| þ   | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------------------|-----------------------------------------------------------------------------------------|

|  ̈   | TRANSITION REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------------------|----------------------------------------------------------------------------------|

|  Delaware                                                      |  11-1719724                                 |
|---------------------------------------------------------------------|--------------------------------------------------|
|  (State or Other Jurisdiction ofIncorporation or Organization) |  (I.R.S. Employer Identification No.)  |

|  N/A                                                                                |
|------------------------------------------------------------------------------------------|
|  (Former name, former address and former fiscal year, if changed since last report) |

----

|   | Large accelerated filer | £ |
|--------|-------------------------|--------|

|   | Non-accelerated filer | £  (Do not check if a smaller reporting company) |
|--------|-----------------------|-----------------------------------------------------------------|

|   | Accelerated filer | £ |
|--------|-------------------|--------|

|   | Smaller reporting company | þ |
|--------|---------------------------|--------|

----

| Part I.  FINANCIAL INFORMATION                                                                                     | Page No.   |
|------------------------------------------------------------------------------------------------------------------------------|----------------------|
|                                                                                                                         |                 |
| Item 1 -      Condensed Financial Statements                                                        |                 |
|                                                                                                                         |                 |
| Statements of Income - Three and Nine months ended September 30, 2009 and 2008 (unaudited)                                   | 2                    |
|                                                                                                                         |                 |
| Balance Sheets – September 30, 2009 (unaudited) and December 31, 2008                                                  | 3-4                  |
|                                                                                                                         |                 |
| Statements of Cash Flows –  Nine-months ended September 30, 2009 and 2008 (unaudited)                        | 5                    |
|                                                                                                                         |                 |
| Notes to Financial Statements (unaudited)                                                                                    | 6-12                 |
|                                                                                                                         |                 |
| Item 2 -      Management's Discussion and Analysis of Financial Condition and Results of Operations | 13-17                |
|                                                                                                                         |                 |
| Item 3 -      Quantitative and Qualitative Disclosures About Market Risk                       | 17                   |
|                                                                                                                         |                 |
| Item 4T -    Controls and Procedures                                                                          | 17-18                |
|                                                                                                                         |                 |
| Part II.  OTHER INFORMATION                                                                                        |                 |
|                                                                                                                         |                 |
| Item 1 -      Legal Proceedings                                                                     | 18                   |
|                                                                                                                         |                 |
| Item 1A -   Risk Factors                                                                                           | 18                   |
|                                                                                                                         |                 |
| Item 2 -      Unregistered Sales of Equity Securities and Use of Proceeds                           | 18                   |
|                                                                                                                         |                 |
| Item 3 -      Defaults Upon Senior Securities                                                       | 18                   |
|                                                                                                                         |                 |
| Item 4 -      Submission of Matters to a Vote of Security Holders                                   | 18                   |
|                                                                                                                         |                 |
| Item 5 -      Other Information                                                                     | 18                   |
|                                                                                                                         |                 |
| Item 6 -      Exhibits and Reports On Form 8-K                                                      | 18-19                |
|                                                                                                                         |                 |
| Signatures                                                                                                                   | 19                   |

