Related Party Transactions

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

Related party transactions

Note 9 – Related party transactions:

During 2016, as in previous years, the Company sold products to companies affiliated with Peter G. Dornau, who is 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 $1,850,000 and $2,075,000 during the years ended December 31, 2016 and 2015, respectively, and administrative fees aggregated approximately $621,000 and $527,000 during the years ended December 31, 2016 and 2015, respectively.  The Company had accounts receivable from the affiliated companies in connection with the product sales and administrative services aggregating approximately $1,190,000 and $1,051,000 at December 31, 2016 and 2015, respectively.

An entity that is owned by Peter G. Dornau, the Company’s Chairman, President and Chief Executive Officer provides several services to the Company.  Under this arrangement, the Company paid the entity $42,000 for research and development services in each of the years ended December 31, 2016 and 2015. The research and development expenses are included in our statement of operations as a selling and administrative expense. In addition, during the year ended December 31, 2016, the Company paid this entity $25,000 for the production of television commercials and $9,000 for providing charter boat services for entertainment of Company customers. These amounts are included in our 2016 statement of operations as an advertising and promotion expense.

The Company leases office and warehouse facilities in Fort Lauderdale, Florida from an entity controlled by its Chairman, President and Chief Executive Officer. See Note 10 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 commercial insurance needs.  The Company paid an aggregate of approximately $697,000 and $925,000 to the entity during the years ended December 31, 2016 and 2015, respectively.