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]

U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ COMMISSION FILE NUMBER: 1-10526 UNITED-GUARDIAN, INC. . (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation o ...

EXHIBIT 99.1 STATEMENTS OF INCOME (unaudited) United-Guardian is a manufacturer of cosmetic ingredients, pharmaceuticals, medical lubricants, and sexual wellness ingredients. Contact: Donna Vigilante (631) 273-0900 dvigilante@u-g.com NOTE: This press release contains both historical and "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements about the company's expectations or beliefs concerning future events, such as financial performance, b ...

Core Viewpoint - United-Guardian, Inc. reported a decline in net sales and net income for the second quarter and first half of 2025 compared to the same periods in 2024, although there was a sequential increase from the first quarter of 2025 [1][2]. Financial Performance - Second quarter net sales decreased from $3,390,205 in 2024 to $2,838,225 in 2025, a decline of approximately 16.3% - Net income for the second quarter fell from $956,225 ($0.21 per share) in 2024 to $626,826 ($0.14 per share) in 2025, a decrease of about 34.4% - For the six-month period ended June 30, net sales decreased from $6,645,149 in 2024 to $5,319,352 in 2025, a decline of approximately 20% - Net income for the six-month period decreased from $1,881,667 ($0.41 per share) in 2024 to $1,187,721 ($0.26 per share) in 2025, a decrease of about 37% [1][5][6]. Segment Performance - Sales of pharmaceuticals and medical lubricants increased by 11% and 12%, respectively, in the first half of 2025 compared to the same period in 2024 - The increase in these segments was offset by a decrease in sales of cosmetic ingredients, primarily due to reduced purchases by Ashland Specialty Ingredients (ASI), the largest cosmetic distributor - The decline in ASI's purchases was attributed to softer demand in Asia, leading to an inventory overstock situation [2][3]. Future Outlook - The company is optimistic about improving cosmetic sales in the second half of the year as ASI resolves its overstock situation - A new project is being initiated to include Renacidin, a key pharmaceutical product, in additional drug formularies, which could significantly boost sales in the coming years [2][3].

Core Points - United-Guardian, Inc. has appointed Donna Vigilante as a new director on its Board of Directors, highlighting her extensive experience with the company over the past 20 years [1] - Ms. Vigilante holds a Bachelor of Science degree in biochemistry and has previously served as Vice President and Manager of R&D and microbiology departments, overseeing the development of new products [1] - The company is implementing new initiatives focused on global marketing and distribution of cosmetic ingredients, as well as increasing sales of medical and pharmaceutical products [2] Company Overview - United-Guardian, Inc. is a manufacturer of cosmetic ingredients, pharmaceuticals, medical lubricants, and sexual wellness ingredients [1] - The company is emphasizing a renewed focus on its product lines, particularly in the areas of medical and pharmaceutical products [2] Leadership Insights - Donna Vigilante expressed her excitement about her appointment and the confidence shown by the Board, indicating a positive outlook for the company's future [2] - The management team is enthusiastic about the significant changes being made in the company's marketing and distribution strategies [2]

Core Insights - United-Guardian, Inc. reported a decline in both net sales and net income for the first quarter of 2025, with net sales at $2.48 million, down 24% from $3.25 million year-over-year, and net income falling 39% to $560,895 or 12 cents per share from $925,442 or 20 cents per share [2][6] Business Segment Performance - The cosmetic ingredients segment experienced a significant decline, with sales dropping 63% year-over-year to $698,998 from $1.88 million, primarily due to a 74% reduction in orders from its largest distributor, Ashland Specialty Ingredients [3] - Pharmaceutical sales rebounded, with net sales increasing 23% to $1.17 million from $950,323 in the previous year, driven by the normalization of Renacidin supply, which saw gross sales rise 38% year-over-year to $1.23 million [4] - Medical lubricant sales grew 43% year-over-year to $613,671, benefiting from increased demand in India and China, making it the strongest performing segment [5] Management Commentary - The company's president acknowledged the challenging start to the year, attributing revenue shortfalls to the cosmetic ingredient business but highlighted the strength in medical lubricants and pharmaceuticals as positive signs [6] - Concerns were raised regarding evolving trade policies and tariffs by the U.S. government, which could introduce uncertainty for product lines tied to China markets, although the company is monitoring these risks [7] Financial Metrics - Cost of sales decreased to $1.12 million from $1.56 million year-over-year, improving as a percentage of revenues to 45% from 48% [8] - Operating expenses rose 11% to $632,735 due to higher payroll and marketing costs, while research and development expenses also increased by 11% to $114,394 [8] - Investment income and gains on marketable securities fell to $97,037 from $139,569 a year earlier, attributed to lower interest income and reduced unrealized gains [9] Future Outlook - The company expressed confidence in its long-term strategy, particularly in product development and market expansion, with plans to begin manufacturing and sales of the Natrajel product in 2025 [10] - In February 2025, United-Guardian expanded its partnership with Azelis Group NV to include South Korea and broadened coverage in the U.K. and Ireland [11]

