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, 2007

                                       or

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

                           Commission File No. 0-11102

                              OCEAN BIO-CHEM, INC.
             (Exact name of Registrant as specified in its charter)

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

             4041 SW 47 Avenue, Fort Lauderdale, Florida 33314-4023

                                  954-587-6280

              (Address and telephone number, including area code of
                    Registrant's Principal Executive Offices)

           Securities registered pursuant to Section 12(b) of the Act:

                     Common stock, par value $.01 per share

           Securities registered pursuant to Section 12(g) of the Act:

                                      None

     Indicate  by check mark  whether the  Registrant  (1) has filed all reports
required to be filed by Sections 12, 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  (1) is a Shell  Company (As
Defined In rule 12b-2 of the Exchange Act).

                                Yes [ ]           No [x ]

     Indicate by check mark whether the Registrant is a large accelerated filer,
an accelerated filer (as defined by Rule 12b-2 of the Securities Exchange Act of
1934), or a non-accelerated filer

Large Accelerated Filer [ ]   Accelerated Filer [ ]  Non-Accelerated Filer [ x ]

     Indicate  the number of shares  outstanding  of each class of the  Issuer's
common stock, as of the latest practicable date:

           $.01 par value common stock, 10,000,000 shares authorized,
           7,723,316 shares issued and outstanding at November 1, 2007
<PAGE>



                      OCEAN BIO-CHEM, INC. AND SUBSIDIARIES

                                      INDEX


     Description                                                          Page

     Part I - Financial Information:

     Item 1. -  Financial Statements:

     Consolidated balance sheets as of September 30, 2007
       and December 31, 2006                                                3

     Consolidated statements of operations for the three
       months and nine months ended September 30, 2007 and 2006             4

     Consolidated statements of changes in shareholders' equity
       for the nine  months ended September 30, 2007 and 2006               5

     Consolidated statements of cash flows for the nine months
       ended September 30, 2007 and 2006                                    6

     Notes to consolidated financial statements                            7-12

     Item 2. - Management's Discussion and Analysis of Financial
       Condition and Results of Operations                                12-16

     Item 3 - Quantitative and Qualitative Disclosures about
        Market Risk                                                       16-17

     Item 4 - Controls and Procedure                                        17

     Part II - Other Information                                            18

     Item 1. - Legal Proceeding                                             18

     Item 2. - Unregistered Sales of Equity Securities and Use
        of Proceeds                                                         18

     Item 3. - Defaults upon Senior Securities                              18

     Item 4. - Submission of Matters to a Vote by Security Holders          18

     Item 5. - Other Matters                                                18

     Item 6. - Exhibits                                                     18

     Signatures                                                             18

     Certifications                                                       19-21


<PAGE>
                         PART I - Financial Information

Item 1.  Financial Statements

                      OCEAN BIO-CHEM, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                                    September         December
                                                                                     30, 2007         31, 2006
                                                                                   ------------     -------------
                                     ASSETS                                        (UNAUDITED)
<S>                                                                                <C>              <C>
Current Assets:
Cash                                                                               $   754,251      $     71,080
Trade accounts receivable net of allowance for doubtful
   accounts of approximately $88,337 and $192,700 at September 30,
   2007 and December 31, 2006 respectively                                           4,282,133         2,026,870
Inventories (net)                                                                    6,254,877         5,647,933
Prepaid expenses and other current assets                                              391,675           218,151
                                                                                   ------------     -------------

     Total current assets                                                           11,682,936         7,964,034
                                                                                   ------------     -------------

Property, plant and equipment, net                                                   6,389,393         6,800,176

Other assets:
Trademarks, trade names and patents, net
   of accumulated amortization                                                         331,695           330,439
Due from affiliated companies, net                                                      48,712           231,200
Deposits and other assets                                                              158,962           203,510
                                                                                   ------------     -------------
     Total Other Assets                                                                539,369           765,149

   Total Assets                                                                    $18,611,698      $ 15,529,359
                                                                                   ============     =============

                                LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
   Accounts payable - trade                                                        $ 1,266,181      $    943,907
   Note payable - bank                                                               3,750,000         2,150,000
   Current portion of long term debt                                                   591,926           586,060
   Accrued expenses payable                                                            953,462           363,669
                                                                                   ------------     -------------

     Total Current Liabilities                                                       6,561,569         4,043,636
                                                                                   ------------     -------------

Long term debt, less current portion                                                 4,140,819         4,550,190
                                                                                   ------------     -------------

Shareholders' equity:
   Common stock - $.01 par value, 10,000,000 shares authorized;
       7,723,316 and 7,621,316 shares issued and outstanding at
       September 30, 2007 and December 31, 2006, respectively                           77,233            76,213
   Additional paid in capital                                                        7,434,506         7,257,447
   Foreign currency translation adjustment                                            (276,550)         (176,094)
   Retained earnings (deficit)                                                         682,316          (213,838)
                                                                                   ------------     -------------

                                                                                     7,917,505         6,943,728
Less cost of common stock in treasury, 7,519 shares
   at September 30, 2007 and December 31, 2006                                     (     8,195)     (      8,195)
                                                                                   ------------     -------------
                                                                                     7,909,310         6,935,533
  Total Shareholders' equity
                                                                                   ------------     -------------
Total Liabilities and Shareholders' equity                                         $18,611,698      $ 15,529,359
                                                                                   ============    ==============
</TABLE>

                                       3
<PAGE>

                      OCEAN BIO-CHEM, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                           FOR THE THREE MONTHS                   FOR THE NINE MONTHS
                                                            ENDED SEPTEMBER 30,                   ENDED SEPTEMBER 30,
                                                           --------------------                   -------------------
                                                        2007               2006               2007                2006
                                                    ------------       ------------       -------------       -------------
<S>                                                 <C>                <C>                <C>                 <C>
Gross Sales                                         $ 7,517,154        $ 8,491,859        $ 17,905,549        $ 17,939,676

Allowances                                              566,210            766,770           1,498,194           1,473,486
                                                    ------------       ------------       -------------       -------------

Net sales                                             6,950,944          7,725,089          16,407,355          16,466,190

Cost of goods sold                                    4,722,777          5,606,551          10,845,546          11,821,106
                                                    ------------       ------------       -------------       -------------

Gross profit                                          2,228,167          2,118,538           5,561,809           4,645,084

Expenses:
   Advertising and promotion                            571,524            428,254           1,245,556             900,611
   Selling and administrative                           965,655            889,005           3,190,707           2,629,776
   Interest expense                                      44,891            141,914             247,989             477,015
                                                    ------------       ------------       -------------       -------------

     Total expenses                                   1,582,070          1,459,173           4,684,252           4,007,402
                                                    ------------       ------------       -------------       -------------

Operating Income                                        646,097            659,365             877,557             637,682

Other income                                             18,597             11,316              18,597              12,603
                                                    ------------       ------------       -------------       -------------

Income before income taxes                              664,694            670,681             896,154             650,285

Income taxes (benefit)                                      -                  -                   -                   -
                                                    ------------       ------------       -------------     --------------

Net Income                                              664,694            670,681             896,154             650,285

Other comprehensive (loss) income, net of tax
   Foreign currency translation adjustment          (    66,611)             1,042        (    100,456)             14,774
                                                    ------------       ------------       -------------     --------------

Comprehensive income                                $   598,083        $   671,723        $    795,698        $    665,059
                                                    ============       ============       =============       =============

Income per common share - basic                      $     0.09        $      0.11        $       0.12        $       0.11
                                                    ------------       ------------       -------------       -------------

Income per common share - diluted                    $     0.08        $      0.11        $       0.10        $       0.10
                                                    ------------       ------------       -------------       -------------

Weighted average shares - basic                       7,723,316          5,978,316           7,677,983           5,935,316
                                                    ------------       ------------       -------------       -------------
Weighted average shares - diluted                     8,759,009          6,369,933           8,886,256           6,106,214
                                                    ------------       ------------       -------------       -------------
</TABLE>

     The Company has adopted  Statement of Financial  Accout  requires  items of
comprehensive income to be stated as part of the basic financial statements. The
only  item of  comprehensive  income  that  the  Registrant  has is its  foreign
currency translation adjustment.

