United Guardian Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>United Guardian Inc. filed its 2023 10-K, detailing segment performance, customer and supplier concentration risks, and financial information.</b>

AI Summary

UNITED GUARDIAN INC (UG) filed a Annual Report (10-K) with the SEC on March 22, 2024. United Guardian Inc. filed its 2023 Form 10-K on March 22, 2024, reporting on the fiscal year ending December 31, 2023. The company operates in the Perfumes, Cosmetics & Other Toilet Preparations industry (SIC 2844). Key business segments include Pharmaceuticals, Cosmetic Ingredients, Medical Lubricants, and Industrial & Other. The filing details customer concentration, noting specific customers like Customer A, B, C, and D, as well as 'All Other Customers'. It also highlights supplier concentration risk related to six raw material vendors.

Why It Matters

For investors and stakeholders tracking UNITED GUARDIAN INC, this filing contains several important signals. This 10-K provides a comprehensive overview of United Guardian's financial health and operational activities for the fiscal year 2023, crucial for investors assessing performance and future prospects. The disclosure of customer and supplier concentration risks is vital for understanding potential vulnerabilities in the company's supply chain and revenue streams.

Risk Assessment

Risk Level: — UNITED GUARDIAN INC shows moderate risk based on this filing. The company faces medium risk due to supplier concentration, as the business relies on six raw material vendors, potentially impacting operations if these suppliers face disruptions.

Analyst Insight

Investors should analyze the company's strategies for mitigating supplier concentration risks and assess the financial impact of potential disruptions.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-03-22 — Filing Date (Date filed)
• 6 — Number of Raw Material Vendors (Supplier concentration risk)

Key Players & Entities

• UNITED GUARDIAN INC (company) — Filer name
• 2023 (date) — Fiscal year end
• 2024-03-22 (date) — Filing date
• 2844 (industry) — Standard Industrial Classification
• Customer A (company) — Customer concentration
• Customer B (company) — Customer concentration
• Customer C (company) — Customer concentration
• Customer D (company) — Customer concentration

FAQ

Risk Factors

• Supplier Concentration Risk [medium — financial]: The company's operations are subject to risk due to reliance on six raw material vendors.
• Customer Concentration Risk [medium — financial]: The company's revenue is dependent on a limited number of customers, including Customer A, B, C, and D.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-22: 10-K Filing Date — Date United Guardian Inc. filed its annual report.

Key Financial Figures

• $0.10 — ange on which registered Common Stock, $0.10 par value UG The NASDAQ Global Mark
• $8.26 — 37,949,075 (based on a closing price of $8.26 per share). (For the purpose of this re

Filing Documents

• ug20231231_10k.htm (10-K) — 891KB
• ex_640383.htm (EX-31.1) — 11KB
• ex_640384.htm (EX-31.2) — 11KB
• ex_640385.htm (EX-32) — 5KB
• ex_640386.htm (EX-97.1) — 23KB
• 0001171843-24-001526.txt (&nbsp;) — 4866KB
• ug-20231231.xsd (EX-101.SCH) — 46KB
• ug-20231231_def.xml (EX-101.DEF) — 304KB
• ug-20231231_lab.xml (EX-101.LAB) — 273KB
• ug-20231231_pre.xml (EX-101.PRE) — 333KB
• ug-20231231_cal.xml (EX-101.CAL) — 53KB
• ug20231231_10k_htm.xml (XML) — 678KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 15 Item 1B. Unresolved Staff Comments 15 Item 1C. Cybersecurity 16 Item 2.

Properties

Properties 16 Item 3.

Legal Proceedings

Legal Proceedings 16 Item 4. Mine Safety Disclosures 16 Part II 17 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 17 Item 6. [Reserved] 17 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 23 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 23 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 23 Item 9A.

Controls and Procedures

Controls and Procedures 24 Item 9B. Other Information 25 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 25 Part III 25 Item 10. Directors, Executive Officers and Corporate Governance 25 Item 11.

Executive Compensation

Executive Compensation 25 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 25 Item 13. Certain Relationships and Related Transactions and Director Independence 25 Item 14. Principal Accountant Fees and Services 26 Part IV 27 Item 15. Exhibits and Financial Statement Schedules 27

Signatures

Signatures 27 4 UNITED-GUARDIAN, INC. PART I

Business

Item 1. Business OVERVIEW 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. In October 2023, the Company entered into a distribution agreement with Brenntag Specialties, a global market leader in chemicals and ingredients distribution, for the distribution of the Company's new Natrajel line of sexual wellness ingredients in the United States, Canada, Mexico, Central America and South America. Although there were no sales of these products during 2023, the Company anticipates that it will begin manufacturing and reporting sales of this new line of products in 2024. The Company conducts various research and development activities. The Company's research and development department primarily develops new and unique cosmetic ingredients. The Company develops new products using natural and environmentally friendly raw materials, which is a priority to many of the Company's cosmetic customers. The Company's research and development department also modifies, refines, and expands the uses for existing products, with the goal of further developing the markets that its products are used in. All the products that the Company markets, except for Renacidin, are produced at its facility in Hauppauge, New York. Renacidin, a urological product, is manufactured for the Company by an outside contract manufacturer. Our predecessor entity, United International Research, Inc. ("UIR"), was founded and incorporated in New York in 1942 by Dr. Alfred R. Globus, the Company's Chairman and Director of Research until his death on April 9, 2009. On February 10

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View this 10-K filing on SEC EDGAR