsidiary of the Company.

Use of estimates

Use of estimates

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates and assumptions.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 12, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	OCEAN BIO CHEM INC
Entity Central Index Key	0000350737
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		8,982,721

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Inventories (Tables)

9 Months Ended

Sep. 30, 2015

Inventories [Abstract]

Summary of composition of inventories

	September 30, 2015			December 31, 2014
Raw materials	$	3,888,744		$	3,365,093
Finished goods		5,799,544			5,021,536
Inventories, gross		9,688,288			8,386,629
Inventory reserves		(311,046	)		(277,296	)
Inventories, net	$	9,377,242		$	8,109,333

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statements of Operation [Abstract]
Gross sales	$ 11,339,560	$ 10,934,694	$ 26,812,739	$ 26,342,525
Less: discounts, returns, and allowances	502,741	502,249	1,234,786	1,176,586
Net sales	10,836,819	10,432,445	25,577,953	25,165,939
Cost of goods sold	7,274,360	6,839,296	16,814,747	16,054,342
Gross profit	3,562,459	3,593,149	8,763,206	9,111,597
Operating Expenses:
Advertising and promotion	763,936	642,547	2,311,441	1,942,710
Selling and administrative	2,351,427	1,615,369	5,829,801	4,899,713
Total operating expenses	3,115,363	2,257,916	8,141,242	6,842,423
Operating income	447,096	1,335,233	621,964	2,269,174
Other expense
Interest, net (expense)	$ (7,888)	$ (10,272)	(26,783)	$ (31,789)
Other (expense)			(12,522)
Income before income taxes	$ 439,208	$ 1,324,961	582,659	$ 2,237,385
Provision for income taxes	143,656	426,155	189,336	717,210
Net income	$ 295,552	898,806	$ 393,323	1,520,175
Loss attributable to noncontrolling interests		4,287		17,149
Net income attributable to Ocean Bio-Chem, Inc.	$ 295,552	$ 903,093	$ 393,323	$ 1,537,324
Earnings per common share - basic and diluted	$ 0.03	$ 0.10	$ 0.04	$ 0.17
Dividends declared per common share				$ 0.05

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Long-term Debt

9 Months Ended

Sep. 30, 2015

Revolving Line of Credit and Long-term Debt [Abstract]

LONG TERM DEBT

6. LONG TERM DEBT

On July 6, 2011, Regions Equipment Finance Corporation, a subsidiary of Regions Bank, provided to the Company a $2,430,000 term loan with a fixed interest rate of 3.54%, subject to an increase to 4.55% in the event the Company's debt service coverage ratio (net profit plus taxes, interest, depreciation, amortization and rent expense divided by debt service plus interest and lease/rent expense, calculated on a trailing four-quarter basis) falls to or below 2.0 to 1. Principal and interest on the term loan are payable in equal monthly installments through July 6, 2017, the date on which the term loan matures. The proceeds of the term loan were used to pay the Company’s remaining obligations under a lease agreement relating to industrial revenue bonds used to fund the expansion of Kinpak’s facilities and acquisition of related equipment. At September 30, 2015, approximately $798,000 was outstanding under the term loan. The term loan and the revolving line of credit under the Bank Loan Agreement are cross-defaulted (i.e., a default under one instrument is a default under the other).

At September 30, 2015 and December 31, 2014, the Company was obligated under various capital lease agreements covering equipment utilized in the Company’s operations.  The capital leases, aggregating $93,296 and $8,081 at September 30, 2015 and December 31, 2014, respectively, have varying maturities through 2020 and carry interest rates ranging from 2% to 14%.

The following table provides information regarding the Company’s long term debt at September 30, 2015 and December 31, 2014:

	Current Portion				Long Term Portion
	September 30,  2015		December 31, 2014		September 30,  2015		December 31, 2014
Term loan	$	428,795	$	417,577	$	369,091	$	692,104
Capitalized equipment leases		19,312		8,081		73,984		---
Total long term debt	$	448,107	$	425,658	$	443,075	$	692,104

Required principal payments under the Company’s long term obligations are set forth below:

12 month period ending September 30,
2016	$	448,107
2017		387,894
2018		19,150
2019		19,503
2020		16,528
Total	$	891,182

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Revolving Line of Credit

9 Months Ended

Sep. 30, 2015

Revolving Line of Credit and Long-term Debt [Abstract]