                                       4
<PAGE>

                      OCEAN BIO-CHEM, INC. AND SUBSIDIARIES
           CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
                            FOR THE NINE MONTHS ENDED
                           SEPTEMBER 30, 2007 AND 2006
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                      Foreign     Retained
                                   Common stock       Additional     currency     earnings     Treasury
                               Shares      Amount  paid-in capital  adjustment    (deficit)      stock         Total
                             ---------    -------   --------------- ----------    ---------      -------     ----------
<S>                          <C>          <C>         <C>           <C>           <C>            <C>         <C>
January 1,
   2007                      7,621,316    $76,213     $7,257,447    ( $176,094)   ($ 213,838)    ($8,195)    $6,935,533


Net Income                                                                           896,154                    896,154


Common stock, issuances        102,000      1,020        142,902                                                143,922


Stock based compensation                                  34,157                                                 34,157

Foreign currency
translation adjustment                                              (  100,456)                              (  100,456)
                             ---------    -------     ----------    -----------   -----------    --------    -----------


September 30, 2007           7,723,316    $77,233     $7,434,506    $( 276,550)   $  682,316     $(8,195)    $7,909,310
                             =========    =======     ==========    ===========   ==========     ========    ===========

January 1, 2006
 as restated                 5,849,316     58,493      5,397,845    (  179,653)   (  605,895)    ( 8,195)     4,662,595


Net Income                                                                           650,285                    650,285

Debt forgiveness -
affiliate                                                295,752                                                295,752


Common stock, issuances        129,000      1,290        118,132                                                119,422


Stock based compensation                                  58,468                                                 58,468

Foreign currency
translation adjustment                                                  14,774                                   14,774
                             ---------    -------     ----------    -----------   -----------    --------    -----------


September 30, 2006           5,978,316    $59,783     $5,870,197    $( 164,879)   $   44,390     $(8,195)    $5,801,296
                             =========    =======     ==========    ===========   ==========     ========    ===========
</TABLE>

                                       5
<PAGE>
                      OCEAN BIO-CHEM, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                       2007             2006
                                                                                   ------------     -------------
Cash flows from operating activities:

<S>                                                                                <C>              <C>
Net income                                                                         $   896,154      $    650,285
   Adjustment to reconcile net income
   to net cash provided used by operations:

      Depreciation and amortization                                                    588,965           582,971
      Amortization of imputed interest                                                       -            46,636
      Compensation cost associated with stock
      options and stock awards                                                         171,025           177,890
      Accounts Receivable - allowance for doubtful accounts                            180,499           190,876

   Changes in assets and liabilities:

      Accounts Receivable                                                           (2,435,763)     (  3,732,127)
      Inventory                                                                       (606,944)          393,257
      Prepaid Expenses                                                                (130,232)          298,704
      Accounts Payable and accrued taxes and other                                     947,415      (    216,005)
                                                                                   ------------     -------------

Net cash used in operating activities                                                 (388,881)     (  1,607,513)
                                                                                   ------------     -------------

Cash flows from investing activities:

   Purchases of property, plant and equipment                                         (181,870)     (    252,065)
                                                                                   ------------     -------------

Net cash used in investing activities                                                 (181,870)     (    252,065)
                                                                                   ------------     -------------

Cash flows from financing activities:

   Borrowings line of credit                                                         4,550,000         2,625,000
   Principal payments - line of credit                                              (2,950,000)     (  1,100,000)
   Amounts due from affiliates                                                         189,814           366,605
   Principal payments - Long-term debt                                                (435,436)     (    160,243)
                                                                                   ------------     -------------

Net cash provided by financing activities                                            1,354,378         1,731,362
                                                                                   ------------     -------------
Cash prior to effect of exchange rate on cash                                          783,627          (100,456)
   Effect of exchange rate on cash                                                    (100,456)           14,774
                                                                                   ------------     -------------
Net cash effected by exchange rate                                                     683,171      (    113,442)

Cash at beginning of period                                                             71,080           204,543
                                                                                   ------------     -------------
Cash at end of period                                                              $   754,251      $     91,101
                                                                                   ============     =============


Supplemental disclosure of cash transactions:
   Cash paid for interest during period                                            $   270,154      $     539,874
                                                                                    -----------     -------------
   Cash paid for income taxes during period                                        $       -        $        -
                                                                                   ------------     -------------

Supplemental disclosure of non-cash transactions:

   Forgiveness of indebtedness to an affiliate                                     $       -         $    295,752
                                                                                   ------------     -------------

</TABLE>

The company had no cash equivalents at September 30, 2007 and 2006

                                       6
<PAGE>


                      OCEAN BIO-CHEM, INC. AND SUBSIDIARIES
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

     1. SUMMARY OF ACCOUNTING POLICIES

     Interim Reporting

     The accompanying  unaudited  consolidated  financial statements include the
accounts of Ocean  Bio-Chem,  Inc. and its  subsidiaries  ("the  Company").  All
significant  inter-company  transactions and balances have been eliminated.  The
unaudited  consolidated  financial  statements  have been prepared in conformity
with Rule 10-01 of Regulation S-X of the Securities and Exchange Commission and,
therefore,  do not include  information  or footnotes  necessary  for a complete
presentation  of financial  position,  results of  operations  and cash flows in
conformity with accounting principles generally accepted in the United States of
America.  However,  all adjustments  (consisting of normal  recurring  accruals)
that, in the opinion of management, are necessary for a fair presentation of the
financial statements have been included.  Operating results for the period ended
September  30, 2007 are not  necessarily  indicative  of the results that may be
expected  for  the  future  fiscal  quarters  in 2007 or the  full  year  ending
December 31,  2007  due to  seasonal  fluctuations  in the  Company's  business,
changes in economic  conditions  and other  factors.  For  further  information,
please  refer  to  the  Consolidated  Financial  Statements  and  Notes  thereto
contained  in the  Company's  Annual  Report  on Form  10-K for the  year  ended
December 31, 2006.

     Use of estimates

     The  preparation  of financial  statements  in  conformity  with  generally
accepted accounting principles requires management to make estimates that affect
the reported  amount of assets,  liabilities,  revenues and expenses  during the
reporting period. Actual results could differ from those estimates.

