United-Guardian, Inc. Annual Report 2023

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FY2023 Annual Report · United-Guardian, Inc.

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Annual Report 2023

Excellence

Through

Innovation®

Cosmetic Ingredients | Medical Lubricants | Pharmaceutical Products | Sexual Wellness Ingredients

OFFICERS AND DIRECTORS

DONNA VIGILANTE
President

PETER A. HILTUNEN
Senior Vice President
Production and Procurement

ANDREA YOUNG
Chief Financial Officer & Controller
Treasurer
Secretary

KEN GLOBUS
Chairman of the Board of Directors

ARTHUR M. DRESNER
Director; Counsel to the law firm of
Duane Morris LLP
New York, NY

LAWRENCE F. MAIETTA
Director; Partner in the accounting firm of
PKF O’Connor Davies, LLP
New York, NY

ANDREW A. BOCCONE
Director; Independent Business Consultant,
Former President of Kline & Company, Inc.
(business consulting firm), Little Falls, NJ

S. ARI PAPOULIAS
Director; Principal of ChemRise LLC
(a business advisory firm providing advice to
companies in the chemicals industry), Tarrytown, NY

CATHERINE KOLINSKI
Director; Independent Business Consultant,
Former Vice President of Ashland Specialty Ingredients
(manufacturer and distributor of specialty chemicals),
Bridgewater, NJ

CORPORATE PROFILE

United-Guardian, Inc. is a publicly-traded (NASDAQ:UG), fully integrated research, development, and manufacturing company that
has been supplying unique and innovative products to the personal care, health care, pharmaceutical, and industrial sectors since
1942. The company’s products are developed and manufactured by the company’s Guardian Laboratories Division at its 50,000
square foot facility in Hauppauge, New York. The cosmetic ingredients are marketed through a worldwide network of distributors
and are used by many of the major multinational cosmetic companies. The pharmaceutical products are sold primarily to full-line
drug wholesalers, which distribute them to pharmacies, hospitals, physicians, long-term care facilities, and other health care
providers. The health care products are primarily medical lubricants marketed directly to manufacturers of medical devices
and other medical products, which incorporate them into their finished products and distribute them to hospitals, pharmacies,
and other health care facilities. The specialty industrial line of products was discontinued after the second quarter of 2023. The
LUBRAJEL® line of hydrogels is the company’s most important product line and are used in both personal care and medical
products. Innovation is a central theme of United-Guardian’s strategy. The focus, at this time, is to continue expanding the pipeline
of classic and naturally derived hydrogel products to address unmet market and customer needs. Over the years, the company
has been issued over 32 patents. The company currently relies primarily on proprietary manufacturing methods and product
formulations, which are protected as trade secrets, rather than patent protection. United-Guardian has received ISO 9001:2015
registration from DQS Inc., indicating that the company’s documented procedures and overall operations have attained the very
high level of quality needed for this global certification level.

LETTER TO STOCKHOLDERS

Dear Stockholder:

This past year was a challenging one for us, with economic issues still negatively impacting our sales in

China, and the temporary production suspension of Renacidin® irrigating solution. Late last year, our contract

manufacturer of Renacidin temporarily suspended production resulting in our inability to bring in new inventory

and requiring us to allocate our existing inventory to try to ensure that our product was available throughout

as much of the country as possible.

I am pleased to report that production of Renacidin has now resumed, and we began shipping some

initial batches we received from our contract manufacturer at the end of March. Since then, we have received

additional production batches, and we have increased the amounts that we ship to each of our distributors.

We are making every effort to make the product available to as many patients as possible, especially those

that depend on the product. We expect to fulfill orders in their entirety and be back to normal inventory levels

by the end of April.

As a result of the Renacidin production issue, as well as the continuing economic issues that have

impacted our sales in China, net income for FY 2023 remained relatively flat compared with FY 2022. Net sales

for the year decreased by 14% from $12,698,503 in 2022 to $10,885,154 in 2023, and net income increased

from $2,569,512 ($0.56 per share) in 2022 to $2,581,370 ($0.56 per share) in 2023. The decrease in overall

sales was due primarily to a decrease in sales of our cosmetic ingredients, which decreased by 20%

from $5,167,909 in 2022 to $4,132,334 in 2023. A decline in sales to our largest distributor, Ashland Specialty

Ingredients (“ASI”), was responsible for 19% of the total decrease. According to ASI, the primary reasons for

the decrease in sales were customers maintaining lower inventory levels and changing to just-in-time order

patterns. Reduced sales in China were responsible for the most significant sales decrease when comparing the

regions for which ASI is responsible. We are working with ASI to better understand the market in China and our

share of that market, how we can remain competitive there, and what strategies are needed to be successful in

this ever-evolving landscape. We are currently in negotiations with ASI on a new marketing agreement, which

includes discussions on current marketing territories, competition, market penetration and ways to stimulate

sales. While these discussions are going on, we will continue to work with ASI as we have in the past, fulfilling

customer orders and discussing marketing strategies to promote our products more effectively.

In regard to Renacidin, over the past few months we have had in-depth conversations with patients

and healthcare professionals who have provided valuable insight into the use and need for Renacidin. We

have learned more about our core patient group and what additional steps we need to take to expand brand

awareness. We will be working with a marketing firm to aid us in conducting a market research study. The study

will be conducted over a two-month period with insight from healthcare professionals who currently prescribe

our product. This information will enable us to create a marketing campaign aimed at providing healthcare

professionals with clinical information on Renacidin. We are also exploring the possibility of expanding sales

of Renacidin into Europe and are in discussions with a company that is very interested in pursuing this with us

United-Guardian, Inc. Annual Report 2023 1

and is in the process of investigating the costs and market potential. While these discussions are in the early

stages, we are excited about the possibility of bringing Renacidin to patients outside the U.S.

Brenntag Specialties (“Brenntag”), the new marketer and distributor for our Natrajel™ line of sexual

wellness ingredients in the U.S. and Canada, began its marketing efforts for the new product line late last

year, and we are continuing to explore the potential in this market, both in North America and around the

world. Brenntag will be presenting formulations, which include our Natrajel products, at In-Cosmetics Global

Trade Show this spring. We are looking forward to gaining customer insight and feedback from the event.

We understand that marketing a new product line takes time, but we have been very encouraged by the

number of sample requests that we have received so far.

We are also in the process of negotiating a new marketing agreement that will expand our reach in the

medical lubricant market. The agreement will initially include two countries in Europe, with the possibility

of expanding that to other European countries as well as countries in the Middle East and Africa. Our

distribution partner has identified areas within the healthcare space for which our medical lubricants would

be an ideal fit. They will also explore other healthcare markets, including nutraceuticals, diagnostics, and

veterinary medicine, where they see potential for our products. This agreement will enable us to explore

new markets and provide additional opportunities to develop new products.

Finally, our research team continues to develop ingredients to meet the needs of our cosmetic

customers. Companies that produce skin care and hair care products continue to need ingredients that are

natural and multifunctional. Our hydrogels meet this market need by adding hydration, lubrication, sensory

enhancements, and texture, while also maintaining our commitment to using sustainable sources, green

chemistry, and limiting our impact on the environment during the manufacturing processes. In addition,

we continue to see the need for new textures and sensory products, and currently have a few concepts

in various stages of development. Along with expanding our product portfolio, we are re-evaluating the

marketing strategy for our cosmetic ingredients. We are in the process of hiring a Director of Marketing to

spearhead our marketing strategy by increasing brand awareness, understanding our market presence, and

evaluating our commercialization channels.

In 2023, we identified ways to expand each of our product categories and began finding partners to

bring those ideas to tangible goals. In 2024, we began formalizing those relationships, and with the efforts

from our new marketing director, we will begin to implement those strategies. We are hopeful that our sales for

2024 will reflect the efforts we have made so far in positioning ourselves for future growth.

Sincerely,

UNITED-GUARDIAN, INC.

