UNITED GUARDIAN INC
For the period ended Mar 31, 2025. Filed May 13, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 13, 2025
UG$6.71-1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0001171843-24-006259
Item 2. - Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-13.
0001171843-25-003113
Item 2. - Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 61 previous paragraphs and 45 current paragraphs.
14 unchanged; 13 reworded; 17 added; 34 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 2 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
You should read the following discussion and analysis in conjunction with our financial statements and related notes contained elsewhere in this Annual Report. This discussion contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors discussed in this report and those discussed in other documents we file with the SEC. In light of these risks, uncertainties and assumptions, readers are cautioned not to place undue reliance on such forward-looking statements. These forward-looking statements represent beliefs and assumptions as of the date of this report. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change. Past performance does not guarantee future results.
Current report
EXECUTIVE LEVEL OVERVIEW
Current report
We specialize in manufacturing cosmetic ingredients, pharmaceuticals, medical lubricants, and sexual wellness ingredients through our Guardian Laboratories division. With a long-standing reputation for delivering high-quality specialty products, we are committed to serving diverse markets with innovative solutions.
Current report
As part of our strategic focus, in October 2023, we took a significant step toward expanding our presence in the sexual wellness market by partnering with Brenntag Specialties, a global leader in chemicals and ingredients distribution. Under this agreement, Brenntag will market and distribute our new Natrajel line of sexual wellness ingredients across North and South America. While we reported no sales of this product in 2024, we anticipate beginning manufacturing and revenue generation in 2025.
Current report
We have also expanded our relationship with Azelis Group NV (“Azelis”), our distributor in the United Kingdom (“UK”) and Ireland. We added a new territory, South Korea, for personal care in February of 2025 and expanded the UK and Ireland territories to include the medical market. We have been strategically making changes to expand our presence for our medical lubricants, and this is the first step in that process.
Current report
With a refined product portfolio and strategic partnerships, we are well-positioned for future growth, leveraging our expertise in specialty ingredients to capitalize on emerging market opportunities.
Current report
Net sales for the first quarter of 2025 decreased by $773,817 (approximately 24%) as compared with the first quarter of 2024. The decrease in sales for the first quarter of 2025 was primarily attributable to a decrease in sales of our Lubrajel® line of cosmetic ingredients, which was partially offset by an increase in sales of our pharmaceutical and medical products. The changes in our sales by product line are as follows:
Current report
Based on information received from ASI, the decrease in sales to ASI was due to (a) an excess of inventory being held in China that had to be worked off, and (b) the timing of product orders. ASI has confirmed that currently there has been no significant loss of business or customers.
Current report
Refer to Item 1A. “Risk Factors” for more information regarding the impact of potential tariffs on sales of our cosmetic ingredients.
Current report
The increase in sales was primarily due to a continued increase in gross sales of Renacidin, which increased from $891,789 in the first quarter of 2024 to $1,232,396 (approximately 38%) in the first quarter of 2025. This increase was primarily due to the fact that in the first quarter of 2024 the Company was not able to fill full orders of Renacidin due to the temporary shutdown of production at our contract manufacturer’s facility, which began in the fourth quarter of 2023. As a result of this shutdown, we were forced to allocate our existing stock of Renacidin in order to maintain sufficient supply levels to fill customer orders. Sales of Renacidin remained on allocation until late March of 2024, when we received product in sufficient quantities to fill customers’ orders in full. The increase in gross sales of Renacidin was offset by a decrease in sales of Clorpactin, which decreased from $194,880 to $135,583 a decrease of approximately 30%.
Current report
The difference in the net sales increase compared with the gross sales increase for these products was due to a combination of 1) a net increase in gross sales of those products, combined with 2) an increase in pharmaceutical sales allowances of $63,176 (approximately 46%), compared with the same period in 2024. The increase in sales allowances was primarily due to an increase in sales discounts and VA chargebacks.
Current report
Refer to Item 1A. “Risk Factors” for more information regarding the impact of potential tariffs on sales our medical lubricants.
