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 June 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 August 9, 2007


<PAGE>

                      OCEAN BIO-CHEM, INC. AND SUBSIDIARIES

                                      INDEX


   Description                                                            Page

Part I - Financial Information:

  Item 1. -  Financial Statements:
      Consolidated balance sheets as of June 30, 2007
        and December 31, 2006                                               3
      Consolidated statements of operations for
        the three and six month periods ended June 30,
        2007 and 2006                                                       4
      Consolidated statements of changes in
        shareholders' equity for the six months
        ended June 30, 2007 and 2006                                        5
      Consolidated statements of cash flows
        for the six months ended June 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 Procedures                                       17-18

Part II - Other Information:

  Item 1. - Legal Proceedings                                               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 l.  Financial Statements:

                      OCEAN BIO-CHEM, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>

                                     ASSETS
                                                                               JUNE 30,              DECEMBER 31,
                                                                                2007                     2006
                                                                             -----------             ------------
                                                                             (UNAUDITED)
<S>                                                                          <C>                     <C>
 Current assets:
  Cash                                                                       $   840,508             $     71,080
  Trade accounts receivable net of allowance for doubtful
    accounts of approximately  $50,300 and $192,700 at June 30,
    2007 and December 31, 2006, respectively                                   2,479,135                2,026,870
  Inventories (net)                                                            6,513,007                5,647,933
  Prepaid expenses and other current assets                                      269,486                  218,151
                                                                             -----------             ------------
      Total current assets                                                    10,102,136                7,964,034
                                                                             -----------             ------------
 Property, plant and equipment, net                                            6,486,378                6.800,176
                                                                             -----------             ------------
 Other assets:
  Trademarks, trade names and patents, net
   of accumulated amortization                                                   331,695                  330,439
  Due from affiliated companies, net                                                -                     231,200
  Deposits and other assets                                                      177,569                  203,510
                                                                             -----------             ------------
     Total other assets                                                          509,264                  765,149
                                                                             -----------             ------------
      Total assets                                                           $17,097,778             $ 15,529,359
                                                                             ===========             ============
                      LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
  Accounts payable - trade                                                   $ 1,235,278             $    943,907
  Note payable - bank                                                          3,000,000                2,150,000
  Current portion of long term debt                                              586,555                  586,060
  Accrued expenses payable                                                       719,192                  363,669
                                                                             -----------             ------------
       Total Current Liabilities                                               5,541,025                4,043,636
                                                                             -----------             ------------
Long term debt, less current portion                                           4,256,911                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
     June 30, 2007 and December 31, 2006, respectively                            77,233                   76,213
   Additional paid-in capital                                                  7,423,121                7,257,447
   Foreign currency translation adjustment                                   (   209,939)            (    176,094)
   Retained earnings (deficit)                                                    17,622             (    213,838)
                                                                               7,308,037                6,943,728
                                                                             ------------            -------------
Less treasury stock, 7,519 shares at cost                                    (     8,195)            (      8,195)
                                                                             ------------            -------------
                                                                               7,299,842                6,935,533

Total liabilities and shareholders' equity                                   $17,097,778             $ 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 SIX MONTHS
                                                        ENDED JUNE 30,                          ENDED JUNE 30,

                                                    2007                 2006                2007           2006
                                                 ----------           -----------       -----------       -----------
<S>                                              <C>                  <C>               <C>               <C>
Gross sales                                      $5,968,738           $4,658,995        $10,388,395       $9,447,817

Allowances                                          534,735              327,486            931,984          706,716
                                                 ----------           -----------       -----------       -----------
Net sales                                         5,434,003            4,331,509          9,456,411        8,741,101

