Core Insights - The article highlights recent research reports on major stocks including Visa Inc., The Charles Schwab Corp., and Amphenol Corp., as well as micro-cap stocks Autoscope Technologies Corp. and United-Guardian, Inc. [2][4] Visa Inc. - Visa's shares have outperformed the Zacks Financial Transaction Services industry over the past year, with a gain of +11.1% compared to the industry's decline of -8.7% [4] - Total revenue rose 11% year-over-year in FY25, with cross-border growth at 13% [5] - The company faces rising client incentives and expenses, which may impact margin growth, with adjusted costs expected to rise nearly 11% in FY26 [6] The Charles Schwab Corp. - Charles Schwab's shares gained +21.8% over the past year, while the Zacks Financial - Investment Bank industry gained +37% [7] - The company is expected to maintain elevated expenses due to ongoing marketing investments, with a projected CAGR of 7% in expenses by 2027 [7][9] - Strategic buyouts and branch expansion efforts are anticipated to drive client assets, with total client assets expected to grow at a CAGR of 8.2% by 2027 [8][9] Amphenol Corp. - Amphenol's shares increased by +88.5% over the past year, slightly underperforming the Zacks Electronics - Connectors industry, which gained +89.8% [10] - The company benefits from a diversified business model and strong demand for high-speed and power interconnect products, with fourth-quarter 2025 earnings expected to grow between 62% and 65% year-over-year [12] - However, macroeconomic uncertainty and competition pose significant challenges [12] Autoscope Technologies Corp. - Autoscope Technologies has underperformed the Zacks Technology Services industry, with a decline of -5.5% compared to the industry's gain of +20.6% [13] - The company is focusing on AI-driven detection and multi-sensor integration, which supports future upgrades and broader use cases [13][14] - A new long-duration contract in Georgia enhances revenue visibility and diversifies its income sources [14][15] United-Guardian, Inc. - United-Guardian's shares have underperformed the Zacks Medical - Products industry, with a decline of -34.4% compared to -0.5% for the industry [16] - The company faces challenges such as declining profitability and operational strain, but it has strengths in expanding its pharmaceutical portfolio and stable medical products [17] - The upcoming launch of Natrajel is expected to provide a differentiated growth avenue [17]

Core Insights - The consumer staples sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **SunOpta Inc (NASDAQ:STKL)**: Reported better-than-expected quarterly earnings with a 6.2% increase in stock price to close at $3.58. The stock has fallen approximately 35% over the past month, with an RSI value of 29.9 and a 52-week low of $3.32. The company has a momentum score of 91.92 and a value score of 93.51 [7] - **Energizer Holdings Inc (NYSE:ENR)**: Reported mixed fourth-quarter results and provided first-quarter EPS guidance below estimates. The stock rose 3.4% to close at $18.10, despite a 25% decline over the past month. The RSI value is 26, with a 52-week low of $17.13 [7] - **United-Guardian**: Experienced a decline in third-quarter earnings, with a 0.1% decrease in stock price to close at $5.68. The stock has fallen around 22% over the past month, with an RSI value of 21.4 and a 52-week low of $5.58. The company noted increased sales in pharmaceuticals and medical products but a decrease in cosmetic ingredient sales due to geopolitical issues [7]

Core Insights - The consumer staples sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **SunOpta Inc (NASDAQ:STKL)**: Reported better-than-expected quarterly earnings with a 6.2% increase in stock price to $3.58. The stock has fallen approximately 35% over the past month, with an RSI value of 29.9 and a 52-week low of $3.32 [7] - **Energizer Holdings Inc (NYSE:ENR)**: Reported mixed fourth-quarter results and provided first-quarter EPS guidance below estimates. The stock rose 3.4% to close at $18.10, but has decreased around 25% in the last month, with an RSI value of 26 and a 52-week low of $17.13 [7] - **United-Guardian**: Experienced a decline in third-quarter earnings, with a 0.1% decrease in stock price to $5.68. The stock has fallen about 22% over the past month, with an RSI value of 21.4 and a 52-week low of $5.58 [7]

Core View - United-Guardian, Inc. has experienced a significant decline in both sales and net income for the third quarter of 2025, with net sales falling 26% year-over-year to $2.26 million and net income dropping to $268,441, reflecting a challenging market environment [2][4]. Financial Performance - For Q3 2025, net sales decreased by 26% to $2.26 million from $3.06 million in Q3 2024, while net income fell to $268,441 from $865,484, resulting in a 68% drop in earnings per share to 6 cents from 19 cents [2]. - For the first nine months of 2025, net sales declined 22% to $7.58 million from $9.71 million, and net income decreased to $1.46 million from $2.75 million, with earnings per share down about 47% to 32 cents from 60 cents [2]. Revenue Mix & Key Metrics - The decline in sales was primarily driven by weakness in the cosmetic ingredients business, while sales of pharmaceutical products and medical lubricants increased by 10% and 6%, respectively, over the first nine months of 2025 compared to the same period in 2024 [3]. Market Challenges - The softness in the cosmetic segment is attributed to reduced purchases by Ashland Specialty Ingredients (ASI), the company's largest marketing partner, which has faced tariff and geopolitical challenges in Asia, leading to a shift towards lower-priced local suppliers [4]. - ASI's efforts to manage excess inventory have resulted in decreased orders from United-Guardian, negatively impacting overall sales [4]. Operational Performance - Income from operations fell to $215,072 in Q3 2025 from $949,128 a year earlier, and for the nine months, it decreased to $1.52 million from $3.09 million in 2024 [5]. - Other income sources, including investment income and gains on marketable securities, also declined year-over-year, further dampening overall financial results [5]. Management Insights & Strategic Initiatives - Management remains optimistic about the underlying strength in pharmaceutical and medical businesses, with plans to regain market share through competitive pricing strategies [6]. - Key growth initiatives include focusing on Renacidin, with efforts to secure placement on additional drug formularies to significantly increase sales [7]. - The company has entered a strategic distribution arrangement to expand its sexual wellness and personal care portfolio, aiming to diversify revenue sources and broaden geographic reach [8]. Profitability Factors - Profitability was pressured by an increase in the cost of sales as a percentage of net sales, reflecting product-mix shifts and a challenging pricing environment, particularly in the cosmetic ingredients segment [9]. - Operating expenses rose due to higher professional fees and increased research and development spending, which, while supporting long-term growth, added to near-term earnings pressure [10][11]. Outlook - Although United-Guardian did not provide numerical guidance for the remainder of 2025, management expressed a cautiously optimistic outlook, relying on ASI's efforts to restore competitiveness and distribution expansions to stabilize cosmetic ingredient sales [13]. - The current earnings weakness is viewed as driven more by external demand and inventory dynamics rather than a decline in the company's product portfolio [14]. Shareholder Returns - The company has continued its practice of returning cash to shareholders through dividends, declaring and paying out cash dividends during the first nine months of 2025, including a 35 cents per share dividend earlier in the year [15].