Current report
Cost of sales as a percentage of net sales for the first quarter of 2025 decreased to 45%, compared with 48% for the first quarter of 2024. The decrease was due primarily to the fact that in the first quarter of 2024 the cost of sales associated with the products sold carried a higher per-unit overhead rate than the products sold in the first quarter of 2025.
Current report
Investment income decreased by $13,386 (approximately 14%) for the first quarter of 2025 compared with the first quarter of 2024. The decrease was primarily due to a decrease in interest income from United States Treasury Bills during the first quarter of 2025 compared with the same period in 2024. This was the result of a combination of lower interest rates in the first quarter of 2025 compared with the same period in 2024, and a decrease in the holdings of U.S. Treasury Bills in the first quarter of 2025 due to increased cash requirements.
Current report
Net Gain on Marketable Securities
Current report
Cash provided by investing activities for the three months ended March 31, 2025 was $679,370. Cash used in investing activities for the three months ended March 31, 2024 was $665,478. The increase was primarily due to an increase in net proceeds from the sale of marketable securities in the first quarter of 2025 compared with the first quarter of 2024. The dividend payment we made in the first quarter of 2025 required the liquidation of some of our CD’s and U.S. Treasury Bills.
Current report
Net cash used in financing activities was $1,607 893 and $1,148,468 for the quarters ended March 31, 2025 and 2024, respectively. The increase in cash used in financing activities was due to the payment of higher dividends in the first quarter of 2025 compared to the same period in 2024. We declared dividends of $0.35 per share in the first quarter of 2025, compared to $0.25 per share in the first quarter of 2024.
Removed paragraphs (34)
Previous report
Statements made in this Form 10-Q which are not purely historical are forward-looking statements with respect to the goals, plans, objectives, intentions, expectations, financial condition, results of operations, future performance and business of the Company. Forward-looking statements may be identified by the use of such words as “believes”, “may”, “will”, “should”, “intends”, “plans”, “estimates”, “anticipates”, or other similar expressions.
Previous report
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond the Company’s control) could cause actual results to differ materially from those set forth in the forward-looking statements. In addition to those specific risks and uncertainties set forth in the Company's reports currently on file with the SEC, some other factors that may affect the future results of operations of the Company are: the development of products that may be superior to those of the Company; changes in the quality or composition of the Company's products; lack of market acceptance of the Company's products; changes in our distribution partners; the Company's ability to develop new products; general economic or industry conditions; changes in intellectual property rights; changes in interest rates; new legislation or regulatory requirements; conditions of the securities markets; the Company's ability to raise capital; changes in accounting principles, policies or guidelines; financial or political instability; acts of war or terrorism; and other economic, competitive, governmental, regulatory and technical factors that may affect the Company's operations, products, services and prices. Accordingly, results achieved may differ materially from those anticipated as a result of such forward-looking statements, and those statements speak only as of the date they are made.
Previous report
The Company does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements.
Previous report
OVERVIEW
Previous report
The Company is a Delaware corporation that, through its Guardian Laboratories division, manufactures and markets cosmetic ingredients, pharmaceuticals, medical lubricants, and sexual wellness products. 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. In October 2023, the Company entered into an agreement with Brenntag Specialties, a global market leader in chemicals and ingredients distribution, for the marketing of the Company’s new line of sexual wellness ingredients, specifically called the “Natrajel®” line of products, in the United States, Canada, Mexico, Central America and South America. Although there were no sales of these products during 2023 or year-to-date in 2024, the Company anticipates that it will begin manufacturing and reporting sales of this new line of products in 2025.
Previous report
The Company also conducts research and product development. 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 its products. The Company also develops new products using natural and environmentally friendly raw materials, which is a priority for many of the Company’s cosmetic customers. All the products that the Company markets, except for Renacidin, are produced at its facility in Hauppauge, New York. Renacidin, a urological product, is manufactured and packaged for the Company by an outside contract manufacturer.