Cost of goods sold                                3,275,260            3,154,032          6,122,769        6,214,554
                                                 ----------           -----------       -----------       -----------
Gross profit                                      2,158,743            1,177,477          3,333,642       2,526,547
                                                 ----------           -----------       -----------       -----------
Costs and expenses:
  Advertising and promotion                         467,380              285,437            674,032          472,357
  Selling and administrative                      1,190,910              912,685          2,225,052        1,740,771
  Interest expense                                  105,860              192,591            203,098          335,102
                                                 ----------           -----------       -----------       -----------
    Total cost and expenses                       1,764,150            1,390,713          3,102,182        2,548,230
                                                 ----------           -----------       -----------       -----------
Operating Income (loss)                             394,593           (  213,236)           231,460       (   21,683)

Other income                                           -                    -                  -               1,287
                                                 ----------           -----------       -----------       -----------
 Income (loss) before income taxes                  394,593           (  213,236)           231,460       (   20,396)

Income taxes (benefit)                                 -                    -                  -                -
                                                 ----------           -----------       -----------       -----------
Net Income (loss)                                   394,593           (  213,236)           231,460       (   20,396)

Other comprehensive income (loss), net of tax
   Foreign currency translation adjustment           34,912                8,23         (    33,845)          13,732
                                                 ----------           -----------       -----------       -----------
Comprehensive income (loss)                      $  429,505           ($ 205,003)       $   197,615       ($   6,664)
                                                 ==========           ===========       ============      ===========

Income (loss) per common share - basic           $      .06           ($     .03)       $       .03       $      .00
                                                 ==========           ===========       ============      ===========

Income (loss) per common share - diluted         $      .05           ($     .03)       $       .02       $      .00
                                                 ==========           ===========       ============      ===========
</TABLE>

     The Company has adopted Statement of Financial Accounting Standards No. 130
that 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 SIX MONTHS ENDED
                             JUNE 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                                                                           231,460                    231,460

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

Stock based compensation                                  22,772                                                 22,772

Foreign currency
  translation
  adjustment                                                        (   33,845)                              (   33,845)
                             ---------    -------     ----------    -----------   -----------    --------    -----------
June 30,
  2007                       7,723,316    $77,233     $7,423,121    ($ 209,939)   $   17,622     ($8,195)    $7,299,842
                             =========    =======     ==========    ===========   ===========    ========    ===========


January 1, 2006,
   as previously
    reported                 5,849,316    $58,493     $4,908,615    ($179,653)    ($ 488,563)    ($8,195)    $4,290,697

Compensation cost
   associated with the
   modification of stock
   options                                                178,332                 (  178,332)

Compensation cost
   associated with
   stock warrants                                        310,898                                                310,898

January 1, 2006,             ---------    -------     ----------    -----------   -----------    --------    -----------
  as restated                5,849,316     58,493      5,397,845    (  179,653)   (  666,895)    ( 8,195)     4,601,595

Net loss                                                                          (   20,396)                (   20,396)

Debt forgiveness -
   affiliate                                             295,752                                                295,752

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

Stock based compensation                                  23,257                                                 23,257

Foreign currency
  translation  adjustment                                               13,732                                   13,732

June 30,                     ---------    -------     ----------    -----------   -----------    --------    -----------
  2006                       5,978,316    $59,783     $5,834,986    ($ 165,921)   ($ 687,291)    ($8,195)    $5,033,362
                             =========    =======     ==========    ===========   ===========    ========    ===========


</TABLE>


                                       5
<PAGE>
                      OCEAN BIO-CHEM, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                 FOR THE SIX MONTHS ENDED JUNE 30, 2007 AND 2006
<TABLE>
<CAPTION>

                                                                                2007                    2006
                                                                             ------------            -------------
<S>                                                                          <C>                     <C>
Cash flows from operating activities:
   Net income (loss)                                                         $   231,460             ($    20,396)

