Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 01, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | UNITED GUARDIAN INC | |
Entity Central Index Key | 101,295 | |
Trading Symbol | ug | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 4,594,319 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Statements of Income (Unaudited
Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net sales | $ 2,139,165 | $ 4,124,091 | $ 4,401,741 | $ 8,496,484 |
Costs and expenses: | ||||
Cost of sales | 1,007,666 | 1,403,942 | 1,905,391 | 3,083,144 |
Operating expenses | 465,329 | 443,991 | 932,885 | 904,918 |
Research and development | 157,895 | 156,541 | 335,461 | 322,849 |
Total costs and expenses | 1,630,890 | 2,004,474 | 3,173,737 | 4,310,911 |
Income from operations | 508,275 | 2,119,617 | 1,228,004 | 4,185,573 |
Investment income | 82,906 | 72,894 | 126,218 | 126,348 |
Income before income taxes | 591,181 | 2,192,511 | 1,354,222 | 4,311,921 |
Provision for income taxes | 185,800 | 682,000 | 423,750 | 1,340,900 |
Net Income | $ 405,381 | $ 1,510,511 | $ 930,472 | $ 2,971,021 |
Earnings per common share (Basic and Diluted) (in dollars per share) | $ 0.09 | $ 0.33 | $ 0.20 | $ 0.65 |
Weighted average shares – basic and diluted (in shares) | 4,594,319 | 4,596,439 | 4,594,319 | 4,596,439 |
Statements of Comprehensive Inc
Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net income | $ 405,381 | $ 1,510,511 | $ 930,472 | $ 2,971,021 |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on marketable securities during period | 123,417 | (142,358) | 274,485 | (43,488) |
Income tax (cost) benefit related to other comprehensive income (loss) | (41,961) | 48,402 | (93,324) | 14,786 |
Total other comprehensive income (loss), net of tax | 81,456 | (93,956) | 181,161 | (28,702) |
Comprehensive income | $ 486,837 | $ 1,416,555 | $ 1,111,633 | $ 2,942,319 |
Balance Sheets (Current Period
Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Cash and cash equivalents | $ 252,957 | $ 1,080,489 |
Marketable securities, at fair value | 10,622,033 | 10,719,470 |
Accounts receivable, net of allowance for doubtful accounts of $8,654 at June 30, 2016 and December 31, 2015 | 1,326,665 | 934,754 |
Inventories (net) | 1,649,453 | 1,293,642 |
Prepaid expenses and other current assets | 185,588 | 160,533 |
Prepaid income taxes | 72,317 | 95,767 |
Deferred income taxes | 233,305 | 233,305 |
Total current assets | 14,342,318 | 14,517,960 |
Property, plant and equipment: | ||
Land | 69,000 | 69,000 |
Factory equipment and fixtures | 4,292,634 | 4,175,940 |
Building and improvements | 2,776,602 | 2,776,602 |
Total property, plant and equipment | 7,138,236 | 7,021,542 |
Less: Accumulated depreciation | 6,009,210 | 5,925,429 |
Total property, plant and equipment, net | 1,129,026 | 1,096,113 |
Other assets (net): | 66,707 | 74,118 |
TOTAL ASSETS | 15,538,051 | 15,688,191 |
Accounts payable | 95,695 | 96,815 |
Accrued expenses | 1,035,517 | 785,623 |
Dividends payable | 110,070 | 105,929 |
Total current liabilities | 1,241,282 | 988,367 |
Deferred income taxes | 211,334 | 118,010 |
Stockholders’ equity: | ||
Common stock $.10 par value, authorized, 10,000,000 shares; 4,594,319 shares issued and outstanding at June 30, 2016 and December 31, 2015. | 459,432 | 459,432 |
Accumulated other comprehensive income | 253,522 | 72,361 |
Retained earnings | 13,372,481 | 14,050,021 |
Total stockholders’ equity | 14,085,435 | 14,581,814 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 15,538,051 | $ 15,688,191 |
Balance Sheets (Current Period5
Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts receivable, allowance | $ 8,654 | $ 8,654 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 4,594,319 | 4,594,319 |
Common stock, shares outstanding (in shares) | 4,594,319 | 4,594,319 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 930,472 | $ 2,971,021 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 91,192 | 85,972 |
Realized loss (gain) on sale of investments | 3,268 | (5,672) |
Recovery of bad debt | (12,326) | |
(Decrease) increase in cash resulting from changes in operating assets and liabilities: | ||
Accounts receivable | (391,911) | (438,706) |
Inventories | (355,811) | 94,389 |
Prepaid expenses and other current assets | (25,055) | (29,602) |
Prepaid income taxes | 23,450 | 8,649 |
Accounts payable | (1,120) | 36,922 |
Accrued expenses | 249,894 | 350,666 |
Net cash provided by operating activities | 524,379 | 3,061,313 |
Cash flows from investing activities: | ||