----

Part 

ITEM 

UNITED

|                                                                                                                                                                                         |   | NINE MONTHS ENDED SEPTEMBER 30, |       |   | THREE MONTHS ENDED SEPTEMBER 30, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|------------|--------|---------------------------------------|--------|
|                                                                                                                                                                                         |   | 2009                                 |       |   | 2008                                  |   |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                                                         |   |                                 |       |   |                                  |   |   |   |   |   |   |   |
| Net sales                                                                                                                                                                                    |   | $                                    | 10,281,426 |   |                                  | $      | 9,500,563 |   |   | $ | 3,393,139 |   |   | $ | 3,498,325 |   |
|                                                                                                                                                                                         |   |                                 |       |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Costs and expenses:                                                                                                                                                                          |   |                                 |       |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                                                                                                                                                                |   |                                 | 4,137,843  |   |                                  |   | 4,169,106 |   |   |   | 1,317,927 |   |   |   | 1,631,927 |   |
| Operating expenses                                                                                                                                                                           |   |                                 | 1,938,293  |   |                                  |   | 1,980,430 |   |   |   | 540,911 |   |   |   | 628,798 |   |
|                                                                                                                                                                                         |   |                                 | 6,076,136  |   |                                  |   | 6,149,536 |   |   |   | 1,858,838 |   |   |   | 2,260,725 |   |
| Income from operations                                                                                                                                                                       |   |                                 | 4,205,290  |   |                                  |   | 3,351,027 |   |   |   | 1,534,301 |   |   |   | 1,237,600 |   |
|                                                                                                                                                                                         |   |                                 |       |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                                                                                                                                                      |   |                                 |       |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Investment income                                                                                                                                                                            |   |                                 | 274,010    |   |                                  |   | 362,161 |   |   |   | 88,927 |   |   |   | 113,387 |   |
| Gain (Loss) on sale of assets                                                                                                                                                                |   |                                 | 420        |   |                                  |   | (7,763 | ) |   |   | --- |   |   |   | --- |   |
| Other                                                                                                                                                                                        |   |                                 | ---        |   |                                  |   | (1,868 | ) |   |   | 420 |   |   |   | (493 | ) |
|                                                                                                                                                                                         |   |                                 | 274,430    |   |                                  |   | 352,530 |   |   |   | 89,347 |   |   |   | 112,894 |   |
|                                                                                                                                                                                         |   |                                 |       |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations before      income taxes                                                                                                                          |   |                                 | 4,479,720  |   |                                  |   | 3,703,557 |   |   |   | 1,623,648 |   |   |   | 1,350,494 |   |
| Provision for income taxes                                                                                                                                                                   |   |                                 | 1,487,300  |   |                                  |   | 1,216,500 |   |   |   | 541,900 |   |   |   | 439,000 |   |
|                                                                                                                                                                                         |   |                                 |       |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
|       Net Income                                                                                                                                               |   | $                                    | 2,992,420  |   |                                  | $      | 2,487,057 |   |   | $ | 1,081,748 |   |   | $ | 911,494 |   |
|                                                                                                                                                                                         |   |                                 |       |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
|           Earnings per common share              (Basic and Diluted) |   | $                                    | 0.60       |   |                                  | $      | 0.50 |   |   | $ | 0.22 |   |   | $ | 0.18 |   |
|                                                                                                                                                                                         |   |                                 |       |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares – basic and diluted                                                                                                                                            |   |                                 | 4,946,439  |   |                                  |   | 4,946,439 |   |   |   | 4,946,439 |   |   |   | 4,946,439 |   |

----

UNITED

| ASSETS                                                                                                                                                                        |   | SEPTEMBER 30, |       |   | DECEMBER 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|--------------|--------|
|                                                                                                                                                                          |   | 2009          |       |   | 2008         |   |
|                                                                                                                                                                          |   | (UNAUDITED)   |       |   |         |   |
| Current assets:                                                                                                                                                               |   |          |       |   |         |   |
| Cash and cash equivalents                                                                                                                                                     |   | $             | 2,194,680  |   |         | $      | 3,425,538 |   |
| Certificates of deposit                                                                                                                                                       |   |          | 3,006,994  |   |         |   | 812,952 |   |
| Marketable securities                                                                                                                                                         |   |          | 8,204,975  |   |         |   | 8,239,183 |   |
| Accounts receivable, net of allowance for doubtful     accounts of $27,400 at September 30, 2009 and     $30,000 at December 31, 2008 |   |          | 1,511,271  |   |         |   | 1,381,012 |   |
| Inventories (net)                                                                                                                                                             |   |          | 1,199,750  |   |         |   | 1,344,579 |   |
| Prepaid expenses and other current assets                                                                                                                                     |   |          | 248,701    |   |         |   | 226,330 |   |
| Deferred income taxes                                                                                                                                                         |   |          | 355,798    |   |         |   | 355,798 |   |
| Total current assets                                                                                                                                                          |   |          | 16,722,169 |   |         |   | 15,785,392 |   |
|                                                                                                                                                                          |   |          |       |   |         |   |   |   |
| Certificate of deposit maturing October, 2010                                                                                                                                 |   |          | 105,437    |   |         |   | 271,976 |   |
|                                                                                                                                                                          |   |          |       |   |         |   |   |   |
| Property, plant and equipment:                                                                                                                                                |   |          |       |   |         |   |   |   |
| Land                                                                                                                                                                          |   |          | 69,000     |   |         |   | 69,000 |   |
| Factory equipment and fixtures                                                                                                                                                |   |          | 3,281,284  |   |         |   | 3,288,808 |   |
| Building and improvements                                                                                                                                                     |   |          | 2,435,988  |   |         |   | 2,431,908 |   |
| Waste disposal plant                                                                                                                                                          |   |          | 133,532    |   |         |   | 133,532 |   |
|                                                                                                                                                                          |   |          | 5,919,804  |   |         |   | 5,923,248 |   |
| Less: Accumulated depreciation                                                                                                                                                |   |          | 5,059,175  |   |         |   | 4,971,269 |   |
| Total property, plant and equipment, net                                                                                                                                      |   |          | 860,629    |   |         |   | 951,979 |   |
|                                                                                                                                                                          |   |          |       |   |         |   |   |   |
| Other assets                                                                                                                                                                  |   |          |       |   |         |   |   |   |
| Pension asset                                                                                                                                                                 |   |          | 131,682    |   |         |   | 123,589 |   |
| Other                                                                                                                                                                         |   |          | 122,434    |   |         |   | 150,687 |   |
| Total other assets                                                                                                                                                            |   |          | 254,116    |   |         |   | 274,276 |   |
|                                                                                                                                                                          |   |          |       |   |         |   |   |   |
| TOTAL ASSETS                                                                                                                                                                  |   | $             | 17,942,351 |   |         | $      | 17,283,623 |   |