Donna Vigilante

President

2 United-Guardian, Inc. Annual Report 2023

STATEMENTS OF INCOME

Net sales

Costs and expenses:
Cost of sales

Operating expenses
Research and development
Total costs and expenses
Income from operations

Other income (expense):
Investment income

Net gain (loss) on marketable securities
Total other income (expense)

Years ended December 31,

2023

2022

$ 10,885,154

$ 12,698,503

5,479,566
2,078,564
463,992
8,022,122
2,863,032

5,996,376
2,174,127

490,770

8,661,273
4,037,230

306,651
81,095
387,746

236,695
(1,046,245)

(809,550)

Income before provision for income taxes

3,250,778

3,227,680

Provision for income taxes
Net income

669,408
$ 2,581,370

658,168

$ 2,569,512

Earnings per common share (basic and diluted)

0.56

Weighted average shares (basic and diluted)

4,594,319

See Notes to Financial Statements

United-Guardian, Inc. Annual Report 2023 3

BALANCE SHEETS

ASSETS

Current assets:
Cash and cash equivalents
Marketable securities
Accounts receivable, net of allowance for credit losses

of $16,672 in 2023 and $20,063 in 2022

Inventories, net
Prepaid expenses and other current assets
Prepaid income taxes

December 31,

2023

2022

$ 8,243,122
851,318

830,452
$
5,653,516

1,566,839
1,223,506
191,708
176,220

1,427,576
1,672,012
201,846
185,228

Total current assets

12,252,713

9,970,630

Deferred income taxes, net

50,930

110,544

Property, plant, and equipment:
Land
Factory equipment and fixtures
Building and improvements
Total property, plant, and equipment

69,000
4,669,936
2,976,577
7,715,513

69,000
4,585,055
2,895,742
7,549,797

Less accumulated depreciation
Total property, plant, and equipment, net

7,096,318
619,195

6,990,636
559,161

TOTAL ASSETS

$12,922,838

$ 10,640,335

See Notes to Financial Statements

4 United-Guardian, Inc. Annual Report 2023

BALANCE SHEETS

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable
Accrued expenses
Deferred revenue
Dividends payable
Total current liabilities

Commitments and contingencies

December 31,

2023

2022

134,449
$
1,363,044
15,498
21,265
1,534,256

30,415

$
1,322,056
—
21,220

1,373,691

Stockholders’ equity:

Common stock, $.10 par value; 10,000,000 shares

authorized; 4,594,319 shares issued and outstanding at

December 31, 2023 and 2022, respectively

459,432

Retained earnings

Total stockholders’ equity
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY

See Notes to Financial Statements

10,929,150
11,388,582

8,807,212
9,266,644

$12,922,838

$ 10,640,335

United-Guardian, Inc. Annual Report 2023 5

STATEMENTS OF STOCKHOLDERS’ EQUITY

Years ended December 31, 2023 and 2022

Common stock

Amount

Retained
earnings

Total

Balance, January 1, 2022

4,594,319

$459,432 $ 9,361,837

$ 9,821,269

Net income

—

2,569,512

Dividends declared, not paid
($0.68 per share)

Dividends declared and paid
($0.68 per share)

—

(645)

—

(3,123,492)

Balance, December 31, 2022

4,594,319

$459,432

$ 8,807,212

$ 9,266,644

Net income

—

2,581,370

Dividends declared, not paid
($0.10 per share)

Dividends declared and paid
($0.10 per share)

—

(45)

—

(459,387)

Balance, December 31, 2023

4,594,319

$459,432 $ 10,929,150

$ 11,388,582

See Notes to Financial Statements

6 United-Guardian, Inc. Annual Report 2023

STATEMENTS OF CASH FLOWS

Cash flows from operating activities:

Net income
Adjustments to reconcile net income to net cash provided by

operating activities:

Depreciation and amortization
(Gain) loss on sale of asset
Net (gain) loss on marketable securities
Allowance for credit losses
Allowance for obsolete inventory
Deferred income taxes
(Increase) decrease in operating assets:

Accounts receivable
Inventories

Prepaid expenses and other current assets
Prepaid income taxes

Increase (decrease) in operating liabilities:

Accounts payable

Accrued expenses
Deferred revenue

Income taxes payable

Net cash provided by operating activities

Cash flows from investing activities:

Acquisitions of property, plant and equipment

Proceeds from sale of asset
Purchases of marketable securities
Proceeds from sales of marketable securities
Net cash provided by investing activities

Cash flows from financing activities:

Dividends paid

Net cash used in financing activities

Net increase in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year

Supplemental disclosure of cash flow information:

Years ended December 31,

2023

2022

$ 2,581,370

$ 2,569,512

105,682
(10,000)
(81,095)
(3,391)
(17,000)
59,614

(135,872)
465,506
10,138
9,008

104,034
40,988
15,498
—
3,144,480

(165,716)
10,000
(621,852)
5,505,145
4,727,577

135,396
2,445
1,046,245
(189)
29,000
(193,766)

385,959
(290,223)
(9,267)
(185,228)

(380,479)
(305,334)
(190,164)
(88,738)
2,525,169

(75,179)
37,039
(1,931,969)
2,867,671
897,562

(459,387)
(459,387)

(3,123,492)
(3,123,492)

7,412,670
830,452
$ 8,243,122

299,239
531,213
$ 830,452

Taxes paid

$ 600,000

$ 1,125,000

Supplemental disclosure of non-cash items:

Dividends payable

See Notes to Financial Statements

645

United-Guardian, Inc. Annual Report 2023 7

NOTES TO FINANCIAL STATEMENTS

NOTE A
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business

United-Guardian, Inc. (“Registrant” or “Company”)

is a Delaware corporation that, through its Guardian
Laboratories division, manufactures and markets
cosmetic ingredients, pharmaceutical products,
medical lubricants and sexual wellness ingredients.
Prior to July 1, 2023, the Company manufactured and
reported sales of a line of specialty industrial products;
however, this product line was discontinued after the
second quarter of 2023 due to low sales volume with
no growth prospects. The Company also conducts
research and product development, primarily related
to the development of new and unique cosmetic
ingredients. The Company’s research and development
department also modifies, refines, and expands the
uses for existing products, with the goal of further
developing the market for the Company’s products.
Two major product lines, Lubrajel and Renacidin
Irrigation Solution (“Renacidin”) together accounted
for approximately 94% and 92% of the Company’s
sales for the years ended December 31, 2023 and
December 31, 2022, respectively. Lubrajel accounted
for approximately 55% and 59% of the Company’s
sales for the years ended December 31, 2023 and
December 31, 2022, respectively, and Renacidin
accounted for approximately 38% and 33% of the
Company’s sales for the years ended December 31,
2023 and December 31, 2022, respectively.

Impact of Global Supply Chain Instability
and Inflation

The increased raw material prices that the

Company experienced during 2022 and the beginning
of 2023 stabilized during the latter part of 2023. The
continued supply chain instability, primarily caused
by military tensions in the Middle East, has impacted
vessels’ access to the Red Sea and Suez Canal.
The Company is working closely with its suppliers
regarding lead times and continues to closely monitor
this situation. Although we have not yet experienced

8 United-Guardian, Inc. Annual Report 2023

any delays in receiving raw materials or an increase
in shipping costs, we are aware that the situation is
fluid and could impact us at any time. If that occurs,
we may experience longer lead times and increased
shipping costs for some of our raw materials, which
may impact our future gross margins. As a result of
this global supply chain instability, there continues to
be uncertainty regarding the potential impact on our
operations or financial results and we are unable to
provide an accurate estimate or projection as to what
the future impact will be.

Use of Estimates

In preparing financial statements in conformity
with a Generally Accepted Accounting Principles in the
United States of America (“US GAAP”), management
is required to make estimates and assumptions that
affect the reported amounts of assets and liabilities
and the disclosure of contingent assets and liabilities
at the date of the financial statements and revenue and
expenses during the reporting period. Actual results
could differ from those estimates. Such estimated
items include the allowance for credit losses, reserve
for inventory obsolescence, accrued distribution fees,
outdated material returns, possible impairment of
marketable securities and the allocation of overhead.

Accounts Receivable and Reserves

As of January 1, 2023, the Company adopted

FASB Accounting Standards Update (“ASU”) No.
2016-13, Measurement of Credit Losses on Financial
Instruments, and all subsequently issued related
amendments, which changed the methodology used
to recognize impairment of the Company’s contract
receivables. Under this ASU, financial assets are
presented at the net amount expected to be collected,
requiring immediate recognition of estimated credit
losses expected to occur over the asset’s remaining
life. This is in contrast to previous U.S. GAAP, under
which credit losses were not recognized until it was
probable that a loss had been incurred. The Company
performed its expected credit loss calculation based

on historical accounts receivable write-offs, including
consideration of then-existing economic conditions
and expected future conditions. The adoption of this
ASU did not have a significant impact on the financial
statements. Prior to the implementation of ASU No.
2016-13, the Company calculated its reserve for
accounts receivable by considering many factors
including historical data, experience, customer types,
credit worthiness and economic trends.

The carrying amount of accounts receivable is
reduced by an allowance for credit losses that reflects
the Company’s best estimate of the amounts that
will not be collected as of the balance sheet date.
This allowance is based on the credit losses expected
to arise over the life of the asset and is based on
the Current Expected Credit Losses (“CECL”). At
December 31, 2023 and 2022, the allowance for credit
losses related to accounts receivable amounted to
$16,672 and $20,063, respectively.

Revenue Recognition

The Company records revenue in accordance
with ASC Topic 606, Revenue from Contracts with
Customers. Under this guidance, revenue is recognized
when a customer obtains control of promised goods or
services, in an amount that reflects the consideration
expected to be received in exchange for those goods or
services. The Company’s principal source of revenue is
product sales.

The Company’s sales, as reported, are subject to
a variety of deductions, some of which are estimated.
These deductions are recorded in the same period in
which the revenue is recognized. Such deductions,
primarily related to the sale of the Company’s
pharmaceutical products, include chargebacks from
the United States Department of Veterans Affairs
(“VA”), rebates in connection with the Company’s
current participation in Medicare programs, distribution
fees, discounts, and outdated product returns.
These deductions represent estimates of the related
obligations and, as such, knowledge and judgment are
required when estimating the impact of these revenue
deductions on sales for a reporting period.