   Adjustments to reconcile net income (loss)
    to net cash provided (used) by operations:
       Depreciation and amortization                                             388,498                  388,174
       Compensation cost associated with stock
          options and stock awards                                               166,694                  142,679
       Amortization of imputed interest                                             -                      31,090
         Decrease in accounts receivable -
          allowance for doubtful account                                         142,431                   46,600
   Changes in assets and liabilities:
         (Increase)  in accounts receivable                                  (   594,696)            (     65,511)
         (Increase)  in inventory                                            (   865,075)            (    842,872)
         (Increase) decrease in prepaid expenses                             (    26,650)                  98,768
         Increase in accounts payable
           and accrued taxes and other                                           644,898                  228,519
                                                                             ------------            -------------
   Net cash provided by operating activities                                      87,560                    7,051
                                                                             ------------            -------------
   Cash flows used by investing activities:
        Purchases of property, plant and equipment                           (    74,700)            (    219,478)
                                                                             ------------            -------------
   Net cash used in investing activities                                     (    74,700)            (    219,478)
                                                                             ------------            -------------
    Cash flows from financing activities:
        Borrowings line of credit                                              1,300,000                1,000,000
        Principal payments - line of credit                                  (   448,002)            (    800,000)
        Decrease in amounts due from affiliates                                  231,200                   80,091
        Increase in Long-term debt                                                  -                     125,000
        Principal payments long-term debt                                    (   292,785)            (    263,305)
                                                                             ------------            -------------
    Net cash provided (used) by financing activities                             715,713                  141,786
                                                                             ------------            -------------
Increase (decrease) in cash prior to effect of
      exchange rate on cash                                                      803,273             (     70,641)
Effect of exchange rate on cash                                              (    33,845)                  13,732
                                                                             ------------            -------------
Net increase (decrease) in cash                                                  769,428             (     56,909)

Cash at beginning of year                                                         71,080                  204,543
                                                                             ------------            -------------
Cash at end of period                                                        $   840,508             $    147,634
                                                                             ============            =============
Supplemental disclosure of cash transactions:
  Cash paid for interest during period                                       $   208,579             $    304,012
                                                                             ============            =============
  Cash paid for income taxes during period                                   $      -                $       -
                                                                             ============            =============
Supplemental information-disclosure of non-cash
transactions:
  Compensation cost associated with stock options and warrants               $    22,772             $     23,257
                                                                             ============            =============
  Forgiveness of indebtedness to an affiliate                                $      -                $    295,752
                                                                             ============            =============
The Company had no cash equivalents at June 30, 2007, and 2006.

</TABLE>


                                       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
June 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 both raw and finished  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 June 30, 2007 and December 31, 2006 were as follows:

                                            2007                    2006
                                            ----                    ----
    Raw materials                     $   2,252,656             $ 3,423,030
        Finished goods                    4,310,351               2,244,903
        Less Inventory Reserve        (      50,000)            (    20,000)
                                      --------------            ------------
    Inventory - net                   $   6,513,007             $ 5,647,933
                                      ==============            ============


                                       7
<PAGE>
Stock Based Compensation

     At  June  30,  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. 123, "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.  In  addition,  the
realization  of tax  benefits  in excess of  amounts  recognized  for  financial
reporting  purposes will be recognized  as a financing  activity  rather than an
operating  activity  as in the  past.

Stock Compensation Plans

     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 Company's  Board of 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.

     As of June 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: ptions outstanding

  Plan                          Options outstanding  Options available for grant
  -----------------------       -------------------  ---------------------------
  1994 Plan           159,500 shares       None - terminated 2004
  2002 Plan           400,000 shares       None
  2002 Non-qualified
        Plan          155,000 shares        45,000 shares
  2007 Plan           164,500 shares       235,500 shares
  Non-plan options    231,000 shares       N/A

                    ---------
                    1,110,000 shares
                    =========

Information with respect to our Stock Option Plan activity is as follows:

                                                               Weighted average
                                            Shares              exercise price

     Outstanding at December 31, 2006       945,500                 $1.21

     Granted                                164,500                 $1.66

     Exercised                                 -                      -

     Forfeited                                 -                      -
                                          ---------                 -----
     Outstanding at June 30, 2007         1,110,000                 $1.27
                                          =========                 =====

                                       8
<PAGE>
     For the  six-month  period  ended June 30,  2007,  The  Company  recognized
$22,772 in  stock-based  compensation  costs,  which is  reflected  in operating
expenses.  No tax  benefits  were  attributed  to the  stock-based  compensation
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 June 30, 2007, The Company had $224,467 of unrecognized compensation costs
related to non-vested stock option awards that is expected to be recognized over
a weighted average period of 5 years.

