United-Guardian(US:UG)2025-11-06 14:01Financial 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]