During 2023 and 2022, the Company participated

in various government drug rebate programs
related to the sale of Renacidin, its most important
pharmaceutical product. These programs include the
Veterans Affairs Federal Supply Schedule (“FSS”), and
the Medicare Part D Coverage Gap Discount Program
(“CGDP”). These programs require the Company to sell
its product at a discounted price. The Company’s sales,
as reported, are net of these rebates, some of which
are estimated and are recorded in the same period that
the revenue is recognized.

In August of 2022, the Inflation Reduction Act
(“IRA”) was signed into law. The IRA made significant
changes to the current Medicare Part D benefit
design as it relates to discounts available to enrollees
from pharmaceutical manufacturers of brand name
drugs. Beginning on January 1, 2025, the Centers for
Medicare & Medicaid Services (“CMS”) will implement a
new Medicare Part D Manufacturer Discount Program
(“Discount Program”), which will replace the current
CGDP. The new Discount Program eliminates the
coverage gap benefit phase, introduces pharmaceutical
manufacturer discounts in the initial and catastrophic
coverage phases and lowers the cap on enrollee out-
of-pocket costs. Under the new Discount Program,
additional rebates are expected to be owed by
pharmaceutical manufacturers due to the restructuring
of the benefit periods. The overall financial impact
of this new program will vary depending on the
products being reimbursed but does have the
potential to increase Medicare Part D rebates for drug
manufacturers. At this time, the Company is unable to
predict what future impact this new program will have
on its financial condition; however, it has submitted
information to CMS requesting to be classified as a
“specified small manufacturer”. If designated as such,
the Company would be entitled to a multi-year phase-in
period during which it would pay a lower percentage
discount on drugs dispensed to beneficiaries. On
January 31, 2024, the Company was notified by CMS
that it qualified as a specified small manufacturer and
will receive the discount phase-in discussed above.
As long as a valid purchase order has been
received and future collection of the sale amount
is reasonably assured, the Company recognizes
revenue from sales of its products when those
products are shipped, which is when the Company’s
performance obligation is satisfied. The Company’s

United-Guardian, Inc. Annual Report 2023 9

cosmetic products are shipped “Ex-Works” from the
Company’s facility in Hauppauge, NY, and the risk of
loss and responsibility for the shipment passes to the
customer upon shipment. Sales of the Company’s
non-pharmaceutical medical products are deemed
final upon shipment, and there is no obligation on the
part of the Company to repurchase or allow the return
of these goods unless they are defective. Sales of the
Company’s pharmaceutical products are final upon
shipment unless (a) they are found to be defective;
(b) the product is damaged in shipping; (c) the product
cannot be sold because it is too close to its expiration
date; or (d) the product has expired (but it is not more
than one year after the expiration date). This return
policy conforms to standard pharmaceutical industry
practice. The Company estimates an allowance for
outdated material returns based on previous years’
historical returns of its pharmaceutical products.

The Company does not make sales on

consignment, and the collection of the proceeds of
the sale of any of the Company’s products is not
contingent upon the customer being able to sell the
goods to a third party.

At December 31, 2023, the Company recorded

advance payments from two of its customers in the
amount of $15,498, which was recorded as deferred
revenue on the balance sheet. The related performance
obligations associated with these payments were
satisfied in the first quarter of 2024. No such advanced
payments existed at December 31, 2022.

The Company has distribution agreements with
certain distributors of its pharmaceutical products that
entitle those distributors to distribution and services-
related fees. The Company records distribution fees,
and estimates of distribution fees, as offsets to
revenue.

Disaggregated net sales by product class are as

follows:

2023

Years ended December 31,
2022
$ 4,132,334 $ 5,167,909
4,943,605
4,950,594
2,470,163
1,750,632
116,826
51,594
$ 10,885,154 $ 12,698,503

Cosmetic ingredients
Pharmaceuticals
Medical lubricants
Industrial and other
Total Net Sales

Any allowances for returns are taken as a

The Company’s cosmetic ingredients are currently

reduction of sales within the same period the revenue
is recognized. Such allowances are determined based
on historical experience under ASC Topic 606-10-32-8.
At December 31, 2023 and 2022, the Company had an
allowance of $247,847 and $369,154, respectively, for
possible outdated material returns, which is included in
accrued expenses. There is no asset value associated
with these outdated material returns, as these products
are destroyed.

The timing between recognition of revenue for

product sales and the receipt of payment is not
significant. The Company’s standard credit terms,
which vary depending on the customer, range
between 30 and 60 days. The Company recognizes an
allowance for credit losses on its accounts receivable
in accordance with ASU 2016-13, which is based on the
credit losses expected to arise over the life of the asset
and is based on Current Expected Credit Loss (“CECL”).
Prompt-pay discounts are offered to some customers;
however, due to the uncertainty of the customers
taking the discounts, the discounts are recorded when
they are taken.

marketed worldwide by five distributors, of which the
United States (“U.S.”)-based ASI purchases the largest
volume. For the years ended December 31, 2023 and
2022, approximately 21% and 25%, respectively, of
the Company’s sales were to (a) its foreign-based
distributors (which does not include ASI), which
marketed and distributed the Company’s cosmetic
ingredients to customers outside the U.S., and (b) a
few foreign customers for the Company’s medical
lubricants, which were sold directly to those customers
by the Company.

Disaggregated sales by geographic region are as

follows:

Years ended December 31,
2022

2023

United States*
Other countries
Net Sales

$ 8,601,205 $ 9,537,124
3,161,379
2,283,949
$ 10,885,154 $ 12,698,503

* Although a significant percentage of ASI’s

purchases from the Company are sold to foreign
customers, all sales to ASI are considered U.S. sales
for financial reporting purposes, since all shipments

10 United-Guardian, Inc. Annual Report 2023

to ASI are shipped to ASI’s warehouses in the U.S. A
certain percentage of those products are subsequently
shipped by ASI to its foreign customers. Based on
sales information provided to the Company by ASI,
69% of ASI’s sales in 2023 were to customers in foreign
countries, compared with 65% in 2022. ASI’s largest
foreign market in both 2023 and 2022 was China,
which accounted for approximately 29% of ASI’s sales
in 2023 and 38% of sales in 2022.

Cash and Cash Equivalents

For financial statement purposes, the Company

considers as cash equivalents all highly liquid
investments with an original maturity of three months
or less at the time of purchase. The Company deposits
cash and cash equivalents with financially strong,
FDIC-insured financial institutions, and it believes that
any amounts above FDIC insurance limitations are
at minimal risk. The amounts held in excess of FDIC
limits at any point in time are considered temporary
and are primarily due to the timing of maturities of
United States Treasury Bills. Cash and cash equivalents
held in these accounts are currently insured by the
Federal Deposit Insurance Corporation (“FDIC”) up to
a maximum of $250,000. At December 31, 2023 and
2022, $315,000 and $105,000, respectively, exceeded
the FDIC limit.

Dividends

On July 12, 2023, the Company’s Board of

Directors declared a cash dividend of $0.10 per share,
which was paid on August 2, 2023, to all stockholders
of record as of July 26, 2023. The Company did not
declare any other dividends in 2023. During 2023,
the Company declared total dividends of $459,432,
of which $459,387 was paid. The balance of $45 is
payable to stockholders whose old Guardian Chemical
shares have not yet been exchanged to United-
Guardian, Inc. shares and are pending escheatment.
In June of 2023, the Company’s Board of Directors
changed the Company’s dividend declaration practice
and expects to consider a semi-annual dividend
declaration in January and July of each year. On
January 30, 2024, our Board of Directors declared a
cash dividend of $0.25 per share, which was paid on
February 20, 2024 to all stockholders of record as of
February 12, 2024.

On May 10, 2022, the Company’s Board of Directors
declared a semi-annual cash dividend of $0.37 per share,
which was paid on June 1, 2022, to all stockholders of
record as of May 23, 2022. On November 15, 2022, the
Company’s Board of Directors declared a semi-annual
cash dividend of $0.31 per share, which was paid on
December 7, 2022, to all stockholders of record as of
November 28, 2022. In 2022, the Company declared
a total of $3,124,137 in dividends, of which $3,123,492
was paid. The balance of $645 is payable to stockholders
whose old Guardian Chemical shares have not yet
been exchanged to United-Guardian, Inc. shares and
are pending escheatment.

Marketable Securities

The Company’s marketable securities include
investments in equity and fixed income mutual funds
and certificates of deposit with maturities longer
than 3 months. The Company’s marketable equity
securities are reported at fair value with the related
unrealized and realized gains and losses included in
net income. Certificates of Deposit are recorded at
amortized cost. Realized gains or losses on mutual
funds are determined on a specific identification basis.
The Company evaluates its investments periodically
for possible other-than-temporary impairment by
reviewing factors such as the length of time and extent
to which fair value had been below cost basis, the
financial condition of the issuer and the Company’s
ability and intent to hold the investment for a period of
time which may be sufficient for anticipated recovery
of market value. The Company would record an
impairment charge to the extent that the cost of the
available-for-sale securities exceeds the estimated
fair value of the securities and the decline in value is
determined to be other-than-temporary. During 2023
and 2022, the Company did not record an impairment
charge regarding its investment in marketable
securities because management believes, based on
its evaluation of the circumstances, that the decline in
fair value below the cost of certain of the Company’s
marketable securities is temporary.