REVOLVING LINE OF CREDIT

5. REVOLVING LINE OF CREDIT

On August 4, 2014, the Company and Regions Bank entered into a Business Loan Agreement (the“Business Loan Agreement”), under which the Company was provided a renewed revolving line of credit. Under the renewed revolving line of credit, the Company may borrow up to the lesser of (i) $6 million or (ii) a borrowing base equal to 80% of eligible accounts receivable (as defined in the Business Loan Agreement) plus 50% of eligible inventory (as defined in the Business Loan Agreement). Interest on amounts borrowed under the revolving line of credit is payable monthly at the 30 day LIBOR rate plus 1.65% per annum, unless the Company’s debt service coverage ratio (generally, net operating profit plus depreciation, amortization and lease/rent expense divided by current maturities of long-term debt plus interest and lease/rent expense, calculated on a trailing twelve month basis) falls to or below 2.0 to 1, in which case interest is payable at the 30 day LIBOR rate plus 2.65% per annum.

Outstanding amounts under the revolving line of credit are payable on demand. If no demand is made, the Company may repay and reborrow funds from time to time until expiration of the revolving line of credit on July 6, 2016, at which time all outstanding principal and interest will be due and payable. The Company’s obligations under the revolving line of credit are secured by, among other things, the Company’s accounts receivable, inventory, contract rights and general intangibles and, as a result of cross-collateralization of the Company’s obligations under the term loan described in Note 6 and the revolving line of credit, real property and equipment at the Montgomery, Alabama facility of the Company’s subsidiary, Kinpak, Inc. ("Kinpak"). The Business Loan Agreement includes financial covenants requiring a minimum debt service coverage ratio of 1.75 to 1.00, calculated on a trailing twelve month basis, and a maximum debt to capitalization ratio (generally, funded debt divided by the sum of total net worth and funded debt) of 0.75 to 1, tested quarterly. At September 30, 2015 and December 31, 2014, the Company was in compliance with these covenants. The line of credit is subject to several events of default, including a decline in the majority shareholder’s ownership below 50% of all outstanding shares. At September 30, 2015 and December 31, 2014, the Company had no borrowings under the revolving line of credit.

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Inventories (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Summary of composition of inventories
Raw materials	$ 3,888,744	$ 3,365,093
Finished goods	5,799,544	5,021,536
Inventories, gross	9,688,288	8,386,629
Inventory reserves	(311,046)	(277,296)
Inventories, net	$ 9,377,242	$ 8,109,333

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Property, Plant and Equipment (Tables)

9 Months Ended

Sep. 30, 2015

Property, Plant and Equipment [Abstract]

Summary of property, plant and equipment

	Estimate Useful Life	September 30, 2015			December 31, 2014
Land		$	278,325		$	278,325
Building and improvements	30 years		4,650,349			4,648,089
Manufacturing and warehouse equipment	6-20 years		8,975,788			8,486,397
Office equipment and furniture	3-5 years		1,271,151			1,044,605
Construction in process			184,114			64,038
Leasehold improvements	10-15 years		544,145			436,659
Vehicles	3 years		42,283			131,828
Property, plant and equipment, gross			15,946,155			15,089,941
Less accumulated depreciation			(10,522,455	)		(9,917,059	)
Property, plant and equipment, net		$	5,423,700		$	5,172,882

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Earnings Per Share

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

EARNINGS PER SHARE

9. EARNINGS PER SHARE

Basic earnings per share is calculated based on net income attributable to Ocean Bio-Chem, Inc. and the weighted average number of shares outstanding during the reported period.  Diluted earnings per share reflect additional dilution from potential common stock issuable upon the exercise of outstanding stock options.  The following table sets forth the computation of basic and diluted earnings per common share, as well as a reconciliation of the weighted average number of common shares outstanding to the weighted average number of shares outstanding on a diluted basis.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Earnings per common share –Basic
Net income attributable to OBCI	$	295,552	$	903,093	$	393,323	$	1,537,324
Weighted average number of common shares outstanding		8,935,951		8,914,274		8,926,176		8,808,219
Earnings per common share – Basic	$	0.03	$	0.10	$	0.04	$	0.17
Earnings per common share – Diluted
Net income attributable to OBCI	$	295,552	$	903,093	$	393,323	$	1,537,324
Weighted average number of common shares outstanding		8,935,951		8,914,274		8,926,176		8,808,219
Dilutive effect of employee stock-based awards		77,889		86,900		90,411		114,372
Weighted average number of common shares outstanding - assuming dilution		9,013,840		9,001,174		9,016,587		8,922,591
Earnings per common share – Diluted	$	0.03	$	0.10	$	0.04	$	0.17

The Company had no stock options outstanding during each of the three and nine month periods ended September 30, 2015 and 2014, respectively, that were anti-dilutive and therefore not included in the diluted earnings per common share calculation.