----

|                                                                                                                                                                                                                                                           |   | SEPTEMBER 30, |       |   | DECEMBER 31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|--------------|--------|
|                                                                                                                                                                                                                                                           |   |  2009    |       |   |  2008   |   |
| Current liabilities:                                                                                                                                                                                                                                           |   | (UNAUDITED)   |       |   |         |   |
| Dividends payable                                                                                                                                                                                                                                         |   | $             | ---        |   |         | $      | 1,385,003 |   |
| Accounts payable                                                                                                                                                                                                                                          |   |          | 205,720    |   |         |   | 187,810 |   |
| Loans payable                                                                                                                                                                                                                                             |   |          | ---        |   |         |   | 6,657 |   |
| Accrued taxes payable                                                                                                                                                                                                                                          |   |          | 170,695    |   |         |   | --- |   |
| Accrued expenses                                                                                                                                                                                                                                          |   |          | 893,908    |   |         |   | 969,242 |   |
| Total current liabilities                                                                                                                                                                                                                                 |   |          | 1,270,323  |   |         |   | 2,548,712 |   |
|                                                                                                                                                                                                                                                           |   |          |       |   |         |   |   |   |
| Deferred income taxes                                                                                                                                                                                                                                     |   |          | 142,890    |   |         |   | 28,616 |   |
|                                                                                                                                                                                                                                                           |   |          |       |   |         |   |   |   |
| Stockholders’ equity:                                                                                                                                                                                                                               |   |          |       |   |         |   |   |   |
| Common stock $.10 par value, authorized,      10,000,000 shares; 5,008,639 shares issued,     and 4,946,439 shares outstanding at     September 30, 2009 and December 31, 2008 |   |          | 500,864    |   |         |   | 500,864 |   |
| Capital in excess of par value                                                                                                                                                                                                                            |   |          | 3,819,480  |   |         |   | 3,819,480 |   |
| Accumulated other comprehensive loss                                                                                                                                                                                                                      |   |          | (170,782   |   |         |   | (386,208 |   |
| Retained earnings                                                                                                                                                                                                                                         |   |          | 12,739,206 |   |         |   | 11,131,789 |   |
| Treasury stock, at cost; 62,200 shares                                                                                                                                                                                                                    |   |          | (359,630   |   |         |   | (359,630 |   |
| Total stockholders’ equity                                                                                                                                                                                                                          |   |          | 16,529,138 |   |         |   | 14,706,295 |   |
|                                                                                                                                                                                                                                                           |   |          |       |   |         |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’     EQUITY                                                                                                                                                                        |   | $             | 17,942,351 |   |         | $      | 17,283,623 |   |