Financial Performance - Net sales for the three months ended September 30, 2025, were $2,264,261, a decrease from $3,060,113 in the same period of 2024, representing a decline of approximately 26%[14] - The net income for the nine months ended September 30, 2025, was $1,456,162, down from $2,747,151 in the same period of 2024, reflecting a decrease of about 47%[14] - For the third quarter of 2025, total sales amounted to $2,264,261, a decrease from $3,060,113 in the same period of 2024, representing a decline of approximately 26%[54] - Cosmetic ingredient sales for the first nine months of 2025 were $1,998,948, down from $4,585,443 in 2024, reflecting a decrease of about 56%[54] - Pharmaceutical sales increased to $3,848,474 for the nine months ended September 30, 2025, compared to $3,485,994 in 2024, marking an increase of approximately 10%[54] - Sales to the United States for the nine months ended September 30, 2025, were $5,663,509, down from $8,089,868 in 2024, a decline of approximately 30%[56] Assets and Liabilities - The total current assets as of September 30, 2025, were $11,246,893, down from $12,665,551 as of December 31, 2024, a decrease of about 11%[16] - Total liabilities as of September 30, 2025, were $1,597,909, a decrease from $1,914,469 as of December 31, 2024, reflecting a reduction of about 17%[18] - The company’s total stockholders' equity as of September 30, 2025, was $10,582,436, down from $11,882,866 as of December 31, 2024, indicating a decline of about 11%[18] - Cash and cash equivalents at the end of the period were $860,836, a significant decrease from $1,875,655 at the beginning of the period, representing a decline of approximately 54%[16] - Total inventories as of September 30, 2025, were valued at $1,408,703, a decrease from $1,451,995 as of December 31, 2024[71] Operating Activities - The company reported a net cash provided by operating activities of $1,636,324 for the nine months ended September 30, 2025, compared to $3,196,954 in the same period of 2024, a decrease of approximately 49%[25] - Cash from operations decreased to $1,636,324 for the nine months ended September 30, 2025, down from $3,196,954 for the same period in 2024[127] - Cash provided by investing activities was $115,577 for the nine months ended September 30, 2025, compared to cash used of $6,241,837 for the same period in 2024[128] - Cash used in financing activities was $2,766,720 for the nine months ended September 30, 2025, compared to $2,756,323 for the same period in 2024[129] Research and Development - Research and development expenses for the three months ended September 30, 2025, were $117,104, compared to $111,072 in the same period of 2024, indicating an increase of approximately 5%[14] - Research and development expenses rose by $6,032 (5%) in Q3 2025 and by $13,652 (4%) for the first nine months of 2025 compared to the same periods in 2024[120] Market and Sales Trends - Approximately 31% of total sales in Q3 2025 were to customers outside the United States, up from 20% in Q3 2024[54] - For the nine months ended September 30, 2025, approximately 79% of ASI's sales were to foreign customers, with China accounting for about 39% of total sales, down from 45% in the same period of 2024[57] - The company is closely monitoring the impact of tariffs, particularly the 10% retaliatory tariff from China, which could significantly affect sales and gross margins[33][34] - The Company is closely monitoring its supply chain and pursuing growth initiatives to mitigate the impact of tariffs and global economic uncertainties[104] Investment and Securities - The net gains recognized during the three months ended September 30, 2025, on marketable securities amounted to $36,238, compared to $47,223 for the same period in 2024[64] - Total marketable securities as of September 30, 2025, had a fair value of $7,443,756, with unrealized gains of $103,648[67] - The company’s marketable equity securities are valued using Level 1 inputs, with fair value determined based on quoted prices in active markets[66] Taxation - The total provision for income taxes for the nine months ended September 30, 2025, was $368,874, compared to $720,494 for the same period in 2024[72] - The effective income tax rate was approximately 20% for the first nine months of 2025 and 2024, expected to remain the same for the current fiscal year[123] Miscellaneous - The company entered into a distribution agreement with Brenntag Specialties for the new Natrajel® line of sexual wellness ingredients, with manufacturing expected to begin in 2026 due to delays[27] - The new Medicare Part D Manufacturer Discount Program is expected to increase rebate liabilities for drug manufacturers, impacting financial results[48] - The allowance for credit losses related to accounts receivable was $14,092 as of September 30, 2025, slightly down from $14,342 at the end of 2024[44] - The allowance for credit losses is based on the Current Expected Credit Losses (CECL) model, reflecting ongoing credit evaluations and historical experience[58] - The company accrued $86,250 in contributions to the 401(k) defined contribution plan as of September 30, 2025, compared to $81,750 in 2024[75] - The company’s total accrued expenses as of September 30, 2025, were $1,341,540, down from $1,467,933 as of December 31, 2024[78]

Sales Performance - Sales for the nine-month period ended September 30, 2025, decreased to $7,583,613 from $9,705,262 in 2024, representing a decline of approximately 22.0%[2] - Third quarter sales fell to $2,264,261 in 2025 from $3,060,113 in 2024, a decrease of approximately 26.0%[2] - Sales of pharmaceutical products increased by 10% and medical products by 6% during the first nine months of 2025 compared to the same period in 2024[3] Net Income - Net income for the nine months ended September 30, 2025, decreased to $1,456,162 ($0.32 per share) from $2,747,151 ($0.60 per share), a decrease of about 47.1%[2] - Net income for the third quarter of 2025 was $268,441 ($0.06 per share), down from $865,484 ($0.19 per share) in the same quarter of 2024, a decline of about 69.0%[2] Cost Management - Total costs and expenses for the nine months ended September 30, 2025, were $6,062,166, down from $6,614,849 in 2024[8] - Research and development expenses for the nine months ended September 30, 2025, were $339,366, slightly up from $325,714 in 2024[8] Market Challenges and Opportunities - The decrease in cosmetic ingredient sales in the third quarter was primarily due to reduced purchases by Ashland Specialty Ingredients, attributed to tariff and geopolitical concerns in Asia[3] - United-Guardian is working with an outside pharmaceutical consultant to increase sales of Renacidin by including it in additional drug formularies, which is expected to significantly boost sales in the coming years[3] - New marketing agreements for personal care products have been negotiated, providing opportunities for revenue growth in the future[3]