     Revenue recognition

     Revenue from product sales is  recognized  when  persuasive  evidence of an
arrangement exists,  delivery to customer has occurred, the sales price is fixed
and  determinable,  and  collectibility  of the related  receivable is probable.
Reported  net  sales  are net of  customer  prompt  pay  discounts,  contractual
allowances,  authorized  customer returns,  consumer rebates and other allowable
deductions from our invoices.  Cooperative advertising deductions,  based on our
customers'  promotion of our products is recognized as an  advertising  cost and
charged against operations as an operating expense.

     Cost of goods sold/Selling, general and administrative expenses

     Cost of  goods  sold  includes  all of the  direct  and  indirect  costs of
manufacturing our products.  Included therein specifically are warehousing costs
of raw materials,  in-bound freight,  out-bound freight (in those instances that
we absorb such costs), purchasing,  receiving, and inspection costs. Other costs
of the distribution network are reflected in Selling, General and Administrative
expenses.  Also included  therein are  managerial and clerical wages and related
expenses,  office and administrative occupancy costs, taxes,  professional fees,
insurance coverage's and other related expenses.

     Inventories

     Inventories are comprised of finished goods and stated at the lower of cost
or market.  Cost is determined by the first-in first-out method. The composition
of inventories at September 30, 2007 and December 31, 2006 are as follows:


                                   2007                      2006
                            --------------            --------------

Raw Materials               $    2,535,460            $    3,423,030
Finished Goods                   3,784,417                 2,244,903
Less Inventory Reserve             (65,000)                  (20,000)
                            ---------------           ---------------
Inventory - Net             $    6,254,877            $    5,647,933
                            ===============           ===============

                                       7
<PAGE>
     Income Taxes

     Effective  January  1,  2007,  the  Company  adopted  Financial  Accounting
Standards Board ("FASB) Interpretation No. (FIN) 48, "Accounting for Uncertainty
in Income Taxes" and FSP FIN 48-1,  which amended certain  provisions of FIN 48.
FFN 48 clarifies the  accounting for  uncertainty in income taxes  recognized in
financial  statements in accordance  with SFAS No. 109,  "Accounting  for Income
Taxes." FIN 48 prescribes a recognition  threshold and measurement attribute for
the financial  statement  recognition and measurement of a tax position taken or
expected to be taken in a tax return. FIN 48 requires that the Company determine
whether the benefits of the  Company's tax positions are more likely than not of
being  sustained  upon audit based on the technical  merits of the tax position.
The   provisions   of  FIN  48  also   provide   guidance   on   de-recognition,
classification,  interest  and  penalties,  accounting  in interim  periods  and
disclosure. The Company did not have any unrecognized tax benefits and there was
no effect on the financial  condition or results of operations for the three and
nine months ended September  30,2007 as a result of implementing  FIN 48, or FIN
48-1.

     Stock Based Compensation

     At  September30,  2007,  the  Company had  options  outstanding  under four
stock-based  compensation  plans, which are described below. On January 1, 2006,
The  Company  adopted  Statement  of  Financial  Accounting  Standards  No. 123R
(revised  2004),  "Share Based Payment"  ("SFAS No.  123R"),  which requires the
measurement  and recognition of  compensation  cost for all share-based  payment
awards made to employees and directors based on estimated fair values.

     The Company has elected to use the modified  prospective  transition method
for  adopting  SFAS No. 123R,  which  requires the  recognition  of  stock-based
compensation  cost on a prospective  basis;  therefore,  prior period  financial
statements have not been restated. Under this method, the provisions of SFAS No.
123R are applied to all awards granted after the adoption date and to awards not
yet vested with unrecognized expense at the adoption date based on the estimated
fair value at grant date as determined under the original provisions of SFAS No.
123. The impact of forfeitures that may occur prior to vesting is also estimated
and considered in the amount  recognized.

     Under various plans, The Company may grant incentive or non-qualified stock
options to employees and directors. The terms of stock options granted under the
plans  are  determined  by the  Directors  at the time of grant,  including  the
exercise price, term and any restrictions on the  exercisability of such option.
The  exercise  price of all options  granted  under the plans  equals the market
price at the date of grant,  except  for  options  granted  to Mr.  Dornau,  our
President  and CEO,  which are  generally  granted at a premium of 10% above the
market price of the underlying  common stock, and no option is exercisable after
the  expiration  of five or ten years from the date of grant,  depending  on the
Plan  under  which it was  awarded.  The  stock  options  outstanding  under our
qualified or incentive plans were generally  granted for terms of five years and
vest on a straight line basis over such period.  The stock  options  outstanding
under our 2002 non qualified plan were generally  granted for terms of ten years
and vested immediately.  No employee  compensation expense was recognized in the
financial  statements  upon either the grant or exercise of these stock options.
Prior to January 1, 2006 we  followed  the  provisions  of APB  Opinion  No. 25,
Accounting for Stock Issued to Employees, to record compensation costs.

     As of September 30, 2007, the number of options  outstanding and the number
of shares  available for grant under each Stock Option Plan and non-plan options
is presented below:
                                Plan Options           Options available
                                 Outstanding              for grant
                                ------------            -----------------
1994 Plan                          159,500  shares          None
2002 Plan                          400,000  shares          None
2007 Plan                          164,500  shares          235,500 shares
2002 Non-qualified plan            155,000  shares           45,000 shares
Non-plan options                   231,000  shares          N/A
                                 ----------
Total                            1,110,000  shares
                                 =========

     Information with respect to our Stock Option Plan activity is as follows:
                                            Weighted average
                                Shares       exercise price
                                ------      ----------------
Options outstanding at
  January 1, 2007              945,600         $  1.21
Options granted                164,500            1.68
Options exercised                  -                -
Options forfeited                  -                -
                             ---------         -------
Options outstansing at
  September 30, 2007         1,110,000         $  1.28
                             =========         =======

     For the nine-month period ended September 30, 2007, The Company  recognized
$34,157 in  stock-based  compensation  costs,  which is  reflected  in operating
expenses.  No tax  benefits  were  attributed  to the  stock-based  compensation
                                       8
<PAGE>
expense because a valuation  allowance was maintained for  substantially all net
deferred  tax assets.  The Company  elected to adopt the  alternative  method of
calculating  the  historical  pool of windfall tax benefits as permitted by FASB
Staff Position (FSP) No.SFAS 123R-c,  "Transition Election Related to Accounting
for the Tax Effects of Share-Based  Payment Awards." This is a simplified method
to determine the pool of windfall tax benefits that is used in  determining  the
tax effects of stock  compensation  in the results of  operations  and cash flow
reporting for awards that were  outstanding as of the adoption of SFAS No. 123R.
As of September 30, 2007, The Company had $168,425 of unrecognized  compensation
costs  related  to  non-vested  stock  option  awards  that  is  expected  to be
recognized over a weighted average period of 2.9 years.

