United-Guardian (UG) 10-Q 9 Aug 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 01, 2017
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, 2017
Document Fiscal Year Focus	2,017
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, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Sales:
Gross sales	$ 3,891,656	$ 2,215,952	$ 6,764,379	$ 4,546,529
Sales rebates and allowances	(116,905)	(76,787)	(203,240)	(144,788)
Net Sales	3,774,751	2,139,165	6,561,139	4,401,741
Costs and expenses:
Cost of sales	1,667,113	1,007,666	2,931,209	1,905,391
Operating expenses	418,605	465,329	882,085	932,885
Research and development	158,275	157,895	348,004	335,461
Total costs and expenses	2,243,993	1,630,890	4,161,298	3,173,737
Income from operations	1,530,758	508,275	2,399,841	1,228,004
Investment income	72,796	82,906	125,668	126,218
Income before provision for income taxes	1,603,554	591,181	2,525,509	1,354,222
Provision for income taxes	499,405	185,800	786,925	423,750
Net Income	$ 1,104,149	$ 405,381	$ 1,738,584	$ 930,472
Earnings per common share (Basic and Diluted) (in dollars per share)	$ 0.24	$ 0.09	$ 0.38	$ 0.20
Weighted average shares – basic and diluted (in shares)	4,594,319	4,594,319	4,594,319	4,594,319

Statements of Comprehensive Inc

Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Net income	$ 1,104,149	$ 405,381	$ 1,738,584	$ 930,472
Other comprehensive income:
Unrealized gain on marketable securities	96,459	123,417	228,130	274,485
Income tax expense related to other comprehensive income	(32,797)	(41,961)	(77,565)	(93,324)
Total other comprehensive income, net of tax	63,662	81,456	150,565	181,161
Total Comprehensive income	$ 1,167,811	$ 486,837	$ 1,889,149	$ 1,111,633

Balance Sheets (Current Period

Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 705,076	$ 424,301
Marketable securities	10,271,950	10,218,009
Accounts receivable, net of allowance for doubtful accounts of $16,943 at June 30, 2017 and December 31, 2016	2,187,780	1,597,997
Inventories (net)	765,947	1,255,813
Prepaid expenses and other current assets	197,136	135,320
Prepaid income taxes		82,732
Total current assets	14,127,889	13,714,172
Net property, plant and equipment:
Land	69,000	69,000
Factory equipment and fixtures	4,344,234	4,342,629
Building and improvements	2,776,602	2,776,602
Total property, plant and equipment	7,189,836	7,188,231
Less: Accumulated depreciation	6,189,925	6,097,640
Total property, plant and equipment, net	999,911	1,090,591
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent		2,382
Other assets (net)	51,883	59,295
TOTAL ASSETS	15,179,683	14,866,440
Current liabilities:
Accounts payable	85,470	82,821
Accrued expenses	1,015,464	848,328
Income taxes payable	104,193
Dividends payable	119,350	114,802
Total current liabilities	1,324,477	1,045,951
Deferred income taxes (net)	75,182
Commitments and contingencies
Stockholders’ equity:
Common stock $.10 par value, 10,000,000 shares authorized; 4,594,319 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively	459,432	459,432
Accumulated other comprehensive income	326,199	175,634
Retained earnings	12,994,393	13,185,423
Total stockholders’ equity	13,780,024	13,820,489
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 15,179,683	$ 14,866,440

Balance Sheets (Current Period5

Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Accounts receivable, allowance for doubtful accounts	$ 16,943	$ 16,943
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	4,594,319	4,594,319
Common stock, shares outstanding (in shares)	4,594,319	4,594,319
Common stock, shares authorized (in shares)	10,000,000	10,000,000

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 1,738,584	$ 930,472
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	99,697	91,192
Realized (gain) loss on sale of investments	(4,106)	3,268
(Decrease) increase in cash resulting from changes in operating assets and liabilities:
Accounts receivable	(589,783)	(391,911)
Inventories	489,866	(355,811)
Prepaid expenses and other current assets	(61,816)	(25,055)
Prepaid income taxes	82,732	23,450
Accounts payable	2,649	(1,120)
Accrued expenses	167,136	249,894
Income taxes payable	104,193
Net cash provided by operating activities	2,029,152	524,379
Cash flows from investing activities:
Acquisition of property, plant and equipment	(1,605)	(116,694)
Proceeds from sale of marketable securities	321,114	1,058,155
Purchase of marketable securities	(142,820)	(689,501)
Net cash provided by investing activities	176,689	251,960
Cash flows from financing activities:
Dividends paid	(1,925,066)	(1,603,871)
Net cash used in financing activities	(1,925,066)	(1,603,871)
Net increase (decrease) in cash and cash equivalents	280,775	(827,532)
Cash and cash equivalents at beginning of period	424,301	1,080,489
Cash and cash equivalents at end of period	705,076	252,957
Supplemental disclosure of cash flow information
Taxes paid	600,000	400,300
Supplemental disclosure of non-cash dividends payable	$ 4,952	$ 4,141

