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Related Party Transactions
12 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Related Party Transactions

Note 10 – Related Party Transactions:

 

During 2018, as in previous years, the Company sold products to companies affiliated with Peter G. Dornau, who is the Company’s 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 and pays certain business related expenditures for the affiliated companies, for which the Company is reimbursed. Sales to the affiliated companies aggregated approximately $2,190,000 and $2,070,000 during the years ended December 31, 2018 and 2017, respectively; fees for administrative services aggregated approximately $760,000 and $764,000, respectively; and amounts billed to the affiliated companies to reimburse the Company for business related expenditures made on behalf of the affiliated companies aggregated approximately $151,000 and $120,000 during the years ended December 31, 2018 and 2017, respectively.  The Company had accounts receivable from the affiliated companies in connection with the product sales and administrative services aggregating approximately $1,046,000 and $1,584,000 at December 31, 2018 and 2017, respectively.

 

An entity that is owned by the Company’s Chairman, President and Chief Executive Officer provides several services to the Company.  Under this arrangement, the Company paid the entity an aggregate of $77,000 ($42,000 for research and development, $14,000 for charter boat services that the Company used to provide sales incentives for external sales representatives and $21,000 for the production of television commercials) and $106,250 ($42,000 for research and development and $64,250 for charter boat services that the Company used to provide sales incentives for external sales representatives) for the years ended December 31, 2018 and 2017, respectively. Expenditures for the research and development services are included in the consolidated statements of operations within selling and administrative expenses. Expenditures for the charter boat services and television production services are included in the consolidated statements of operations within advertising and promotion expenses.

 

The Company leases office and warehouse facilities in Fort Lauderdale, Florida from an entity controlled by its Chairman, President and Chief Executive Officer. See Note 11 for a description of the lease terms.

 

A director of the Company is Regional Executive Vice President of an insurance broker through which the Company sources most of its insurance needs.  During the years ended December 31, 2018 and 2017, the Company paid an aggregate of approximately $1,261,000 and $1,235,000, respectively, in insurance premiums on policies obtained through the insurance broker.