Core Insights - United-Guardian, Inc. reported a decline in sales and net income for both the third quarter and the first nine months of 2025 compared to the same periods in 2024 [1][2]. Financial Performance - For the nine-month period ended September 30, 2025, sales decreased from $9,705,262 in 2024 to $7,583,613 in 2025, representing a decline of approximately 22% [1]. - Net income for the same period fell from $2,747,151 ($0.60 per share) in 2024 to $1,456,162 ($0.32 per share) in 2025, a decrease of about 47% [1]. - In the third quarter, sales dropped from $3,060,113 in 2024 to $2,264,261 in 2025, a decline of around 26% [1]. - Net income for the third quarter decreased from $865,484 ($0.19 per share) in 2024 to $268,441 ($0.06 per share) in 2025, a reduction of approximately 69% [1]. Segment Performance - Sales of pharmaceutical products increased by 10% and medical products by 6% during the first nine months of 2025 compared to the same period in 2024 [2]. - However, there was a decrease in sales of cosmetic ingredients in the third quarter of 2025, primarily due to reduced purchases by Ashland Specialty Ingredients (ASI), the company's largest marketing partner [2]. - ASI faced challenges related to tariffs and geopolitical issues in Asia, leading to a shift towards lower-cost local products by some customers [2]. Future Outlook - The company is optimistic about increasing sales of Renacidin, its most important pharmaceutical product, through new marketing strategies and partnerships [2]. - Recent marketing agreements for new personal care products are expected to provide opportunities for revenue growth in the coming years [2].

Core View - United-Guardian's second-quarter 2025 results indicate a challenging sales environment, particularly in the cosmetic ingredient segment, while showing resilience in pharmaceuticals and medical lubricants [11] Financial Performance - For Q2 2025, net sales were $2.84 million, a decrease of 16.3% from $3.39 million in Q2 2024 [2] - Net income fell 34.5% year-over-year to $626,826, or 14 cents per share, down from $956,225, or 21 cents per share [2] - On a six-month basis, net sales declined 20% to $5.32 million from $6.65 million, and net income slid 36.9% to $1.19 million, or 26 cents per share, from $1.88 million, or 41 cents per share [2] Cost and Expenses - Cost of sales as a percentage of net sales increased to 47% in Q2 2025 from 46% in the previous year [3] - Operating expenses rose 15.1% to $694,050, driven by higher marketing and selling costs [3] - Research and development expenses decreased slightly by 3.4% to $107,868 [3] Sales Performance by Product Category - Pharmaceuticals sales grew 11%, and medical lubricants rose 12% in the first half of 2025 [4] - Cosmetic ingredient sales dropped significantly due to reduced orders from the largest distributor, Ashland Specialty Ingredients, attributed to inventory overstock and softer demand in Asia [4] Management Insights - Management expressed optimism about resolving ASI's inventory issue to restore growth in the cosmetic segment [5] - The company is pursuing a strategic initiative to expand Renacidin's inclusion in drug formularies, which is expected to boost sales in the coming years [5] Factors Influencing Revenue - The year-over-year revenue decline was primarily due to weakness in cosmetic ingredient sales, which outweighed gains in pharmaceuticals and medical lubricants [6] - Higher marketing and selling costs contributed to rising operating expenses, impacting margins alongside the lower sales base [6] Future Outlook - Management anticipates a rebound in cosmetic ingredient sales in the second half of the year, contingent on resolving ASI's inventory overhang [8] - Long-term growth prospects may be supported by the expansion of Renacidin's formulary inclusion, dependent on successful execution of current initiatives [8] Other Developments - No acquisitions, divestitures, or major restructuring activities were disclosed in the quarter [10] - The company's dividend policy remained intact, reflecting continued capital return to shareholders despite profit pressures [10] - Management reaffirmed that its cash position and working capital are sufficient to meet operational needs and support strategic projects over the next 12 months [10]

Part I. FINANCIAL INFORMATION [ITEM 1. Condensed Financial Statements](index=4&type=section&id=ITEM%201.%20Condensed%20Financial%20Statements) This section presents the unaudited condensed financial statements for the periods ended June 30, 2025 and 2024, with accompanying notes [Statements of Income](index=4&type=section&id=Statements%20of%20Income) The company's net sales and net income declined significantly in the three and six months ended June 30, 2025 Statements of Income (Unaudited) - Key Figures | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $2,838,225 | $3,390,205 | $5,319,352 | $6,645,149 | | Total costs and expenses | $2,142,772 | $2,275,527 | $4,012,977 | $4,503,864 | | Income from operations | $695,453 | $1,114,678 | $1,306,375 | $2,141,285 | | Net income | $626,826 | $956,225 | $1,187,721 | $1,881,667 | | Earnings per common share (basic and diluted) | $0.14 | $0.21 | $0.26 | $0.41 | - Net sales decreased by **16%** for the three months ended June 30, 2025, and by **20%** for the six months ended June 30, 2025, compared to the respective periods in 2024[11](index=11&type=chunk) - Net income decreased by **34.4%** for the three months ended June 30, 2025, and by **36.9%** for the six months ended June 30, 2025, compared to the respective periods in 2024[11](index=11&type=chunk) [Balance Sheets](index=5&type=section&id=Balance%20Sheets) Total assets and stockholders' equity decreased from December 31, 2024, to June 30, 2025 Balance Sheets (Unaudited) - Key Figures | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $12,466,928 | $12,665,551 | | Total assets | $13,394,352 | $13,797,335 | | Total current liabilities | $1,853,471 | $1,914,469 | | Total liabilities | $1,931,777 | $1,914,469 | | Total stockholders' equity | $11,462,575 | $11,882,866 | - Total assets decreased by approximately **$402,983** from December 31, 2024, to June 30, 2025[13](index=13&type=chunk) - Total stockholders' equity decreased by approximately **$420,291** from December 31, 2024, to June 30, 2025[15](index=15&type=chunk) [Statements of Changes in Stockholders' Equity](index=7&type=section&id=Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity declined in the first half of 2025 as dividend payments outpaced net income Statements of Changes in Stockholders' Equity (Unaudited) - Key Figures | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Balance, January 1 | $11,882,866 | $11,388,582 | | Net income (six months) | $1,187,721 | $1,881,667 | | Dividends declared and paid (six months) | $(1,607,893) | $(1,148,468) | | Balance, June 30 | $11,462,575 | $12,121,669 | - Total stockholders' equity decreased from **$11,882,866** at January 1, 2025, to **$11,462,575** at June 30, 2025, primarily due to dividends declared and paid exceeding net income[17](index=17&type=chunk) [Statements of Cash Flows](index=8&type=section&id=Statements%20of%20Cash%20Flows) Cash from operations decreased significantly, while investing activities generated a net inflow in H1 2025 Statements of Cash Flows (Unaudited) - Six Months Ended June 30 | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $625,323 | $1,968,250 | | Net cash provided by (used in) investing activities | $885,686 | $(657,533) | | Net cash used in financing activities | $(1,618,183) | $(1,148,468) | | Net (decrease) increase in cash and cash equivalents | $(107,174) | $162,249 | | Cash and cash equivalents at end of period | $1,768,481 | $8,405,371 | - Net cash provided by operating activities significantly decreased from **$1,968,250** in H1 2024 to **$625,323** in H1 2025, primarily due to a decrease in net income[21](index=21&type=chunk)[118](index=118&type=chunk) - Investing activities shifted from a net cash outflow of **$657,533** in H1 2024 to a net cash inflow of **$885,686** in H1 2025, driven by excess proceeds from marketable securities sales[21](index=21&type=chunk)[119](index=119&type=chunk) - Net cash used in financing activities increased due to higher dividend payments (**$0.35/share** in H1 2025 vs **$0.25/share** in H1 2024) and payment of accrued dividends[21](index=21&type=chunk)[120](index=120&type=chunk) [Notes to Condensed Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) These notes detail the company's business operations, accounting policies, and financial instrument specifics [1. Business](index=9&type=section&id=1.%20Business) The company develops and markets specialty ingredients for cosmetics, pharmaceuticals, and medical lubricants - United-Guardian, Inc. manufactures, markets, and develops specialty cosmetic ingredients (e.g., Lubrajel® hydrogels), pharmaceutical products (e.g., Renacidin®), medical lubricants, and sexual wellness ingredients[23](index=23&type=chunk)[24](index=24&type=chunk) - The company entered a distribution agreement with Brenntag Specialties in October 2023 for its new Natrajel® line of sexual wellness ingredients in the Americas, with manufacturing and sales anticipated to begin in the second half of 2025[23](index=23&type=chunk) - R&D focuses on new and unique specialty cosmetic and sexual wellness ingredients, medical lubricants, and product modifications, prioritizing natural and environmentally friendly raw materials[24](index=24&type=chunk) [2. Basis of Presentation](index=9&type=section&id=2.%20Basis%20of%20Presentation) Interim financial statements are prepared according to US GAAP and Regulation S-X - Interim condensed financial statements are prepared in accordance with US GAAP for interim financial information and Regulation S-X, with all necessary adjustments included for fair presentation[25](index=25&type=chunk) - Results for the three and six months ended June 30, 2025, are not necessarily indicative of future results for the full year[25](index=25&type=chunk) [3. Segment Information](index=9&type=section&id=3.%20Segment%20Information) The company operates as a single reportable segment with consolidated financial information review - The Company operates as a single operating and reportable segment, with the President (CODM) reviewing consolidated financial information and allocating resources based on metrics like net income[26](index=26&type=chunk) - Segment revenue, profit/loss, and significant expenses are consistent with consolidated results[27](index=27&type=chunk) [4. Impact of Global Supply Chain Instability, Inflation and Tariffs](index=10&type=section&id=4.%20Impact%20of%20Global%20Supply%20Chain%20Instability,%20Inflation%20and%20Tariffs) The company is monitoring trade policies and tariffs, particularly from China, which could impact business - The Company is monitoring trade policies and tariffs, particularly those on imports from China, which could significantly impact business, financial condition, and results of operations[28](index=28&type=chunk)[29](index=29&type=chunk) - New tariffs imposed on July 31, 2025, could make products less competitive, reduce gross margins, and potentially decrease demand, especially in China, as reflected in H1 2025 cosmetic product sales[28](index=28&type=chunk)[29](index=29&type=chunk) - While most raw materials are sourced domestically, three suppliers obtain materials from China, and one direct raw material supplier is in China; however, these are not large quantities and are not expected to materially impact pricing[31](index=31&type=chunk) [5. Use of Estimates](index=10&type=section&id=5.%20Use%20of%20Estimates) Financial statements rely on management estimates for key areas like credit losses and inventory valuation - Financial statements require management to make estimates and assumptions, including for allowance for credit losses, inventory obsolescence, accrued distribution fees, outdated material returns, marketable securities impairment, and overhead allocation[33](index=33&type=chunk) - Actual results may differ from these estimates[33](index=33&type=chunk) [6. Cash and Cash Equivalents](index=11&type=section&id=6.