Note 1 - Nature of Business

Note 1 - Nature of Business	6 Months Ended
	Jun. 30, 2017
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, 2017
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 three six June 30, 2017 ( 2017" 2017", not may December 31, 2017. 10 December 31, 2016.

Note 3 - Use of Estimates

Note 3 - Use of Estimates	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Use of Estimates Disclosure [Text Block]	3. Use of Estimates In preparing financial statements in conformity with U.S. generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimated items include the allowance for bad debts, possible impairment of marketable securities, and the allocation of overhead.

Note 4 - Marketable Securities

Note 4 - Marketable Securities	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	4. Marketable Securities 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 · Level 1 · Level 2 · Level 3 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 June 30, 2017 (Unaudited) Cost Fair Value Unrealized Available for sale: Fixed income mutual funds $ 9,165,327 $ 9,458,451 $ 293,124 Equity and other mutual funds 612,382 813,499 201,117 Total Investments $ 9,777,709 $ 10,271,950 $ 494,241 December 31, 2016 (Audited) Available for Sale: Fixed income mutual funds $ 9,339,352 $ 9,457,286 $ 117,934 Equity and other mutual funds 612,545 760,723 148,178 Total Investments $ 9,951,897 $ 10,218,009 $ 266,112 Proceeds from the sale and redemption of marketable securities amounted to $321,114 first 2017, $4,106. $1,058,155 first 2016, $3,268. Investment income consists principally of realized gains and losses, interest income from fixed income mutual funds and dividend income from equity and other mutual 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, 2017
Notes to Financial Statements
Inventory Disclosure [Text Block]	5. Inventories Six Months Ended Year Ended (Unaudited) (Audited) Inventories consist of the following: Raw materials $ 351,981 $ 349,383 Work in process 31,161 24,214 Finished products 382,805 882,216 TOTAL: $ 765,947 $ 1,255,813 Inventories are valued at the lower of cost or current net realizable value. Cost is determined using the average cost method, which approximates cost determined by the first first June 30, 2017 December 31, 2016 $ 20,000

Note 6 - Income Taxes

Note 6 - Income Taxes	6 Months Ended
	Jun. 30, 2017
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 not June 30, 2017 December 31, 2016, not

Note 7 - Comprehensive Income

Note 7 - Comprehensive Income	6 Months Ended
	Jun. 30, 2017
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. Changes in Accumulated Other Six Months Ended Year Ended (Unaudited) (Audited) Beginning balance $ 175,634 $ 72,361 Unrealized gain on marketable securities before reclassifications - net of tax 146,459 104,284 Realized gain (loss) on sale of securities reclassified from accumulated other comprehensive income – net of tax 4,106 (1,011 ) Ending balance - net of tax $ 326,199 $ 175,634

Note 8 - Defined Contribution P

Note 8 - Defined Contribution Plan	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	8. Defined Contribution Plan The Company sponsors a 401 first 4% one $175,000 $43,750 401 three six June 30, 2017 2016, 43,750 $ 87,500 first 2017 2016, not

Note 9 - Related-party Transact

Note 9 - Related-party Transactions	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	9. Related-Party Transactions During the first 2017 2016, $8,000 $10,000,

Note 10 - Other Information

Note 10 - Other Information	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Other Liabilities Disclosure [Text Block]	10. Other Information Accrued Expenses June 30, December 31, (Unaudited) (Audited) Bonuses $ 286,390 $ 200,000 Distribution fees 221,941 225,879 Payroll and related expenses 170,348 151,653 Reserve for outdated material 120,123 101,177 Company 401 (k) contribution 87,500 --- Annual report expenses 35,754 63,447 Audit fee 29,068 54,868 Insurance 24,574 9,381 Sales rebates 9,600 23,393 Other 30,166 18,530 Total Accrued Expenses $ 1,015,464 $ 848,328

Note 11 - Recent Accounting Pro

Note 11 - Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	11. Recent Accounting Pronouncements In May 2014, 2014 09, August 2015, 2015 14, December 15, 2017. In accordance with the Company’s implementation of ASU 2015 17 one $252,135 December 31, 2016 $254,517 December 31, 2016, $2,382 December 31, 2016. no In July 2015, 2015 11, first 2017, not In February 2016, 2016 02, 12 first 2019. not In June 2016, 2016 13 not December 15, 2019.

