Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 01, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-10526 | |
Entity Registrant Name | UNITED-GUARDIAN, INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 11-1719724 | |
Entity Address, Address Line One | 230 Marcus Boulevard | |
Entity Address, City or Town | Hauppauge | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 11788 | |
City Area Code | 631 | |
Local Phone Number | 273-0900 | |
Title of 12(b) Security | Common Stock, $0.10 par value per share | |
Trading Symbol | UG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 4,594,319 | |
Entity Central Index Key | 0000101295 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Statements of Income (Unaudited
Statements of Income (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net sales | $ 3,254,944 | $ 2,570,324 |
Costs and expenses: | ||
Cost of sales | 1,556,490 | 1,093,595 |
Operating expenses | 568,865 | 517,946 |
Research and development | 102,982 | 126,959 |
Total costs and expenses | 2,228,337 | 1,738,500 |
Income from operations | 1,026,607 | 831,824 |
Other Income: | ||
Investment income | 98,073 | 47,632 |
Net gain on marketable securities | 41,496 | 72,701 |
Total other income | 139,569 | 120,333 |
Income before provision for income taxes | 1,166,176 | 952,157 |
Provision for income taxes | 240,734 | 196,076 |
Net income | $ 925,442 | $ 756,081 |
Earnings per common share | ||
Weighted average shares – basic and diluted (in shares) | 4,594,319 | 4,594,319 |
Weighted average shares – basic and diluted (in shares) | 4,594,319 | 4,594,319 |
Balance Sheets (Current Period
Balance Sheets (Current Period Unaudited) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 7,073,296 | $ 8,243,122 |
Marketable securities | 1,536,336 | 851,318 |
Accounts receivable, net of allowance for credit losses of $24,321 at March 31, 2024 and $16,672 at December 31, 2023 | 2,133,131 | 1,566,839 |
Inventories (net) | 1,278,691 | 1,223,506 |
Prepaid expenses and other current assets | 207,584 | 191,708 |
Prepaid income taxes | 200,951 | 176,220 |
Total current assets | 12,429,989 | 12,252,713 |
Deferred income taxes | 0 | 50,930 |
Net property, plant, and equipment: | ||
Land | 69,000 | 69,000 |
Factory equipment and fixtures | 4,689,802 | 4,669,936 |
Building and improvements | 2,978,667 | 2,976,577 |
Total property, plant, and equipment | 7,737,469 | 7,715,513 |
Less: Accumulated depreciation | 7,120,029 | 7,096,318 |
Total property, plant, and equipment (net) | 617,440 | 619,195 |
TOTAL ASSETS | 13,047,429 | 12,922,838 |
Current liabilities: | ||
Accounts payable | 418,650 | 134,449 |
Accrued expenses | 1,422,319 | 1,363,044 |
Deferred revenue | 0 | 15,498 |
Dividends payable | 21,377 | 21,265 |
Total current liabilities | 1,862,346 | 1,534,256 |
Deferred income taxes | 19,639 | 0 |
Total liabilities | 1,881,985 | 1,534,256 |
Commitments and Contingencies | ||
Stockholders’ equity: | ||
Common stock $.10 par value; 10,000,000 shares authorized; 4,594,319 shares issued and outstanding at March 31, 2024 and December 31, 2023 | 459,432 | 459,432 |
Retained earnings | 10,706,012 | 10,929,150 |
Total stockholders’ equity | 11,165,444 | 11,388,582 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 13,047,429 | $ 12,922,838 |
Balance Sheets (Current Perio_2
Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 24,321 | $ 16,672 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.1 | $ 0.1 |
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 Changes in Stockh
Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] Dividend Paid [Member] | Common Stock [Member] | Common Stock, Amount [Member] | Retained Earnings [Member] Dividend Paid [Member] | Retained Earnings [Member] | Dividend Paid [Member] | Total |
Balance (in shares) at Dec. 31, 2022 | 4,594,319 | ||||||
Balance at Dec. 31, 2022 | $ 459,432 | $ 8,807,212 | $ 9,266,644 | ||||
Net income | 756,081 | 756,081 | |||||
Dividends | 0 | ||||||
Balance (in shares) at Mar. 31, 2023 | 4,594,319 | ||||||
Balance at Mar. 31, 2023 | $ 459,432 | 9,563,293 | 10,022,725 | ||||
Balance (in shares) at Dec. 31, 2023 | 4,594,319 | ||||||
Balance at Dec. 31, 2023 | $ 459,432 | 10,929,150 | 11,388,582 | ||||
Net income | 925,442 | 925,442 | |||||
Dividends | $ 0 | $ 0 | $ (1,148,468) | (112) | $ (1,148,468) | (112) | |
Balance (in shares) at Mar. 31, 2024 | 4,594,319 | ||||||
Balance at Mar. 31, 2024 | $ 459,432 | $ 10,706,012 | $ 11,165,444 |
Statements of Changes in Stoc_2
Statements of Changes in Stockholders' Equity (Unaudited) (Parentheticals) | 3 Months Ended |
Mar. 31, 2024 $ / shares | |
Dividend Paid [Member] | |
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $ 0.25 |
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $ 0.25 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 925,442 | $ 756,081 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 23,711 | 24,455 |
Net gain on marketable securities | (41,496) | (72,701) |
Allowance for (recovery of) credit losses | 7,649 | (9) |