Previous report
The Company’s most important product line is its Lubrajel® line of multifunctional hydrogels, which are designed to provide hydration, sensory enhancement, lubrication, and texture to both personal care and medical products.
Previous report
The Company’s cosmetic ingredients are marketed worldwide for cosmetic uses by five distributors, each handling a different geographic area, with the largest being U.S.-based ASI. In the last few years, to meet the growing demand for “green” and sustainable products, the Company has focused on developing and launching new products which only contain ingredients that are considered “natural”. The Lubrajel products in the new natural line have been certified by the Cosmetic Organic and Natural Standard (“COSMOS”). This standard is recognized globally by the cosmetic industry.
Previous report
Renacidin and the Company’s other pharmaceutical product, Clorpactin® WCS-90, are distributed through full-line drug wholesalers and marketed only in the United States. Those wholesalers in turn sell the products to pharmacies, hospitals, nursing homes, and other long-term care facilities, and to government agencies, primarily the VA. The Company promotes Renacidin through a dedicated website. Clorpactin WCS-90, as well as the Company’s other products, are marketed through information provided on the Company’s corporate website.
Previous report
The Company’s medical lubricants, which consist of multifunctional hydrogels designed mainly to provide sensory enhancement and lubrication to medical device products, are sold directly to medical customers, or to contract manufacturers employed by these medical customers.
Previous report
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 cosmetic ingredients 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.
Previous report
In recent years the Company has elected to rely on trade secret protection to protect its intellectual property for the proprietary product formulations and manufacturing methods. The Company will file for patent protection in situations where the Company believes that relying on trade secret protection alone would not provide sufficient protection. The Company owns the Lubrajel®, Natrajel®, Renacidin®, and Clorpactin® trademarks.
Previous report
Net sales for the third quarter of 2024 increased by $2,595 (less than 1%) when compared with the same period in 2023. Net sales for the first nine months of 2024 increased by $1,427,121(17%) as compared with the corresponding period in 2023. The increase in sales for the third quarter of 2024 and the first nine months of 2024 were attributable to changes in sales of the following product lines:
Previous report
Cosmetic ingredients**:**
Previous report
Third quarter sales in 2024 to the Company’s four other distributors, as well as to two direct cosmetic ingredient customers, decreased by a net of $152,759 (70%) compared with the third quarter of 2023. This sales decline was due to reformulations and overstocking that is now corrected.
Previous report
Cosmetic ingredient sales for the first nine months of the year to the Company’s four other cosmetic distributors, as well as to two direct cosmetic customers, decreased by a net of $384,744 (57%) compared with the same period in 2023. This sales decline was due to reformulations and overstocking in 2023.
Previous report
Pharmaceuticals:
Previous report
Because there are fees, rebates and allowances associated with sales of the Company’s two pharmaceutical products, Renacidin and Clorpactin, discussion of the Company’s pharmaceutical sales includes references to bothgross sales (before fees, rebates and allowances) andnet sales (after fees, rebates and allowances).
Previous report
Gross sales of the Company’s pharmaceutical products for the three-month period ended September 30, 2024 decreased by $181,540 (12%) compared with the corresponding period in 2023, while gross sales for the nine-month period ended September 30, 2024 decreased by $502,500 (11%). The decrease in sales for the three- and nine-month periods was due primarily to decreases of $123,412 (10%) and $436,581 (11%), respectively, in gross sales of Renacidin due to the temporary shutdown of the Company’s contract manufacturer during the latter part of 2023 and the beginning of 2024. During this time, the Company was unable to fill full orders of Renacidin and was allocating product to all its pharmaceutical distributors. The Company began filing orders in full towards the end of March 2024.
Previous report
The Company typically experiences fluctuations in sales of its pharmaceutical products due to the timing of orders from its distributors. The Company has invested additional resources to better understand the market for its pharmaceutical products and will continue to invest resources to broaden market awareness.
Previous report
Net sales of the Company’s pharmaceutical products for the three- and nine-month periods ended September 30, 2024 saw a similar pattern, decreasing by $74,386 (6%) for the three-month period and decreasing by $441,224 (11%) for the nine-month period, with those decreases due primarily to the reason noted above.