     The following information applies to options outstanding and exercisable as
of June 30, 2007:
<TABLE>
<CAPTION>
                                              Options               Exercisable       Exercise               Weighted
                                            outstanding               06/30/07         price                  years
         Options:                           -----------             -----------       --------               --------
         <S>                                  <C>                   <C>                <C>                      <C>
         Non Plan Options                     231,000               231,000             .760
         1994 Plan                            159,500                63,800            1.050                    2.3
         2002 Plan                            125,000               100,000            1.260                    0.3
         2002 Plan                            140,000                84,000            1.620                    1.7
         2002 Plan                            135,000                  -               0.930                    4.4
         2007 Plan                            164,500                  -               1.660                    5.0
         2002 Plan (NQ)                        35,000                35,000            1.260                    5.4
         2002 Plan (NQ)                        40,000                40,000            1.030                    6.1
         2002 Plan (NQ)                        40,000                40,000            1.460                    6.9
         2002 Plan (NQ)                        40,000                40,000            1.090                    8.9
                                            ---------               -------                                     ---
                                            1,110,000               633,800                                     3.6
                                            =========               =======                                     ===
</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 grant the shares had a market value of $1.66
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                    15,000 shares
   Gregor M. Dornau                                  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  issues  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 issues to  officers  and 24,000  shares were
issues to other employees

                                        9
<PAGE>
2.  PROPERTY, PLANT & EQUIPMENT

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

                                                 Estimated
                                                  Useful
                                                Life- Years           2007         2006

   <S>                                              <C>           <C>                      <C>
   Land                                              N/A          $   278,325              $    278,325
   Building                                           30            4,389,154                 4,389,154
   Manufacturing and warehouse equipment            6-20            6,563,590                 6,521,010
   Office equipment and furniture                    3-5              707,420                    678,537
   Construction in process                           N/A               20,307                    47,798
   Leasehold improvement                           10-15              178,403                   145,505
                                                                  -----------              ------------
                                                                   12,137,199                12,060,329

   Less accumulated depreciation                                    5,650,821                 5,260,153
                                                                  -----------              ------------
   Total property, plant and equipment, net                       $ 6,486,378              $  6,800,176
                                                                  ===========              ============
</TABLE>

3. LONG-TERM DEBT

     Long-term debt at June 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 June 30, 2007,  $1,613,108  and  $2,900,000  were
outstanding attributable to the 1997 and 2002 series,  respectively.  During the
six months  ended June 30, 2007  interest  rates  ranged  between 3.3% and 3.7%.
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 subsidiary,  Kinpak Inc., is obligated pursuant to
various capital lease agreements  covering  equipment  utilized in the Company's
Alabama plant. Such obligations,  aggregating  approximately $26,559 at June 30,
2007, have varying maturities through 2009 and carry interest rates ranging from
7% to 12%.

     During April 2005 we entered into a financing  obligation with Regions Bank
whereby  they  advanced  $500,000 to the  Company in order 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 June 30, 2007 were approximately  $283,300 and 7.6% 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 June
30, 2006 the gross obligation aggregating $1,150,000 was 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 six months ended June 30, 2006,  amortization  of $31,090
was charged against operations. This obligation is subordinate to all borrowings
from Regions Bank.

                                       10
<PAGE>
     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.