%20Cash%20and%20Cash%20Equivalents) Cash equivalents consist of highly liquid investments with maturities of three months or less - Cash equivalents include highly liquid investments with original maturities of three months or less[35](index=35&type=chunk) - Amounts exceeding FDIC and SIPC limits were **$397,000** and **$639,000** respectively at June 30, 2025[35](index=35&type=chunk) Cash and Cash Equivalents | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Demand Deposits | $629,658 | $404,801 | | Money Market Funds | $1,138,823 | $1,470,854 | | Total | $1,768,481 | $1,875,655 | [7. Accounts Receivable and Reserves](index=11&type=section&id=7.%20Accounts%20Receivable%20and%20Reserves) An allowance for credit losses is recognized based on the Current Expected Credit Losses (CECL) model - The Company recognizes an allowance for credit losses on accounts receivable based on ASC Topic 326 (CECL), reflecting expected credit losses over the asset's life[37](index=37&type=chunk)[38](index=38&type=chunk) Allowance for Credit Losses | Date | Allowance Amount | | :--- | :--- | | June 30, 2025 | $21,628 | | December 31, 2024 | $14,342 | [8. Revenue Recognition](index=11&type=section&id=8.%20Revenue%20Recognition) Revenue is recognized from product sales when control transfers to the customer, net of deductions - Revenue is recognized in accordance with ASC Topic 606 when a customer obtains control of promised goods or services, primarily from product sales[39](index=39&type=chunk) - Sales are reported net of deductions (e.g., chargebacks, rebates, distribution fees, discounts, outdated product returns), which are estimated and recorded in the same period as revenue[40](index=40&type=chunk) - For the six months ended June 30, 2025, approximately **23%** of total sales were to customers outside the U.S., up from **15%** in the prior year, though a significant portion of U.S. sales to ASI are ultimately shipped to foreign customers, with China representing a decreasing share of ASI's foreign sales (**40%** in H1 2025 vs **50%** in H1 2024)[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) Disaggregated Sales by Product Class | Product Class | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Cosmetic ingredients | $896,549 | $1,419,374 | $1,595,546 | $3,295,856 | | Pharmaceuticals | $1,451,679 | $1,413,664 | $2,620,137 | $2,363,987 | | Medical lubricants | $489,997 | $557,167 | $1,103,669 | $985,306 | | Total Net Sales | $2,838,225 | $3,390,205 | $5,319,352 | $6,645,149 | Disaggregated Sales by Geographic Region | Region | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | United States | $2,346,526 | $2,808,237 | $4,103,793 | $5,627,173 | | Other countries | $491,699 | $581,968 | $1,215,559 | $1,017,976 | | Total Sales | $2,838,225 | $3,390,205 | $5,319,352 | $6,645,149 | [9. Accounting for Financial Instruments – Credit Losses](index=13&type=section&id=9.%20Accounting%20for%20Financial%20Instruments%20%E2%80%93%20Credit%20Losses) The company maintains a credit loss allowance for trade receivables based on historical and economic data - The Company maintains an allowance for credit losses on trade receivables based on CECL, considering historical experience, customer creditworthiness, and economic trends[52](index=52&type=chunk)[53](index=53&type=chunk)[55](index=55&type=chunk) - Credit risk is concentrated among a small number of customers, making the Company vulnerable to changes in their financial position[53](index=53&type=chunk) [10. Marketable Securities](index=14&type=section&id=10.%20Marketable%20Securities) Marketable securities include equity mutual funds, U.S. Treasury Bills, and Certificates of Deposit - Marketable securities include equity mutual funds (fair value), U.S. Treasury Bills, and Certificates of Deposit (amortized cost)[57](index=57&type=chunk) - Proceeds from sales and redemptions of marketable securities were **$7,301,264** in H1 2025, recognizing **$1,507** in realized losses, compared to **$775,000** in H1 2024 with no realized gains or losses[61](index=61&type=chunk) Net Gains (Losses) on Marketable Securities | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30 | $24,576 (gain) | $(9,501) (loss) | | Six Months Ended June 30 | $36,926 (gain) | $31,995 (gain) | Marketable Securities Holdings | Category | June 30, 2025 (Fair Value) | December 31, 2024 (Fair Value) | | :--- | :--- | :--- | | Equity and other mutual funds | $710,829 | $663,682 | | U.S. Treasury Bills | $5,941,815 | $6,288,943 | | Fixed income Certificates of Deposit | - | $570,000 | | Total marketable securities | $6,652,644 | $7,522,625 | [11. Inventories](index=16&type=section&id=11.%20Inventories) Inventories are valued at the lower of average cost or net realizable value - Inventories are valued at the lower of cost and net realizable value, using the average cost method[64](index=64&type=chunk) Inventories | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Raw materials | $384,387 | $448,113 | | Work in process | $18,286 | $58,699 | | Finished products | $1,129,144 | $945,183 | | Total inventories | $1,531,817 | $1,451,995 | | Reserve for slow moving and obsolete inventory | $30,006 | $32,792 | [12. Income Taxes](index=16&type=section&id=12.%20Income%20Taxes) The company's effective income tax rate was 21% for the first half of 2025 and 2024 - The Company's effective income tax rate was **21%** for both the second quarter and first half of 2025 and 2024, and is expected to remain at **21%** for the current fiscal year[114](index=114&type=chunk) Provision for Income Taxes | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Federal income taxes - current | $(51,536) | $302,100 | $56,324 | $472,040 | | State income taxes - current | - | - | $813 | $225 | | Federal income taxes - deferred | $215,312 | $(53,141) | $253,703 | $17,428 | | Total provision for income taxes | $163,776 | $248,959 | $310,840 | $489,693 | [13. Defined Contribution Plan](index=16&type=section&id=13.%20Defined%20Contribution%20Plan) The company sponsors a 401(k) plan with employer matching and discretionary contributions - The Company sponsors a 401(k) defined contribution plan with a dollar-for-dollar employer matching contribution up to **4%** of employee pay, with immediate vesting[66](index=66&type=chunk) - Discretionary contributions are also made based on a safe-harbor formula, with vesting over six years[67](index=67&type=chunk) DC Plan Contributions (Six Months Ended June 30) | Type | 2025 | 2024 | | :--- | :--- | :--- | | Accrued contributions | $57,500 | $54,500 | | Discretionary contributions paid | $115,000 | $109,000 | [14. Other Information (Accrued Expenses)](index=17&type=section&id=14.