Change in allowance for obsolete inventory | (17,000) | 16,500 |
Deferred income taxes | 70,569 | (50,553) |
(Increase) decrease in operating assets: | ||
Accounts receivable | (573,941) | (53,078) |
Inventories | (38,185) | (814,577) |
Prepaid expenses and other current assets | (15,876) | (29,078) |
Prepaid income taxes | (24,731) | 96,629 |
Increase (decrease) in operating liabilities: | ||
Accounts payable | 284,201 | 411,093 |
Accrued expenses and other current liabilities | 59,275 | (7,983) |
Deferred revenue | (15,498) | 140,810 |
Net cash provided by operating activities | 644,120 | 417,589 |
Cash flows from investing activities: | ||
Acquisition of property, plant, and equipment | (21,956) | (2,582) |
Proceeds from sale of marketable securities | 150,000 | 0 |
Purchase of marketable securities | (793,522) | (43,506) |
Net cash used in investing activities | (665,478) | (46,088) |
Net cash used in financing activities | ||
Dividends paid | (1,148,468) | 0 |
Net cash used in financing activities | (1,148,468) | 0 |
Net (decrease) increase in cash and cash equivalents | (1,169,826) | 371,501 |
Cash and cash equivalents at beginning of period | 8,243,122 | 830,452 |
Cash and cash equivalents at end of period | 7,073,296 | 1,201,953 |
Supplemental disclosure of cash flow information: | ||
Taxes paid | 250,000 | 150,000 |
Supplemental disclosure of non-cash items: | ||
Dividends payable | $ 112 | $ 0 |
Note 1 - Nature of Business
Note 1 - Nature of Business | 3 Months Ended |
Mar. 31, 2024 | |
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. (“Registrant” or “Company”) is a Delaware corporation that, through its Guardian Laboratories division, manufactures and markets cosmetic ingredients, pharmaceutical products, medical lubricants, and sexual wellness ingredients. Prior to July 1, 2023, the Company manufactured and reported sales of a line of specialty industrial products; however, this product line was discontinued after the second quarter of 2023 due to low sales volume with no growth prospects. The Company conducts research and product development leading to commercialization of new premium ingredients for cosmetics and healthcare products. The Company’s research and development department also modifies, refines, and expands the uses for existing products, with the goal of further developing the market for its products. The Company also develops new products using natural and environmentally friendly raw materials, which is a priority for many of the Company’s cosmetic customers. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | 2. Basis of Presentation Interim condensed financial statements of the Company are prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) for interim financial information, pursuant to the requirements for reporting on Form 10-Q and Regulation S-X. In the opinion of management, all adjustments considered necessary for the fair presentation of financial statements for the interim periods have been included. The results of operations for the three months ended March 31, 2024 (also referred to as the “first quarter of 2024”) are not necessarily indicative of results that ultimately may be achieved for any other interim period or for the year ending December 31, 2024. The interim unaudited condensed financial statements and notes thereto should be read in conjunction with the audited condensed financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2023. |
Note 3 - Impact of Global Suppl
Note 3 - Impact of Global Supply Chain Instability and Inflation | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Impact of Coronavirus (COVID-19) [Text Block] | 3. Impact of Global Supply Chain Instability and Inflation The continued supply chain instability, primarily caused by military conflicts in the Middle East, has impacted vessels’ access to the Red Sea and Suez Canal. The Company is working closely with its suppliers regarding lead times and continues to closely monitor this situation. Although we have not yet experienced any delays in receiving raw materials or an increase in shipping costs, we are aware that the situation is fluid and could impact the Company at any time. If that occurs, we may experience longer lead times and increased shipping costs for some of our raw materials, which may impact our future gross margins. As a result of this global supply chain instability, the softer consumer demand and higher interest rates, there continues to be uncertainty regarding the potential impact on our operations and financial results and we are unable to provide an accurate estimate or projection as to what the future impact will be. |
Note 4 - Use of Estimates
