Financial Performance - Net sales for the three months ended September 30, 2024, were $3,060,113, a slight increase from $3,057,518 in the same period of 2023, representing a growth of 0.05%[7] - For the nine months ended September 30, 2024, net sales reached $9,705,262, up 17.2% from $8,278,141 in 2023[7] - Income from operations for the three months ended September 30, 2024, was $949,128, compared to $721,872 in 2023, reflecting a 31.5% increase[7] - Net income for the nine months ended September 30, 2024, was $2,747,151, a significant increase of 48.9% from $1,843,931 in 2023[7] - The company reported earnings per share of $0.19 for the three months ended September 30, 2024, compared to $0.14 in the same period of 2023, marking a 35.7% increase[7] - For the nine months ended September 30, 2024, net income was $2,747,151, compared to $1,843,931 in 2023, representing an increase of approximately 48.1%[7] Assets and Liabilities - Total current assets as of September 30, 2024, were $12,484,639, slightly up from $12,252,713 at the end of 2023[8] - Total assets increased to $13,254,380 as of September 30, 2024, compared to $12,922,838 at the end of 2023, indicating a growth of 2.6%[10] - Total liabilities as of September 30, 2024, were $1,875,238, up from $1,534,256 at the end of 2023, reflecting a 22.3% increase[10] - Total current liabilities rose to $1,875,238 as of September 30, 2024, up from $1,534,256 at December 31, 2023, an increase of 22.3%[10] - Retained earnings slightly decreased to $10,919,710 as of September 30, 2024, from $10,929,150 at December 31, 2023, a decline of 0.09%[10] Cash Flow and Dividends - The company declared dividends of $0.35 per share for the three months ended September 30, 2024, compared to $0.10 per share in the same period of 2023[11] - The company paid $2,756,323 in dividends in September 2024, a significant increase from $459,387 in September 2023[14] - A cash dividend of $0.25 per share was declared on January 30, 2024, totaling $1,148,468 paid to shareholders[69] - A cash dividend of $0.35 per share was declared on July 10, 2024, with total dividends paid amounting to $1,607,855[70] - A cash dividend of $0.10 per share was declared on July 12, 2023, resulting in total dividends of $459,387 paid[71] Research and Development - Research and development expenses for the nine months ended September 30, 2024, were $325,714, slightly down from $353,829 in 2023, indicating a decrease of 7.9%[7] - Research and development expenses for the three months ended September 30, 2024, were $111,072, an increase from $98,141 in 2023[7] Market and Sales - Cosmetic ingredients sales for the three months ended September 30, 2024, were $1,289,587, up 7.7% from $1,197,178 in the same period of 2023, and for the nine months, sales increased to $4,585,443 from $2,731,966, a growth of 68.3%[33] - Sales to customers outside the United States accounted for approximately 20% of total sales in Q3 2024, down from 26% in Q3 2023, while for the nine months ended September 30, 2024, this figure was 17%, compared to 24% in the same period of 2023[35] - Sales in the United States for the three months ended September 30, 2024, were $2,462,696, an increase from $2,247,677 in Q3 2023, and for the nine months, sales rose to $8,089,868 from $6,257,453, reflecting a growth of 29.2%[36] Marketable Securities - The net gains recognized during the three months ended September 30, 2024, on marketable securities were $47,223, compared to a loss of $14,357 in the same period of 2023, while for the nine months, net gains were $79,218, up from $65,823 in 2023[42] - The total fair value of marketable securities as of September 30, 2024, was $7,054,469, up from $851,318 as of December 31, 2023[46][48] - Proceeds from the sale and redemption of marketable securities for the nine months ended September 30, 2024, amounted to $1,065,000, with no realized gains or losses, compared to $5,255,145 and realized losses of $433,769 for the same period in 2023[49] Supply Chain and Operations - The company discontinued its specialty industrial products line due to low sales volume and no growth prospects as of July 1, 2023[16] - The company is focusing on developing new products using natural and environmentally friendly raw materials, which is a priority for its cosmetic customers[16] - The company has not experienced significant delays in receiving raw materials or substantial increases in shipping costs despite global supply chain instability[18] - The company has not experienced significant supply chain disruptions but is monitoring potential impacts from global instability and severe weather events[18] Allowances and Provisions - The allowance for credit losses related to accounts receivable was $19,174 as of September 30, 2024, compared to $16,672 at December 31, 2023[24] - The Company estimates an allowance of $271,916 for possible outdated material returns as of September 30, 2024, up from $247,847 on December 31, 2023[32] - The provision for federal income taxes for the three months ended September 30, 2024, was $299,492, compared to $152,350 in the same period of 2023, while for the nine months, it increased to $771,532 from $317,128[52] Miscellaneous - The company is unable to predict the future impact of the new Medicare Part D Manufacturer Discount Program on its financial condition[30] - The Company participated in government drug rebate programs, which impact sales of its pharmaceutical product Renacidin®[29] - The Company recognizes revenue when a customer obtains control of promised goods or services, in accordance with ASC Topic 606[25]
United-Guardian(UG) - 2024 Q3 - Quarterly Report