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Related Party Transactions

9 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

7. RELATED PARTY TRANSACTIONS

During the three and nine months ended September 30, 2015 and 2014, the Company sold products to companies affiliated with its Chairman, President and Chief Executive Officer. The affiliated companies distribute the products outside of the United States and Canada. The Company also provides administrative services to these companies. Sales to the affiliated companies aggregated approximately $198,000 and $466,000 during the three months ended September 30, 2015 and 2014, respectively, and approximately $1,416,000 and $1,474,000 for the nine months ended September 30, 2015 and 2014, respectively.  Administrative fees aggregated approximately $112,000 and $143,000 during the three months ended September 30, 2015 and 2014, respectively, and approximately $381,000 and $382,000 for the nine months ended September 30, 2015 and 2014, respectively. The Company had accounts receivable from the affiliated companies in connection with the product sales and administrative services aggregating approximately $468,000 and $715,000 at September 30, 2015 and December 31, 2014, respectively. Transactions with the affiliated companies were made in the ordinary course of business.   While the terms of sale to the affiliated companies differed from the terms applicable to other customers, the affiliated companies bear their own warehousing, distribution, advertising, selling and marketing costs, as well as their own freight charges (the Company pays freight charges in connection with sales to its domestic customers on all but small orders).  Moreover, the Company does not pay sales commissions with respect to products sold to the affiliated companies.  As a result, the Company believes its profit margins with respect to sales to the affiliated companies are similar to the profit margins with respect to sales to its larger domestic customers.  Management believes that the sales transactions did not involve more than normal credit risk or present other unfavorable features.

A subsidiary of the Company currently uses the services of an entity that is owned by its Chairman, President and Chief Executive Officer to conduct product research and development and to assist in the production of television commercials.  Under this arrangement, the Company paid the entity $10,500 for each of the three month periods ended September 30, 2015 and 2014, and $31,500 for each of the nine month periods ended September 30, 2015 and 2014, for research and development services. In addition, during the year ended December 31, 2014, the Company made a $40,000 prepayment to this entity for the production of television commercials, which was included in prepaid expenses and other current assets in the Company’s balance sheet at December 31, 2014. During the three and nine months ended September 30, 2015, the entity provided the services covered by the prepayment, and the $40,000 is included in advertising and promotion expenses in the Company’s condensed consolidated statement of operations for those periods.

The Company leases office and warehouse facilities in Fort Lauderdale, Florida from an entity controlled by its Chairman, President and Chief Executive Officer.  The Company believes that the rental payments are below market rates.  See Note 8 for a description of the lease terms.

A director of the Company is Regional Executive Vice President of an entity from which the Company sources most of its insurance needs at an arm’s length competitive basis.  During the three months ended September 30, 2015 and 2014, the Company paid an aggregate of approximately $490,000 and $203,000, respectively, and during the nine months ended September 30, 2015 and 2014, the Company paid an aggregate of approximately $883,000 and $518,000, respectively in insurance premiums on policies obtained through the entity. The increase in 2015 is primarily attributable to the Company’s prepayment of the entire annual premium for its general liability policy rather than paying the premium in installments.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

8. COMMITMENTS AND CONTINGENCIES

The Company leases its executive offices and warehouse facilities in Fort Lauderdale, Florida from an entity controlled by its Chairman, President and Chief Executive Officer. The lease, as extended, expires on December 31, 2023. The lease requires an annual minimum base rent of $94,800 and provides for a maximum annual 2% increase in subsequent years, although the entity has not raised the minimum rent since the Company entered into a previous lease agreement in 1998. Additionally, the leasing entity is entitled to reimbursement of all taxes, assessments, and any other expenses that arise from ownership. Each of the parties to the lease has agreed to review the terms of the lease every three years at the request of the other party.  Rent expense under the lease was approximately $24,000 for each of the three months ended September 30, 2015 and 2014, respectively, and was approximately $73,000 for each of the nine month periods ended September 30, 2015 and 2014, respectively.