----

UNITED

|                                                                                                                                                                                                                                                                                                                    |   | NINE-MONTHS ENDED |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|
|                                                                                                                                                                                                                                                                                                                    |   | September 30,     |       |
|                                                                                                                                                                                                                                                                                                                    |   | 2009              |       |   | 2008 |   |
| Cash flows from operating activities:                                                                                                                                                                                                                                                                                   |   |              |       |   |   |   |
| Net Income                                                                                                                                                                                                                                                                                                              |   | $                 | 2,992,420  |   |   | $ | 2,487,057 |   |
| Adjustments to reconcile net income to net cash                                                                                                                                                                                                                                                                    |   |              |       |   |   |   |   |   |
| provided by operating activities:                                                                                                                                                                                                                                                                                       |   |              |       |   |   |   |   |   |
|                    Depreciation and amortization                                                                                                                                                                                                                      |   |              | 128,544    |   |   |   | 160,055 |   |
|                    Realized loss (gain) on sales of marketable                        securities |   |              | 633        |   |   |   | (438 | ) |
|                    (Gain) Loss on sale of equipment                                                                                                                                                                                                    |   |              | (420       | ) |   |   | 7,763 |   |
|                    Reduction in allowance for bad debts                                                                                                                                                                                                               |   |              | (2,616     | ) |   |   | (10,684 | ) |
|                    Increase (decrease) in cash resulting from                                                                                                                                                                                                         |   |              |       |   |   |   |   |   |
|                         changes in operating assets and liabilities:                                                                                                                            |   |              |       |   |   |   |   |   |
|                                  Accounts receivable                                                                                                                                                                               |   |              | (127,643   | ) |   |   | (544,936 | ) |
|                                  Inventories                                                                                                                                                                                       |   |              | 144,829    |   |   |   | 102,809 |   |
|                                  Prepaid expenses and other current                                                                                                                                                                |   |              |       |   |   |   |   |   |
|                                       and non-current assets                                                                   |   |              | (30,464    | ) |   |   | (49,960 | ) |
|                                  Accounts payable                                                                                                                                                                                  |   |              | 17,910     |   |   |   | 107,306 |   |
|                                  Accrued pension cost                                                                                              |   |              | ---        |   |   |   | (110,698 | ) |
|                                  Accrued expenses and taxes payable                                                                                                                                                                |   |              | 95,361     |   |   |   | 329,447 |   |
| Net cash provided by continuing operating activities                                                                                                                                                                                                                                                                    |   |              | 3,218,554  |   |   |   | 2,477,721 |   |
| Net cash provided by discontinued operating activities                                                                                                                                                                                                                                                                  |   |              | ---        |   |   |   | 17,233 |   |
| Net cash provided by operating activities                                                                                                                                                                                                                                                                          |   |              | 3,218,554  |   |   |   | 2,494,954 |   |
|                                                                                                                                                                                                                                                                                                                    |   |              |       |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                                                                                                                                                                                                   |   |              |       |   |   |   |   |   |
|          Acquisition of property, plant and equipment                                                                                                                                                                                                                                          |   |              | (28,521    | ) |   |   | (107,457 | ) |
|          Proceeds from sales of assets                                                                                                                                                                                                                                                         |   |              | 20,000     |   |   |   | 7,988 |   |
|          Proceeds from sales of marketable securities                                                                                                                                                                                                                      |   |              | 900,000    |   |   |   | 1,550,000 |   |
|          Purchases of marketable securities                                                                                                                                                                                                                                                    |   |              | (536,725   | ) |   |   | (1,588,328 | ) |
|          Net change in certificates of deposit                                                                                                                                                                                                                             |   |              | (2,027,503 | ) |   |   | 224,193 |   |
| Net cash (used in) provided by investing activities                                                                                                                                                                                                                                                                     |   |              | (1,672,749 | ) |   |   | 86,396 |   |
|                                                                                                                                                                        |   |              |       |   |   |   |   |   |
| Cash flows from financing activities:                                                                                                                                                                                                                                                                                   |   |              |       |   |   |   |   |   |
|          Payment of long term debt                                                                                                                                                                                                                                                             |   |              | (6,657     | ) |   |   | (5,991 | ) |
|          Dividends paid                                                                                                                                                                                                                                                                        |   |              | (2,770,006 | ) |   |   | (2,720,542 | ) |
| Net cash used in financing activities                                                                                                                                                                                                                                                                                   |   |              | (2,776,663 | ) |   |   | (2,726,533 | ) |
|                                                                                                                                                                                                                                                                                                                    |   |              |       |   |   |   |   |   |
| Net decrease in cash and cash equivalents                                                                                                                                                                                                                                                                               |   |              | (1,230,858 | ) |   |   | (145,183 | ) |
| Cash and cash equivalents at beginning of period                                                                                                                                                                                                                                                                        |   |              | 3,425,538  |   |   |   | 4,555,388 |   |
| Cash and cash equivalents at end of period                                                                                                                                                                                                                                                                              |   | $                 | 2,194,680  |   |   | $ | 4,410,205 |   |