Previous report
The difference between the change in net sales compared with the change in gross sales for these products is due to a combination of the change in gross sales of those products combined with changes in pharmaceutical sales allowances related to these products. Typically, these allowances have a direct relationship with the sales of the Company’s pharmaceutical products. For the three and nine-month period ended September 30, 2024, sales allowances related to the Company’s pharmaceutical products decreased by $107,154 (41%) and $61,277 (7%), respectively, and was primarily related to a decrease in VA and Medicare CDGP Program rebates.
Previous report
Medical lubricants**:**
Previous report
Sales of the Company’s medical lubricants decreased by $15,428 (2%) for the three-month period ended September 30, 2024, compared with the same period in 2023, while sales for the nine-month period increased by $66,462 (4%), compared with the same period in 2023. The changes in medical lubricant sales for the three and nine-month periods were primarily attributable to normal customer ordering patterns.
Previous report
Industrial and other products**:**
Previous report
Sales of the Company's industrial products, as well as other miscellaneous products, for the nine-month period ended September 30, 2024, decreased by $51,594 (100%), when compared with the corresponding period in 2023. The decrease in sales was due to the discontinuation of this product line after the second quarter of 2023. There were no sales of this product line in the third quarters of both 2024 and 2023.
Previous report
Cost of sales as a percentage of sales decreased to 46% in the third quarter of 2024, down from 57% in the third quarter of 2023. For the first nine months of 2024, cost of sales as a percentage of sales decreased to 47%, down from 52% in 2023. The decreases in both periods were the result of the Company’s cosmetic ingredient sales represented a larger percentage of the Company’s total sales for both the three- and nine-month periods ended September 30, 2024 compared with the same periods in 2023. These products carry a higher gross margin than the Company’s pharmaceutical products. In addition, there were lower per unit overhead costs in 2024, which was the result of an increase in production of cosmetic products due to higher demand in 2024 compared to the same periods in 2023.
Previous report
Investment income increased by $20,252 (25%) and $115,750 (64%) for the three- and nine-month periods, respectively, ending September 30, 2024, compared with the equivalent periods in 2023. The increases in both periods were primarily due to an increase in interest income from investments in U. S. Treasury Bills and Certificates of Deposit compared with the dividend income on the Company’s equity and fixed income mutual funds recorded during the same periods in 2023.
Previous report
The change in the makeup of the Company’s investment income was attributable to the Company repositioning its marketable securities portfolio late in the second quarter of 2023. During that time, the Company liquidated most of its holdings of equity and fixed income mutual funds. The Company used the proceeds from these sales to take advantage of higher interest rates by purchasing U.S. Treasury Bills.
Previous report
Net Gain (Loss) on Marketable Securities
Previous report
The Company is in the process of replacing the roof on a portion of its facility in Hauppauge, NY. at an estimated cost of $250,000. The project is due to be completed by the end of 2024.
Previous report
Cash used in investing activities for the nine-month period ended September 30, 2024 was $6,241,837. Cash provided by investing activities for the nine-month period ended September 30, 2023 was $4,728,156 The fluctuation was due to the following: 1) during the first nine months of 2023, the Company liquidated a majority of its marketable equity and fixed income investments and repurchased U.S. Treasury Bills with maturities of less than 3 months, which were classified as cash and cash equivalents, and 2) during the first nine months of 2024, the Company liquidated a significant portion of its 3-month U.S Treasury Bills and reinvested in longer term U.S Treasury Bills, which are now classified as marketable securities.
Previous report
Cash used in financing activities was $2,756,323 and $459,387 for the nine months ended September 30, 2024 and September 30, 2023, respectively. The increase was due to an increase in the dividends paid from $0.10 per share in 2023 to $0.60 per share in 2024.