Note 4 - Use of Estimates | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Use of Estimates Disclosure [Text Block] | 4. Use of Estimates In preparing financial statements in conformity with Generally Accepted Accounting Principles in the United States of America (“US GAAP”), 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 revenue and expenses during the reporting period. Actual results could differ from those estimates. Such estimated items include the allowance for credit losses, reserve for inventory obsolescence, accrued distribution fees, outdated material returns, possible impairment of marketable securities and the allocation of overhead. |
Note 5 - Cash and Cash Equivale
Note 5 - Cash and Cash Equivalents | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Cash and Cash Equivalents Disclosure [Text Block] | 5. Cash and Cash Equivalents For financial statement purposes, the Company considers as cash equivalents all highly liquid investments with an original maturity of three months or less at the time of purchase. The Company deposits cash and cash equivalents with financially strong, FDIC-insured financial institutions, and believes that any amounts above FDIC insurance limitations are at minimal risk. The amounts held in excess of FDIC limits at any point in time are considered temporary and are primarily due to the timing of the maturities of United States Treasury Bills. Cash and cash equivalents are currently insured by the Federal Deposit Insurance Corporation (“FDIC”) up to a maximum of $250,000. At March 31, 2024, approximately $425,000 exceeded the FDIC limit, compared with $315,000 at December 31, 2023. The following table summarizes the Company’s cash and cash equivalents: March 31, December 31, 2024 2023 Demand Deposits $ 300,684 $ 340,034 Certificates of Deposit (original 3-month maturity) - 125,000 Money Market Funds 533,073 1,031,361 U.S. Treasury Bills (original 3-month maturity) 6,239,539 6,746,727 Total cash and cash equivalents $ 7,073,296 $ 8,243,122 |
Note 6 - Accounts Receivable an
Note 6 - Accounts Receivable and Reserves | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Accounts and Nontrade Receivable [Text Block] | 6. Accounts Receivable and Reserves As of January 1, 2023, the Company adopted FASB Accounting Standards Update (“ASU”) No. 2016-13 , Measurement of Credit Losses on Financial Instruments The carrying amount of accounts receivable is reduced by an allowance for credit losses that reflects the Company’s best estimate of the amounts that will not be collected as of the balance sheet date. This allowance is based on the credit losses expected to arise over the life of the asset and is based on the Current Expected Credit Losses (“CECL”). At March 31, 2024, and December 31, 2023, the allowance for credit losses related to accounts receivable amounted to $24,321 and $16,672, respectively. |
Note 7 - Revenue Recognition
Note 7 - Revenue Recognition | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 7. Revenue Recognition The Company records revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers As long as a valid purchase order has been received and future collection of the sale amount is reasonably assured, the Company recognizes revenue from sales of its products when those products are shipped, which is when the Company’s performance obligation is satisfied. The Company’s cosmetic ingredients are shipped “Ex-Works” from the Company’s facility in Hauppauge, NY, and the risk of loss and responsibility for the shipment passes to the customer upon shipment. Sales of the Company’s non-pharmaceutical medical products are deemed final upon shipment, and there is no obligation on the part of the Company to repurchase or allow the return of these goods unless they are defective. Sales of the Company’s pharmaceutical products are final upon shipment unless (a) they are found to be defective; (b) the product is damaged in shipping; (c) the product cannot be sold because it is too close to its expiration date; or (d) the product has expired (but it is not more than one year after the expiration date). This return policy conforms to standard pharmaceutical industry practice. The Company estimates an allowance for outdated material returns based on previous years’ historical returns of its pharmaceutical products. Our sales, as reported, are subject to a variety of deductions, some of which are estimated. These deductions are recorded in the same period that the revenues are recognized. Such deductions, primarily related to sales of the Company’s pharmaceutical products, include chargebacks from the United States Department of Veterans Affairs (“VA”), rebates in connection with the Company’s participation in Medicare programs, distribution fees, discounts, and outdated product returns. These deductions represent estimates of the related obligations and, as such, knowledge and judgment are required when estimating the impact of these revenue deductions on sales for a reporting period. During 2024 and 2023, the Company participated in various government drug rebate programs related to the sale of Renacidin®, its most important pharmaceutical product. These programs include the Veterans Affairs Federal Supply Schedule (FSS), and the Medicare Part D Coverage Gap Discount Program (CGDP). These