%20Other%20Information) Total accrued expenses decreased primarily due to lower accrued bonuses and 401(k) contributions - Total accrued expenses decreased from **$1,467,933** at December 31, 2024, to **$1,297,869** at June 30, 2025, primarily due to lower accrued bonuses and 401(k) contributions[70](index=70&type=chunk) Accrued Expenses | Category | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bonuses | $101,500 | $290,000 | | Distribution fees | $448,511 | $441,397 | | Payroll and related expenses | $144,842 | $73,915 | | Reserve for outdated material | $295,469 | $276,732 | | Company 401(k) contribution | $57,500 | $115,000 | | Audit fee | $46,115 | $73,364 | | Annual report expenses | $41,722 | $83,238 | | Sales rebates | $93,827 | $90,904 | | Insurance | $50,497 | - | | Other | $17,886 | $23,383 | | Total accrued expenses | $1,297,869 | $1,467,933 | [15. Recent Accounting Pronouncements](index=17&type=section&id=15.%20Recent%20Accounting%20Pronouncements) The company has adopted or is evaluating several new accounting standards updates - ASU 2024-03 (Disaggregation of Income Statement Expenses) is effective for annual periods after December 15, 2026, and interim periods after December 15, 2027[71](index=71&type=chunk) - ASU 2023-09 (Improvements to Income Tax Disclosures) is effective for fiscal years beginning after December 31, 2024; the Company implemented this on January 1, 2025, for additional disclosures in its 2025 10-K[72](index=72&type=chunk) - ASU 2023-07 (Improvements to Reportable Segment Disclosures) is effective for fiscal years beginning after December 15, 2023, and interim periods after December 15, 2024; the Company adopted this on January 1, 2024[73](index=73&type=chunk) [16. Concentrations of Credit Risk](index=18&type=section&id=16.%20Concentrations%20of%20Credit%20Risk) Credit risk is highly concentrated among a small number of major distributors - The Company's accounts receivable expose it to credit risk, with a high concentration among a small number of cosmetic ingredient and pharmaceutical distributors[75](index=75&type=chunk) - For the three months ended June 30, 2025, major distributors accounted for **79%** of gross sales and **86%** of outstanding accounts receivable[76](index=76&type=chunk) - For the six months ended June 30, 2025, major distributors accounted for **73%** of gross sales and **86%** of outstanding accounts receivable[77](index=77&type=chunk) [17. Supplier Concentration](index=18&type=section&id=17.%20Supplier%20Concentration) The company relies heavily on three raw material suppliers and one contract manufacturer - Three major raw material suppliers collectively accounted for approximately **85%** of raw material purchases in H1 2025 (**79%** in H1 2024)[78](index=78&type=chunk) - The Company relies on one contract manufacturer for its pharmaceutical product, Renacidin, making it vulnerable to disruptions in that manufacturer's operations[78](index=78&type=chunk) [18. Related-Party Transactions](index=18&type=section&id=18.%20Related-Party%20Transactions) Related-party transactions include payments to a director's accounting firm and a former president - No consulting payments were made to former President Ken Globus in H1 2025, as his agreement expired May 31, 2024[79](index=79&type=chunk) - Payments to accounting firm PKF O'Connor Davies (where a director is a partner) were **$4,000** in H1 2025, down from **$10,750** in H1 2024[80](index=80&type=chunk) [19. Earnings Per Share](index=18&type=section&id=19.%20Earnings%20Per%20Share) Earnings per share decreased significantly in the first half of 2025 compared to the prior year - EPS decreased significantly for both the three-month and six-month periods ended June 30, 2025, compared to 2024[82](index=82&type=chunk) Earnings Per Share (Basic and Diluted) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three Months Ended June 30 | $0.14 | $0.21 | | Six Months Ended June 30 | $0.26 | $0.41 | [20. Dividends](index=19&type=section&id=20.%20Dividends) The company declared and paid cash dividends in the first half of 2025 - The Board declared a cash dividend of **$0.35** per share on January 27, 2025, paid on February 18, 2025[83](index=83&type=chunk) - Total dividends declared in H1 2025 were **$1,608,012**, with **$1,607,893** paid[83](index=83&type=chunk) - In H1 2024, a dividend of **$0.25** per share was declared, totaling **$1,148,580**, with **$1,148,468** paid[85](index=85&type=chunk) [21. Subsequent Events](index=19&type=section&id=21.%20Subsequent%20Events) A cash dividend was declared in July 2025 after the reporting period - On July 11, 2025, the Board declared a cash dividend of **$0.25** per share, paid on August 1, 2025[86](index=86&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202%20-%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company's financial performance declined due to reduced cosmetic sales, alongside discussions of liquidity and operational risks [Executive Overview](index=20&type=section&id=EXECUTIVE%20OVERVIEW) The company specializes in cosmetic ingredients and pharmaceuticals and is expanding into sexual wellness - United-Guardian, Inc. specializes in manufacturing cosmetic ingredients, pharmaceuticals, medical lubricants, and sexual wellness ingredients through its Guardian Laboratories division[90](index=90&type=chunk) - The company expanded into the sexual wellness market with the Natrajel line via a distribution agreement with Brenntag Specialties in October 2023, with sales expected in H2 2025[91](index=91&type=chunk) - Distribution channels are being expanded globally, including adding South Korea for personal care products and extending medical product distribution with Azelis Group NV in the UK and Ireland[92](index=92&type=chunk)[93](index=93&type=chunk) [Critical Accounting Policies](index=20&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES) Key accounting policies remain unchanged, with a focus on revenue recognition and credit risk - Critical accounting policies include revenue recognition, concentration of credit risk, investments, inventory, and income taxes, with no significant changes to assumptions or estimates since December 31, 2024[94](index=94&type=chunk) - The company recognizes an allowance for credit losses for financial assets at amortized cost based on expected credit losses over the asset's life, in accordance with ASU-2016-13[96](index=96&type=chunk) [Results of Operations](index=20&type=section&id=RESULTS%20OF%20OPERATIONS) Net