----

UNITED

| 1. | Nature of Business |
|----|--------------------|

| 2.  | Basis of Presentation |
|----------|-----------------------|

| 3. | Stock-Based Compensation |
|----|--------------------------|

|       | The Company follows the Financial Accounting Standards Certification (“ASC”) 718 Compensation – Stock Compensation, which requires that the fair value of all share-based payments to employees, including grants of employee stock options, be recognized as expense in the financial statements. |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|       | As of September 30, 2009, the Company had no share-based awards outstanding and exercisable and did not grant any options during the nine months ended September 30, 2009. |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|       | As of September 30, 2009, there was no remaining unrecognized compensation cost related to the non-vested share-based compensation arrangements granted under the Company's plan. |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|       | The Company did not record any compensation expense under the provisions of ASC 718 during the nine- and three-month periods ended September 30, 2009 and 2008. |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company did not receive any proceeds from the exercise of options during the nine months ended September 30, 2009 and 2008. |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

| 4. | Recent Accounting Pronouncements |
|----|----------------------------------|

|   | NEW ACCOUNTING STANDARDS ADOPTED IN FISCAL 2009 |
|--------|-------------------------------------------------|

----

| 5.   | Investments |
|----------------|-------------|

|   | • | Defines fair value as the price 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; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Establishes a three-level hierarchy ("Valuation Hierarchy") for fair value measurements; |
|--------|---------|------------------------------------------------------------------------------------------|

|   | • | Requires consideration of the Company's creditworthiness when valuing liabilities; and |
|--------|---------|----------------------------------------------------------------------------------------|

----

|   | • | Expands disclosures about instruments measured at fair value. |
|--------|---------|---------------------------------------------------------------|

|   | •   | 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. |
|--------|---------------------|---------------------------------------------------------------------------------------------------------------------|

|                                                                                                   |   |   |      |   |       |   |      | Unrealized  |   |
|--------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|------------|--------|-----------|-------------|--------|
| September 30, 2009                                                                                     |   | Cost   |      |   | Fair Value |   |      | Gain/(Loss) |   |
|                                                                                                   |   |   |      |   |       |   |      |        |   |
|  Available for Sale:                                                                         |   |   |      |   |       |   |      |        |   |
|        U.S. Treasury and agencies                                             |   |   |      |   |       |   |      |        |   |
|           Mature within 1 year                       |   | $      | 1,647,032 |   |       | $      | 1,666,299 |        |   | $ | 19,267 |   |
|           Mature 1-5 years                           |   |   | 1,452,045 |   |       |   | 1,477,147 |        |   |   | 25,102 |   |
|             Total US Treasury and agencies |   |   | 3,099,077 |   |       |   | 3,143,446 |        |   |   | 44,369 |   |
|                                                                                                   |   |   |      |   |       |   |      |        |   |   |   |   |
|        Fixed income mutual funds                                              |   |   | 4,848,958 |   |       |   | 4,862,690 |        |   |   | 13,732 |   |
|        Equity and other mutual funds                                          |   |   | 243,290   |   |       |   | 198,839   |        |   |   | (44,451 | ) |
|                                                                                                   |   | $      | 8,191,325 |   |       | $      | 8,204,975 |        |   | $ | 13,650 |   |

| December 31, 2008                                                                                       |   | Cost   |      |   | Fair Value |   |      | UnrealizedGain/(Loss) |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|------------|--------|-----------|-----------------------|--------|
|                                                                                                         |   |   |      |   |       |   |      |                  |   |
|  Available for Sale:                                                                               |   |   |      |   |       |   |      |                  |   |
|        U.S. Treasury and agencies                                                   |   |   |      |   |       |   |      |                  |   |
|           Mature within 1 year                             |   | $      | 1,140,227 |   |       | $      | 1,153,798 |                  |   | $ | 13,571 |   |
|           Mature 1-5 years                                 |   |   | 2,458,685 |   |       |   | 2,536,931 |                  |   |   | 78,246 |   |
|              Total US Treasury and agencies |   |   | 3,598,912 |   |       |   | 3,690,729 |                  |   |   | 91,817 |   |
|                                                                                                         |   |   |      |   |       |   |      |                  |   |   |   |   |
|        Fixed income mutual funds                                                    |   |   | 4,715,827 |   |       |   | 4,380,669 |                  |   |   | (335,158 | )  |
|        Equity and other mutual funds                                                |   |   | 240,494   |   |       |   | 167,785   |                  |   |   | (72,709 | ) |
|                                                                                                         |   | $      | 8,555,233 |   |       | $      | 8,239,183 |                  |   | $ | (316,050 | ) |