Previous report
OFF BALANCE-SHEET ARRANGEMENTS
Reworded paragraphs (13)
Previous wording
As disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, the discussion and analysis of the Company’s financial condition and results of operations are based on its financial statements, which have been prepared in conformity with US GAAP. The preparation of those financial statements required the Company to make estimates and assumptions that affect the carrying value of assets, liabilities, revenues, and expenses reported in those financial statements. Those estimates and assumptions can be subjective and complex, and consequently actual results could differ from those estimates and assumptions. The Company’s most critical accounting policies relate to revenue recognition, concentration of credit risk, investments, inventory, and income taxes. Since December 31, 2023, there have been no significant changes to the assumptions and estimates related to those critical accounting policies.
Current wording
As disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, the discussion and analysis of our financial condition and results of operations are based on its financial statements, which have been prepared in conformity with US GAAP. The preparation of those financial statements required us to make estimates and assumptions that affect the carrying value of assets, liabilities, revenues, and expenses reported in those financial statements. Those estimates and assumptions can be subjective and complex, and consequently, actual results could differ from those estimates and assumptions. Our most critical accounting policies relate to revenue recognition, concentration of credit risk, investments, inventory, and income taxes. Since December 31, 2024, there have been no significant changes to the assumptions and estimates related to those critical accounting policies.
Previous wording
The following discussion and analysis cover material changes in the financial condition of the Company since the year ended December 31, 2023, and a comparison of the results of operations for the three and nine months ended September 30, 2024 and September 30, 2023. This discussion and analysis should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. All references in this quarterly report to “sales” or “Sales” shall mean Net Sales unless specified otherwise.
Current wording
The following discussion and analysis covers material changes in our financial condition since the year ended December 31, 2024, and a comparison of the results of operations for the three months ended March 31, 2025 and March 31, 2024. This discussion and analysis should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Previous wording
In accordance with ASU-2016-13, the Company recognizes an allowance for credit losses for financial assets carried at amortized cost to present the net amount expected to be collected as of the balance sheet date. Such allowance is based on the credit losses expected to arise over the life of the asset
Current wording
In accordance with ASU-2016-13, we recognize an allowance for credit losses for financial assets carried at amortized cost to present the net amount expected to be collected as of the balance sheet date. Such allowance is based on the credit losses expected to arise over the life of the asset.
Previous wording
The Company does have competition in the marketplace for some of its products, particularly its cosmetic ingredients, some of its pharmaceutical products, and its medical lubricants. These competitive products are usually sold at a lower price than the Company’s products; however, they may not compare favorably to the level of performance and quality of the Company’s products.
Current wording
The Company continues to experience global competition, particularly from Asian companies that manufacture and sell products that are competitive with the Company’s 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. The Company expects the Asian market to remain very competitive based on the continuing competition from lower-cost competitors, and for that reason we are concentrating our R&D efforts on developing new and unique products that other companies do not offer.
Previous wording
Operating expenses, consisting of selling and general and administrative expenses, increased by $102,583 (21%) for the third quarter of 2024 compared with the equivalent period in 2023 and increased by $182,186 (12%) for the first nine months of 2024, compared with the equivalent period in 2023. The increase in operating expenses for both periods was due primarily to increases in fees paid to the Company’s Board of Directors and increases in payroll and payroll related expenses.
Current wording
Operating expenses, consisting of selling, general, and administrative expenses, increased by $63,870 (approximately 11%) for the first quarter of 2025 compared with the first quarter of 2024. The increase was mainly due to increases in sales & marketing expenses and payroll and payroll related expenses.
Previous wording
Research and development expenses increased by $12,931 (13%) for the third quarter of 2024, and decreased by $28,115 (8%) for the first nine months of 2024 compared with the same periods in 2023. The increase in the third quarter was primarily due to an increase in payroll and payroll-related expenses.
Current wording
R&D expenses increased by $11,412 (approximately 11%) for the first quarter of 2025 compared with the first quarter of 2024. The increase was primarily due to an increase in payroll and payroll-related expenses.