programs require the Company to sell its product at a discounted price. Our sales, as reported, are net of these product rebates and discounts, some of which are estimated and are recorded in the same period that the revenue is recognized. In August of 2022, the Inflation Reduction Act (“IRA”) was signed into law. The IRA made significant changes to the current Medicare Part D benefit design as it relates to discounts available to enrollees from pharmaceutical manufacturers of brand name drugs. Beginning on January 1, 2025, the Centers for Medicare & Medicaid Services (“CMS”) will implement a new Medicare Part D Manufacturer Discount Program (“discount program”), which will replace the current CGDP. The new discount program eliminates the coverage gap benefit phase, introduces pharmaceutical manufacturer discounts in the initial and catastrophic coverage phases and lowers the cap on enrollee out-of-pocket costs. Under the new discount program, additional rebates are expected to be owed by pharmaceutical manufacturers due to the restructuring of the benefit periods. The overall financial impact of this new program will vary depending on the products being reimbursed but does have the potential to increase Medicare Part D rebates for drug manufacturers. At this time, the Company is unable to predict what future impact this new program will have on its financial condition; however, it submitted information to CMS requesting to be classified as a “specified small manufacturer”. If designated as such, the Company would be entitled to a multi-year phase-in period during which it would pay a lower percentage discount on drugs dispensed to beneficiaries. On January 31, 2024, the Company was notified by CMS that it qualified as a specified small manufacturer and will receive the discount phase-in discussed above. The Company does not make sales on consignment, and the collection of the proceeds of the sale of any of the Company’s products is not contingent upon the customer being able to sell the goods to a third party. Any allowances for returns are taken as a reduction of sales within the same period the revenue is recognized. Such allowances are determined based on historical experience under ASC Topic 606-10-32-8. At March 31, 2024 and December 31, 2023, the Company had an allowance of $255,494 and $247,847, respectively, for possible outdated material returns, which is included in accrued expenses. There is no asset value associated with these outdated material returns, as these products are destroyed. At December 31, 2023, the Company recorded advance payments from customers of $15,498, which were included in deferred revenue on the balance sheet. The related performance obligations associated with these payments were satisfied in the first quarter of 2024. There were no The Company has distribution fee contracts with certain distributors of its pharmaceutical products that entitle them to distribution and service-related fees. The Company records distribution fees and estimates of distribution fees as offsets to revenue. Disaggregated revenue by product class is as follows: Three months ended March 31, 2024 2023 Cosmetic ingredients $ 1,876,482 $ 761,901 Pharmaceuticals 950,323 1,354,224 Medical lubricants 428,139 421,031 Industrial and other - 33,168 Net Sales $ 3,254,944 $ 2,570,324 The Company’s cosmetic ingredients are marketed worldwide by five distributors, of which U.S.-based Ashland Specialty Ingredients (“ASI”) purchases the largest volume. Approximately 13% of the Company’s total sales were to customers located outside of the United States in the first quarter of 2024, compared with approximately 24% in the first quarter of 2023. Disaggregated revenue by geographic region is as follows: Three months ended March 31, 2024 2023 United States * $ 2,818,937 $ 1,942,015 Other countries 436,007 628,309 Net Sales $ 3,254,944 $ 2,570,324 * |
Note 8 - Accounting for Financi
Note 8 - Accounting for Financial Instruments - Credit Losses | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Credit Loss, Financial Instrument [Text Block] | 8. Accounting for Financial Instruments – Credit Losses On January 1, 2023, the Company adopted FASB Accounting Standards Update (“ASU”) No. 2016-13 , Measurement of Credit Losses on Financial Instruments The timing between recognition of revenue for product sales and the receipt of payment is not significant. The Company’s standard credit terms, which vary depending on the customer, range between 30 and 60 days. The Company provides allowances for any receivables for which collection is doubtful in accordance with ASU 2016-13. As of March 31, 2024 and December 31, 2023, the allowance for credit losses on accounts receivable was $24,321 and $16,672, respectively. Prompt-pay discounts are offered to some customers; however, due to the uncertainty of the customers taking the discounts, the discounts are recorded only after they have been taken. |
Note 9 - Marketable Securities