     The following information applies to options outstanding and exercisable as
of September 30, 2007:
<TABLE>
<CAPTION>
OPTIONS:                    OPTIONS           EXERCISABLE             EXERCISE             WEIGHTED
                           OUTSTANDING          09/30/07               PRICE                YEARS
-----------------           ----------         ----------             ---------          -----------
<S>                          <C>                 <C>                   <C>                   <C>
NON PLAN OPTIONS             231,000             231,000               $ 0.760                1.5
1994 PLAN                    159,500              63,800                 1.050                2.1
2002 PLAN                    125,000             100,000                 1.260                  -
2002 PLAN                    140,000              84,000                 1.680                1.4
2002 PLAN                    135,000                 -                   0.930                4.1
2007 PLAN                    164,500                 -                   1.660                4.6
2002 PLAN (NQ)                35,000              35,000                 1.260                5.1
2002 PLAN (NQ)                40,000              40,000                 1.030                5.7
2002 PLAN (NQ)                40,000              40,000                 1.460                6.7
2002 PLAN (NQ)                40,000              40,000                 1.090                8.5
                          -----------            --------                                 -------
                           1,110,000             633,800                                      3.2
                          ===========            =======                                  =======

</TABLE>
     The Company utilizes a Black-Scholes  option-pricing model to determine the
fair value of stock  options on the date of grant.  This model  derives the fair
value of stock options based on certain  assumptions  related to expected  stock
price  volatility,  expected option life,  risk-free  interest rate and dividend
yield. The Company's expected  volatility is based on the historical  volatility
of The Company's stock price over the most recent period  commensurate  with the
expected term of the stock option award.  The estimated  expected option life is
based primarily on historical  employee  exercise patterns and considers whether
and the extent to which the options are  in-the-money.  The  risk-free  interest
rate assumption is based upon the U.S.  Treasury yield curve appropriate for the
term of The  Company's  stock  options  awards and the selected  dividend  yield
assumption  was  determined  in view of The Company's  historical  and estimated
dividend  payout.  The  Company  has no  reason  to  believe  that the  expected
volatility  of its stock  price or its  option  exercise  patterns  will  differ
significantly from historical volatility or option exercises.

     Restricted Stock Awards as Compensation

     During  May 2007 we issued  102,000  shares of our common  stock  bearing a
restricted  legend to certain officers and other key employees as a component of
their compensation.  At the date of award the shares had a market value of $1.68
each.

     Shares were awarded as follows:

     Officers:
     Peter G. Dornau, President and CEO                       15,000  shares
     Jeffrey Barocas, Vice President and CFO                   5,000  shares
     William Dudman, Vice President, Operations               15,000  shares
     Gregor M. Dornau, Vice President, Marketing
       and Sales                                              15,000  shares
                                                            -------
                                                              50,000  shares
     Other employees, as a group (16 individuals)             52,000  shares
                                                            -------
     Total restricted shares awarded                         102,000  shares
                                                            =======

     These  restricted  stock awards were  approved by our  shareholders  at our
Annual  Meeting of  Shareholders  held on August 3, 2007.  The Company  recorded
approximately  $144,000 of  compensation  expense in the second quarter 2007. In
the second  quarter  ended June 30, 2006 the Company  issued  129,000  shares of
restricted stock at market value of $1.08 per share, bearing a restricted legend
to  certain   officers  and  other  key   employees  as  a  component  of  their
compensation.  105,000  shares were issued to  officers  and 24,000  shares were
issued to other employees.  Approximately  $118,400 of compensation  expense was
recorded in the comparable period of 2006.

                                       9
<PAGE>
     2. PROPERTY, PLANT & EQUIPMENT

     The Company's  property,  plant and equipment consisted of the following at
September 30, 2007 and December 31, 2006:
<TABLE>
<CAPTION>

                                                                     Estimated
                                                                  Useful Life-Years           2007             2006
                                                                  -----------------      ------------     ------------
<S>                                                                                      <C>              <C>
Land                                                                   N/A               $    278,325     $    278,325
Building                                                                30                  4,389,154        4,389,154
Manufacturing and warehouse
  equipment                                                           6-20                  6,611,339        6,521,010
Office equipment and furniture                                         3-5                    743,172          678,537
Construction in process                                                N/A                     40,291           47,798
Leasehold improvements                                               10-15                    178,402          145,505
                                                                                        -------------     ------------
                                                                                           12,240,683       12,060,329
Less Accumulated depreciation                                                               5,851,290        5,260,153
                                                                                        -------------     ------------
Total property, plant and equipment - net                                               $   6,389,393     $  6,800,176
                                                                                        =============     ============
</TABLE>

     3. LONG-TERM DEBT

     Long-term debt at September 30, 2007 consisted of the following:

     The  Company is  obligated  pursuant  to capital  leases  financed  through
Industrial  Development  Bonds.  Such  obligations were incurred during 1997 and
2002 in  connection  with  building and  equipment  expansion  at the  Company's
Alabama manufacturing and distribution facility.  Both bear interest at tax-free
rates that adjust weekly. At September 30, 2007,  $1,530,000 and $2,870,000 were
outstanding attributable to the 1997 and 2002 series,  respectively.  During the
nine months ended  September  30, 2007  interest  rates ranged  between 3.3% and
4.1%.  Principal and accrued interest  retiring the underlying bonds are payable
quarterly  through  March,  2012 and  July,  2017 for the 1997 and 2002  series,
respectively.  Repayment of the bonds is guaranteed by a Letter of Credit issued
by the Company's primary commercial bank. Security for the Letter of Credit is a
priority first mortgage on the Kinpak facility and manufacturing equipment.

     The  Company,   through  its  subsidiaries,   Kinpak  Inc.,  and  Starbrite
Distributing,  Inc. are obligated  pursuant to various capital lease  agreements
covering   manufacturing   and  office  equipment   utilized  in  the  Company's
facilities. Such obligations, aggregating approximately $74,400 at September 30,
2007, have varying maturities through 2010 and carry interest rates ranging from
7% to 12%.

     During April 2005 we entered into a financing  obligation with Regions Bank
whereby they advanced the Company $500,000 to finance equipment  acquisitions at
our Kinpak facility. Such obligation is due in monthly installments of principal
aggregating   approximately  $8,300  plus  interest  at  prevailing  rates  (the
outstanding  balance and interest rate on this  obligation at September 30, 2007
were approximately  $258,350 and 7.8% per annum,  respectively) through maturity
on April 15, 2010.

     During the quarter  ended  December 31,  2005,  we finalized a $1.5 million
revolving  credit  facility  with our  president  and CEO,  Peter G. Dornau.  At
September 30, 2006 the gross obligation  aggregating  $1,150,000 was outstanding
pursuant to this  obligation,  which was due in October  2010 along with accrued
interest  at the rate of prime plus 2%. In  connection  with his  offering  this
financing  arrangement  to the  Company,  we issued  warrants  to Mr.  Dornau to
purchase a maximum of 1 million  shares of our common  stock.  Such warrants are
exercisable  500,000  shares  at $1.13  and  500,000  shares  at  $.863  with an
expiration  date of March 25, 2009. The exercise  prices were  determined by the
closing  bid of our  stock  plus ten (10)  percent  on each  date of  grant.  In
addition, he has the right, at his sole discretion,  to convert such debt into a
maximum  of 1.5  million  shares  of our  common  stock at the rate of $1.00 per
share.  The gross  obligation  was reduced by an allocation of imputed  interest
associated with the warrants issued to Mr. Dornau.

     The initial amount of such  allocation was $310,898 which will be amortized
and charged  against  operations as additional  interest  expense over the sixty
(60) month term of this  financing.  During the nine months ended  September 30,
2006,  amortization of $46,600 was charged against  operations.  This obligation
was  subordinate to all borrowings from Regions Bank. As of December 4, 2006 all
loans have been converted into equity.