----

| 6. | Inventories - Net  |
|----|-------------------------|

|                                        |   | September 30, |      |   | December 31, |   |
|---------------------------------------------|--------|---------------|-----------|--------|--------------|--------|
|                                        |   | 2009          |      |   | 2008         |   |
| Inventories consist of the following:  |   |          |      |   |         |   |
| Raw materials and work in process           |   | $             | 377,669   |   |         | $      | 422,437 |   |
| Finished products                      |   |          | 822,081   |   |         |   | 922,142 |   |
|                                        |   | $             | 1,199,750 |   |         | $      | 1,344,579 |   |

|       | As of September 30, 2009 and December 31, 2008, the Company had reserves of $39,000 for slow moving and obsolete inventory. |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------|

| 7. | Supplemental Financial Statement Information |
|----|----------------------------------------------|

|       | The Company paid $2,770,006 and $2,720,542 in dividends for the nine months ended September 30, 2009 and September 30, 2008, respectively. |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | Research and development expenses amounted to $400,928 and $324,608 for the nine months ended September 30, 2009 and September 30, 2008, respectively, and are included in operating expenses. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Marketable securities include investments in equity mutual funds, government securities and corporate bonds which are classified as “Available for Sale” securities and are reported at their fair value under ASC 320 Investments – Debt and Equity Securities.  Unrealized gains and losses on “Available for Sale” securitiesare reported as accumulated other comprehensive income (loss) in stockholders’ equity, net of the related tax effects.  Investment income is recognized when earned.  Realized gains and loses on sales of investments are determined on a specific identification basis.  Fair values are based on quoted market prices. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Certificates of deposit that mature in one year or less are classified as current, and those that mature in more than one year are classified as non-current.  These certificates are carried at cost, which approximate fair value. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | Income Taxes |
|----|--------------|

|       | The Company’s tax provision is based on its estimated annual effective tax rate. |
|--------------------------------|----------------------------------------------------------------------------------------|

----

|       | The Company files consolidated Federal income tax returns in the U.S. with its inactive subsidiary, and separate income tax returns in New York State. The Company is subject to examination by the Internal Revenue Service for years 2006 through 2008 and by New York State for years 2005 through 2008. |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | Comprehensive Income |
|----|----------------------|

|                                                                                            |   | Nine months ended September 30, |      |   | Three months ended September 30 |   |
|-------------------------------------------------------------------------------------------------|--------|--------------------------------------|-----------|--------|--------------------------------------|--------|
|                                                                                       |   | 2009                                 |      |   | 2008                                 |   |   | 2009 |   |   | 2008 |   |
|                                                                                            |   |                                 |      |   |                                 |   |   |   |   |   |   |   |
| Net income                                                                                 |   | $                                    | 2,992,420 |   |                                 | $      | 2,487,057 |   |   | $ | 1,081,748 |   |   | $ | 911,494 |   |
|                                                                                            |   |                                 |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income                                                                      |   |                                 |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|      Unrealized gain (loss) on marketable                              |   |                                 |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|           securities during period            |   |                                 | 329,700   |   |                                 |   | (295,615 | ) |   |   | 182,923 |   |   |   | (213,246 | ) |
|                                                                                            |   |                                 |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|      Income tax expense (benefit) related                              |   |                                 |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|           to other comprehensive income  |   |                                 | 114,274   |   |                                 |   | (102,298 | ) |   |   | 63,401 |   |   |   | (73,783 | ) |
|                                                                                            |   |                                 |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income, net of                                                              |   |                                 |      |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
|      tax                                                               |   |                                 | 215,426   |   |                                 |   | (193,317 | ) |   |   | 119,522 |   |   |   | (139,463 | ) |
| Comprehensive income                                                                       |   | $                                    | 3,207,846 |   |                                 | $      | 2,293,740 |   |   | $ | 1,201,270 |   |   | $ | 772,031 |   |

|       | Accumulated other comprehensive income comprises unrealized gains and losses on marketable securities and liability for pension benefit net of the related tax effect. |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | Defined Benefit Pension Plan and New Defined Contribution Plan |
|-----|----------------------------------------------------------------|

|                                                     |   | 2009        |     |   | 2008   |   |
|----------------------------------------------------------|--------|-------------|----------|--------|--------|--------|
|                                                     |   | (projected) |     |   |   |   |
| Interest cost – projected benefit obligation  |   | $           | 113,864  |   |   | $      | 176,429 |   |
| Expected return on plan assets                      |   |        | (131,315 | )      |   |   | (232,109 | ) |
| Effect of special events                            |   |        | ---      |   |   |   | 112,552 |   |
| Amortization of net loss                                 |   |        | 6,659    |   |   |   | --- |   |
| Net periodic (income) benefit costs                 |   | $           | (10,792  | )      |   | $      | 56,872 |   |