     The composition of these obligations at June 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        $  4,053,108     $  4,283,107
  Notes payable                           99,996        99,996             183,346          233,344
  Capitalized equipment leases            26,559        26,064              20,457           33,739
                                      ----------    ----------        ------------     ------------
                                      $  586,555    $  586,060        $  4,256,911     $  4,550,190
                                      ==========    ==========        ============     ============
</TABLE>

     Required principal payment  obligations as of June 30, 2007 attributable to
the foregoing are tabulated below:


                                 2007             $  586,555
                                 2008                579,490
                                 2009                572,051
                                 2010                495,540
                                 2011                460,000
                           Thereafter               2,149,830
                                                  ----------
                                Total             $4,843,466
                                                  ==========
4. RELATED PARTY TRANSACTIONS

     At June 30, 2007 and December 31, 2006, the Company had amounts  receivable
from and payable to  affiliated  companies,  which are directly or  beneficially
owned by the Company's  president,  aggregating a net payable of approximately $
5,524 and receivable 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  $270,934 and $404,109
during the six months ended June 30, 2007 and 2006,  and $74,256 and 110,109 for
the three months ended June 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,  2006.  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
$53,500 and  $50,200  during the six months  ended June 30,  2007 and 2006,  and
$25,100  and  $25,100  during the three  months  ended June 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 $290,000
and $306,000 at June 30, 2007 and 2006 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            $ 106,597
                    2008               36,243
                    2009                 -
                    2010                 -
              Thereafter                 -
                                    ---------
             Total                  $ 142,840
                                    =========
5. EARNINGS (LOSS) PER SHARE
<TABLE>
<CAPTION>

                                               Three months                            Six months
                                               ended   June 30,                       ended June 30,
                                             2007              2006              2007              2006
                                          ---------         ---------         ---------         ---------
<S>                                       <C>               <C>               <C>               <C>
Weighted-average common
  shares outstanding                      7,689,316         5,978,316         7,655,316         5,913,816

Dilutive effect of stock plans,
  other options & conversion rights         883,060           523,476           838,060           956,710
                                          ---------         ---------         ---------         ---------
Diluted weighted-average shares
  outstanding                             8,572,376         6,501,792         8,538,376         6,870,526
                                          =========         =========         =========         =========
</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  - Prior to  January  1,  2006 we  followed  the
provisions of APB Opinion No. 25,  Accounting for Stock Issued to Employees,  to
record  compensation  costs.  Opinion No. 25 requires that  compensation cost be
based on the  difference,  if any,  between the quoted market price of the stock
and the price the employee must pay to acquire the stock  depending on the terms
of the award.  Effective January 1, 2006 we adopted the provisions  Statement of
Financial  Accounting  Standards  No.  123R to record such  compensation  costs.
Prior  thereto,  such matters were  disclosed in the
notes to our consolidated financial statements.

     Concentration  of credit  risk -  Financial  instruments  that  potentially
subject  the  Company to  concentration  of credit  risk  consist  primarily  of
accounts  receivable.  Over the past three  years,  our five  largest  customers
historically  represented a range of  approximately  45% to 55% of  consolidated
gross revenues and 25% to 77% of consolidated accounts receivable, respectively.
We have experienced a longstanding  relationship with each of these entities and
have always collected open receivable balances in a timely manner.  However, the
loss of any of these customers could have an adverse impact on our 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  7.9% at June 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 June 30, 2007, we were obligated under this arrangement in the
amount of $3,000,000.

     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 six  months  ended  June 30,  2007 such  bonds  carried
interest  ranging  between 3.3% and 3.7%  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 June 30, 2007 were
approximately $283,300. 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 June
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 six months ended June 30, 2006,  amortization  of $31,090
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.

     We do not engage in currency  hedging and deal with such currency risk as a
pricing issue.

                                       14
<PAGE>

     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 June 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 June 30, 2007 compared to the Three Months ended
June 30, 2006

     Net sales  increased  approximately  $1,102,000  or 25.5 % for the  quarter
ended June 30, 2007  compared to the same  quarter of the  preceding  year.  The
consolidated  net  sales  aggregated  approximately  $5,434,000  and  $4,331,500
respectively.  Sales increases were a result of the improved  boating weather in
the 2nd quarter of 2007,  in addition to  increased  sales of newer  products in
both the boating and auto care markets.

