United Guardian Inc. Files 10-Q for Q1 2024

TL;DR

<b>United Guardian Inc. filed its Q1 2024 10-Q, highlighting industry operations, key personnel, and concentration risks.</b>

AI Summary

UNITED GUARDIAN INC (UG) filed a Quarterly Report (10-Q) with the SEC on May 13, 2024. United Guardian Inc. reported Q1 2024 results on May 13, 2024. The company operates in the Perfumes, Cosmetics & Other Toilet Preparations industry. Key personnel include Directors and former President/CEO. Risk factors include supplier and customer concentration, with specific mention of distributors and marketing partners. Geographic concentration risk is noted, particularly in China (CN) and non-US regions.

Why It Matters

For investors and stakeholders tracking UNITED GUARDIAN INC, this filing contains several important signals. The filing provides insight into the company's financial performance and operational risks for the first quarter of 2024. Understanding the concentration risks (supplier, customer, geographic) is crucial for assessing potential business vulnerabilities.

Risk Assessment

Risk Level: medium — UNITED GUARDIAN INC shows moderate risk based on this filing. The company faces medium risk due to significant concentration in suppliers (3-4 vendors) and customers (distributors/marketing partners), as well as geographic concentration in China and non-US markets, which could impact operations if these relationships or regions are disrupted.

Analyst Insight

Monitor the company's revenue streams and supplier relationships for any signs of disruption related to the identified concentration risks.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-05-13 — Filing Date (Filed As Of Date)
• 3 — Number of Raw Material Vendors (2023) (Supplier Concentration Risk)
• 4 — Number of Raw Material Vendors (2024) (Supplier Concentration Risk)

Key Players & Entities

• UNITED GUARDIAN INC (company) — Filer
• 2024-03-31 (date) — Conformed Period of Report
• 2024-05-13 (date) — Filed As Of Date
• 2844 (industry) — Standard Industrial Classification
• DE (state) — State of Incorporation
• 11788 (zip) — Business Address Zip
• 631-273-0900 (phone) — Business Phone
• CN (country) — Geographic Concentration Risk

FAQ

Risk Factors

• Supplier Concentration Risk [medium — financial]: The company relies on a limited number of suppliers for raw materials, with 3 vendors in Q1 2023 and 4 in Q1 2024, posing a risk if these suppliers face disruptions.
• Customer Concentration Risk [medium — financial]: A significant portion of sales revenue and accounts receivable is concentrated with distributors and marketing partners, creating risk if these key customers experience financial difficulties or reduce their business.
• Geographic Concentration Risk [medium — financial]: Sales revenue is concentrated in specific geographic regions, notably China (CN) and other non-US markets, making the company vulnerable to economic or political instability in these areas.

Industry Context

United Guardian Inc. operates within the Perfumes, Cosmetics & Other Toilet Preparations sector. This industry is characterized by consumer demand, product innovation, and regulatory oversight.

Regulatory Implications

The company's operations are subject to standard industry regulations concerning product safety, labeling, and manufacturing practices.

What Investors Should Do

1. Review the detailed financial statements and risk factor disclosures in the full 10-Q filing.
2. Analyze the company's customer and supplier concentration risks for potential impacts on future revenue and costs.
3. Assess the geographic concentration risk and its implications for market diversification strategies.

Year-Over-Year Comparison

This is the Q1 2024 10-Q filing, providing an update on the company's financial position and operational risks compared to previous periods.

Key Financial Figures

• $0.10 — e on which registered Common Stock, $0.10 par value per share UG NASDAQ Globa
• $250,000 — Corporation ("FDIC") up to a maximum of $250,000. At March 31, 2024, approximately $ 425

Filing Documents

• ug20240331_10q.htm (10-Q) — 558KB
• ex_668186.htm (EX-31.1) — 14KB
• ex_668187.htm (EX-31.2) — 14KB
• ex_668188.htm (EX-32) — 8KB
• 0001171843-24-002786.txt (&nbsp;) — 3520KB
• ug-20240331.xsd (EX-101.SCH) — 43KB
• ug-20240331_def.xml (EX-101.DEF) — 265KB
• ug-20240331_lab.xml (EX-101.LAB) — 203KB
• ug-20240331_pre.xml (EX-101.PRE) — 291KB
• ug-20240331_cal.xml (EX-101.CAL) — 40KB
• ug20240331_10q_htm.xml (XML) — 392KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION Page No.

- Condensed Financial Statements (unaudited unless indicated otherwise)

Item 1 - Condensed Financial Statements (unaudited unless indicated otherwise): 2 Balance Sheets - March 31, 2024 (unaudited) and December 31, 2023 (audited) 3-4 March 31, 2024 and 2023 5 6 Notes to Condensed Financial Statements 7-15

- Management's Discussion and Analysis of Financial Condition and Result

Item 2 - Management's Discussion and Analysis of Financial Condition and Result of Operations 15-19

- Quantitative and Qualitative Disclosures About Market Risk

Item 3 - Quantitative and Qualitative Disclosures About Market Risk 19

- Controls and Procedures

Item 4 - Controls and Procedures 19

OTHER INFORMATION

Part II. OTHER INFORMATION

- Legal Proceedings

Item 1 - Legal Proceedings 20

- Risk Factors

Item 1A - Risk Factors 20

- Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds 20

- Defaults Upon Senior Securities

Item 3 - Defaults Upon Senior Securities 20

- Mine Safety Disclosures

Item 4 - Mine Safety Disclosures 20

- Other Information

Item 5 - Other Information 20

- Exhibits

Item 6 - Exhibits 20

Signatures

Signatures 21 Page 1 of 21

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

Condensed Financial Statements

ITEM 1. Condensed Financial Statements. UNITED-GUARDIAN, INC. (UNAUDITED) THREE MONTHS ENDED MARCH 31, 2024 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 (basic and diluted) $ 0.20 $ 0.16 Weighted average shares – basic and diluted 4,594,319 4,594,319 See notes to condensed financial statements Page 2 of 21 UNITED-GUARDIAN, INC. BALANCE SHEETS ASSETS MARCH 31, DECEMBER 31, 2024 2023 (UNAUDITED) (AUDITED) 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, net - 50,930 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 See notes to condensed financial statements Page 3 of 21

View Full Filing

View this 10-Q filing on SEC EDGAR