     On November 10, 2006, our President and CEO, Peter G. Dornau indicated that
he was exercising his right to convert our indebtedness to him into common stock
pursuant to the terms of the  Subordinated  Revolving  Line of Credit he entered
into with the Company.  Our total  long-term debt was reduced and  shareholders'
equity was increased by approximately $1,241,000, respectively.
                                       10
<PAGE>
     The composition of these obligations at September 30, 2007 and December 31,
2006 were as follows:
<TABLE>
<CAPTION>

                                     Current Portion               Long Term Portion
                                ----------------------      ---------------------------
                                    2007        2006             2007          2006
                                ---------    ---------      -----------     -----------
<S>                             <C>          <C>            <C>             <C>
Industrial Development Bonds    $ 460,000    $ 460,000      $ 3,940,000     $ 4,283,107
Notes Payable                      99,996       99,996          158,347         233,344
Capitalized equipment leases       31,930       26,064           42,472          33,739
                                ---------    ---------      -----------    ------------
                                $ 591,926    $ 586,060      $ 4,140,819     $ 4,550,190
                                =========    =========      ===========    ============
</TABLE>

     Required principal payment obligations attributable tabulated below:

     Year Ending December 31,

             2007            $ 591,926
             2008              579,490
             2009              572,051
             2010              495,540
             2011              460,000
       Thereafter            2,033,738
                            ----------
       Total                $4,732,745
                            ==========


     4. RELATED PARTY TRANSACTIONS

     At  September  30,  2007 and  December  31,  2006,  the Company had amounts
receivable from affiliated  companies,  which are directly or beneficially owned
by the Company's president,  aggregating $ 48,712 and of $231,200  respectively.
Such  amounts  result  from sales to the  affiliates,  allocations  of  expenses
incurred by the Company on the affiliates'  behalf and funds advanced to or from
the Company.

     Sales to such affiliates aggregated approximately $ 39,700, $ 46,700 during
the three months ended September 30, 2007 and 2006, and $ 310,600, $ 290,700 for
the nine months ended September 30, 2007 and 2006, respectively.

     During  March  2006,   an  affiliate   offered  to  forgive  the  Company's
indebtedness to such entity in the approximate amount of $295,000.  Accordingly,
during the first quarter of 2006, such amount was credited to Additional paid-in
capital and increased the net amount due from affiliates.

     Commitments:

     On May 1, 1998, the Company entered into a ten year lease for approximately
12,700  square  feet of office  and  warehouse  facilities  in Fort  Lauderdale,
Florida  from an entity  owned by certain  officers  of the  Company.  The lease
required a minimum  rental of  $94,800  for the first  year and  provides  for a
maximum 2% increase on the anniversary of the lease  throughout the term,  which
has been waived  through  December 31,  2007.  The lease has been renewed for an
additional ten year period expiring May 1, 2018 with the same terms as contained
in the original  lease.  Additionally,  the landlord is entitled to its pro-rata
share  of all  taxes,  assessments  and  any  other  expenses  that  arise  from
ownership.  Rent charged to  operations  aggregated  approximately  $ 27,800,  $
25,100,  during the three months ended September 30, 2007 and 2006 and $ 81,400,
and  $  75,400,  for  the  nine  months  ended  September  30,  2007  and  2006,
respectively.  The Company has entered  into a corporate  guaranty of a mortgage
note obligation of such affiliate.  The obligation  aggregating  approximately $
282,300 and $ 307,000 at September 30, 2007 and December 31, 2006,  respectively
is primarily secured by the real estate leased to the Company.

                                       11
<PAGE>
     The following is a schedule of minimum future rentals on the non-cancelable
operating leases.

     Year Ending December 31,

           2007        $   26,649
           2008            94,800
           2009            94,800
           2010            94,800
           2011            94,800
     Thereafter           600,400
                       ----------
     Total             $1,006,249
                       ==========

     5. EARNINGS (LOSS) PER SHARE
<TABLE>
<CAPTION>

                                           Three months ended                Nine months ended
                                             September 30,                     September 30,
                                          2007             2006             2007         2006
                                       ---------         ---------       ---------     ---------
Weighted-average common shares
<S>                                    <C>               <C>             <C>           <C>
 outstanding                           7,723,316         5,978,316       7,677,983     5,935,316

Dilutive effect of stock plans,
  other options & conversion rights    1,035,693           391,617       1,208,273       170,898
                                       ---------         ---------       ---------     ---------

Dilutive weighted-average
  shares outstanding                   8,759,009         6,369,933       8,886,256     6,106,214
                                       =========         =========       =========     =========
</TABLE>

     Forward-looking Statements:

     Certain   statements   contained  herein,   including  without   limitation
expectations   as  to   future   sales   and   operating   results,   constitute
forward-looking statements pursuant to the safe harbor provisions of the Private
Securities  Litigations  Reform Act of 1995.  For this purpose,  any  statements
contained  in this  report that are not  statements  of  historical  fact may be
deemed  forward-looking  statements.  Without  limiting  the  generality  of the
foregoing,  words  such as  "may",  "will",  "expect",  "anticipate",  "intend",
"could" or the negative 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,  performance or achievements of the Company to be materially  different
from any future  results,  performance or  achievements  expressed or implied by
such forward-looking  statements.  Factors that may affect the Company's results
include,  but are not limited to, the highly competitive nature of the Company's
industry;  reliance  on  certain  key  customers;  consumer  demand  for  marine
recreational  vehicle  and  automotive  products;  advertising  and  promotional
efforts,  and other  factors.  The Company will not undertake  and  specifically
declines any obligation to update or correct any  forward-looking  statements to
reflect events or circumstances  after the date of such statements or to reflect
the occurrence of anticipated or unanticipated events.

     Item 2.  Management's  Discussion and Analysis of Financial  Conditions and
Results of Operations

  Overview:

     We are a leading  manufacturer  and  distributor  of chemical  formulations
serving the  appearance  and  functional  categories of the marine,  automotive,
recreational  vehicle and home care  markets.  We were  founded in 1973 and have
conducted  operations  within the  aforementioned  categories since then. During
1984, we changed our corporate name to Ocean Bio-Chem, Inc. (the parent company)
from our former name, Star Brite Corporation. Our operations were conducted as a
privately owned company through March, 1981 when we completed our initial public
offering of common stock.
                                       12
<PAGE>
     Critical accounting policies and estimates:

     Principles of consolidation - Our consolidated financial statements include
the  accounts  of the parent  company  and its wholly  owned  subsidiaries.  All
significant   inter-company   accounts  and   transactions   are  eliminated  in
consolidation.

     Revenue  recognition  -  Revenue  from  product  sales is  recognized  when
persuasive evidence of an arrangement exists, delivery to customer has occurred,
the sales price is fixed and  determinable,  and  collectibility  of the related
receivable is probable.

     Prepaid  advertising and promotion - In any given year we introduce certain
new  products  to  our  customers.  We  produce  new  promotional  items  to  be
distributed  over a period of time.  We follow  the policy of  amortizing  these
costs as a promotional expense as they are consumed.  Advertising is expensed in
the period the advertisement is run.

     Property, plant and equipment - Property, plant and equipment are stated at
cost.  Depreciation  is provided over the estimated  useful lives of the related
assets using the straight-line method.

     Stock based  compensation - The Company follows the provisions of Statement
of Financial Accounting Standards No. 123R to record such compensation costs.