----

|                            |   | September 30, |    |   | December 31, |   |
|---------------------------------|--------|---------------|---------|--------|--------------|--------|
|                            |   | 2009          |    |   | 2008         |   |
|                            |   |          |    |   |         |   |   |   |
| Accrued 401K plan contributions |   | $             | 131,250 |   |         | $      | 175,000 |   |
| Accrued vacations               |   |          | 75,254  |   |         |   | 98,974 |   |
| Accrued bonuses                 |   |          | 91,000  |   |         |   | 170,000 |   |
| Accrued annual report expenses  |   |          | 55,854  |   |         |   | 63,859 |   |
| Accrued distribution fees       |   |          | 315,926 |   |         |   | 213,541 |   |
| Other                           |   |          | 224,624 |   |         |   | 247,868 |   |
|                            |   | $        | 893,908 |   |         | $      | 969,242 |   |

----

| Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------|

|       | Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our 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 operationsof 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; the Company's ability to develop new products; general economic or industry conditions; 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, policiesor 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 actually 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. 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. |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|      | The Company is a Delaware corporation that conducts research, product development, manufacturing and marketing of cosmetic ingredients, personal and health care products, pharmaceuticals, and specialty industrial products. All of the products that the Company manufactures, with the exception of its RENACIDIN IRRIGATION®, are producedat its facility in Hauppauge, New York, and are marketed through marketing partners, distributors, wholesalers, direct advertising, mailings, and trade exhibitions. Its most important personal care product line is its LUBRAJEL® line of water-based moisturizing and lubricating gels. It also sells two pharmaceutical products for urological uses. Those products are sold primarily through the major drug wholesalers, which in turnsell the products to pharmacies, hospitals, nursing homes and other long-term care facilities, and to government agencies, primarily the Veteran's Administration. |
|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|       | While the Company does have competition in the marketplace for some of its products, many of its products are either unique in their field or have some unique characteristics, and therefore are not in direct competition with the products of other pharmaceutical, specialty chemical, or health care companies.  Many of the Company’s products are manufactured using patented or proprietary processes.  TheCompany’s research and development department is actively working on the development of new products to expand the Company's line of personal care and medical products. |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company recognizes revenue when products are shipped, title and risk of loss pass to the customers, persuasive evidence of a sales arrangement exists, and collections are reasonably assured.  An allowance for returns, based on historical experience, is taken as a reduction of sales within the same period the revenue is recognized. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|       | The Company has been issued many patents and trademarks and intends, whenever possible, to make efforts to obtain patents in connection with its product development program.     |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|       | As disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2008, 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 U.S. generally accepted accounting principles. The preparation of those financial statements required the Company to make estimatesand 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, inventory, pension costs, patents, and income taxes. Since December 31, 2008, there have been no significant changes tothe assumptions and estimates related to those critical accounting policies. |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|       | The following discussion and analysis covers material changes in the financial condition of the Company since the year ended December 31, 2008, and a comparison of the results of operations for the nine- and three-month periods ended September 30, 2009 and September 30, 2008. This discussion and analysis should be read in conjunction with "Management's Discussion and Analysis or Plan of Operation" included in theCompany's Annual Report on Form 10-K for the year ended December 31, 2008. |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Sales |
|--------|-------|