United-Guardian, Inc. Annual Report 2023 11

Inventories

Inventories are valued at the lower of cost and net

realizable value. Net realizable value is equal to the
selling price less the estimated costs of selling and/
or disposing of the product. Cost is determined using
the average cost method, which approximates cost
determined by the first-in, first-out (“FIFO”) method.
Inventory costs include material, labor and factory
overhead.

Property, Plant and Equipment

Property, plant and equipment are carried at cost,

less accumulated depreciation. Major replacements
and betterments are capitalized, while routine
maintenance and repairs are expensed as incurred.
Assets are depreciated under both accelerated
and straight-line methods. Depreciation charged as
a result of using accelerated methods was not
materially different than that which would result from
using the straight-line method for all periods presented.
Certain factory equipment and fixtures are constructed
by the Company using purchased materials and
in-house labor. Such assets are capitalized and
depreciated on a basis consistent with the Company’s
purchased fixed assets.

Estimated useful lives are as follows:

Factory equipment and fixtures 5 - 7 years
Building
Building improvements

40 years
Lesser of useful life
or 20 years

Impairment of Long-Lived Assets

Long-lived assets are reviewed for impairment

whenever events or changes in circumstances
indicate that the carrying amount of an asset may
not be recoverable. The recoverability of assets to be
held and used is measured by a comparison of the
carrying amount of an asset to future net cash flows
expected to be generated by the asset. If such assets
are considered to be impaired, the impairment to be
recognized is measured by the amount by which the
carrying amount of the assets exceeds the fair value

of the assets. Assets to be disposed of are reported
at the lower of the carrying amount or fair value less
costs to sell. No impairments were necessary at
December 31, 2023 and 2022.

Fair Value of Financial Instruments

Management of the Company believes that the
fair value of financial instruments, consisting of cash
and cash equivalents, accounts receivable, accounts
payable, and accrued expenses, approximates their
carrying value due to their short payment terms and
liquid nature.

Concentration of Credit Risk

Accounts receivable potentially expose the
Company to concentrations of credit risk. The
Company monitors the amount of credit it allows
each of its customers, using the customer’s prior
payment history to determine how much credit to
allow or whether credit should be given at all. It is
the Company’s policy to discontinue shipments to
any customer that is substantially past due on its
payments. The Company sometimes requires payment
in advance from customers whose payment record
is questionable. As a result of its monitoring of the
outstanding credit allowed for each customer, as well
as the fact that the majority of the Company’s sales are
to customers whose satisfactory credit and payment
record has been established over a long period of time,
the Company believes that its accounts receivable
credit risk has been reduced.

For the year ended December 31, 2023, four of the
Company’s pharmaceutical wholesalers and cosmetic
ingredient distributors accounted for approximately
77% of the Company’s gross sales during the year
and approximately 89% of its outstanding accounts
receivable on December 31, 2023. For the year ended
December 31, 2022, the same four pharmaceutical
wholesalers and cosmetic ingredient distributors
accounted for a total of approximately 72% of the
Company’s gross sales during the year and 81% of its
outstanding accounts receivable on December 31, 2022.

12 United-Guardian, Inc. Annual Report 2023

Supplier Concentration

Most of the principal raw materials used by the
Company consist of common industrial organic
and inorganic chemicals and are available in ample
supply from numerous sources. However, there are
some raw materials used by the Company that are
not readily available or require long lead times. The
Company has three major raw material vendors that
collectively accounted for approximately 83% and 80%
of the raw material purchases by the Company in 2023
and 2022, respectively. In addition to the Company’s
raw materials concentration, the Company utilizes
one contract manufacturer for the production of its
pharmaceutical product, Renacidin. Any disruption in
this manufacturer’s operations could have a material
impact on the Company’s revenue stream.

Income Taxes

Income taxes are accounted for under the
asset and liability method. Deferred tax assets and
liabilities are recognized for future tax consequences
attributable to the temporary differences between the
financial statement carrying amounts of assets and
liabilities and their respective tax bases and operating
loss and tax credit carry forwards. Deferred tax
assets and liabilities are measured using enacted tax
rates expected to apply in the years in which those
temporary differences are expected to be recovered or
settled. The effect on deferred tax assets and liabilities
of a change in tax rates is recognized in the period that
includes the enactment date. Deferred tax assets are
reduced by a valuation allowance when, in the opinion
of management, it is more likely than not that some
portion or all the deferred tax assets will not be realized.
Uncertain tax positions are accounted for utilizing

a recognition threshold and measurement attribute
for financial statement recognition and measurement
of a tax position taken or expected to be taken in a
tax return. As of December 31, 2023 and 2022, the
Company did not have any unrecognized income tax
benefits. It is the Company’s policy to recognize interest
and penalties related to taxes as interest expense as
incurred. During the years ended December 31, 2023
and 2022, the Company did not record any tax-related

interest or penalties. The Company’s tax returns
for 2020 and all subsequent years are subject to
examination by the United States Internal Revenue
Service (“IRS”) and by the State of New York.

Research and Development

Research and development expenses are
expenditures incurred in connection with in-house
research on new and existing products. It includes
payroll and payroll related expenses, outside laboratory
expenditures, lab supplies, and equipment depreciation.

Advertising Expenses

Advertising costs are expensed as incurred.

The Company did not incur any advertising costs
for the year ended December 31, 2023. For the year
ended December 31, 2022, the Company incurred
approximately $19,000 in advertising expenses.
These expenses were primarily related to the internet
marketing of Renacidin, one of the Company’s
pharmaceutical products. This marketing effort was
discontinued during the fourth quarter of 2022.

Earnings Per Share Information

Basic earnings per share are computed by dividing

net income by the weighted average number of
common shares outstanding during the year. Diluted
earnings per share would include the dilutive effect of
outstanding stock options, if any.

New Accounting Standards

In December 2023, the FASB issued ASU 2023-

09, Income Taxes—Improvements to Income Tax
Disclosures. This guidance enhances the transparency
and decision usefulness of income tax disclosures.
More specifically, the amendments relate to the
income tax rate reconciliation and income taxes paid
disclosures and require 1) consistent categories and
greater disaggregation of information in the rate
reconciliation and 2) income taxes paid disaggregated
by jurisdiction. This guidance is effective for fiscal
years beginning after December 31, 2024.

United-Guardian, Inc. Annual Report 2023 13

As of January 1, 2023, the Company adopted

NOTE B
CASH AND CASH EQUIVALENTS

Cash and cash equivalents include currency

on hand, demand deposits with banks or financial
institutions, and short-term, highly liquid investments
that are both readily convertible to known amounts
of cash and so near their maturity that they present
minimal risk of changes in value because of changes
in interest rates. The following table summarizes the
Company’s cash and cash equivalents:

Years ended December 31,
2022
$314,685

2023
$ 340,034

Demand Deposits
Certificates of Deposit

(original 3-month
maturity)

Money market funds
U.S. Treasury Bills

(original 3-month

125,000
1,031,361

—
18,590

maturity)

6,746,727

497,177

Total cash

and cash
equivalents

$ 8,243,122

$830,452

14 United-Guardian, Inc. Annual Report 2023

NOTE C
MARKETABLE SECURITIES

Marketable securities include investments in fixed
income and equity mutual funds, which are reported at
their fair values, and Certificates of Deposit with original
maturities greater than 3 months, which are recorded at
amortized cost.

The disaggregated net gains and losses on
the marketable securities recognized in the income
statement for the years ended December 31, 2023 and
2022 are as follows:

Years ended December 31,
2022

2023

Net gains (losses)

recognized during the
year on marketable
securities

Less: Net losses realized
during the year
on marketable
securities sold
during the period

Net unrealized gain

(loss) recognized
during the reporting
year on marketable
securities still held
at the reporting date

$ 81,095

$ (1,046,245)

433,769

364,074

$ 514,864

$ (682,171)

The fair values of the Company’s marketable
securities are determined in accordance with US GAAP,
with fair value being defined as the amount that would
be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants
at the measurement date. As such, fair value is a
market-based measurement that should be determined
based on assumptions that market participants
would use in pricing an asset or liability. As a basis for
considering such assumptions, the Company utilizes
the three-tier value hierarchy, as prescribed by US
GAAP, which prioritizes the inputs used in measuring
fair value as follows:

• Level 1—inputs to the valuation methodology are
quoted prices (unadjusted) for identical assets or
liabilities in active markets.

• Level 2—inputs to the valuation methodology
include quoted prices for similar assets and
liabilities in active markets, and inputs that are
observable for the asset or liability, either directly
or indirectly, for substantially the full term of the
financial instrument.

• Level 3—inputs to the valuation methodology

are unobservable and significant to the fair value
measurement.