 
On August 13, 2014, Star-Brite Distributing, Inc. (“Star-Brite”), a wholly-owned subsidiary of the Company, filed a complaint for injunctive relief and damages against Gold Eagle Co. (“Gold Eagle”) in the United States District Court for the Southern District of Florida. The complaint alleges that Gold Eagle, in violation of Section 43(a) of the Lanham Act, the Florida Deceptive and Unfair Trade Practices Act, and the Florida False Advertising Statute, made false and/or misleading statements in a comparative marketing campaign against Star Tron® Enzyme Fuel Treatment, an enzyme based fuel additive for the marine market, used to treat ethanol gasoline, commonly referred to as E10 fuel. The complaint also constitutes a claim for common law unfair competition.

Specifically, the complaint alleges, among other things, that Gold Eagle commenced a marketing campaign for its STA-BIL® Marine ethanol fuel treatment and stabilizer (“STA-BIL Marine”) that included a product information tag attached to the neck of the STA-BIL Marine product bottle; that the product information tag contained a comparison advertisement purportedly establishing that, based on a fuel stability test and a corrosion control test, STA-BIL Marine outperformed Star Tron; and that the tests used were not appropriate for fuel additives treating E10 fuel.

The complaint seeks a preliminary and permanent injunction enjoining Gold Eagle from further publishing the alleged false and/or misleading statements and requiring Gold Eagle to issue corrective advertising sufficient to dispel the lingering harmful effects of specified product information tags; the entry of a judgment against Gold Eagle for actual damages and enhanced damages up to three times actual damages; disgorgement of profits to Star-Brite that Gold Eagle made as a result of the alleged unlawful actions; and costs and attorney’s fees.

Gold Eagle filed an answer to complaint and counterclaim, generally denying the allegations in Star-Brite’s complaint and asserting, among other things, that original equipment manufacturers recognize the fuel stability test it used as reliable for testing E10 fuel treatment additives and that the corrosion protection test it used is applicable to most boat engine fuel systems. Gold Eagle also asserted affirmative defenses to Star-Brite’s claims. Gold Eagle’s counterclaim alleges, among other things, that in various advertising and marketing materials for Star Tron, which Star-Brite markets for use in various types of engines, Star-Brite makes false and misleading claims that are causing harm to Gold Eagle, which markets competitive products under the STA-BIL brand, thereby violating the same statutory provisions as Gold Eagle is alleged to have violated in Star-Brite’s complaint, and also constituting common law unfair competition. Among other things, the counterclaim references several tests conducted by a laboratory hired by Gold Eagle and alleges that, given the results of these tests, Star-Brite’s claims that Star Tron improves the performance of E10 fuel, provides cleaning and restorative benefits, and provides benefits with respect to ethanol fuel problems are false and misleading.

Gold Eagle seeks, among other things, a permanent injunction enjoining Star-Brite from further using, displaying and distributing marketing materials that include the alleged false and misleading claims and requiring Star-Brite to issue corrective statements sufficient to dispel any residual harmful effects of the alleged false and misleading statements; and that the Court issue a judgment against Star-Brite for actual damages to be enhanced up to three times; disgorgement of profits to Gold Eagle that Star-Brite made as a result of its alleged unlawful actions; and attorney’s fees, costs and interest.

Star-Brite filed an answer to the counterclaim, generally denying the allegations, and asserting affirmative defenses, including that Star-Brite’s subject advertising is based on reliable tests, data and results, and that the counterclaim is barred by, among other things, the applicable statutes of limitations and the doctrine of laches.

Star-Brite and Gold Eagle each filed motions for summary judgment; the Court has not yet ruled on the motions.

The trial, which previously was scheduled to commence in November 2015, has been rescheduled. A jury trial is now scheduled to take place during the two week period commencing on February 8, 2016.

The Company believes that, based on information available, the outcome of this legal matter will not ultimately have a material adverse effect on the financial position or results of operation of the Company. However, in the event of unexpected further developments, it is possible that the ultimate resolution of this matter, or other matters that may arise, if unfavorable, may be materially adverse to the Company’s business, financial condition, results of operations or liquidity.

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Securities Authorized for Issuance under Equity Compensation Plans

9 Months Ended

Sep. 30, 2015

Securities Authorized for Issuance Under Equity Compensation Plans [Abstract]

SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

10.  SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

During the three months ended September 30, 2015, no stock options were exercised.