Acquisition of property, plant and equipment | (116,694) | (24,785) |
Proceeds from sale of marketable securities | 1,058,155 | 2,018,166 |
Purchase of marketable securities | (689,501) | (2,920,812) |
Net cash provided by (used in) investing activities | 251,960 | (927,431) |
Cash flows from financing activities: | ||
Dividends paid | (1,603,871) | (2,298,219) |
Net cash used in financing activities | (1,603,871) | (2,298,219) |
Net decrease in cash and cash equivalents | (827,532) | (164,337) |
Cash and cash equivalents at beginning of period | 1,080,489 | 2,023,383 |
Cash and cash equivalents at end of period | 252,957 | 1,859,046 |
Supplemental disclosure of cash flow information | ||
Taxes paid | $ 400,300 | $ 1,150,000 |
Note 1 - Nature of Business
Note 1 - Nature of Business | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | 1. Nature of Business United-Guardian, Inc. (the “Company”) is a Delaware corporation that, through its Guardian Laboratories division, conducts research, product development, manufacturing and marketing of cosmetic ingredients and other personal care products, pharmaceuticals, medical and health care products and proprietary specialty industrial products. |
Note 2- Basis of Presentation
Note 2- Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | 2. Basis of Presentation Interim financial statements of the Company are prepared in accordance with Generally Accepted Accounting Principles (“GAAP”) in the United States of America for interim financial information, pursuant to the requirements for reporting on Form 10-Q and Regulation SX. In the opinion of management, all adjustments, consisting solely of normal recurring accruals, considered necessary for the fair presentation of financial statements for the interim periods have been included. The results of operations for the three- and six-month periods ended June 30, 2016 (also referred to as the "second quarter of 2016" and the "first half of 2016", respectively) are not necessarily indicative of results that ultimately may be achieved for any other interim period or for the year ending December 31, 2016. The interim unaudited financial statements and notes thereto should be read in conjunction with the audited financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2015. |
Note 3 - Reclassification of Pr
Note 3 - Reclassification of Prior Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Reclassifications [Text Block] | 3. Reclassification of Prior Presentation Research and development costs have been reclassified for consistency with the current period presentation. This reclassification had no effect on the reported income from operations. During the third quarter of 2015 the Company concluded that it was more appropriate to reclassify these costs as a separate line item in the statements of income. Previously, such costs were included with operating expenses. |
Note 4 - Investments
Note 4 - Investments | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 4. Investments The fair values of the Company’s marketable securities are determined in accordance with GAAP, with fair value being defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the Company utilizes the three-tier value hierarchy, as prescribed by GAAP, which prioritizes the inputs used in measuring fair value, as follows: • Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The following available-for-sale securities, which comprise all the Company’s marketable securities, are re-measured to fair value on a recurring basis and are valued using Level 1 inputs, which are quoted prices (unadjusted) for identical assets in active markets: Unrealized June 30, 2016 (Unaudited) Cost Fair Value Gain Available for sale: Fixed income mutual funds $ 9,582,765 $ 9,751,271 $ 221,687 Equity and other mutual funds 655,145 870,762 162,436 $ 10,237,910 $ 10,622,033 $ 384,123 December 31, 2015 (Audited) Cost Fair Value Unrealized Gain (Loss) Available for Sale: Fixed income mutual funds $ 9,968,948 $ 9,900,587 $ (68,361 ) Equity and other mutual funds 640,884 818,883 177,999 $ 10,609,832 $ 10,719,470 $ 109,638 Proceeds from the sale and redemption of marketable securities amounted to $1,058,155 for the first half of 2016, which included realized losses of $3,268. Proceeds from the sale and redemption of marketable securities amounted to $2,018,166 for the first half of 2015, which included realized gains of $5,672. Investment income consisted principally of unrealized and realized gains and losses and dividend income from bond funds, mutual funds, and money market funds. Marketable securities include investments in fixed income and equity mutual funds and government securities which are classified as “available-for-sale” securities and are reported at their fair values. Unrealized gains and losses on “available-for-sale” securities are reported as accumulated other comprehensive income (loss) in stockholders’ equity, net of the related tax effects. Investment income is recognized when earned. Realized gains and losses on sales of investments are determined on a specific identification basis. |