     Concentration  of credit  risk -  Financial  instruments  that  potentially
subject  the  Company to  concentration  of credit  risk  consist  primarily  of
accounts   receivable.   The  Company's  five  largest   customers   represented
approximately  51%, and 52% of  consolidated  gross revenues for the nine months
ended  September 30, 2007,  and 2006; and 55% and 62% of  consolidated  accounts
receivable  at  September  30,  2007 and 2006,  respectively.  The Company has a
longstanding  relationship  with each of these entities and has always collected
open receivable balances. However, the loss of any of these customers could have
an adverse impact on the Company's operations.

     Fair  value  of  financial  instruments  -  The  carrying  amount  of  cash
approximates  its fair  value.  The fair  value  of  long-term  debt is based on
current rates at which we could borrow funds with similar remaining  maturities,
and the carrying amount approximates fair value.

     Income taxes - We file  consolidated  federal and state income tax returns.
We have adopted Statement of Financial  Accounting  Standards No. 109 and FIN 48
in the  accompanying  consolidated  financial  statements.  The  only  temporary
differences included therein are attributable to differing methods of reflecting
depreciation for financial statement and income tax purposes.

     Trademarks,  trade  names  and  patents  - The Star  Brite  trade  name and
trademark  were  purchased  in 1980 for  $880,000.  The cost of such  intangible
assets was amortized on a straight-line  basis over an estimated  useful life of
40 years through  December 31, 2001.  Effective  January 1, 2002 and pursuant to
Statement of Financial Accounting Standards No. 142, we have determined that the
carrying value of such  intangible  assets relating to its Star Brite brand does
not require  further  amortization.  In  addition,  we own two  patents  that we
believe are valuable in limited  product lines,  but not material to our success
or  competitiveness  in  general.  There are no  capitalized  costs of these two
patents.

     Translation of Canadian currency - The accounts of our Canadian  subsidiary
are translated in accordance  with Statement of Financial  Accounting  Standards
No.  52,  which  requires  that  foreign  currency  assets  and  liabilities  be
translated using the exchange rates in effect at the balance sheet date. Results
of  operations  are  translated  using  the  average  exchange  rate  prevailing
throughout the period.  The effects of unrealized  exchange rate fluctuations on
translating  foreign  currency  assets and  liabilities  into U.S.  dollars  are
accumulated as the  translation  adjustment in  shareholders'  equity.  Realized
gains and losses from foreign currency transactions, if any, are included in net
earnings of the period.
                                       13
<PAGE>
     Liquidity and Capital Resources:

     The primary  sources of our liquidity  are our  operations  and  short-term
borrowings from Regions Bank pursuant to a revolving line of credit  aggregating
$6 million.  Such line matures May 31, 2008,  bears interest at the 30 Day LIBOR
plus 275 basis points  (approximately 8.3% at September 30, 2007) and is secured
by our trade receivables,  inventory and intangible assets. As of each year-end,
December  31, we are  required  to  maintain a minimum  working  capital of $1.5
million  and meet  certain  other  financial  covenants  during  the term of the
agreement. As of September 30, 2007, we were obligated under this arrangement in
the amount of $ 3,750, 000.

     In connection with the purchase and expansion of the Alabama  facility,  we
closed on Industrial Development Bonds during 1997 aggregating  approximately $5
million.  The proceeds were utilized for both the repayment of certain  advances
used to purchase the Alabama  facility and to expand such facility.  During July
2002, we completed a second  Industrial  Development Bond financing  aggregating
$3.5 million through the City of Montgomery, Alabama. Such transaction funded an
approximate 70,000 square foot addition to the manufacturing facility as well as
the remaining machinery and equipment  additions required therein.  This project
was substantially completed during 2003.

     In order to market the Industrial  Development Bonds at favorable rates, we
obtained a substitute  irrevocable letter of credit for the 1997 issue and a new
irrevocable  letter of credit for the 2002 issue.  Under such  letters of credit
agreements,  maturing on July 31, 2008, we are required to maintain a stipulated
level of working  capital,  a designated  maximum debt to tangible ratio,  and a
required debt service  coverage  ratio.  Such letters of credit are secured by a
first priority mortgage on the underlying Alabama facility and equipment.

     The bonds are marketed  weekly at the prevailing  rates for such tax-exempt
instruments.  During the nine months ended September 30, 2007 such bonds carried
interest  ranging  between 3.3% and 4.1%  annually.  Interest and  principal are
payable  quarterly.  We believe current  operations are sufficient to meet these
obligations.

     On April 12, 2005 we entered into a financing  obligation with Regions Bank
whereby  they  advanced  us $500,000 to finance  equipment  acquisitions  at our
Kinpak  facility.  Such  obligation is due in monthly  installments of principal
aggregating   approximately  $8,300  plus  interest  at  prevailing  rates  (the
outstanding  balance and interest rate on this  obligation at September 30, 2007
were approximately $258,350. The maturity on this obligation is April 15, 2010.

     During the quarter  ended  December 31, 2005,  we finalized a $ 1.5 million
revolving  credit  facility  with our  president  and CEO,  Peter G. Dornau.  At
September 30, 2006, the gross obligation aggregating was $ 1,275,000 outstanding
pursuant  to this  obligation  which is due in October  2010 along with  accrued
interest  at the rate of prime plus 2%. In  connection  with his  offering  this
financing  arrangement  to the  Company,  we issued  warrants  to Mr.  Dornau to
purchase a maximum of 1 million  shares of our common  stock.  Such warrants are
exercisable  500,000 shares at $1.13 and 500,000  shares at $.863.

     The exercise  prices were  determined  by the closing bid of our stock plus
ten (10) percent on each date of grant.  In addition,  he has the right,  at his
sole  discretion,  to convert such debt into a maximum of 1.5 million  shares of
our  common  stock at the rate of $1.00  per  share.  The gross  obligation  was
reduced by an allocation of imputed interest associated with the warrants issued
to Mr. Dornau. The initial amount of such allocation was $ 310,898 which will be
amortized and charged against operations as additional interest expense over the
sixty (60) month term of this financing  During the nine months ended  September
30,  2006,  amortization  of $  46,600  was  charged  against  operations.  This
obligation is subordinate to all borrowings from Regions Bank.

     On November 10, 2006, our President and CEO, Peter G. Dornau indicated that
he was exercising his right to convert our indebtedness to him into common stock
pursuant to the terms of the  Subordinated  Revolving  Line of Credit he entered
into with the Company.  Our total  long-term debt was reduced and  shareholders'
equity was increased by approximately $ 1,241,000, respectively.

     We are involved in making  sales in the Canadian  market and must deal with
the currency fluctuations of the Canadian currency.
                                       14
<PAGE>
     We do not engage in currency  hedging and deal with such currency risk as a
pricing issue.

     During the past few years, we have  introduced  various new products to our
customers.  At times this has  required us to carry  greater  amounts of overall
inventory and has resulted in lower  inventory  turnover  rates.  The effects of
such  inventory  turnover have not been material to our overall  operations.  We
believe that all required  capital to maintain such increases can continue to be
provided by operations and current financing arrangements.

     Many of the raw  materials  that we use in the  manufacturing  process  are
commodities  that are  subject  to  fluctuating  prices.  We react to  long-term
increases by passing along all or a portion of such increases to our customers.