The Company’s marketable equity securities, which are considered available-for-sale securities, are

re-measured to fair value on a recurring basis and are valued using Level 1 inputs using quoted prices (unadjusted)
for identical assets in active markets. The following tables summarize the Company’s investments:

December 31, 2023

Equity Securities:
Equity and other mutual funds
Other short-term investments:
Fixed income Certificates of Deposit
(original maturities >3 months)
Total marketable securities

December 31, 2022

Equity Securities:
Fixed income mutual funds
Equity and other mutual funds
Total equity securities

Total marketable securities

Cost

Fair Value

Unrealized
Gain

$ 574,330

$ 576,318

1,988

275,000
$ 849,330

275,000
$ 851,318

—
1,988

Cost

Fair Value

Unrealized
(Loss) Gain

$ 5,449,227
717,165
6,166,392
$ 6,166,392

$ 4,924,497
729,019
5,653,516
$ 5,653,516

$ (524,730)
11,854
(512,876)
$ (512,876)

Investment income is recognized when earned and consists principally of dividend income from equity and
fixed income mutual funds and interest income on United States Treasury Bills, Certificates of Deposit and money
market funds. Realized gains and losses on sales of investments are determined on a specific identification basis.
Proceeds from the sale and redemption of marketable securities amounted to $5,505,145 for the year ended

December 31, 2023, which included realized losses of $433,769. Proceeds from the sale and redemption of
marketable securities for the year ended December 31, 2022 amounted to $2,867,671, which included realized
losses of $364,074.

United-Guardian, Inc. Annual Report 2023 15

NOTE D
INVENTORIES

Inventories consist of the following:

Raw materials
Work in process
Finished products

Total Inventories

December 31,

2023
$ 476,501
92,089
654,916
$ 1,223,506

2022
$ 601,125
16,520
1,054,367
$ 1,672,012

Inventories are valued at the lower of cost and net realizable value. Net realizable value is equal to the selling

price less the estimated costs of selling and/or disposing of the product. Cost is determined using the average
cost method, which approximates cost determined by the first-in, first-out method. Finished product inventories
on December 31, 2023 and December 31, 2022 are net of a reserve of $47,000 and $64,000, respectively.

NOTE E
INCOME TAXES

The provision for income taxes consists of the following:

Current

Federal
State

Total current provision for income taxes

Deferred
Federal
State

Years ended December 31,
2022

2023
$ 609,006
788
609,794

$ 850,344
1,590
851,934

59,614
—

(193,766)
—

Total deferred expense (benefit) from income taxes

59,614

(193,766)

Total provision for income taxes

$ 669,408

$ 658,168

16 United-Guardian, Inc. Annual Report 2023

The following is a reconciliation of the Company’s effective income tax rate to the Federal statutory rate (dollar

amounts have been rounded to the nearest thousand):

Income taxes at statutory federal
income tax rate
State taxes, net of federal benefit
Research & development credits
Non-taxable dividends
Other, net
Provision for income taxes

Years ended December 31,
2023

2022

($)

Tax rate

($)

Tax rate

$682,664
623
(14,000)
—
121
$ 669,408

21.0%
—
(0.4)
—
—
20.6%

$ 677,813
1,256
(10,000)
(6,300)
(4,601)
$ 658,168

21.0%
—
(0.3)
(0.2)
(0.1)
20.4%

The tax effects of temporary differences which comprise the deferred tax assets and liabilities are as follows:

Deferred tax assets

Allowance for credit losses
Inventories
Accounts payable
R&D expenses
Unrealized loss on marketable securities
Accrued expenses

Total deferred tax assets
Deferred tax liabilities

Accounts receivable

Prepaid expenses
Depreciation on property, plant and equipment
Unrealized gain on marketable securities
Total deferred tax liabilities
Net deferred tax asset

December 31,

2023

2022

3,501
9,870
28,235
159,838
—
285,200
$ 486,644

(332,537)
(46,484)
(56,275)
(418)
(435,714)
$ 50,930

$ 4,213
13,440
6,367
92,756
107,704
277,326
$ 501,806

(304,004)
(42,446)
(44,812)
—
(391,262)
$ 110,544

United-Guardian, Inc. Annual Report 2023 17

the potential markets for the Company’s products.
Many of the cosmetic ingredients manufactured by
the Company, particularly its Lubrajel line of water-
based moisturizing and lubricating gels, are currently
used by many of the major multinational personal care
products companies.

The Company operates in one business segment.

The Company’s products are separated into five
distinct product categories: cosmetic ingredients,
pharmaceuticals, medical lubricants, sexual wellness
ingredients and industrial products. The Company
discontinued its industrial line of products after the
second quarter of 2023 due to a low volume of sales
and no growth. Each product category is marketed
differently. The cosmetic ingredients are marketed
through a global network of distributors. These
distributors purchase products outright from the
Company and provide the marketing functions for
these products on behalf of the Company. They in
turn receive their compensation for those efforts
by re-selling those products at a markup to their
customers. This enables the Company to aggressively
have its products marketed without the high cost
of maintaining its own in-house marketing staff.
The Company currently has no written distribution
agreements with the companies that market its
cosmetic ingredients. The marketing contract with ASI
terminated on December 31, 2023, and the Company
is currently in negotiations with ASI to establish a new
marketing agreement. The Company anticipates that
it will have a new marketing agreement in place with
ASI by the end of the second quarter. The Company’s
relationship with ASI continues to be strong, and during
this period of renegotiation the Company is continuing
to fill ASI’s orders on a timely basis. All sales of the
Company’s cosmetic ingredients are final other than
product later determined to be defective, and the
Company does not make any sales on consignment.

No prior regulatory approval is needed by
the Company to sell any products other than its
pharmaceutical products. The end users of its products
may or may not need regulatory approvals, depending
on the intended claims and uses of those products.

NOTE F
BENEFIT PLANS

Defined Contribution Plan

The Company sponsors a 401(k) defined

contribution plan (“DC Plan”) that provides for a dollar-
for-dollar employer matching contribution of the
first 4% of each employee’s pay. Employees become
fully vested in employer matching contributions
immediately. Company 401(k) matching contributions
were approximately $83,000 and $81,000 for the years
ended December 31, 2023 and 2022, respectively.
The Company also makes discretionary

contributions to each employee’s account based on
a “pay-to-pay” safe-harbor formula that qualifies the
401(k) Plan under current IRS regulations. For the years
ended December 31, 2023 and 2022, respectively, the
Company’s Board of Directors authorized discretionary
contributions in the amount of $109,000 to be allocated
among all eligible employees. Employees become
vested in the discretionary contributions as follows: 20%
after two years of employment, and 20% for each year of
employment thereafter until the employee becomes fully
vested after six years of employment. The discretionary
contribution for 2023 will be paid in March 2024 and is
included in accrued expenses.

NOTE G
GEOGRAPHIC and OTHER INFORMATION

Through its Guardian Laboratories division, the
Company conducts research, product development,
manufacturing, and marketing of cosmetic ingredients,
pharmaceuticals, medical lubricants and sexual
wellness ingredients. Prior to July 1, 2023, the
Company manufactured and reported sales of a line of
specialty industrial products; however, this product line
was discontinued after the second quarter of 2023 due
to low sales volume with no growth. All the products
that the Company markets, with the exception of
Renacidin, are produced at its facility in Hauppauge,
New York. Renacidin, a urological product, is
manufactured for the Company by an outside contract
manufacturer. The Company’s R&D department not
only develops new products but also modifies and
refines existing products, with the goal of expanding

18 United-Guardian, Inc. Annual Report 2023

The pharmaceutical products include a urological

product and a topical biocide that are sold to end
users primarily through distribution agreements with
the major drug wholesalers. For these products,
the Company does the marketing, and the drug
wholesalers supply the product to the end users,
such as hospitals and pharmacies. The Company’s
marketing effort for Renacidin, its most important
drug product, centers around a separate Renacidin
website. There is currently no active marketing effort
for Clorpactin. Both of these products were originally
developed in the 1950s. Clorpactin pre-dated the need
for a formal New Drug Application (“NDA”), and the
current sterile liquid form of Renacidin is marketed
under an NDA that was approved by the FDA in 1990.

The medical lubricants are not pharmaceutical

products. They consist primarily of water-based
lubricating gels, which are marketed by the Company
directly to manufacturers that incorporate them
into urologic catheters and other medical devices
and products that they sell. These products are
distinguished from the pharmaceutical products in
that, unlike the pharmaceutical products, the Company
is not required to obtain regulatory approval prior to
marketing them. Approvals are the responsibility of
the companies that market the products in which the
Company’s products are used, which are typically
classified as medical devices. However, the Company
is responsible for manufacturing these products
in accordance with current Good Manufacturing
Practices, and its manufacturing facility is subject to
regular FDA oversight.

The industrial products were marketed by the
Company directly to manufacturers, and generally
did not require that the Company obtain regulatory
approval. However, the manufacturers of the
finished products may have to obtain such regulatory
approvals before marketing these products.
The Company discontinued this product line on
July 1, 2023.