Note 12 - Concentrations of Cre

Note 12 - Concentrations of Credit Risk	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Concentration Risk Disclosure [Text Block]	12. Concentrations of Credit Risk Cash and cash equivalents - For financial statement purposes, the Company considers as cash equivalents all highly liquid investments with an original maturity of three $250,000. June 30, 2017, $609,000 Customer concentration - Accounts receivable potentially exposes the Company to concentrations of credit risk. The Company monitors the amount of credit it allows each of its customers, using the customer’s prior payment history to determine how much credit to allow or whether any credit should be given at all. It is the Company’s policy to discontinue shipments to any customer that is substantially past due on its payments. The Company sometimes requires payment in advance from customers whose payment record is questionable. As a result of its monitoring of the outstanding credit allowed for each customer, as well as the fact that the majority of the Company’s sales are to customers whose satisfactory credit and payment record has been established over a long period of time, the Company believes that its credit risk from accounts receivable is low. One one 55% 59% June 30, 2017. 42% 45% June 30, 2016.

Note 13 - Earnings Per Share

Note 13 - Earnings Per Share	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Earnings Per Share [Text Block]	13. Earnings Per Share Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Per share basic and diluted earnings amounted to $ 0.24 $.09 three June 30, 2017 2016, $0.38 $0.20 six June 30, 2017 2016,

Note 4 - Marketable Securities

Note 4 - Marketable Securities (Tables)	6 Months Ended
	Jun. 30, 2017
Notes Tables
Schedule of Available-for-sale Securities Reconciliation [Table Text Block]	June 30, 2017 (Unaudited) Cost Fair Value Unrealized Available for sale: Fixed income mutual funds $ 9,165,327 $ 9,458,451 $ 293,124 Equity and other mutual funds 612,382 813,499 201,117 Total Investments $ 9,777,709 $ 10,271,950 $ 494,241 December 31, 2016 (Audited) Available for Sale: Fixed income mutual funds $ 9,339,352 $ 9,457,286 $ 117,934 Equity and other mutual funds 612,545 760,723 148,178 Total Investments $ 9,951,897 $ 10,218,009 $ 266,112

Note 5 - Inventories (Tables)

Note 5 - Inventories (Tables)	6 Months Ended
	Jun. 30, 2017
Notes Tables
Schedule of Inventory, Current [Table Text Block]	Six Months Ended Year Ended (Unaudited) (Audited) Inventories consist of the following: Raw materials $ 351,981 $ 349,383 Work in process 31,161 24,214 Finished products 382,805 882,216 TOTAL: $ 765,947 $ 1,255,813

Note 7 - Comprehensive Income (

Note 7 - Comprehensive Income (Tables)	6 Months Ended
	Jun. 30, 2017
Notes Tables
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	Changes in Accumulated Other Six Months Ended Year Ended (Unaudited) (Audited) Beginning balance $ 175,634 $ 72,361 Unrealized gain on marketable securities before reclassifications - net of tax 146,459 104,284 Realized gain (loss) on sale of securities reclassified from accumulated other comprehensive income – net of tax 4,106 (1,011 ) Ending balance - net of tax $ 326,199 $ 175,634

Note 10 - Other Information (Ta

Note 10 - Other Information (Tables)	6 Months Ended
	Jun. 30, 2017
Notes Tables
Schedule of Accrued Liabilities [Table Text Block]	June 30, December 31, (Unaudited) (Audited) Bonuses $ 286,390 $ 200,000 Distribution fees 221,941 225,879 Payroll and related expenses 170,348 151,653 Reserve for outdated material 120,123 101,177 Company 401 (k) contribution 87,500 --- Annual report expenses 35,754 63,447 Audit fee 29,068 54,868 Insurance 24,574 9,381 Sales rebates 9,600 23,393 Other 30,166 18,530 Total Accrued Expenses $ 1,015,464 $ 848,328