     As of September 30, 2007 and through the date hereof, we did not and do not
have any material commitments for capital expenditures, nor do we have any other
present  commitment  that is likely to result  in our  liquidity  increasing  or
decreasing in any material way. In addition,  except for our need for additional
capital to finance inventory purchases,  we know of no trend, additional demand,
event or uncertainty that will result in, or that is reasonably likely to result
in, our liquidity increasing or decreasing in any material way.

     On March 25,  1999,  the Company  entered into a loan  arrangement  with an
entity owned 50% each by our President and former Vice  President - Advertising,
Messrs. Peter G. Dornau and Jeffrey J. Tieger,  respectively whereby we borrowed
$ 400,000.00 to be repaid in monthly  installments  of $3,356.79 plus prevailing
interest  at prime plus 1%. On March 9, 2006 we received  notification  from the
shareholders  of said  entity  that they were  forgiving  this  obligation  and,
accordingly, the Company has no further obligation associated with this debt. At
that date the  principal  balance  outstanding  amounted  to $ 295,752  and such
amount is reflected on the accompanying  consolidated statement of shareholders'
equity as additional paid-in capital.

     Results of Operations:

     For The Three Months Ended  September 30, 2007 compared to the Three Months
ended September 30, 2006

     The  consolidated  net  sales  aggregated   approximately   $6,951,000  and
$7,725,000,  respectively.  Net sales decreased approximately $ 774,000 or 10.0%
for the quarter ended  September  30, 2007,  compared to the same quarter of the
preceding year. The consolidated net sales aggregated approximately $ 6,951,000,
and $ 7,725,000 respectively. The primary reason for the decreased sales, was on
a  comparative  basis the 3rd  quarter  of 2006,  was a strong  quarter  for our
winterizing products  (antifreeze).  We are cautiously  optimistic,  that as the
weather turns colder,  in the northern parts of the United  States,  the Company
will increase sales in these products in the 4th quarter 2007.

     Cost of goods sold amounted to  approximately  $ 4,722,800 or 67.9 % of net
sales for the three months ended September 30, 2007,  compared to $ 5,543,700 or
71.8% of net sales for the quarter ended  September 30, 2006.  The cost of sales
percent improvement was a result of several factors including improved sales mix
with higher sales of the Company's higher margin products.  The Company also had
lower operating expenses, in our Kinpak manufacturing facilities, in addition to
lower material cost as a percentage of sales.

     Selling and administrative  expenses increased  approximately $ 77,000 to $
966,000 or 17.9% of sales for the quarters ended September 30, 2007, compared to
$889,000 for  comparative  2006. The  significant  increases were an increase in
sales  expenses  relating to the addition of a new VP of sales.  In addition the
Company  increased   administrative  personnel  costs  and  outsourced  computer
services.

     Advertising and promotion expenses increased to approximately  $572,000, an
increase of  $143,000 or  approximately  33.5% from  approximately  $ 428,000 in
2006.  The  Company  continued,  in the 3rd  quarter  to run  print and TV media
advertising for its products, in boating, auto and industrial farming magazines.


     Interest expense decreased by approximately $159,900, comparing the quarter
ended September 30, 2007 to the corresponding  quarter of 2006. This principally
resulted  from  conversion  of a loan to equity in the 4th quarter  2006, to the
Company by our president and CEO,  Peter G. Dornau,  reducing debt by $1,241,000
and associated interest expense.
                                       15
<PAGE>
     Our net income for the  quarter  ended  September  30,  2007  amounted to $
665,000  compared to $ 671,000 for the comparable  period in 2006.  There was no
provision or benefit for income taxes in the current quarter.

     For the Nine Months Ended  September  30, 2007  Compared To The Nine Months
Ended September 30, 2006

     Net  sales  were  approximately  $16,407,000  for  the  nine  months  ended
September 30, 2007  compared to  approximately  $16,466,000  for the nine months
ended  September 30, 2006.  For the nine months ended  September 30, 2007 higher
sales of  marine  chemical  and auto  products  were  offset  by lower  sales of
antifreeze products.

     Cost of goods  sold  decreased  to 66.1% of net sales  for the nine  months
ended  September  30,  2007,  compared to 71.8% of net sales for the nine months
ended  September 30, 2006.  This change  resulted was attributed  improved sales
mix, with higher sales of the Company's higher margin  products.  In addition to
lower operating  expenses in our  manufacturing  facilities,  and lower material
cost as a percentage of sales.

     Advertising and promotion expenses increased to approximately $1,245,600 or
7.6% of sales for the 2007,  compared  to  $900,600 or 5.5% of net sales for the
previous  year.  The  Company  placed  increased  levels  of TV media  and print
advertising during the nine month period of 2007, as discussed above.

     Selling and administrative  expenses increased to approximately $ 3,190,700
for the nine months ended  September 30, 2007,  compared to  $2,629,800  for the
nine months  ended  September  30, 2006,  an increase of $560,900 or 21.3%.  The
expenses  were in  higher  relating  to the  addition  to a new VP of  sales  in
addition to increased  administrative  expenses relating to increased  personnel
expenses and computer services.

     Interest  expense for 2007  decreased $ 292,000 to $ 248,000 from  $540,000
for the same nine month period of 2006. This principally resulted the conversion
of a loan to equity by our president  and CEO,  Peter G. Dornau in December 2006
in addition to improved cash flow and less need for borrowings..

     The net  income  was  approximately  $ 896,000  for the nine  months  ended
September 30, 2007 compared to a net income of  approximately  $ 650,000 for the
nine months ended September 30, 2006.

     Item 3.Quantitative and Qualitative Disclosures about Market Risk

     Market  risk  represents  the risk of loss that may  impact  our  financial
position,  results  of  operations  or cash  flows  due to  adverse  changes  in
financial and  commodity,  principally  petroleum  based raw  materials,  market
prices and interest rates. We are exposed to market risk in the areas of changes
in borrowing rates in the United States and changes in foreign currency exchange
rates.  Historically,  and as of September 30, 2007, we have not used derivative
instruments or engaged in hedging activities to minimize market risk.

   Interest rate risk

     As of September 30, 2007, we had floating  interest rates on our industrial
development revenue bonds and our working capital line of credit facility. As of
September 30, 2007 the interest rate on our approximate $ 4,400,000  outstanding
balance of  industrial  revenue bonds was  approximately  3.7% per annum and the
interest rate on our line of credit  facility was based on the 30 day LIBOR rate
plus 275 basis points (the  effective  interest  rate at September  30, 2007 was
4.1%).  We do not expect any changes in interest rates to have a material impact
on our operations during the year ending December 31, 2007.

     Concentration of credit risk

     Financial instruments that potentially subject the Company to concentration
of credit risk consist  primarily of accounts  receivable.  The  Company's  five
largest customers  represented  approximately 51%, and 52% of consolidated gross
revenues for the nine months ended September 30, 2007, and 2006; and 55% and 62%
of   consolidated   accounts   receivable   at  September  30,  2007  and  2006,
respectively.  The Company has a  longstanding  relationship  with each of these
entities and has always collected open receivable balances. However, the loss of
any of these customers could have an adverse impact on the Company's operations.
                                       16
<PAGE>
   Foreign currency risk

     We sell products in Canada, based on the Canadian dollar.  Thereby, we have
exposure to changes in exchange  rates.  Changes in the  Canadian  dollar / U.S.
dollar  exchange  rates may  positively or negatively  affect our gross margins,
operating income and retained earnings. We do not believe that near-term changes
in the exchange  rates,  if any, will result in a material  effect on our future
earnings,  fair values or cash flows, and therefore, we have chosen not to enter
into  foreign  currency  hedging  transactions.  We cannot  assure you that this
approach will be successful, especially in the event of a significant and sudden
change in the value of the Canadian dollar.