During the nine months ended September 30, 2015, stock options to purchase an aggregate of 10,000 shares were exercised.  Following the withholding of an aggregate of 2,156 shares in connection with the net exercise feature of the stock options, the Company delivered an aggregate of 7,844 shares to the option holder who exercised his options.  

Stock compensation expense during the three months ended September 30, 2015 and 2014 attributable to stock awards was approximately $162,000 and $0, respectively. Stock compensation expense during the nine months ended September 30, 2015 and 2014 attributable to stock awards was approximately $162,000 and $356,000, respectively. There was no stock compensation expense attributable to stock options during the three and nine months ended September 30, 2015 and 2014.

At September 30, 2015, there was no unrecognized compensation expense related to stock options.  

The following table provides information at September 30, 2015 regarding outstanding stock options under the Company’s stock option plans. As used in the table below, “2002 NQ” refers to the Company’s 2002 Non-Qualified Stock Option Plan and “2008 NQ” refers to the Company’s 2008 Non-Qualified Stock Option Plan.

Plan	Date Granted	Shares Underlying Options Outstanding		Shares Underlying Exercisable Options		Exercise Price		Expiration Date	Weighted Average Remaining Term
2002NQ	4/03/06		30,000		30,000	$	1.08	4/02/16		0.5
2002NQ	12/17/07		40,000		40,000	$	1.32	12/16/17		2.2
2008NQ	1/11/09		40,000		40,000	$	0.69	1/10/19		3.3
2008NQ	4/26/10		20,000		20,000	$	2.07	4/25/20		4.6
			130,000		130,000	$	1.19			2.5

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Securities Authorized for Issuance under Equity Compensation Plans (Details)	9 Months Ended
	Sep. 30, 2015 $ / shares shares
Summary of outstanding options, exercisable options, exercise price, expiration date, weighted average remaining life under company stock option plans
Shares Underlying Options Outstanding	130,000
Shares Underlying Exercisable Options	130,000
Exercise Price | $ / shares	$ 1.19
Weighted Average Remaining Term	2 years 6 months
2002NQ One [Member]
Summary of outstanding options, exercisable options, exercise price, expiration date, weighted average remaining life under company stock option plans
Date Granted	Apr. 03, 2006
Shares Underlying Options Outstanding	30,000
Shares Underlying Exercisable Options	30,000
Exercise Price | $ / shares	$ 1.08
Expiration Date	Feb. 04, 2016
Weighted Average Remaining Term	6 months
2002NQ Two [Member]
Summary of outstanding options, exercisable options, exercise price, expiration date, weighted average remaining life under company stock option plans
Date Granted	Dec. 17, 2007
Shares Underlying Options Outstanding	40,000
Shares Underlying Exercisable Options	40,000
Exercise Price | $ / shares	$ 1.32
Expiration Date	Dec. 16, 2017
Weighted Average Remaining Term	2 years 2 months 12 days
2008NQ One [Member]
Summary of outstanding options, exercisable options, exercise price, expiration date, weighted average remaining life under company stock option plans
Date Granted	Jan. 11, 2009
Shares Underlying Options Outstanding	40,000
Shares Underlying Exercisable Options	40,000
Exercise Price | $ / shares	$ 0.69
Expiration Date	Jan. 10, 2019
Weighted Average Remaining Term	3 years 3 months 18 days
2008NQ Two [Member]
Summary of outstanding options, exercisable options, exercise price, expiration date, weighted average remaining life under company stock option plans
Date Granted	Apr. 26, 2010
Shares Underlying Options Outstanding	20,000
Shares Underlying Exercisable Options	20,000
Exercise Price | $ / shares	$ 2.07
Expiration Date	Apr. 25, 2020
Weighted Average Remaining Term	4 years 7 months 6 days

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Summary of computation of basic and diluted earnings per common share

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Earnings per common share –Basic
Net income attributable to OBCI	$	295,552	$	903,093	$	393,323	$	1,537,324
Weighted average number of common shares outstanding		8,935,951		8,914,274		8,926,176		8,808,219
Earnings per common share – Basic	$	0.03	$	0.10	$	0.04	$	0.17
Earnings per common share – Diluted
Net income attributable to OBCI	$	295,552	$	903,093	$	393,323	$	1,537,324
Weighted average number of common shares outstanding		8,935,951		8,914,274		8,926,176		8,808,219
Dilutive effect of employee stock-based awards		77,889		86,900		90,411		114,372
Weighted average number of common shares outstanding - assuming dilution		9,013,840		9,001,174		9,016,587		8,922,591
Earnings per common share – Diluted	$	0.03	$	0.10	$	0.04	$	0.17