sales and income decreased due to lower cosmetic ingredient sales, particularly in China [Net Sales](index=20&type=section&id=Net%20Sales) Net sales declined in Q2 and H1 2025, driven by a sharp drop in cosmetic ingredient sales - Net sales decreased by **$551,980 (16%)** in Q2 2025 and by **$1,325,797 (20%)** in H1 2025 compared to the same periods in 2024[97](index=97&type=chunk) - Cosmetic ingredients sales decreased by **37%** in Q2 2025 and **52%** in H1 2025, primarily due to softer demand in China (trade uncertainty, tariffs) and excess inventory held by distributor ASI[97](index=97&type=chunk)[99](index=99&type=chunk) - Pharmaceutical net sales increased by **3%** in Q2 2025 and **11%** in H1 2025, driven by increased Renacidin orders from a new customer, partially offset by fluctuations in Clorpactin WCS-90 sales[102](index=102&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) - Medical lubricant sales decreased by **12%** in Q2 2025 due to reduced orders from an Indian customer with excess inventory, but increased by **12%** in H1 2025 due to higher orders from a Chinese customer[106](index=106&type=chunk) [Cost of Sales](index=22&type=section&id=Cost%20of%20Sales) Cost of sales as a percentage of net sales remained relatively stable compared to the prior year - Cost of sales as a percentage of net sales slightly increased to **47%** in Q2 2025 from **46%** in Q2 2024, but slightly decreased to **46%** in H1 2025 from **47%** in H1 2024[109](index=109&type=chunk) [Operating Expenses](index=22&type=section&id=Operating%20Expenses) Operating expenses increased due to higher sales, marketing, and payroll-related costs - Operating expenses increased by **$91,273 (15%)** in Q2 2025 and **$155,143 (13%)** in H1 2025, primarily due to increases in sales and marketing, and payroll and payroll-related expenses[110](index=110&type=chunk) [Research and Development Expenses](index=22&type=section&id=Research%20and%20Development%20Expenses) R&D expenses showed mixed results, decreasing in Q2 but increasing for the first half of 2025 - R&D expenses decreased by **3%** in Q2 2025 (due to lower accrued bonuses) but increased by **4%** in H1 2025 (due to higher payroll and related expenses)[111](index=111&type=chunk) [Investment Income](index=22&type=section&id=Investment%20Income) Investment income decreased due to lower interest rates and a smaller investment base - Investment income decreased by **29%** in Q2 2025 and **22%** in H1 2025, attributed to lower interest rates and a decrease in invested funds[112](index=112&type=chunk) [Net gain (loss) on Marketable Securities](index=22&type=section&id=Net%20gain%20(loss)%20on%20Marketable%20Securities) The company recorded a net gain on marketable securities, improving from a loss in the prior year's quarter - Net gain on marketable securities improved from a **$9,501 loss** in Q2 2024 to a **$24,576 gain** in Q2 2025[113](index=113&type=chunk) - For H1 2025, the net gain increased to **$36,926** from **$31,995** in H1 2024[113](index=113&type=chunk) [Provision for Income Taxes](index=22&type=section&id=Provision%20for%20Income%20Taxes) The effective income tax rate remained consistent at 21% for all reported periods - The effective income tax rate remained consistent at **21%** for both Q2 and H1 2025 and 2024, and is expected to remain so for the current fiscal year[114](index=114&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Working capital decreased, but the current ratio improved, and liquidity is deemed sufficient - Working capital decreased by **$137,625** to **$10,613,457** at June 30, 2025, primarily due to a decrease in cash and cash equivalents and marketable securities[115](index=115&type=chunk) - The current ratio increased from **6.6:1** at December 31, 2024, to **6.7:1** at June 30, 2025, mainly due to a decrease in accrued expenses[115](index=115&type=chunk) - The Company believes its working capital is sufficient for the next twelve months and plans to use cash for organic growth, strategic transactions, and inflation mitigation, as well as continued dividend payments and marketable securities purchases[117](index=117&type=chunk)[121](index=121&type=chunk) [Off Balance-Sheet Arrangements](index=23&type=section&id=OFF%20BALANCE-SHEET%20ARRANGEMENTS) The company has no material off-balance sheet arrangements - The Company has no off-balance sheet transactions that have, or are reasonably likely to have, a material impact on its financial condition or results of operations[122](index=122&type=chunk) [Contractual Obligations and Commitments](index=23&type=section&id=CONTRACTUAL%20OBLIGATIONS%20AND%20COMMITMENTS) As a smaller reporting company, disclosure of contractual obligations is not required - Information regarding contractual obligations and commitments is not required for smaller reporting companies[123](index=123&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=23&type=section&id=Item%203%20-%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, market risk disclosures are not required - The Company is a smaller reporting company and is not required to provide quantitative and qualitative disclosures about market risk[124](index=124&type=chunk) [Item 4. Controls and Procedures](index=23&type=section&id=Item%204%20-%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and reported no material changes to internal controls [(a) Disclosure Controls and Procedures](index=23&type=section&id=(a)%20DISCLOSURE%20CONTROLS%20AND%20PROCEDURES) Disclosure controls and procedures were evaluated and found to be effective as of June 30, 2025 - Management, including the Principal Executive Officer and CFO, evaluated the disclosure controls and procedures and determined they were effective as of June 30, 2025, providing reasonable assurance that required information is recorded, processed, summarized, and reported timely[125](index=125&type=chunk) [(b) Changes in Internal Control Over Financial Reporting](index=24&type=section&id=(b)%20CHANGES%20IN%20INTERNAL%20CONTROL%20OVER%20FINANCIAL%20REPORTING) No material changes to internal control over financial reporting occurred during the reporting period - No changes in internal control over financial reporting materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting during the period covered by the report[126](index=126&type=chunk) Part II. OTHER INFORMATION [Item 1. Legal Proceedings](index=24&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section