     Cost of goods sold  amounted to  approximately  $3,275,000 or 60.3 % of net
sales for the three months ended June 30, 2007  compared to  $3,154,000 or 72.8%
of net sales for the quarter ended June 30, 2006.  These results were  favorably
effected  by  increased  sales  volume and  changes in the sales mix with higher
sales of the Company's  higher margin products.  In addition,  the cost of sales
were   favorably   impacted  as  the  result  of  spreading   fixed  element  of
manufacturing overhead over increased volume during the current quarter.

     Selling and  administrative  expenses increased  approximately  $278,000 to
$1,191,000  or 21.9% of sales when  comparing  the quarters  ended June 30, 2007
compared to $912,685 for 2006. The significant increases were a charge to income
in the  quarter  for  compensation  expense  relating  to the  awarding of Ocean
Bio-Chem stock to employees of approximately  $144,000. In addition to increased
personnel costs, consulting fees, outside services,  other professional fees and
outsourced data processing services.

     Advertising and promotion  increased to approximately  $467,000 an increase
of  $182,000 or  approximately  63.7 % from  $285,400  for 2006.  The  increased
spending correlated with increased sales and the resulting customer co-operative
advertising programs related to sales. In addition, the Company placed increased
levels of TV media and print advertising during the current three month period.

     Interest expense  decreased by approximately  $86,700 comparing the quarter
ended  June 30,  2007  compared  to the  corresponding  quarter  in  2006.  This
principally  resulted  from  conversion  of a loan to equity in the 4th  quarter
2006, to our Company by our president and CEO, Peter G. Dornau, reducing debt by
$1,241,000 and associated interest expense.

     Our net income for the  quarter  ended June 30,  2007  amounted to $394,593
compared to a loss of $213,236 for the comparable  period in 2006.  There was no
provision  or  benefit  for  income   taxes  in  the  current   quarter  due  to
consideration of avaiable Income Tax carryovers.
                                       15
<PAGE>
     For the Six Months  Ended June 30, 2007  Compared  To The Six Months  Ended
June 30, 2006

     Net sales  increased  8.2% to  approximately  $9,456,400 for the six months
ended June 30, 2007  compared  to  approximately  $8,741,100  for the six months
ended June 30, 2006. The significant  increase in year to date sales were in the
second quarter 2007 as discussed above.

     Cost of goods sold decreased to 64.6% of net sales for the six months ended
June 30, 2007  compared to 71.1% of net sales for the six months  ended June 30,
2006.  This change  resulted was attributed  improved sales mix and volume along
with spreading our fixed element of manufacturing overhead over the higher sales
levels experienced during the six current month period.

     Advertising and promotion  expenses  increased to $674,000 or 7.1% of sales
for the 2007  compared  to 472,400 or 5.4% of net sales for the  previous  year.
This  increase in the  current  year was the result of  increased  sales and the
resulting  co-operative  advertising programs related to sales. In addition, the
Company placed  increased levels of media and print  advertising  during the six
month period.

     Selling and administrative  expenses increased to approximately  $2,225,000
for the six months  ended June 30, 2007  compared to  $1,740,800  the six months
ended June 30, 2006 an increase of $484,281 or 27.8%.  The significant  increase
was charge to income of $ 144,000 for the awarding of stock of Ocean Bio-Chem to
employees. In addition personnel costs, consulting fees, outside services, other
professional fees and outsourced data processing  services  increased from prior
year.

     Interest expense for the 2007 decreased  $123,600 when compared to the same
six month period of 2006.  This  principally  resulted the  conversion of a loan
made by our  President,  Peter G.  Dornau,  to the Company to equity  during the
quarter ended  December 31, 2006.  Such  conversion  reduced  long-term  debt by
approximately $1,241,000 along with a related reduction in our interest expense.

     The profit was  approximately  $231,460  for the six months  ended June 30,
2007  compared to a net loss of  approximately  $20,400 for the six months ended
June 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 June 30,  2007,  we have  not  used  derivative
instruments or engaged in hedging activities to minimize market risk.

