Financial Performance - Net sales for Q1 2024 increased to $3,254,944, a 26.7% rise from $2,570,324 in Q1 2023[13] - Net income for Q1 2024 was $925,442, up 22.4% compared to $756,081 in Q1 2023[13] - Earnings per share (basic and diluted) rose to $0.20 in Q1 2024 from $0.16 in Q1 2023, reflecting a 25% increase[13] - For the three months ended March 31, 2024, net sales reached $3,254,944, a 26.6% increase from $2,570,324 in the same period of 2023[44] - Cosmetic ingredients sales for Q1 2024 were $1,876,482, up from $761,901 in Q1 2023, indicating a substantial growth in this segment[44] - Net sales for Q1 2024 increased by $684,620 (approximately 27%) compared to Q1 2023, driven primarily by a 146% increase in cosmetic ingredients sales[85] - Net sales of pharmaceutical products decreased from $1,354,224 in Q1 2023 to $950,323 in Q1 2024, a decline of approximately 30%[86] Assets and Liabilities - Total current assets as of March 31, 2024, were $12,429,989, slightly up from $12,252,713 at December 31, 2023[15] - Cash and cash equivalents decreased to $7,073,296 from $8,243,122 at the end of 2023, a decline of 14.2%[15] - Total liabilities increased to $1,881,985 as of March 31, 2024, compared to $1,534,256 at December 31, 2023[17] - The company’s inventories totaled $1,278,691 as of March 31, 2024, compared to $1,223,506 as of December 31, 2023, showing an increase in inventory levels[54] - Working capital decreased by $150,814 to $10,567,643 at March 31, 2024, with the current ratio dropping to 6.7 to 1 from 8.0 to 1[95] Expenses - Research and development expenses decreased to $102,982 in Q1 2024 from $126,959 in Q1 2023, a reduction of 18.9%[13] - Operating expenses increased by $50,919 (approximately 10%) in Q1 2024 compared to Q1 2023, mainly due to higher Board of Directors fees and legal expenses[89] - R&D expenses decreased by $23,977 (approximately 19%) in Q1 2024 compared to Q1 2023, primarily due to lower payroll-related expenses[90] - The total provision for income taxes for the three months ended March 31, 2024, was $240,734, compared to $196,076 for the same period in 2023, representing an increase of approximately 22.7%[11] Dividends - The company declared dividends of $0.25 per share, totaling $1,148,468 for Q1 2024[19] - The Company declared a cash dividend of $0.25 per share on January 30, 2024, totaling $1,148,580, with $1,148,468 paid during the first quarter of 2024; no dividends were declared in the first quarter of 2023[67] Market and Sales - Approximately 13% of total sales in Q1 2024 were to customers outside the United States, down from 24% in Q1 2023[44] - Three pharmaceutical distributors and one cosmetic ingredient distributor accounted for 83% of gross sales and 90% of accounts receivable as of March 31, 2024, compared to 74% and 79% respectively in Q1 2023[61] - The Company had four major raw material vendors accounting for approximately 88% of raw material purchases in Q1 2024, up from 85% with three vendors in Q1 2023[62] Strategic Focus - The company is focusing on developing new products using natural and environmentally friendly raw materials[25] - The Company focuses on developing new products using natural and environmentally friendly raw materials, with its Lubrajel products certified by the COSMOS standard[75] - The Company has discontinued its line of specialty industrial products due to low sales volume and no growth prospects, effective July 1, 2023[72] Other Financial Metrics - Cash generated from operations was $644,120 in Q1 2024, up from $417,589 in Q1 2023, reflecting an increase in net income[98] - Investment income increased by $50,441 (approximately 106%) in Q1 2024, attributed to higher interest income from U.S. Treasury Bills[91] - Total accrued expenses increased to $1,422,319 as of March 31, 2024, from $1,363,044 as of December 31, 2023, reflecting a rise of approximately 4.3%[58] - The company recognized net gains on marketable securities of $41,496 for the three months ended March 31, 2024, compared to $72,701 for the same period in 2023[49] - The total marketable securities as of March 31, 2024, were valued at $1,536,336, with unrealized gains of $43,484[50] - As of March 31, 2024, the allowance for credit losses related to accounts receivable amounted to $24,321, compared to $16,672 as of December 31, 2023, reflecting a significant increase[33] - The company’s allowance for possible outdated material returns was $255,494 as of March 31, 2024, compared to $247,847 as of December 31, 2023[41]
United-Guardian(UG) - 2024 Q1 - Quarterly Report