states that there are no legal proceedings to report - There are no legal proceedings to disclose[128](index=128&type=chunk) [Item 1A. Risk Factors](index=24&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces significant risks from global supply chain instability, inflation, and tariffs, especially with China - The Company is actively monitoring trade policy and tariff announcements, especially those concerning China, which have the greatest potential to significantly impact its business[128](index=128&type=chunk) - Significant tariffs or restrictions on Chinese imports could make products less cost-competitive, reduce gross margins, and decrease demand, as already reflected in cosmetic product sales in H1 2025[129](index=129&type=chunk) - The overall impact of tariffs remains uncertain, depending on factors like duration, expansion, retaliatory measures, inflationary effects, and the effectiveness of the Company's responses[133](index=133&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=25&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section indicates no unregistered sales of equity securities to report - There are no unregistered sales of equity securities or use of proceeds to disclose[134](index=134&type=chunk) [Item 3. Defaults Upon Senior Securities](index=25&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) This section states that there are no defaults upon senior securities to report - There are no defaults upon senior securities to disclose[134](index=134&type=chunk) [Item 4. Mine Safety Disclosures](index=25&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This section indicates that there are no mine safety disclosures to report - There are no mine safety disclosures to report[134](index=134&type=chunk) [Item 5. Other Information](index=25&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section states that there is no other information to report - There is no other information to disclose[134](index=134&type=chunk) [Item 6. Exhibits](index=25&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed, including Sarbanes-Oxley certifications and XBRL documents - Exhibits include certifications from the President/Principal Executive Officer and Chief Financial Officer (Sections 302 and 906 of Sarbanes-Oxley Act of 2002)[134](index=134&type=chunk) - Inline XBRL documents (Instance, Schema, Calculation, Definition, Label, Presentation Linkbase Documents) and the Cover Page Interactive Data File are also filed[134](index=134&type=chunk) [Signatures](index=26&type=section&id=SIGNATURES) The report is certified by the company's authorized officers as of August 6, 2025 - The report is signed by Donna Vigilante, President, and Andrea Young, Chief Financial Officer, on behalf of United-Guardian, Inc. on August 6, 2025[136](index=136&type=chunk)[137](index=137&type=chunk)

[Key Financial Highlights (Q2 and H1 2025)](index=1&type=section&id=Key%20Financial%20Highlights%20(Q2%20and%20H1%202025)) Q2 and H1 2025 net sales and income declined year-over-year, with Q2 showing sequential improvement Second Quarter Financial Performance (YoY) | Metric | Q2 2025 ($) | Q2 2024 ($) | Change ($) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales | 2,838,225 | 3,390,205 | -551,980 | -16.28% | | Net Income | 626,826 | 956,225 | -329,399 | -34.45% | | EPS | 0.14 | 0.21 | -0.07 | -33.33% | First Half Financial Performance (YoY) | Metric | H1 2025 ($) | H1 2024 ($) | Change ($) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales | 5,319,352 | 6,645,149 | -1,325,797 | -19.95% | | Net Income | 1,187,721 | 1,881,667 | -693,946 | -36.88% | | EPS | 0.26 | 0.41 | -0.15 | -36.59% | - Compared with the first quarter of 2025, second quarter net sales increased by **14%** and net income increased by **12%**[2](index=2&type=chunk) [Management Commentary and Business Segments](index=1&type=section&id=Management%20Commentary%20and%20Business%20Segments) H1 2025 sales: pharmaceuticals and medical lubricants up, cosmetic ingredients down due to distributor overstock and soft Asian demand; Renacidin formulary expansion is a key initiative - Sales of pharmaceuticals increased by **11%** and medical lubricants increased by **12%** for the first half of 2025 compared to the same period in 2024[3](index=3&type=chunk) - Decrease in cosmetic ingredients sales in H1 2025 was attributable to reduced purchases by Ashland Specialty Ingredients (ASI), the largest cosmetic distributor, due to softer demand in Asia and an inventory overstock situation[3](index=3&type=chunk) - A new project is underway to include Renacidin, the most important pharmaceutical product, in additional drug formularies, with the goal of significantly increasing sales in coming years[3](index=3&type=chunk) - United-Guardian is a manufacturer of cosmetic ingredients, pharmaceuticals, medical lubricants, and sexual wellness ingredients[3](index=3&type=chunk) [Financial Results for the Three and Six Months Ended June 30, 2025 and 2024](index=1&type=section&id=Financial%20Results%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Unaudited consolidated income statements for Q2 and H1 2025 and 2024 detail key financial performance metrics Consolidated Statements of Income (Unaudited) | | 2025 (Three Months, $) | 2024 (Three Months, $) | 2025 (Six Months, $) | 2024 (Six Months, $) | | :--- | :--- | :--- | :--- | :--- | | Net sales | 2,838,225 | 3,390,205 | 5,319,352 | 6,645,149 | | Costs and expenses: | | | | | | Cost of sales | 1,340,854 | 1,561,090 | 2,463,930 | 3,117,580 | | Operating expenses | 694,050 | 602,777 | 1,326,785 | 1,171,642 | | Research and development expense | 107,868 | 111,660 | 222,262 | 214,642 | | Total costs and expenses | 2,142,772 | 2,275,527 | 4,012,977 | 4,503,864 | | Income from operations | 695,453 | 1,114,678 | 1,306,375 | 2,141,285 | | Other income (expense): | | | | | | Investment income | 70,573 | 100,007 | 155,260 | 198,080 | | Net gain (loss) on marketable securities | 24,576 | (9,501) | 36,926 | 31,995 | | Total other income | 95,149 | 90,506 | 192,186 | 230,075 | | Income before provision for income taxes | 790,602 | 1,205,184 | 1,498,561 | 2,371,360 | | Provision for income taxes | 163,776 | 248,959 | 310,840 | 489,693 | | Net income | 626,826 | 956,225 | 1,187,721 | 1,881,667 | | Earnings per common share (basic and diluted) | 0.14 | 0.21 | 0.26 | 0.41 | | Weighted average shares (basic and diluted) | 4,594,319 | 4,594,319 | 4,594,319 | 4,594,319 |