United-Guardian(UG) - 2024 Q2 - Quarterly Report

Financial Performance - Net sales for the three months ended June 30, 2024, increased to $3,390,205, a 27.9% rise from$ 2,650,299 in the same period of 2023[4] - Income from operations for the six months ended June 30, 2024, was $2,141,285, up 58.7% compared to$ 1,349,894 for the same period in 2023[4] - Net income for the three months ended June 30, 2024, was $461,094, representing a 0.5% increase from$ 457,593 in the same period of 2023[4] - Net income for the six months ended June 30, 2024, was $1,881,667, compared to$ 1,217,175 for the same period in 2023, representing a 54.4% increase[13] - Basic earnings per share for the three months ended June 30, 2024, were $0.21, compared to$ 0.10 for the same period in 2023, representing a 110% increase[54] Assets and Liabilities - Total current assets as of June 30, 2024, were $13,142,508, an increase from$ 12,252,713 as of December 31, 2023[5] - Total assets increased to $13,834,678 as of June 30, 2024, compared to$ 12,922,838 as of December 31, 2023[7] - The company reported a decrease in total liabilities to $1,713,009 as of June 30, 2024, from$ 1,534,256 at the end of 2023[8] - Total stockholders' equity increased to $12,121,669 as of June 30, 2024, compared to$ 11,388,582 at the end of 2023[7] Cash Flow - Net cash provided by operating activities increased to $1,968,250 for the six months ended June 30, 2024, from$ 852,247 in the prior year, marking a 131.3% rise[13] - Cash and cash equivalents were $8,405,371 as of June 30, 2024, compared to$ 8,243,122 at the end of 2023[5] - Cash and cash equivalents at the end of the period were $8,405,371, up from$ 6,482,907 at the end of June 2023, reflecting a 29.6% increase[13] Dividends - The company declared dividends of $0.25 per share, totaling$ 1,148,468 for the six months ended June 30, 2024[10] - The company declared a cash dividend of $0.25 per share on January 30, 2024, totaling$ 1,148,580 for the first half of 2024, with no dividends declared in the first half of 2023[55] - A total of $1,148,580 in dividends was declared during the first half of 2024, with$ 1,148,468 paid[55] - On July 10, 2024, the Company declared a cash dividend of $0.35 per share, paid on July 31, 2024[56] Sales and Market Trends - Cosmetic ingredients sales for the three months ended June 30, 2024, were$ 1,419,374, a 83% increase compared to $772,887 in the same period of 2023[30] - Approximately 17% of total sales in Q2 2024 were to customers outside the U.S., down from 22% in Q2 2023[31] - For the six months ended June 30, 2024, approximately 84% of ASI's sales were to customers in other countries, with China accounting for about 50%[32] Research and Development - Research and development expenses for the three months ended June 30, 2024, were$ 128,729, compared to $214,642 in the same period of 2023, indicating a decrease of 40%[4] Supply Chain and Operational Challenges - The company is closely monitoring global supply chain instability and inflation, which could impact future gross margins and operational costs[17] - The company has not experienced significant delays in receiving raw materials or increased shipping costs, but remains cautious about potential future impacts due to global supply chain instability[17] Inventory and Allowances - Total inventories as of June 30, 2024, were$ 1,172,087, a decrease from $1,223,506 as of December 31, 2023[40] - The allowance for credit losses related to accounts receivable was$ 20,241 as of June 30, 2024, compared to $16,672 at the end of 2023, indicating a 21.0% increase[21] - The company recorded an allowance of$ 268,242 for possible outdated material returns as of June 30, 2024, compared to $247,847 at the end of 2023, indicating an increase of approximately 8.5%[28] Marketable Securities - The company reported unrealized losses on marketable securities of$ (9,501) for the three months ended June 30, 2024, compared to unrealized gains of $441,248 in the same period of 2023[36] - Total marketable securities as of June 30, 2024, were valued at$ 1,453,542, with an unrealized gain of $33,983, compared to$ 851,318 and $1,988 as of December 31, 2023[38]