   Concentration and credit risk

     We maintain  cash  balances at several  financial  institutions,  which are
insured by the Federal Deposit Insurance  Corporation up to $100,000.  At times,
our cash balances may exceed federally  insured limits.  We have not experienced
any losses in such accounts and we believe the risk related to these deposits is
minimal.

     Item 4. Controls and Procedures

     Evaluation of Disclosure  Controls and  Procedures.  We have carried out an
evaluation  under the  supervision  of  management,  including the President and
Chief  Executive  Officer  ("CEO")  and the Chief  Operating  Officer  and Chief
Financial  Officer ("CFO"),  of the effectiveness of the design and operation of
our disclosure  controls and procedures.  Based on that evaluation,  our CEO and
CFO have concluded  that, as of September 30, 2007, our disclosure  controls and
procedures were effective to ensure that information required to be disclosed by
us in the reports filed or submitted by us under the Securities  Exchange Act of
1934, as amended,  was recorded,  processed,  summarized and reported within the
time  periods  specified  in the rules and  regulations  of the SEC, and include
controls  and  procedures  designed  to ensure that  information  required to be
disclosed by us in such reports was accumulated and  communicated to management,
including the CEO and CFO, as  appropriate to allow timely  decisions  regarding
required disclosures.

     Since the  evaluation  date by  management  of our internal  controls  over
financial  reporting,  there have not been any changes in our  internal  control
over financial reporting that have materially affected, or are reasonably likely
to materially affect our internal control over financial reporting.

     Limitations on the Effectiveness of Controls. Our management, including the
CEO and CFO,  does not expect  that our  disclosure  or internal  controls  will
prevent all errors or fraud. A control system,  no matter how well conceived and
operated,  can  provide  only  reasonable,  not  absolute,  assurance  that  the
objectives  of the  control  system  are met.  Further,  the design of a control
system  must  reflect  the fact that  there are  resource  constraints,  and the
benefits of controls must be considered relative to their costs.  Because of the
inherent  limitations in a cost-effective  control system,  misstatements due to
error or fraud may occur and not be detected. Despite these limitations, our CEO
and CFO have  concluded  that our  disclosure  controls and  procedures  (1) are
designed to provide  reasonable  assurance of  achieving  their  objectives  and
(2) do provide reasonable assurance of achieving their objectives.

     Recent Accounting Pronouncements.

     In February  2007, the FASB issued SFAS No. 159, "The Fair Value Option for
Financial  Assets and  Financial  Liabilities  - Including  an Amendment of FASB
Statement  No. 115" (SFAS 159),  which is effective  for fiscal years  beginning
after  November 15,  2007.  SFAS 159 permits an entity to choose to measure many
financial  instruments  and  certain  other  items at fair  value  at  specified
election dates.  Subsequent  unrealized  gains and losses on items for which the
fair value option has been elected will be reported in earnings.  The Company is
currently  evaluating the potential  impact,  if any, that SFAS 159 will have on
the consolidated financial statements.


     In September 2006, the FASB issued  Statement 157 ("SFAS 157"),  Fair Value
Measurements . This  Statement  establishes a framework for measuring fair value
in generally accepted  accounting  principles and expands disclosures about fair
value  measurements.  While  SFAS  157  does  not  require  any new  fair  value
measurements,  it may change the application of fair value measurements embodied
in other  accounting  standards.  SFAS 157 will be effective at the beginning of
the Company's 2008 fiscal year. The Company is currently assessing the effect of
this pronouncement on the consolidated financial statements.
                                       17
<PAGE>
                           PART II - OTHER INFORMATION

     Item 1. - Legal Proceedings:

     We are not a party to any material litigation presently pending nor, to the
best knowledge of the Company, have any such proceedings been threatened.

     Item 1A. - Risk Factors

     Set forth any material changes from Risk Factors as previously  reported in
the Registrant's Form 10-K in response to Item 1A. in Part 1 of Form 10-K.

     There have been no material changes

     Item 2. - Unregistered Sales of Equity Securities and Use of Proceeds - Not
Applicable

     Item 3. - Defaults Upon Senior Securities: Not applicable

     Item  4 -  Submission  of  Matters  to a  Vote  by  Security  Holders  -Not
applicable

     Item 5 - Other Matters - Not applicable


     Item 6.- Exhibits:

     31.1  Certification  of Chief Executive  Officer pursuant to Section 302 of
Sarbanes-Oxley

     31.2  Certification  of Chief Financial  Officer pursuant to Section 302 of
Sarbanes-Oxley

     32.1  Certification of Chief Executive  Officer and Chief Financial Officer
pursuant to Section 906 of Sarbanes-Oxley

                                   SIGNATURES

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

   OCEAN BIO-CHEM, INC.

Date:   November 09, 2007          /s/ Peter G. Dornau
                                   Peter G. Dornau
                                   Chairman of the Board of Directors
                                   and Chief Executive Officer


                                   /s/  Jeffrey S. Barocas
                                   Jeffrey S. Barocas
                                   Chief Financial Officer


                                       18
<PAGE>

                                                                    Exhibit 31.1

                                  CERTIFICATION


     I, Peter G. Dornau certify that:

     1. I have reviewed this Form 10-Q of Ocean Bio-Chem, Inc. as of and for the
period ended September 30, 2007;

     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 we 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.

     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 registrant's board of directors
(or persons performing the equivalent function):

     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 09, 2007       /s/ Peter G. Dornau
                                          Peter G. Dornau
                                          Chairman of the Board and
                                          Chief Executive Officer

                                       19
<PAGE>

                                                                    Exhibit 31.2

                                  CERTIFICATION

     I, Jeffrey S. Barocas certify that:


    1. I have reviewed this Form 10-Q of Ocean Bio-Chem, Inc. as of and for the
period ended September 30, 2007;

     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 we 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.

     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 registrant's board of directors
(or persons performing the equivalent function):

     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 09, 2007            /s/ Jeffrey S. Barocas
                                          Jeffrey S. Barocas
                                          Chief Financial Officer


                                       20
<PAGE>
                                                                    Exhibit 32.1



                                  CERTIFICATION

     Pursuant  to  18U.S.C.Section  1350,  the  undersigned  officers  of  Ocean
Bio-Chem,  Inc. (the  "Company"),  hereby  certify that the Company's  Quarterly
Report on Form 10-Q for the quarter  ended  September  30,  2007 (the  "Report")
fully complies with the  requirements  of Section 13(a) or 15(d), as applicable,
of the Securities Exchange Act of 1934 and that the information contained in the
Report fairly presents,  in all material respects,  the financial  condition and
results of operation of the Company.

Dated:    November 09, 2007


                                          /s/ Peter G. Dornau
                                          Peter G. Dornau
                                          Chairman of the Board of
                                          Directors  and Chief Executive Officer




                                          /s/ Jeffrey S. Barocas
                                          Jeffrey s. Barocas
                                          Chief Financial Officer
















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