Financial Performance - Net sales for Q1 2025 were $2,481,127, a decrease of 23.7% compared to $3,254,944 in Q1 2024[11] - Net income for Q1 2025 was $560,895, down 39.4% from $925,442 in Q1 2024[11] - Earnings per share (basic and diluted) decreased to $0.12 in Q1 2025 from $0.20 in Q1 2024[11] - Total net sales for the three months ended March 31, 2025, were $2,481,127, down from $3,254,944 in the same period of 2024, representing a decline of approximately 23.7%[52] - Revenue from pharmaceutical sales increased to $1,168,458 in Q1 2025, compared to $950,323 in Q1 2024, reflecting a growth of approximately 23%[52] - Net sales for Q1 2025 decreased by $773,817 (approximately 24%) compared to Q1 2024, primarily due to a 63% decrease in sales of cosmetic ingredients[93] Assets and Liabilities - Total current assets decreased to $11,691,416 in Q1 2025 from $12,665,551 in Q4 2024, a decline of 7.7%[14] - Total liabilities remained stable at $1,927,638 in Q1 2025, compared to $1,914,469 in Q4 2024[17] - Cash and cash equivalents at the end of Q1 2025 were $1,269,212, down 32.3% from $1,875,655 at the end of Q4 2024[14] - Cash held in excess of FDIC limits was approximately $962,000 as of March 31, 2025, compared to $234,000 at December 31, 2024[38] - Working capital decreased by $987,304 to $9,763,778 at March 31, 2025, down from $10,751,082 at December 31, 2024[104] Expenses - Research and development expenses increased to $114,394 in Q1 2025 from $102,982 in Q1 2024, reflecting a growth of 11.5%[11] - Operating expenses increased by $63,870 (approximately 11%) in Q1 2025 compared to Q1 2024, mainly due to higher sales and marketing expenses[98] - R&D expenses rose by $11,412 (approximately 11%) in Q1 2025 compared to Q1 2024, driven by increased payroll-related expenses[99] - The provision for income taxes for Q1 2025 was $147,064, a decrease from $240,734 in Q1 2024, with federal income taxes current provision at $107,860 compared to $169,940 in the prior year[67] Dividends - Dividends declared and paid in Q1 2025 were $1,607,893, compared to $1,148,468 in Q1 2024, an increase of 40%[24] - The company declared a cash dividend of $0.35 per share in January 2025, totaling $1,608,012, compared to a dividend of $0.25 per share totaling $1,148,580 in January 2024[82][83] Market and Distribution - The company entered a distribution agreement with Brenntag Specialties for its new Natrajel® line, expecting to begin sales in 2025[27] - The company expanded its presence in the sexual wellness market by partnering with Brenntag Specialties to distribute the new Natrajel line across North and South America, with manufacturing and revenue expected to begin in 2025[86] - A new territory, South Korea, was added for personal care distribution in February 2025, expanding the relationship with Azelis Group NV, which also includes the medical market in the UK and Ireland[87] - Approximately 29% of total sales in Q1 2025 were to customers outside the United States, up from 13% in Q1 2024[52] - Three pharmaceutical distributors and one cosmetic ingredient distributor accounted for 67% of gross sales in Q1 2025, down from 83% in Q1 2024[76] Cash Flow - The company generated cash from operations of $322,080 in Q1 2025, down from $644,120 in Q1 2024, primarily due to a decrease in net income[107] - Net cash used in financing activities increased to $1,607,893 in Q1 2025 from $1,148,468 in Q1 2024, due to higher dividend payments[109] Other Financial Metrics - The allowance for credit losses related to accounts receivable increased to $18,114 as of March 31, 2025, compared to $14,342 on December 31, 2024[41] - The company recognized net gains of $12,350 on marketable securities for the three months ended March 31, 2025, compared to $41,496 in the same period of 2024[60] - As of March 31, 2025, total marketable securities amounted to $6,851,997, with an unrealized gain of $42,834 compared to a total of $7,522,625 and an unrealized gain of $28,977 as of December 31, 2024[62][63] - The company reported proceeds from the redemption of marketable securities of $6,148,493 in Q1 2025, including realized losses of $1,507, compared to $150,000 with no realized gains or losses in Q1 2024[64] - Cost of sales as a percentage of net sales decreased to 45% in Q1 2025 from 48% in Q1 2024, attributed to lower per-unit overhead rates[97] - The effective income tax rate was approximately 21% for both Q1 2025 and Q1 2024, expected to remain stable for the current fiscal year[103] Supply Chain and Risks - The company is monitoring the impact of global supply chain instability and tariffs, particularly concerning imports from China[33] - The company has a significant concentration of receivables, with potential risks associated with the financial position of a small number of customers[55]