Previous wording
The net gain (loss) on marketable securities increased from a loss of $14,357 for the quarter ended September 30, 2023, to a gain of $47,223 for the quarter ended September 30, 2024. For the nine-month periods ended September 30, 2023 and 2024, the net gain on marketable securities increased from $65,823 to $79,218, respectively. These increased gains were primarily due to the factors discussed above regarding the Company’s repositioning of its marketable securities portfolio. For a significant part of 2023, the Company’s marketable securities portfolio was primarily invested in equity and fixed income mutual funds, and for the three- and nine-month periods ended September 30, 2024, these funds were invested primarily in U.S. Treasury Bills and Certificates of Deposit, which are recorded at amortized cost and are not subject to the same market volatility that the equity and fixed income mutual funds experience. The Company’s management and Board of Directors continue to closely monitor the Company's investment portfolio, and have made and will continue to make any changes they believe may be necessary or appropriate to minimize the future impact on the Company’s financial position that the volatility of the global financial markets may have.
Current wording
The net gain on marketable securities decreased from $41,496 for the quarter ended March 31, 2024, to $12,350 for the quarter ended March 31, 2025. The decrease was primarily due to a change in the market value of our equity mutual funds of $13,857. Our management team and Board of Directors are continuing to closely monitor our investment portfolio and have made and will continue to make any changes they believe may be necessary or appropriate to minimize the future impact on our financial position that the volatility of the global financial markets may have.
Previous wording
The Company's effective income tax rate was approximately 21% for the first nine months of 2024 and 2023. The Company’s tax rate is expected to remain at 21% for the current fiscal year.
Current wording
The Company's effective income tax rate was approximately 21% for the first quarter of 2025 and 2024 and is expected to remain at 21% for the current fiscal year.
Previous wording
Working capital decreased from $10,718,457 at December 31, 2023 to $10,609,401 at September 30, 2024, a decrease of $109,056. The current ratio decreased from 8.0 to 1 at December 31, 2023 to 6.7 to 1 at September 30, 2024. The decrease in working capital and the current ratio was primarily due to an increase in accounts payable which was partially offset by an increase in the combination of cash and marketable securities.
Current wording
Working capital decreased by $987,304 to $9,763,778 at March 31, 2025, down from $10,751,082 at December 31, 2024. The current ratio decreased to 6.1 to 1 at March 31, 2025, down from 6.6 to 1 at December 31, 2024. The decreases in working capital and the current ratio were primarily due to a decrease in cash, cash equivalents and marketable securities.
Previous wording
The Company believes that its working capital is, and will continue to be, sufficient to support its operating requirements for at least the next twelve months.
Current wording
The Company believes that its working capital is, and will continue to be, sufficient to support its operating requirements for at least the next twelve months. The Company’s long-term liquidity position will be dependent on its ability to generate sufficient cash flow from profitable operations.
Previous wording
The Company is in the process of upgrading its building sprinkler system and has incurred costs of $155,000 to date and expects to incur additional costs of $23,000 during the fourth quarter of 2024. The project is expected to be completed by the end of 2024.
Current wording
The Company is in the final stages of upgrading its building sprinkler system and has incurred costs of $184,298 to date and expects to incur additional costs of $10,814 during the second quarter of 2025. The project is expected to be completed during the second quarter of 2025.
Previous wording
The Company generated cash from operations of $3,196,954 and $2,016,910 for the nine months ended September 30, 2024 and September 30, 2023, respectively. The increase in cash from operations was primarily due to an increase in net income, combined with an increase in accounts payable.
Current wording
The Company generated cash from operations of $322,080 and $644,120 for the three months ended March 31, 2025 and 2024, respectively. The decrease was due primarily to a decrease in net income.
Previous wording
The Company expects to continue to use its cash to make dividend payments, to purchase marketable securities, and to take advantage of growth opportunities that are in the best interest of the Company and its shareholders.
Current wording
We expect to continue to use our cash to make dividend payments, purchase marketable securities, and take advantage of growth opportunities that may arise that are in the best interest of the Company and its shareholders.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
All references in this quarterly report to “sales” or “Sales” shall mean Net Sales unless specified otherwise.