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Revolving Line of Credit (Details) $ in Millions	Aug. 04, 2014 USD ($)
Revolving line of credit (Textual)
Term of revolving line of credit	The Company may borrow up to the lesser of (i) $6 million or (ii) a borrowing base equal to 80% of eligible accounts receivable (as defined in the Business Loan Agreement) plus 50% of eligible inventory (as defined in the Business Loan Agreement).
Maximum borrowing capacity of the company	$ 6
Percentage of eligible accounts receivables as part of borrowing base	80.00%
Percentage of eligible inventory as part of the borrowing base	50.00%
Description of interest on the revolving line of credit	30 day LIBOR rate plus 1.65% per annum
Minimum debt service coverage ratio to qualify for LIBOR plus 1.65 %	2.0 to 1
Alternate interest rate condition if it doesn't satisfy the debt coverage ratio	30 day LIBOR rate plus 2.65% per annum
Due date of outstanding principal and interest borrowed under revolving line of credit	Jul. 06, 2016
Financial covenants under credit agreement	A minimum debt service coverage ratio of 1.75 to 1.00, calculated on a trailing twelve month basis, and a maximum debt to capitalization ratio (generally, funded debt divided by the sum of total net worth and funded debt) of 0.75 to 1, tested quarterly.
Debt service coverage ratio	1.75 to 1.00
Debt capitalization ratio	0.75 to 1
Ownership requirement of majority shareholder to prevent default	The line of credit is subject to several events of default, including a decline in the majority shareholder's ownership below 50% of all outstanding shares.

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Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statements Of Comprehensive Income [Abstract]
Net Income	$ 295,552	$ 898,806	$ 393,323	$ 1,520,175
Other comprehensive (loss):
Foreign currency translation adjustment	(76)	(10,292)	(5,844)	(6,499)
Comprehensive income	$ 295,476	888,514	$ 387,479	1,513,676
Comprehensive loss attributable to noncontrolling interests		4,287		17,149
Comprehensive income attributable to Ocean Bio-Chem, Inc.	$ 295,476	$ 892,801	$ 387,479	$ 1,530,825

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Property, Plant and Equipment

9 Months Ended

Sep. 30, 2015

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT & EQUIPMENT

4. PROPERTY, PLANT & EQUIPMENT

The Company’s property, plant and equipment consisted of the following at September 30, 2015 and December 31, 2014:

	Estimate Useful Life	September 30, 2015			December 31, 2014
Land		$	278,325		$	278,325
Building and improvements	30 years		4,650,349			4,648,089
Manufacturing and warehouse equipment	6-20 years		8,975,788			8,486,397
Office equipment and furniture	3-5 years		1,271,151			1,044,605
Construction in process			184,114			64,038
Leasehold improvements	10-15 years		544,145			436,659
Vehicles	3 years		42,283			131,828
Property, plant and equipment, gross			15,946,155			15,089,941
Less accumulated depreciation			(10,522,455	)		(9,917,059	)
Property, plant and equipment, net		$	5,423,700		$	5,172,882

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Long-term Debt (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Summary of long term debt
Total long term debt, Current Portion	$ 448,107	$ 425,658
Total long term debt, Long Term Portion	443,075	692,104
Term loan [Member]
Summary of long term debt
Total long term debt, Current Portion	428,795	417,577
Total long term debt, Long Term Portion	369,091	692,104
Capitalized equipment leases [Member]
Summary of long term debt
Total long term debt, Current Portion	19,312	$ 8,081
Total long term debt, Long Term Portion	$ 73,984

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Long-term Debt (Tables)

9 Months Ended

Sep. 30, 2015

Revolving Line of Credit and Long-term Debt [Abstract]

Summary of company's long term debt

	Current Portion				Long Term Portion
	September 30, 2015		December 31, 2014		September 30, 2015		December 31, 2014
Term loan	$	428,795	$	417,577	$	369,091	$	692,104
Capitalized equipment leases		19,312		8,081		73,984		---
Total long term debt	$	448,107	$	425,658	$	443,075	$	692,104

Summary of principal payments under Company's long term obligations

12 month period ending September 30,
2016	$	448,107
2017		387,894
2018		19,150
2019		19,503
2020		16,528
Total	$	891,182