Note 13 - Employee Benefit Plans

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Pension and Other Postretirement Benefits Disclosure [Text Block]

13. Employee Benefit Plans

The Company has a

401

(k) defined contribution profit sharing plan. Under the plan,

U.S. employees

may

contribute up to

12%

of their gross earnings subject to certain limitations. The Company contributes an additional

0.5%

of gross earnings for those employees contributing

1%

of their gross earnings and contributes

1%

of gross earnings for those employees contributing

2%

to

12%

of their gross earnings. The Company contributions become fully vested after

five

years. The amounts contributed to the plan by the Company were

$36,000

and

$39,000

for the years ended

December 31, 2017

and

2016,

respectively.

The Company does

not

have any other significant pension, profit sharing or similar plans established for its employees

. Pursuant to his employment agreement with the Company, Lloyd Hoffman, our President and Chief Executive Officer, is contractually entitled to receive from the Company at the conclusion of each fiscal year a cash bonus in an amount equal to

5%

pre-tax profits of the Company, excluding bonus expense as presented in the Company’s audited consolidated statements of income for such fiscal year, subject to a maximum payment of

$1,000,000.

The Company’s former President and Chairman, Al Millar, who passed away in

December 2017,

was entitled to a similar

5%

of pre-tax profits bonus in accordance with his employment agreement. For

2017,

Mr. Hoffman and Mr. Millar’s beneficiary voluntarily determined to accept reduced bonuses for

2017.

The Company accrued

$118,000

for these bonuses for the year ended

December 31, 2017,

compared to

$232,000

for

2016.