----

| (a)   | Pharmaceuticals:  Pharmaceutical sales decreased $102,783, or 14.5%, for the three months ended September 30, 2009 as compared with the same period in 2008. This was the result of a 5% price increase that was implemented on May 1, 2009, which caused a significant increase in sales in thesecond quarter as customers purchased additional inventory in anticipation of the price increase.  The Company implemented a slightly smaller price increase (4%) on April 1, 2008, which affected sales in the first quarter of that year rather than the second quarter, but the increase in sales prior to the effective date of that increase was not nearly as large as it was in 2009.  As a result, pharmaceutical sales increased $321,081, or 16.4%, for the nine months ended September 30, 2009 ascompared with the same period in 2008.  Since the annual sales of these products are relatively stable from year-to-year, the Company anticipates that the volume of pharmaceutical products that will be sold in 2009 will be comparable to what was sold in 2008. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Personal care products: For the three months ended September 30, 2009, the Company’s sales of personal care products increased $64,239, or 2.7%, when compared with same period in 2008. For the nine months ended September 30, 2009, the Company’s sales of personal care products decreased$103,177, or 1.7%, when compared with the same period in 2008.  Based on information provided by the Company’s marketing partners, the Company believes that the overall changes in sales were due primarily to the ordering patterns of its customers rather than any real decline in the use of the Company’s products.  There were, however, more significant changes in sales by geographic regions, with sales to some of our marketing partners increasing while sales to others decreased.  Thismay be partly due to the economies of the various countries having been affected differently by the worldwide recession. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Medical (non-pharmaceutical) products:  Sales of the Company’s medical products decreased $62,107, or 12.4%, and increased $632,052, or 41.7%, for the three- and nine-month periods ended September 30, 2009 when compared with the same periods in 2008.  These changes are primarilydue to two factors. First, one of the Company’s customers concentrated its 2009 purchases into the first six months of the year in anticipation of  moving its production facility later this year, which resulted in lower-than-normal sales to that customer in the third quarter. Second, another customer recently sold its product line, which utilizes one of our products, to a major multinational pharmaceutical company, resultingin a sales increase of our product to them of $258,091, or 128%, and an increase in volume of 99% for the nine-month period. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Industrial products: For the three months ended September 30, 2009, sales of industrial products increased $3,148, or 10.6%, when compared with the same period in 2008. Sales of industrial products increased $9,745, or 12.0%, for the nine-month period ended September 30, 2009 when compared with thesame period in 2008.  The Company believes these increases are the result of customer purchasing patterns |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Cost of Sales |
|--------|---------------|

|       | Working capital increased by $2,215,166 to $15,451,846 at September 30, 2009 from $13,236,680 at December 31, 2008. The current ratio increased to 13 to 1 at September 30, 2009 from 6.2 to 1 at December 31, 2008. The increase in the current ratio was primarily due to the effect of a decrease in dividends payable, partially offset by other changes in working capital items. |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|       | During the nine-month period ended September 30, 2009, the average period of time that an account receivable was outstanding was approximately 39 days. The average period of time that an account receivable was outstanding during the nine-month period ended September 30, 2008 was 46 days, which was mainly due to a few customers who were paying more slowly than normal at that time. |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|       | 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 does not expect to incur any significant capital expenditures for the remainder of 2009. |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|       | The Company generated cash from operations of $3,218,554 and $2,494,954 for the nine-months ended September 30, 2009 and September 30, 2008, respectively. The increase was primarily due to an increase in net income and increases in accrued expenses and taxes payable. |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Cash used in investing activities for the nine-month period ended September 30, 2009 was $1,672,749, while cash provided by investing activities for the nine-month period ended September 30, 2008 was $86,396. This decrease was primarily due to purchases of certificates of deposit with cash generated. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|       | Cash used in financing activities was $2,776,663 and $2,726,533 for the nine-month periods ended September 30, 2009 and September 30, 2008, respectively.  This was mainly related to dividend payments. |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company has no off balance sheet transactions that have, or are reasonably likely to have, a current or future effect on the Company’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The information to be reported under this item is not required of smaller reporting companies. |
|--------|------------------------------------------------------------------------------------------------|

| Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
|---------|-------------------------------------------------------------|

| Item 4T. | CONTROLS AND PROCEDURES |
|----------|-------------------------|

| (a)   | DISCLOSURE CONTROLS AND PROCEDURES |
|-----------------|------------------------------------|

----

| (b)   | CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING |
|-----------------|------------------------------------------------------|

|   | PART II - OTHER INFORMATION |
|--------|-----------------------------|

| ITEM 1. | LEGAL PROCEEDINGS |
|---------|-------------------|

| ITEM 1A. | RISK FACTORS |
|----------|--------------|

| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. |
|---------|--------------------------------------------------------------|

| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
|---------|---------------------------------|

| ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
|---------|-----------------------------------------------------|

| ITEM 5. | OTHER INFORMATION |
|---------|-------------------|

| ITEM 6. | EXHIBITS AND REPORTS ON FORM 8-K |
|---------|----------------------------------|

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|   | 31.1      | Certification of Kenneth H. Globus, President and principal executive officer of the Company, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                     |                                                                                                                                                    |
|   | 31.2      | Certification of Robert S. Rubinger, Chief Financial Officer of the Company, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                  |
|   |                     |                                                                                                                                                    |
|   | 32.1      | Certification of Kenneth H. Globus, President and principal executive officer of the Company, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|   |                     |                                                                                                                                                    |
|   | 32.2      | Certification of Robert S. Rubinger, Chief Financial Officer of the Company, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                  |

SIGNATURES

----