Note 9 - Marketable Securities | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 9. Marketable Securities The Company’s marketable securities include investments in equity mutual funds and Certificates of Deposit with maturities longer than three months. The Company’s marketable equity securities are reported at fair value with the related unrealized and realized gains and losses included in net income. Certificates of Deposit are recorded at amortized cost. Realized gains or losses on mutual funds are determined on a specific identification basis. The Company evaluates its investments periodically for possible other-than-temporary impairment by reviewing factors such as the length of time and extent to which fair value had been below cost basis, the financial condition of the issuer and the Company’s ability and intent to hold the investment for a period of time which may be sufficient for anticipated recovery of market value. The disaggregated net gains and losses on the marketable securities recognized in the statements of income for the three months ended March 31, 2024 and 2023 are as follows: Three months ended March 31, 2024 2023 Net gains recognized during the period on marketable securities $ 41,496 $ 72,701 Less: Net gains (losses) realized on marketable securities sold during the period - - Net unrealized gains recognized during the reporting period on marketable securities still held at the reporting date $ 41,496 $ 72,701 The fair values of the Company’s marketable securities are determined in accordance with US 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 at the measurement date. 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 US 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 Company’s marketable equity securities, which are considered available-for-sale securities, are re-measured to fair value on a recurring basis and are valued using Level 1 inputs using quoted prices (unadjusted) for identical assets in active markets. The following tables summarize the Company’s investments: March 31, 2024 (unaudited) Cost Fair Value Unrealized Gain Equity Securities: Equity and other mutual funds $ 577,852 $ 621,336 $ 43,484 Other short-term investments: Fixed income Certificates of Deposit (original maturities > 3 months) 915,000 915,000 - Total marketable securities $ 1,492,852 $ 1,536,336 $ 43,484 December 31, 2023 (audited) Cost Fair Value Unrealized Gain Equity Securities: Equity and other mutual funds $ 574,330 $ 576,318 $ 1,988 Other short-term investments: Fixed income Certificates of Deposit (original maturities > 3 months) 275,000 275,000 - Total marketable securities $ 849,330 $ 851,318 $ 1,988 Investment income is recognized when earned and consists principally of dividend income from equity mutual funds and interest income on United States Treasury Bills, Certificates of Deposit and money market funds. Realized gains and losses on sales of investments are determined on a specific identification basis. Proceeds from the redemption of marketable securities were $150,000 in the first quarter of 2024. There were no |
Note 10 - Inventories
Note 10 - Inventories | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 10. Inventories March 31, December 31, 2024 2023 Inventories consist of the following: (Unaudited) (Audited) Raw materials $ 490,567 $ 476,501 Work in process 47,516 92,089 Finished products 740,608 654,916 Total inventories $ 1,278,691 $ 1,223,506 Inventories are valued at the lower of cost and net realizable value. Net realizable value is equal to the selling price less the estimated costs of selling and/or disposing of the product. Cost is determined using the average cost method, which approximates cost determined by the first-in, first-out (“FIFO”) method. Finished product inventories at March 31, 2024 and December 31, 2023 are stated net of a reserve of $30,000 and $47,000, respectively, for slow-moving and obsolete inventory. |
Note 11 - Income Taxes
Note 11 - Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 11. Income Taxes The Company’s tax provision is based on its estimated annual effective tax rate. The Company continues to fully recognize its tax benefits, and as of March 31, 2024 and December 31, 2023, the Company did not have any unrecognized tax benefits. The Company’s provision for income taxes for the three months ended March 31, 2024 and 2023 comprises the following: Three months ended March 31 2024 2023 Provision for federal income taxes – current $ 169,940 $ 246,379 Provision for state income taxes – current 225 250 Provision for (benefit from) federal income taxes – deferred 70,569 (50,553 ) Total provision for income taxes $ 240,734 $ 196,076 |
Note 12 - Defined Contribution
Note 12 - Defined Contribution Plan | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | 12. 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 immediately. The Company also makes discretionary contributions to each employee's account based on a "pay-to-pay" safe-harbor formula that qualifies the 401(k) Plan under current IRS regulations. Employees become vested in the discretionary contributions as follows: 20% after two six |