[United-Guardian Q1 2025 Earnings Release](index=1&type=section&id=United-Guardian%20Q1%202025%20Earnings%20Release) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) United-Guardian reported significant Q1 2025 declines in net sales (23.8% to $2.48 million) and net income (39.4% to $0.56 million), with EPS falling from $0.20 to $0.12 Q1 2025 vs Q1 2024 Key Financial Results | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $2,481,127 | $3,254,944 | -23.8% | | Net Income | $560,895 | $925,442 | -39.4% | | EPS (basic and diluted) | $0.12 | $0.20 | -40.0% | [Business Segment Performance and Outlook](index=1&type=section&id=Business%20Segment%20Performance%20and%20Outlook) Strong growth in medical lubricant and pharmaceutical segments was offset by a 63% decline in cosmetic ingredients due to reduced ASI orders and excess inventory in China, with tariff concerns noted - The overall decrease in sales and earnings was primarily driven by a significant downturn in the cosmetic ingredient business, despite positive performance in other segments[3](index=3&type=chunk) Q1 2025 Year-over-Year Sales Growth by Segment | Business Segment | Sales Change vs Q1 2024 | | :--- | :--- | | Medical Lubricant | +43% | | Pharmaceutical | +23% | | Cosmetic Ingredients | -63% | - The reduction in cosmetic ingredient orders from partner ASI is attributed to excess inventory in China and the timing of orders. ASI has confirmed no significant loss of customers[3](index=3&type=chunk) - Potential tariffs announced by the U.S. government on imports remain a concern, with the financial impact currently difficult to determine[3](index=3&type=chunk) [Consolidated Statements of Income](index=1&type=section&id=Consolidated%20Statements%20of%20Income) Unaudited Q1 2025 statements show decreased net sales and income from operations, falling from $1.03 million in Q1 2024 to $0.61 million, despite reduced total costs and expenses Statements of Income (Unaudited) - For the Three Months Ended March 31, | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | **Net sales** | **$2,481,127** | **$3,254,944** | | Cost of sales | 1,123,076 | 1,556,490 | | Operating expenses | 632,735 | 568,865 | | Research and development | 114,394 | 102,982 | | *Total costs and expenses* | *1,870,205* | *2,228,337* | | **Income from operations** | **610,922** | **1,026,607** | | Investment income | 84,687 | 98,073 | | Net gain on marketable securities | 12,350 | 41,496 | | *Total other income* | *97,037* | *139,569* | | **Income before provision for income taxes** | **707,959** | **1,166,176** | | Provision for income taxes | 147,064 | 240,734 | | **Net income** | **$560,895** | **$925,442** | | **Earnings per common share** | **$0.12** | **$0.20** | | Weighted average shares | 4,594,319 | 4,594,319 |

Financial Performance - United-Guardian, Inc. reported a decrease in first quarter sales from $3,254,944 in 2024 to $2,481,127 in 2025, representing a decline of approximately 23.7% [1][4] - Net income also decreased from $925,442 ($0.20 per share) in 2024 to $560,895 ($0.12 per share) in 2025, reflecting a decline of about 39.3% [1][5] Business Segment Performance - The medical lubricant and pharmaceutical segments showed positive performance, with sales increasing by 43% and 23% respectively in the first quarter of 2025 compared to the same period in 2024 [2] - Conversely, sales in the cosmetic ingredient segment decreased significantly by 63% in the first quarter of 2025, primarily due to reduced orders from Ashland Specialty Ingredients (ASI) [2] Operational Insights - The decrease in orders from ASI was attributed to excess inventory in China that needed to be worked off and the timing of product orders, although ASI confirmed no significant loss of business or customers [2] - The company expressed concerns regarding potential impacts from tariff announcements by the U.S. federal government on imports, indicating uncertainty in future operations and financial conditions [2]

Core Viewpoint - United-Guardian, Inc. reported improved financial results for 2024, driven by strong sales in cosmetic ingredients and medical lubricants, despite challenges in the pharmaceutical segment due to supply disruptions [14]. Revenue & Earnings Growth From Prior Year - The company achieved a 12% year-over-year increase in net sales, rising from $10.89 million in 2023 to $12.18 million in 2024 [2]. - Net income increased by 26% to $3.25 million, or $0.71 per share, compared to $2.58 million, or $0.56 per share, in the previous year [2]. Segment Performance & Business Drivers - Sales of cosmetic ingredients surged by 32% year over year, attributed to increased purchase orders from the largest distributor and improved demand in China [4]. - Medical lubricant sales rose by 16%, driven by demand from a major contract manufacturer in China [4]. - Pharmaceutical sales declined by 5% due to a supply disruption of Renacidin, which affected sales in the first quarter of 2024 [5]. Management Commentary - The president of United-Guardian highlighted the strong performance in the cosmetics and medical lubricant segments as key contributors to revenue and profit growth [6]. - Management expressed optimism regarding the recovery of Renacidin sales in 2025 following the supply issues [7]. Financial Position & Key Metrics - Total assets increased to $13.80 million from $12.92 million, while current assets rose to $12.67 million from $12.25 million [8]. - Total liabilities increased to $1.91 million from $1.53 million, and stockholders' equity grew to $11.88 million from $11.39 million [8]. Factors Influencing Financial Results - Improved financial performance was driven by increased sales volumes in higher-margin product categories and controlled operating expenses [10]. - Investment income contributed positively to net income, reflecting a favorable interest rate environment [11]. - The decline in pharmaceutical sales highlighted the company's exposure to supply-chain volatility, but management indicated that these issues are now resolved [12]. Other Developments - The company maintained its focus on organic growth across its core business lines without changes in strategic direction or corporate structure [13].