Interest rate risk

     As of June 30,  2007,  we had  floating  interest  rates on our  industrial
development revenue bonds and our working capital line of credit facility. As of
June 30,  2007  the  interest  rate on our  approximate  $4,513,100  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 June 30, 2007 was 7.9%).
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 59%, and 57% of consolidated gross
revenues  for the six months  ended June 30,  2007 and 2006;  and 64% and 56% of
consolidated  accounts receivable at June 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 June 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.
SFAS  No.  159  permits  entities  to  choose  to  measure  eligible   financial
instruments at fair value.  The  unrealized  gains and losses on items for which
the fair value  option has been  elected  should be  reported in  earnings.  The
decision   to   elect   the   fair   value   options   is   determined   on   an
instrument-by-instrument  basis,  it should be applied to an entire  instrument,
and it is irrevocable. Assets and liabilities measured at fair value pursuant to
the fair value option  should be reported  separately  in the balance sheet from
those instruments measured using another measurement attribute.  SFAS No. 159 is
effective  as of the  beginning  of the  first  fiscal  year that  begins  after
November 15, 2007.  The Company is currently  analyzing the potential  impact of
adoption of SFAS No. 159 to its consolidated financial statements.

     In September  2006, the FASB issued SFAS No. 157, Fair Value  Measurements,
("SFAS 157"). Such pronoucement defines fair value,  establishes a framework for
measuring  fair value in generally  accepted  accounting  principles and expands
disclosures about fair value  measurements.  SFAS 157 is effective for financial
statements issued for fiscal years beginning after November 15, 2007 and interim
periods within those fiscal years.  The Company does not anticipate  adoption of
this  standard  will  have  a  material  impact  on its  consolidated  financial
statements.

                                       17
<PAGE>
     In May 2007, the FASB issued FASB Staff Position  ("FSP") FIN 48-1, or "FSP
FIN 48-1," which  clarifies when a tax position is considered  settled under FIN
48. The FSP  explains  that a tax  position  can be  effectively  settled on the
completion  of an  examination  by a  taxing  authority  without  legally  being
extinguished.  For tax positions considered effectively settled, an entity would
recognize  the full amount of tax  benefit,  even if (1) the tax position is not
considered  more  likely  than not to be  sustained  solely  on the basis of its
technical  merits and (2) the statute of  limitations  remain open. FSP FIN 48-1
should  be  applied  upon the  initial  adoption  of FIN 48.  The  impact of our
adoption  of FIN 48 (as of January 1, 2007) is in  accordance  with this FSP and
the implementation has not resulted in any changes to our consolidated financial
statements.

                           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:

     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 grant the shares had a market value of $1.66
each.

Item 3. - Defaults Upon Senior Securities:  Not applicable

Item 4. - Submission of Matters to Vote of Security Holders:

     On August 3, 2007, at our annual meeting of  shareholders,  nine directors;
Peter G. Dornau, Edward Anchel, Jeffrey S. Barocas, Greg Dornau, William Dudman,
Laz L.  Schneider,  James M.  Kolisch,  John B. Turner,  and Sonia B. Beard were
elected,  shareholders  ratified issuances of restricted common stock to certain
employees,  approval  of the  2007  Incentive  Stock  OPtion  Plan,and  approved
Berenfeld,   Spritzer,   Shechter  &  Sheer,   Certified  Public  Accountants  &
Consultants, as independent auditors for the year ending December 31, 2007.
<TABLE>
<CAPTION>
The tabulation of voting for the foregoing was as follows:
                                                                   For              Against/abstain
<S>                                                             <C>                    <C>
 Election of directors                                          6,967,321               6,532
 Approve 2007 Incentive stock option plan                       5,246,986              64,765
 Approve and ratify grants of the Company's restricted stock    5,246,994              64,823
 Ratify appointment of Berenfeld, Spritzer, Shechter & Sheer    6,967,437               6,461
   as independent CPA through December 31, 2007
</TABLE>
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:    August 14, 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 June 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: August 14, 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 June 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: August 14, 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 June 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:  August 14, 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



























                                       21