Note 13 - Other Information
Note 13 - Other Information | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Other Liabilities Disclosure [Text Block] | 13. Other Information Accrued expenses: March 31, 2024 December 31, 2023 (unaudited) (audited) Bonuses $ 262,819 $ 187,002 Distribution fees 416,998 407,133 Payroll and related expenses 105,438 96,157 Reserve for outdated material 255,494 247,847 Insurance 108,019 - Audit fees 73,243 71,000 Annual report expenses 43,985 81,725 Company 401K contribution 27,250 109,000 Sales rebates 99,319 132,250 Other 29,754 30,930 Total accrued expenses $ 1,422,319 $ 1,363,044 |
Note 14 - Recent Accounting Pro
Note 14 - Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | 14. Recent Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09 “ Income Taxes- Improvements to Income Tax Disclosures |
Note 15 - Concentration of Cred
Note 15 - Concentration of Credit Risk | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 15. Concentration of Credit Risk Customer concentration For the three months ended March 31, 2024, three one three |
Note 16 - Supplier Concentratio
Note 16 - Supplier Concentration | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Vendor Concentration Risk Disclosure [Text Block] | 16. Supplier Concentration Most of the principal raw materials used by the Company consist of common industrial organic and inorganic chemicals and are available in ample supply from numerous sources. However, there are some raw materials used by the Company that are not readily available or require long lead times. During the first quarter of 2024, the Company had four three |
Note 17 - Earnings Per Share
Note 17 - Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 17. 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. Basic and diluted earnings per share amounted to $0.20 and $0.16 for the three months ended March 31, 2024 and 2023, respectively. |
Note 18 - Related-party Transac
Note 18 - Related-party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 18. Related Party Transactions For the quarters ended March 31, 2024 and 2023, the Company made payments of $10,000 and $30,000, respectively, to Ken Globus, the Company’s former President, for consulting services subsequent to his departure from the Company. The Company’s consulting agreement with Ken Globus expires on May 31, 2024. Ken Globus is a director of the Company and currently serves as Chairman of the Board of Directors. For the quarters ended March 31, 2024 and 2023, the Company paid PKF O’Connor Davies $5,250 and $3,000 respectively, for accounting and tax services. Lawrence Maietta, a partner at PKF O’Connor Davies, is a director of the Company. |
Note 19 - Dividends
Note 19 - Dividends | 3 Months Ended |
Mar. 31, 2024 | |
Notes to Financial Statements | |
Dividends [Text Block] | 19. Dividends On January 30, 2024, the Company’s Board of Directors declared a cash dividend of $0.25 per share, which was paid on February 20, 2024, to all holders of record as of February 12, 2024. During the first quarter of 2024 the Company declared a total of $1,148,580 in dividends, of which $1,148,468 was paid. The balance of $112 is payable to stockholders whose old Guardian Chemical shares have not yet been exchanged to United-Guardian, Inc. shares and are pending escheatment. There were no |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Insider Trading Arr Line Items | |
Material Terms of Trading Arrangement [Text Block] | ITEM 5. OTHER INFORMATION None |
Rule 10b5-1 Arrangement Adopted [Flag] | false |
Rule 10b5-1 Arrangement Terminated [Flag] | false |
Non-Rule 10b5-1 Arrangement Adopted [Flag] | false |
Non-Rule 10b5-1 Arrangement Terminated [Flag] | false |
Note 5 - Cash and Cash Equiva_2
Note 5 - Cash and Cash Equivalents (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Cash and Cash Equivalents [Table Text Block] | March 31, December 31, 2024 2023 Demand Deposits $ 300,684 $ 340,034 Certificates of Deposit (original 3-month maturity) - 125,000 Money Market Funds 533,073 1,031,361 U.S. Treasury Bills (original 3-month maturity) 6,239,539 6,746,727 Total cash and cash equivalents $ 7,073,296 $ 8,243,122 |
Note 7 - Revenue Recognition (T
Note 7 - Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three months ended March 31, 2024 2023 Cosmetic ingredients $ 1,876,482 $ 761,901 Pharmaceuticals 950,323 1,354,224 Medical lubricants 428,139 421,031 Industrial and other - 33,168 Net Sales $ 3,254,944 $ 2,570,324 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Three months ended March 31, 2024 2023 United States * $ 2,818,937 $ 1,942,015 Other countries 436,007 628,309 Net Sales $ 3,254,944 $ 2,570,324 |
Note 9 - Marketable Securities