Note 5 - Inventories
Note 5 - Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 5. Inventories June 30, December 31, (Unaudited) (Audited) Inventories consist of the following: Raw materials $ 329,438 $ 334,320 Work in process 47,862 44,836 Finished products 1,272,153 914,486 $ 1,649,453 $ 1,293,642 Inventories are valued at the lower of cost or current market value. Cost is determined using the average cost method, which approximates cost determined by the first-in, first-out ("FIFO") method. Finished product inventories at June 30, 2016 and December 31, 2015 are stated net of a reserve of $20,000 for slow-moving or obsolete inventory. |
Note 6 - Income Taxes
Note 6 - Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 6. Income Taxes The Company’s tax provision is based on its estimated annual effective rate. The Company continues to fully recognize its tax benefits, which are offset by a valuation allowance to the extent that it is more likely than not that the deferred tax assets will not be realized. As of June 30, 2016 and December 31, 2015, the Company did not have any unrecognized tax benefits. |
Note 7 - Comprehensive Income
Note 7 - Comprehensive Income | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 7. Comprehensive Income Accumulated other comprehensive income comprises unrealized gains and losses on marketable securities net of the related tax effect. June 30, 2016 December 31, 2015 Changes in Accumulated Other Comprehensive Income (Unaudited) (Audited) Beginning balance – net of tax $ 72,361 $ 259,869 Unrealized (loss)/gain on marketable securities before reclassifications - net of tax 184,429 (189,903 ) Realized gain/(loss) on sale of securities reclassified from accumulated other comprehensive income (3,268 ) 2,395 Ending balance - net of tax $ 253,522 $ 72,361 |
Note 8 - Defined Contribution P
Note 8 - Defined Contribution Plan | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 8. Defined Contribution Plan The Company sponsors a 401(k) defined contribution plan ("DC Plan") that provides for a dollar-for-dollar employer matching contribution of the first 4% of each employee's pay that is deferred by the employee. Employees become fully vested in employer matching contributions after one year of employment. In addition, the Company has been accruing $175,000 per year ($43,750 per quarter) toward the payment of a discretionary 401(k) contribution that is apportioned among all employees using a “pay-to-pay” safe harbor formula in accordance with IRS regulations. For the three- and six-month periods ended June 30, 2016 and 2015, the Company had accrued for discretionary contributions of $43,750 and $87,500, respectively, to the DC Plan. In the first half of 2016 and 2015, the Company did not make any discretionary contributions to the DC Plan. |
Note 9 - Related Party Transact
Note 9 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 9. Related-Party Transactions During the first half of 2016 and 2015, the Company paid to Bonamassa, Maietta and Cartelli, LLP $10,000 and $8,000, respectively, for accounting and tax services. Lawrence Maietta, a partner in Bonamassa, Maietta and Cartelli, LLP, is a director of the Company. |
Note 10 - Other Information
Note 10 - Other Information | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Other Liabilities Disclosure [Text Block] | 10. Other Information Accrued Expenses June 30, December 31, (Unaudited) (Audited) Bonuses $ 397,917 $ 250,000 401k plan contributions 87,500 --- Distribution fees 210,989 206,977 Payroll and related expenses 140,128 109,451 Annual report expenses 38,092 66,000 Audit fee 37,568 82,000 Other 123,323 71,195 Total Accrued Expenses $ 1,035,517 $ 785,623 |
Note 4 - Investments (Tables)