Note 4 - Marketable Securitie24

Note 4 - Marketable Securities (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Marketable Securities, Realized Gain (Loss)	$ 4,106	$ (3,268)
Proceeds from Sale and Maturity of Marketable Securities	$ 321,114	$ 1,058,155

Note 4 - Marketable Securitie25

Note 4 - Marketable Securities - Available-for-sale Securities (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Unrealized gain (loss)	$ 494,241	$ 266,112
Cost	9,777,709	9,951,897
Marketable securities	10,271,950	10,218,009
Fixed Income Securities [Member]
Unrealized gain (loss)	293,124	117,934
Cost	9,165,327	9,339,352
Marketable securities	9,458,451	9,457,286
Equity And Other Mutual Funds [Member]
Unrealized gain (loss)	201,117	148,178
Cost	612,382	612,545
Marketable securities	$ 813,499	$ 760,723

Note 5 - Inventories (Details T

Note 5 - Inventories (Details Textual) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Inventory Valuation Reserves	$ 20,000	$ 20,000

Note 5 - Inventories - Summary

Note 5 - Inventories - Summary of Inventories (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Raw materials	$ 351,981	$ 349,383
Work in process	31,161	24,214
Finished products	382,805	882,216
TOTAL:	$ 765,947	$ 1,255,813

Note 6 - Income Taxes (Details

Note 6 - Income Taxes (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Unrecognized Tax Benefits	$ 0	$ 0

Note 7 - Comprehensive Income -

Note 7 - Comprehensive Income - Accumulated Other Comprehensive Income (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Beginning balance	$ 13,820,489
Ending balance - net of tax	13,780,024	$ 13,820,489
AOCI Attributable to Parent [Member]
Beginning balance	175,634	72,361
Unrealized gain on marketable securities before reclassifications - net of tax	146,459	104,284
Realized gain (loss) on sale of securities reclassified from accumulated other comprehensive income – net of tax	4,106	(1,011)
Ending balance - net of tax	$ 326,199	$ 175,634

Note 8 - Defined Contribution30

Note 8 - Defined Contribution Plan (Details Textual) - DC Plan [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
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, Employer Discretionary Contribution Amount			0	$ 0
Defined Contribution Plan, Cost	$ 43,750	$ 87,500	43,750	$ 87,500
Defined Contribution Plan, Employer Discretionary Contribution Amount Per Quarter Authorized			$ 43,750

Note 9 - Related-party Transa31

Note 9 - Related-party Transactions (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Accounting and Tax Services [Member] | Director [Member]
Related Party Transaction, Expenses from Transactions with Related Party	$ 8,000	$ 10,000

Note 10 - Other Information - A

Note 10 - Other Information - Accrued Expenses (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Bonuses	$ 286,390	$ 200,000
Distribution fees	221,941	225,879
Payroll and related expenses	170,348	151,653
Reserve for outdated material	120,123	101,177
Company 401 (k) contribution	87,500
Insurance	24,574	9,381
Sales rebates	9,600	23,393
Other	30,166	18,530
Total Accrued Expenses	1,015,464	848,328
Accrued Annual Report [Member]
Accrued Professional Fees	35,754	63,447
Accrued Audit Fee [Member]
Accrued Professional Fees	$ 29,068	$ 54,868

Note 11 - Recent Accounting P33

Note 11 - Recent Accounting Pronouncements (Details Textual) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Deferred Tax Liabilities, Net, Noncurrent	$ 75,182
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent		2,382
Scenario, Previously Reported [Member]
Deferred Tax Liabilities, Net, Noncurrent		252,135
Deferred Tax Assets, Net of Valuation Allowance, Current		254,517
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent		$ 2,382

Note 12 - Concentrations of C34

Note 12 - Concentrations of Credit Risk (Details Textual)	6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016
Cash, FDIC Insured Amount	$ 250,000
Cash, Uninsured Amount	$ 609,000
Distributor [Member]
Number of Customers	1	1
Marketing Partner [Member]
Number of Customers	1	1
Distributors and Marketing Partners [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Concentration Risk, Percentage	55.00%	42.00%
Distributors and Marketing Partners [Member] | Customer Concentration Risk [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage	59.00%	45.00%

Note 13 - Earnings Per Share (D

Note 13 - Earnings Per Share (Details Textual) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share, Basic and Diluted	$ 0.24	$ 0.09	$ 0.38	$ 0.20