Note 9 - Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Gain (Loss) on Securities [Table Text Block] | Three months ended March 31, 2024 2023 Net gains recognized during the period on marketable securities $ 41,496 $ 72,701 Less: Net gains (losses) realized on marketable securities sold during the period - - Net unrealized gains recognized during the reporting period on marketable securities still held at the reporting date $ 41,496 $ 72,701 |
Marketable Securities [Table Text Block] | March 31, 2024 (unaudited) Cost Fair Value Unrealized Gain Equity Securities: Equity and other mutual funds $ 577,852 $ 621,336 $ 43,484 Other short-term investments: Fixed income Certificates of Deposit (original maturities > 3 months) 915,000 915,000 - Total marketable securities $ 1,492,852 $ 1,536,336 $ 43,484 December 31, 2023 (audited) Cost Fair Value Unrealized Gain Equity Securities: Equity and other mutual funds $ 574,330 $ 576,318 $ 1,988 Other short-term investments: Fixed income Certificates of Deposit (original maturities > 3 months) 275,000 275,000 - Total marketable securities $ 849,330 $ 851,318 $ 1,988 |
Note 10 - Inventories (Tables)
Note 10 - Inventories (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 31, December 31, 2024 2023 Inventories consist of the following: (Unaudited) (Audited) Raw materials $ 490,567 $ 476,501 Work in process 47,516 92,089 Finished products 740,608 654,916 Total inventories $ 1,278,691 $ 1,223,506 |
Note 11 - Income Taxes (Tables)
Note 11 - Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Three months ended March 31 2024 2023 Provision for federal income taxes – current $ 169,940 $ 246,379 Provision for state income taxes – current 225 250 Provision for (benefit from) federal income taxes – deferred 70,569 (50,553 ) Total provision for income taxes $ 240,734 $ 196,076 |
Note 13 - Other Information (Ta
Note 13 - Other Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses: March 31, 2024 December 31, 2023 (unaudited) (audited) Bonuses $ 262,819 $ 187,002 Distribution fees 416,998 407,133 Payroll and related expenses 105,438 96,157 Reserve for outdated material 255,494 247,847 Insurance 108,019 - Audit fees 73,243 71,000 Annual report expenses 43,985 81,725 Company 401K contribution 27,250 109,000 Sales rebates 99,319 132,250 Other 29,754 30,930 Total accrued expenses $ 1,422,319 $ 1,363,044 |
Note 5 - Cash and Cash Equiva_3
Note 5 - Cash and Cash Equivalents (Details Textual) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Cash, Uninsured Amount | $ 425,000 | $ 315,000 |
Note 5 - Cash and Cash Equiva_4
Note 5 - Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Certificates of Deposit (original 3-month maturity) | $ 0 | $ 125,000 |
Money market funds | 533,073 | 1,031,361 |
U.S. Treasury Bills (original 3-month maturity) | 6,239,539 | 6,746,727 |
Total cash and cash equivalents | 7,073,296 | 8,243,122 |
Demand Deposits [Member] | ||
Demand deposits | $ 300,684 | $ 340,034 |
Note 6 - Accounts Receivable _2
Note 6 - Accounts Receivable and Reserves (Details Textual) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts Receivable, Allowance for Credit Loss | $ 24,321 | $ 16,672 |
Note 7 - Revenue Recognition (D
Note 7 - Revenue Recognition (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Allowance for Material Returns | $ 255,494 | $ 247,847 | |
Contract with Customer, Liability, Current | $ 0 | $ 15,498 | |
Cosmetic Ingredients [Member] | Non-US [Member] | Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | |||
Concentration Risk, Percentage | 13% | 24% | |
ASI [Member] | Non-US [Member] | Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | |||
Concentration Risk, Percentage | 83% | 78% | |
ASI [Member] | CHINA | Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | |||
Concentration Risk, Percentage | 45% | 24% |
Note 7 - Revenue Recognition -
Note 7 - Revenue Recognition - Disaggregated Revenue (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net Sales | $ 3,254,944 | $ 2,570,324 |
Cosmetic Ingredients [Member] | ||
Net Sales | 1,876,482 | 761,901 |
Pharmaceuticals [Member] | ||
Net Sales | 950,323 | 1,354,224 |
Medical [Member] | ||
Net Sales | 428,139 | 421,031 |
Industrial And Other [Member] | ||
Net Sales | $ 0 | $ 33,168 |
Note 7 - Revenue Recognition _2
Note 7 - Revenue Recognition - Revenue by Geographic Region (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net Sales | $ 3,254,944 | $ 2,570,324 |
UNITED STATES | ||
Net Sales | 2,818,937 | 1,942,015 |
Non-US [Member] | ||
Net Sales | $ 436,007 | $ 628,309 |
Note 8 - Accounting for Finan_2
Note 8 - Accounting for Financial Instruments - Credit Losses (Details Textual) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 24,321 | $ 16,672 |
Note 9 - Marketable Securitie_2
Note 9 - Marketable Securities (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Proceeds from Sale and Maturity of Marketable Securities | $ 150,000 | $ 0 |
Note 9 - Marketable Securitie_3
Note 9 - Marketable Securities - Net Gains and Losses on Marketable Securities (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Net (losses) gains recognized during the period on marketable securities | $ 41,496 | $ 72,701 |