The sexual wellness ingredients are marketed
by Brenntag Specialties, a global market leader in
chemicals and ingredient distribution. The Company
entered into a marketing and distribution agreement
with Brenntag in October of 2023 in the United States,
Canada, Mexico, Central America and South America.

The following tables present the significant
concentrations of the Company’s sales. Although a
significant percentage of Customer A’s purchases
from the Company are sold to foreign customers, in
table “(b)” below all sales to Customer A are included
in the “United States” sales numbers because all
shipments to Customer A are delivered to Customer
A’s warehouses in the U.S.

In addition, there are four customers for the

Company’s medical lubricants that take delivery of their
shipments in the U.S. but potentially ship some of that
product to manufacturing facilities outside the U.S.
Since the Company makes those shipments to U.S.
locations, sales to those customers are also included
in the “United States” sales number in the table below.

(a) Net Sales

Years ended December 31,
2022
$ 5,388,365
5,929,216
2,471,555
116,826
13,905,962

2023
$ 4,283,071
5,894,220
1,750,632
51,594
11,979,517

Cosmetic Ingredients
Pharmaceuticals
Medical Lubricants
Industrial and other
Gross Sales
Less: Discounts

and allowances
Net Sales

(1,094,363)
$ 10,885,154

(1,207,459)
$ 12,698,503

(b) Geographic Information

United States
Other countries
Net Sales

Years ended December 31,
2022
$ 9,537,124
3,161,379
$ 12,698,503

2023
$ 8,601,205
2,283,949
$ 10,885,154

Customer A
Customer B
Customer C
Customer D
All other customers
Total Gross Sales

Years ended December 31,
2022
$ 4,284,799
2,527,743
1,613,597
1,553,885
3,925,938
$ 13,905,962

2023
$ 3,464,861
2,502,846
1,726,753
1,490,158
2,794,899
$ 11,979,517

United-Guardian, Inc. Annual Report 2023 19

NOTE H
ACCRUED EXPENSES

NOTE J
RELATED PARTY TRANSACTIONS

Accrued expenses at December 31, 2023 and 2022

During the years ended December 31, 2023 and

consist of:

Bonuses
Distribution fees
Payroll and related
expenses
Company 401(k)
contribution

Annual report expenses
Audit fee
Reserve for outdated
material returns
Sales rebates
Other

Total accrued
expenses

2023
$ 187,002
407,133

2022
$ 175,496
395,536

96,157

53,475

109,000
81,725
71,000

247,847
132,250
30,930

94,326
68,349
66,500

369,154
80,926
18,294

$ 1,363,044

$ 1,322,056

NOTE I
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION AND NON-CASH INVESTING AND
FINANCING ACTIVITIES

As of December 31, 2023, the Company had a
number of unconverted Guardian Chemical shares
that would convert to approximately 447 shares
of United-Guardian, Inc. common stock if all of the
remaining holders of those Guardian shares converted
their Guardian stock to United-Guardian stock. The
Company’s transfer agent continues to try to locate
the holders of those shares in anticipation of
escheating them to the appropriate state jurisdictions.
The Company is currently accruing dividends on
the 447 shares that have not yet been exchanged or
designated for escheatment as of December 31, 2023,
and the Company will continue to do so as dividends
are declared.

2022, the Company made payments of $100,000 and
$20,000, respectively, to Ken Globus, the Company’s
former President, for consulting services subsequent
to his departure from the Company. The Company’s
consulting agreement with Ken Globus expires on
May 31, 2024. Ken Globus is a director of the Company
and currently serves as Chairman of the Board of
Directors. In addition, in November 2022, Ken Globus
purchased a used vehicle from the Company for $37,039.
During the years ended December 31, 2023 and
2022, the Company paid PKF O’Connor Davies $20,000
and $14,500, respectively, for accounting and tax
services. Lawrence Maietta, a partner at PKF O’Connor
Davies, is a director of the Company.

NOTE K
SUBSEQUENT EVENTS

On October 10, 2023, the Company notified
Ashland Specialty Ingredients (“ASI”), one of its
marketing and distribution partners, that it was not
renewing its Exclusive Distributor Agreement. The
Company is currently in negotiations with Ashland
on a new contract and believes it will have the new
agreement executed before the end of Q2 2024,
although there can be no assurance that a new
agreement will be executed.

In October 2023, the Company experienced a
supply disruption at our contract manufacturer’s facility
for Renacidin, one of the Company’s pharmaceutical
products. The Company has been working very closely
with its contract manufacturer to coordinate validation
activities and ensure a timely restart of production.
As of February 12, 2024, the validation activities have
been completed and production has started.

On January 30, 2024, the Company’s Board of

Directors declared a cash dividend of $0.25 per
share, which was paid on February 20, 2024 to all
stockholders of record as of February 12, 2024.

20 United-Guardian, Inc. Annual Report 2023

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

IMPACT OF GLOBAL SUPPLY CHAIN
INSTABILITY AND INFLATION

The increased raw material prices that the Company

experienced during 2022 and the beginning of 2023
stabilized during the latter part of 2023 as inflation
started to decline. The continued supply chain instability,
primarily caused by military tensions in the Middle East,
has impacted vessels’ access to the Red Sea and Suez
Canal. The Company is working closely with its suppliers
regarding lead times, and continues to closely monitor
this situation. Although we have not yet experienced
any delays in receiving raw materials or an increase in
shipping costs, we are aware that the situation is fluid
and could impact us at any time. If that occurs, we may
experience longer lead times and increased shipping
costs for some of our raw materials, which may impact
our future gross margins. As a result of this global
supply chain instability, there continues to be uncertainty
regarding the potential impact on our operations
or financial results and we are unable to provide an
accurate estimate or projection as to what the future
impact will be.

CRITICAL ACCOUNTING POLICIES

Our financial statements have been prepared

in accordance with Generally Accepted Accounting
Principles in the United States of America (“US
GAAP”). Preparation of financial statements requires
us to make estimates and assumptions affecting the
reported amounts of assets, liabilities, revenues, and
expenses and the disclosure of contingent assets and
liabilities. We use our historical experience and other
relevant factors when developing our estimates and
assumptions, which are continually evaluated. Note
A, Nature of Business and Summary of Significant
Accounting Policies, of the Notes to Financial
Statements, included in Item 8, Financial Statements
and Supplementary Data, of this Annual Report, includes
a discussion of our significant accounting policies. The
following accounting policies are those that we consider
critical to an understanding of the financial statements

because their application places the most significant
demands on management’s judgment. Our financial
results might have been different if other assumptions
had been used or other conditions had prevailed.

Marketable Securities

Our marketable securities include investments in

equity and fixed income mutual funds and Certificates
of Deposit. Our marketable equity securities are reported
at fair value with the related unrealized and realized
gains and losses included in net income. Certificates
of Deposit with original maturities of more than 3
months are recorded at amortized cost. Realized gains
or losses on mutual funds are determined on a specific
identification basis. We evaluate our investments
periodically for possible other-than-temporary
impairment by reviewing factors such as the length
of time and extent to which fair value had been below
cost basis, the financial condition of the issuer, and our
ability and intent to hold the investment for a period of
time which may be sufficient for anticipated recovery of
market value. We record an impairment charge to the
extent that the cost of the available-for-sale securities
exceeds the estimated fair value of the securities and
the decline in value is determined to be other-than-
temporary. During 2023 and 2022, we did not record
an impairment charge regarding our investment in
marketable securities because management believes,
based on an evaluation of the circumstances, that any
decline in fair value below the cost of certain of our
marketable securities is temporary.

Revenue Recognition

We record revenue in accordance with ASC Topic
606, Revenue from Contracts with Customers. Under
this guidance, revenue is recognized when a customer
obtains control of promised goods or services, in an
amount that reflects the consideration expected to be
received in exchange for those goods or services. Our
principal source of revenue is product sales.

United-Guardian, Inc. Annual Report 2023 21

Our sales, as reported, are subject to a variety

of deductions, some of which are estimated. These
deductions are recorded in the same period in which
the revenue is recognized. Such deductions, primarily
related to the sale of our pharmaceutical products,
include chargebacks from the United States Department
of Veterans Affairs (“VA”), rebates in connection with our
current participation in Medicare programs, distribution
fees, discounts, and outdated product returns.
These deductions represent estimates of the related
obligations and, as such, knowledge and judgment are
required when estimating the impact of these revenue
deductions on sales for a reporting period.

During 2023 and 2022, we participated in various
government drug rebate programs related to the sale
of Renacidin, our most important pharmaceutical
product. These programs include the Veterans Affairs
Federal Supply Schedule (“FSS”), and the Medicare Part D
Coverage Gap Discount Program (“CGDP”). These
programs require us to sell our products at a discounted
price, typically in the form of a rebate. Our sales, as
reported, are net of these rebates, some of which are
estimated and are recorded in the same period that the
revenue is recognized.

condition; however, it submitted information to CMS
requesting to be classified as a “specified small
manufacturer.” If designated as such, the Company
would be entitled to a multi-year phase-in period during
which it would pay a lower percentage discount on
drugs dispensed to beneficiaries. On January 31, 2024,
the Company was notified by CMS that it qualified as
a specified small manufacturer and will receive the
discount phase-in discussed above.

