Related Party Transactions

12 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions

RELATED PARTY TRANSACTIONS

Debt Guarantees – The Company’s Chairman of the Board has guaranteed a mortgage note of the Company.  The balance of this note was $1,545,000 at December 31, 2012.

Customer Arrangement – In July 2004, the Company entered into a ten-year exclusive license agreement with CCI, which replaced an expiring five-year exclusive license agreement.  In connection therewith, the Company received a license fee of $65,000, which was recorded as deferred revenue and is being recognized as sales over the term of the agreement.  Deferred revenue associated with CCI’s account, which included (i) deposits received against purchase orders issued to the Company by CCI, (ii) payments received for products held by the Company for shipment to CCI at a later date, and (ii) the unrecognized portion of the license fee, totaled $3,212,000 and $2,976,000 at December 31, 2012 and 2011, respectively. The Company recorded sales to CCI in the amount of $11,010,000, $12,785,000 and $15,375,000 for the years ended December 31, 2012, 2011 and 2010, respectively.  Pricing for individual products sold to CCI is reviewed periodically by the Company. Implementation of price changes requires 60 days' notice to CCI. Pursuant to the license agreement between CCI and the Company, CCI also paid royalties to the Company for the years ended December 31, 2012, 2011 and 2010 in the amount of $2,079,000, $2,186,000 and $2,409,000, respectively, which are included in sales.  The president of CCI beneficially owned approximately 18% of the Company’s outstanding common stock at December 31, 2012 and was a member of the Company’s Board of Directors until June 2004.