Less: Net losses recognized during the period on marketable securities sold during the period | 0 | 0 |
Unrealized (losses) gains recognized during the reporting period on marketable securities still held at the reporting date | $ 41,496 | $ 72,701 |
Note 9 - Marketable Securitie_4
Note 9 - Marketable Securities - Summary of Investments (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Equity and other mutual funds, cost | $ 577,852 | $ 574,330 |
Equity and other mutual funds, fair value | 621,336 | 576,318 |
Equity and other mutual funds, unrealized gain | 43,484 | 1,988 |
Fixed income certificates of deposit, cost | 915,000 | 275,000 |
Fixed income certificates of deposit, fair value | 915,000 | 275,000 |
Fixed income certificates of deposit, unrealized loss | 0 | |
Marketable securities, cost | 1,492,852 | 849,330 |
Marketable securities | 1,536,336 | 851,318 |
Marketable securities, unrealized loss | $ 43,484 | $ 1,988 |
Note 10 - Inventories (Details
Note 10 - Inventories (Details Textual) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Valuation Reserves | $ 30,000 | $ 47,000 |
Note 10 - Inventories - Summary
Note 10 - Inventories - Summary of Inventories (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Raw materials | $ 490,567 | $ 476,501 |
Work in process | 47,516 | 92,089 |
Finished products | 740,608 | 654,916 |
Total inventories | $ 1,278,691 | $ 1,223,506 |
Note 11 - Income Taxes - Provis
Note 11 - Income Taxes - Provision for Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Provision for federal income taxes - current | $ 169,940 | $ 246,379 |
Provision for state income taxes - current | 225 | 250 |
Provision for (benefit from) federal income taxes – deferred | 70,569 | (50,553) |
Total provision for income taxes | $ 240,734 | $ 196,076 |
Note 12 - Defined Contributio_2
Note 12 - Defined Contribution Plan (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Contribution Plan, Cost | $ 27,250 | $ 27,250 |
DC Plan [Member] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4% | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 109,000 | $ 94,326 |
DC Plan [Member] | Discretionary Contributions Vesting at Two Years [Member] | ||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 20% | |
Defined Contribution, Discretionary Contribution Plan, Vesting Period (Year) | 2 years | |
DC Plan [Member] | Discretionary Contributions Vesting Each Additional Year [Member] | ||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 20% | |
Defined Contribution, Discretionary Contribution Plan, Vesting Period (Year) | 6 years |
Note 13 - Other Information - S
Note 13 - Other Information - Summary of Accrued Expenses (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Bonuses | $ 262,819 | $ 187,002 |
Distribution fees | 416,998 | 407,133 |
Payroll and related expenses | 105,438 | 96,157 |
Reserve for outdated material | 255,494 | 247,847 |
Insurance | 108,019 | 0 |
Audit fee | 73,243 | 71,000 |
Annual report expenses | 43,985 | 81,725 |
Company 401(k) contribution | 27,250 | 109,000 |
Sales rebates | 99,319 | 132,250 |
Other | 29,754 | 30,930 |
Total Accrued Expenses | $ 1,422,319 | $ 1,363,044 |
Note 15 - Concentration of Cr_2
Note 15 - Concentration of Credit Risk (Details Textual) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Distributor [Member] | ||
Number of Customers | 3 | 3 |
Marketing Partner [Member] | ||
Number of Customers | 1 | |
Distributors and Marketing Partners [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk, Percentage | 83% | 74% |
Distributors and Marketing Partners [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk, Percentage | 90% | 79% |
Note 16 - Supplier Concentrat_2
Note 16 - Supplier Concentration (Details Textual) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Number of Vendors | 4 | 3 |
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Four Raw Material Vendors [Member] | ||
Concentration Risk, Percentage | 88% | |
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Three Raw Material Vendors [Member] | ||
Concentration Risk, Percentage | 85% |
Note 17 - Earnings Per Share (D
Note 17 - Earnings Per Share (Details Textual) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share, Basic, Total (in dollars per share) | $ 0.2 | $ 0.16 |
Note 18 - Related-party Trans_2
Note 18 - Related-party Transactions (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Previous President and CEO [Member] | Consulting Services [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 10,000 | $ 30,000 |
Director [Member] | Accounting and Tax Services [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 5,250 | $ 3,000 |
Note 19 - Dividends (Details Te
Note 19 - Dividends (Details Textual) - USD ($) | 3 Months Ended | ||
Jan. 30, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Common Stock, Dividends, Per Share, Declared | $ 0.25 | ||
Dividends Declared | $ 1,148,580 | $ 0 | |
Dividends, Paid | 1,148,468 | $ 0 | |
Dividends Payable | $ 112 |