As long as a valid purchase order has been
received and future collection of the sale amount is
reasonably assured, we recognize revenue from sales
of our products when those products are shipped,
which is when our performance obligation is satisfied.
Our cosmetic products are shipped “Ex-Works” from
our facility in Hauppauge, NY, and the risk of loss
and responsibility for the shipment passes to the
customer upon shipment. Sales of our medical lubricant
products are deemed final upon shipment, and we
have no obligation to repurchase or allow the return
of these goods unless they are defective. Sales of
our pharmaceutical products are final upon shipment
unless (a) they are found to be defective; (b) the product
is damaged in shipping; (c) the product is too close
to its expiration date for the customer to sell; or (d)
the product is expired but is not more than one year
after its expiration date. These return policies are in
conformance with standard pharmaceutical industry
practice. We estimate an allowance for outdated
material returns based on previous years’ historical
returns of our pharmaceutical products.
We do not make sales on consignment, and
the collection of the proceeds of the sale of any of
the Company’s products is not contingent upon the
customer being able to sell the goods to a third party.

Any allowances for returns are taken as a reduction

of sales within the same period the revenue is
recognized. Such allowances are determined based on
historical experience under ASC Topic 606-10-32-8. We
have not experienced significant fluctuations between
estimated allowances and actual activity.
We have distribution agreements with certain
distributors of our pharmaceutical products that entitle
those distributors to distribution and services-related
fees. We record distribution fees, and estimates of
distribution fees, as offsets to revenue.

22 United-Guardian, Inc. Annual Report 2023

Accounting for Financial Instruments—Credit Losses

Inventory Valuation Allowance

On January 1, 2023, the Company adopted ASU

In conjunction with our ongoing analysis of

2016-13, Financial Instruments—Credit Losses. In
accordance with this standard, the Company recognizes
an allowance for credit losses for its trade receivables
to present the net amount expected to be collected as
of the balance sheet date. This allowance is based on
the credit losses expected to arise over the life of the
asset and are based on Current Expected Credit Losses
(CECL). Implementation of this standard did not have a
material effect on the Company’s financial statements.
The Company performs ongoing credit evaluations

of our customers and adjusts credit limits, as
determined by a review of current credit information.
We continuously monitor collection and payments
from customers and maintain an allowance for credit
losses based upon historical experience, anticipation
of uncollectible accounts receivable and any specific
customer collection issues that have been identified.
While our credit losses have historically been low and
within expectations, we may not continue to experience
the same credit loss rates that have historically been
attained. The receivables are highly concentrated in
a relatively small number of customers. Therefore, a
significant change in the liquidity, financial position,
or willingness to pay timely, or at all, of any one of our
significant customers would have a significant impact
on our results of operations and cash flows. When
determining the reserve for credit losses, the Company
takes into consideration current and future economic
conditions and the impact that these changing
dynamics may have on potential future losses.

inventory valuation, management constantly monitors
projected demand on a product-by-product basis.
Based on these projections, management evaluates
the levels of write-downs required for inventory
on hand and inventory on order from contract
manufacturers. Although we believe that we have
been reasonably successful in identifying write-downs
in a timely manner, sudden changes in buying
patterns from customers, either due to a shift in
product interest and/or a complete pull back from their
expected order levels, may result in the recognition
of larger-than-anticipated write-downs. We have
performed an evaluation of our inventory on hand
as of December 31, 2023 and December 31, 2022,
and believe the reserves are adequate to cover any
slow-moving or obsolete inventory.

RESULTS OF OPERATIONS

Sales

Sales decreased by approximately 14%, from
$12,698,503 in 2022 to $10,885,154 in 2023. The
decrease in sales was primarily due to a decrease in
sales of our cosmetic ingredient products, specifically
a decrease of 19% in sales to our largest distributor,
ASI, in 2023 compared with 2022. In addition, sales of
the Company’s medical lubricants decreased by 29%,
primarily due to a decrease in demand in 2023 due to
foreign customers’ overstocking during 2022.

The timing between recognition of revenue for

Cosmetic Ingredients

product sales and the receipt of payment is not
significant. Our standard credit terms, which vary
depending on the customer, range between 30 and 60
days. The Company provides an allowance for credit
losses related to its accounts receivable for which
collection is doubtful in accordance with ASU 2016-13.
As of December 31, 2023 and December 31, 2022, the
allowance for credit losses on accounts receivable
was $16,672 and $20,063, respectively. Prompt-pay
discounts are offered to some customers; however, due
to the uncertainty of the customers taking the discounts,
the discounts are recorded when they are taken.

Sales of our cosmetic ingredients decreased
by approximately 20%, from $5,167,909 in 2022, to
$4,132,334 in 2023. A significant part of the decrease
was due to the decrease in sales to ASI. Based on
information provided to the Company by ASI, the
reasons for the decrease during 2023 was due to
1) decreased demand for the Company’s products
in China; 2) increased competition from lower-priced
local competitors, especially Asian producers; and
3) customers working off excess stock, maintaining
lower inventory levels and changing ordering patterns
to just in time. In addition, sales to our other four
distributors decreased by a net of approximately
26%, while sales to four of our small direct cosmetic
ingredient customers increased by approximately 71%.

United-Guardian, Inc. Annual Report 2023 23

We continue to experience global competition
from Asian and European companies that
manufacture and sell products that are competitive
with our products. These competitive products
are usually sold at a lower price than our products;
however, they may not compare favorably to the level
of performance and quality of our products. We work
closely with our network of distributors to price our
products as competitively as possible and, when
appropriate, to offer additional volume discounts and
more aggressive pricing to maintain and increase
sales and expand our customer base. We expect that
this competitive environment will continue in 2024
and we plan to enhance our competitive position
by strengthening our core capabilities and investing
in new products, especially in the area of naturally-
derived products. We will also continue providing
high-quality products, excellent technical support,
and the reliability our customers have come to expect
from us.

Pharmaceuticals

Because there are fees, rebates, and allowances

associated with sales of our two pharmaceutical
products, Renacidin and Clorpactin, discussion
of our pharmaceutical sales includes references
to both gross sales (before fees, rebates and
allowances) and net sales (after fees, rebates
and allowances). Gross sales of our two
pharmaceutical products, Renacidin and Clorpactin,
together decreased by less than 1%, from
$5,929,216 in 2022 to $5,894,220 in 2023. Gross
sales of Renacidin decreased by approximately 1%,
from $5,181,190 in 2022 to $5,127,069 in 2023,
and gross sales of Clorpactin increased by 3% from
$748,026 in 2022 to $767,151 in 2023.

The primary reason for the decrease in
Renacidin sales was due to the Company’s
packaging supplier of Renacidin temporarily
ceasing manufacturing during the fourth quarter
of 2023. According to information provided to
the Company from its supplier, this temporary
shutdown was done to perform required
maintenance and address observations made by
the FDA at their facility. According to the supplier,
it anticipates filling the Company’s outstanding
orders in early March of 2024.

Net sales of our pharmaceutical products
decreased by less than 1% in 2023 compared with
the same period in 2022. The decrease in net sales
was due to a decrease in certain pharmaceutical-
related rebates and allowances. The decrease in
pharmaceutical-related rebates and allowances in
2023 was primarily due to a decrease in allowances
for outdated material returns.

Medical Lubricants

Sales of our medical lubricants decreased by

approximately 29% in 2023, from $2,470,163 in
2022 to $1,750,632 in 2023. The decrease in sales
was driven by decreased demand from one of
our larger contract manufacturer customers
located in China, who had built up inventory levels
during 2022 to accommodate their customers’
delivery concerns.

Sexual Wellness Ingredients

There were no sales of our sexual wellness
ingredients in 2023, since the Company only began
its marketing efforts for those products in mid-
2023 and it is not unusual for it to take a year
or more for new ingredients to find their way into
new products in the marketplace. We are hopeful
we will begin to receive orders for these products
in 2024.

Industrial Products

Sales of our industrial products decreased by

56% in 2023 compared with 2022. The decrease
in sales was due to this product line being
discontinued after the second quarter of 2023 due
to low sales volume with minimal growth.

Gross Profit on Sales

Gross profit on sales was 50% in 2023 compared

with 53% in 2022. The decrease in gross profit was
primarily due to two factors. The first was a decrease
in sales of our cosmetic ingredients in 2023 compared
to 2022 which carry a higher profit margin than our
pharmaceutical products, and in 2023 the percentage of
pharmaceutical sales was 45% compared with 39% in
2022. The second factor was higher per unit overhead
costs due to reduced production, which was caused by
lower demand for some of the Company’s products.

24 United-Guardian, Inc. Annual Report 2023

Operating Expenses

Operating expenses decreased by approximately

4%, from $2,174,127 in 2022 to $2,078,564 in 2023.
The decrease was mainly attributable to decreases
in employee bonuses and depreciation expenses. In
connection with the Company’s 2024 growth initiative,
we anticipate that operating expenses will increase
modestly in 2024.