Note 4 - Investments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | Unrealized June 30, 2016 (Unaudited) Cost Fair Value Gain Available for sale: Fixed income mutual funds $ 9,582,765 $ 9,751,271 $ 221,687 Equity and other mutual funds 655,145 870,762 162,436 $ 10,237,910 $ 10,622,033 $ 384,123 December 31, 2015 (Audited) Cost Fair Value Unrealized Gain (Loss) Available for Sale: Fixed income mutual funds $ 9,968,948 $ 9,900,587 $ (68,361 ) Equity and other mutual funds 640,884 818,883 177,999 $ 10,609,832 $ 10,719,470 $ 109,638 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, December 31, (Unaudited) (Audited) Inventories consist of the following: Raw materials $ 329,438 $ 334,320 Work in process 47,862 44,836 Finished products 1,272,153 914,486 $ 1,649,453 $ 1,293,642 |
Note 7 - Comprehensive Income (
Note 7 - Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | June 30, 2016 December 31, 2015 Changes in Accumulated Other Comprehensive Income (Unaudited) (Audited) Beginning balance – net of tax $ 72,361 $ 259,869 Unrealized (loss)/gain on marketable securities before reclassifications - net of tax 184,429 (189,903 ) Realized gain/(loss) on sale of securities reclassified from accumulated other comprehensive income (3,268 ) 2,395 Ending balance - net of tax $ 253,522 $ 72,361 |
Note 10 - Other Information (Ta
Note 10 - Other Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | June 30, December 31, (Unaudited) (Audited) Bonuses $ 397,917 $ 250,000 401k plan contributions 87,500 --- Distribution fees 210,989 206,977 Payroll and related expenses 140,128 109,451 Annual report expenses 38,092 66,000 Audit fee 37,568 82,000 Other 123,323 71,195 Total Accrued Expenses $ 1,035,517 $ 785,623 |
Note 4 - Investments (Details T
Note 4 - Investments (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Proceeds from Sale and Maturity of Marketable Securities | $ 1,058,155 | $ 2,018,166 |
Marketable Securities, Realized Gain (Loss) | $ (3,268) | $ 5,672 |
Note 4 - Available-for-sale Sec
Note 4 - Available-for-sale Securities (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Fixed Income Securities [Member] | ||
Cost | $ 9,582,765 | $ 9,968,948 |
Fair Value | 9,751,271 | 9,900,587 |
Unrealized Gain/(Loss) | 221,687 | (68,361) |
Equity And Other Mutual Funds [Member] | ||
Cost | 655,145 | 640,884 |
Fair Value | 870,762 | 818,883 |
Unrealized Gain/(Loss) | 162,436 | 177,999 |
Cost | 10,237,910 | 10,609,832 |
Fair Value | 10,622,033 | 10,719,470 |
Unrealized Gain/(Loss) | $ 384,123 | $ 109,638 |
Note 5 - Inventories (Details T
Note 5 - Inventories (Details Textual) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory Valuation Reserves | $ 20,000 | $ 20,000 |
Note 5 - Summary of Inventories
Note 5 - Summary of Inventories (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Raw materials | $ 329,438 | $ 334,320 |
Work in process | 47,862 | 44,836 |
Finished products | 1,272,153 | 914,486 |
Total inventories | $ 1,649,453 | $ 1,293,642 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Unrecognized Tax Benefits | $ 0 | $ 0 |
Note 7 - Accumulated Other Comp
Note 7 - Accumulated Other Comprehensive Income (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Beginning balance – net of tax | $ 72,361 | $ 259,869 |
Unrealized (loss)/gain on marketable securities before reclassifications - net of tax | 184,429 | (189,903) |
Realized gain/(loss) on sale of securities reclassified from accumulated other comprehensive income | (3,268) | 2,395 |
Ending balance - net of tax | $ 253,522 | $ 72,361 |
Note 8 - Defined Contribution27
Note 8 - Defined Contribution Plan (Details Textual) - DC Plan [Member] - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.00% | ||
Defined Contribution, Discretionary Contribution Plan, Vesting Period | 1 year | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount Per Year Authorized | $ 175,000 | ||
Defined Contribution Plan, Cost Recognized | $ 43,750 | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 43,750 | $ 87,500 |
Note 9 - Related Party Transa28
Note 9 - Related Party Transactions (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Accounting and Tax Services [Member] | Director [Member] | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 10,000 | $ 8,000 |
Note 10 - Accrued Expenses (Det
Note 10 - Accrued Expenses (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Accrued Annual Report [Member] | ||
Professional fees | $ 38,092 | $ 66,000 |
Accrued Audit Fee [Member] | ||
Professional fees | 37,568 | 82,000 |
Bonuses | 397,917 | 250,000 |
401k plan contributions | 87,500 | |
Distribution fees | 210,989 | 206,977 |
Payroll and related expenses | 140,128 | 109,451 |
Other | 123,323 | 71,195 |
Total Accrued Expenses | $ 1,035,517 | $ 785,623 |