Research and Development Expenses

Research and development expenses decreased by
approximately 5%, from $490,770 in 2022 to $463,992 in
2023. The decrease was primarily related to a decrease
in payroll and payroll-related expenses. In connection
with the Company’s growth initiatives that are expected
to be put into place in 2024, the Company expects
its research and development expenses to increase
modestly during 2024.

Investment Income

Investment income increased by approximately

30%, from $236,695 in 2022 to $306,651 in 2023.
The increase was primarily due to the Company
repositioning its marketable securities portfolio and
selling most of its equity and fixed income mutual funds.
The proceeds from these sales were used to purchase
U.S. Treasury Bills and Certificates of Deposit to take
advantage of the increase in interest rates in 2023. In
addition, in connection with the Company changing its
dividend policy during 2023, cash flow increased and
the additional monies were used to purchase both U.S.
Treasury Bills and Certificates of Deposit.

Net Gain (Loss) on Marketable Securities

For the year ended December 31, 2023, the
Company recorded net gains on its marketable
securities portfolio of $81,095, compared with
recording net losses of $1,046,245 in 2022. The reason
for the fluctuation was due to the following factors:
1) during 2022, the Company’s fixed income mutual
funds (which made up approximately 90% of the
investment portfolio) lost a significant amount of
value due to increases in interest rates, and those
unrealized losses were recorded during 2022; and 2)
a majority of those mutual funds were sold during the
second quarter of 2023, and while most of the losses
had already been recorded in 2022, there were some
increases in market value at the time of these sales,
which created unrealized gains in that period.

As previously discussed, the Company

repositioned its marketable securities portfolio in the
first half of 2023 to take advantage of the increase
in interest rates. Company management, as well as
the Investment Committee of the Board of Directors,
continue to closely monitor the Company’s investment
portfolio and will make any adjustments they believe
may be necessary or appropriate in order to minimize
the future impact on the Company’s financial
performance due to volatility of the global financial
markets.

Provision for Income Taxes

The provision for income taxes increased from

$658,168 in 2022 to $669,408 in 2023. This increase
was due to an increase in income before taxes. Our
effective income tax rate was 20.6% in 2023 and 20.4%
in 2022.

Liquidity and Capital Resources

Working capital increased from $8,596,939 at
December 31, 2022 to $10,718,457 at December 31,
2023. The current ratio increased from 7.3 to 1 at
December 31, 2022 to 8.0 to 1 at December 31, 2023.
The increase in working capital was mainly due to an
increase in cash and cash equivalents.

Accounts receivable (net of allowance for credit

losses) as of December 31, 2023 increased from
$1,427,576 in 2022 to $1,566,839 in 2023. The increase
in accounts receivable was due to an increase in sales
during the third and latter part of the fourth quarter
of 2023. The receivables turnover, or “Days Sales
Outstanding,” for 2023, was 50 days, compared with
47 days in 2022. The allowance for credit losses on
accounts receivable decreased from $20,063 in 2022
to $16,672 in 2023, and we believe that the net balance
of our accounts receivable as of December 31, 2022
was, and continues to be, fully collectible.
We generated cash from operations of $3,144,480
in 2023 compared with $2,525,169 in 2022. The
increase in 2023 was primarily due to a decrease in
inventories and an increase in accounts payable.
Net cash provided by investing activities was

$4,727,577 for the year ended December 31, 2023

United-Guardian, Inc. Annual Report 2023 25

compared with $897,562 for the year ended
December 31, 2022. The increase in net cash provided
by investing activities was mainly due to an increase
in the sales of the Company’s marketable securities
in the first half of 2023 compared with 2022. The
proceeds from these sales were primarily reinvested
in short-term U.S. Treasury Bills, which are included in
cash and cash equivalents.

Net cash used in financing activities was $459,387
and $3,123,492 for the years ended December 31, 2023
and 2022, respectively. The decrease was due to
the payment of lower dividends in 2023 compared
with 2022. During 2023, we paid dividends of $0.10
per share compared with $0.68 per share in 2022.
We believe that our working capital is sufficient to
support our operating requirements for the next fiscal
year. Our long-term liquidity position will be dependent
upon our ability to generate sufficient cash flow from
profitable operations, and we expect to continue to

use our cash to make dividend payments, purchase
marketable securities, and to take advantage of growth
opportunities that may arise that are in the best
interest of our Company and our stockholders.

In connection with an upgrade to our building
sprinkler system, costs of approximately $99,000 have
been incurred to date. The project is expected to be
completed during the first half of 2024 with additional
planned expenditures of $69,000.
We have no off-balance-sheet transactions that
have, or are reasonably likely to have, a current or future
effect on our financial condition, changes in financial
condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources.

New Accounting Pronouncements

See Note “A” to the financial statements regarding

new accounting pronouncements, which note is
incorporated herein by reference.

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

Our Common Stock is currently traded on the NASDAQ Global Market, under the symbol “UG”.

Holders of Record

As of March 1, 2024, there were 355 holders of record of Common Stock.

Cash Dividends

On July 12, 2023, our Board of Directors declared a cash dividend of $0.10 per share, which was paid on
August 2, 2023, to all stockholders of record as of July 26, 2023. The Company did not declare any other dividends
in 2023. In June of 2023, the Company’s Board of Directors changed the Company’s dividend declaration practice
and expects to consider a semi-annual dividend declaration in January and July of each year. On January 30, 2024,
our Board of Directors declared a cash dividend of $0.25 per share, which was paid on February 20, 2024 to all
stockholders of record as of February 12, 2024.

On May 10, 2022, our Board of Directors declared a semi-annual cash dividend of $0.37 per share, which
was paid on June 1, 2022 to all stockholders of record as of May 23, 2022. On November 15, 2022, our Board of
Directors declared a semi-annual cash dividend of $0.31 per share, which was paid on December 7, 2022 to all
stockholders of record as of November 28, 2022.

26 United-Guardian, Inc. Annual Report 2023

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Audit Committee and Stockholders of United-Guardian, Inc.:

Opinion on the Financial Statements

We have audited the accompanying balance sheet of United-Guardian, Inc. (the “Company”) as of December 31,
2023, and the related statements of income, stockholders’ equity, and cash flows for the year ended, and the
related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present
fairly, in all material respects, the financial position of the Company as of December 31, 2023, and the results of its
operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted
in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with
the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with
respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations
of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to
perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an
understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements,
whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit
also included evaluating the accounting principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements. We believe that our audit provide a reasonable basis
for our opinion.

Critical Audit Matters

Critical audit matters are matters arising from the current period audit of the financial statements that were
communicated or required to be communicated to the audit committee and that (1) relate to accounts or
disclosures that are material to the financial statements and (2) involved our especially challenging, subjective,
or complex judgments. We determined that there were no critical audit matters.

/s/ GRASSI & CO., CPAs, P.C.

We have served as the Company’s auditors since 2023.

Jericho, New York
March 19, 2024

United-Guardian, Inc. Annual Report 2023 27

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the board of directors of United-Guardian, Inc.:

Opinion on the Financial Statements

We have audited the accompanying balance sheet of United-Guardian, Inc. (the “Company”) as of December 31,
2022, the related statements of income, stockholders’ equity, and cash flows, for the year then ended, and the
related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present
fairly, in all material respects, the financial position of the Company as of December 31, 2022, and the results of its
operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted
in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with
the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with
respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations
of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to
perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an
understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements,
whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit
also included evaluating the accounting principles used and significant estimates made by management, as well
as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable
basis for our opinion.

Critical Audit Matters

Critical audit matters are matters arising from the audit of the financial statements that were communicated or
required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are
material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
We determined that there are no critical audit matters.

/s/ Baker Tilly US, LLP

We served as the Company’s auditor from 2019 to 2022.

Uniondale, NY
March 16, 2023

28 United-Guardian, Inc. Annual Report 2023

Registrar and Transfer Agent
Continental Stock Transfer & Trust Company
1 State Street, 30th Floor
New York, NY 10004

Legal Counsel
Ruskin Moscou Faltischek, P.C.
Uniondale, NY

Auditors
Grassi & Co., CPAs, P.C.
Jericho, NY

Main Office and Plant
230 Marcus Blvd.
Hauppauge, NY 11788

Mailing Address
P.O. Box 18050
Hauppauge, NY 11788

Tel: (631) 273-0900
Fax: (631) 273-0858
Website: www.u-g.com

NOTE: Upon written request, a copy of the Company’s
most recent Annual Report on Form 10-K will be
furnished without charge. A fee will be charged for copies
of any exhibits to such report. Contact: Corporate
Secretary, United-Guardian, Inc., P.O. Box 18050, Hauppauge,
NY 11788.

Excellence Through Innovation®

230 Marcus Boulevard

P.O. Box 18050

Hauppauge, New York 11788

Telephone (631) 273-0900

Fax (631) 273-0858

www.u-g.com

Cosmetic Ingredients | Medical Lubricants | Pharmaceutical Products | Sexual Wellness Ingredients