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

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

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

| N/A |
|-----|

----

|   | Large accelerated filer | o |
|--------|-------------------------|---|

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

|   | Accelerated filer | o |
|--------|-------------------|---|

|   | Smaller reporting company | x |
|--------|---------------------------|---|

----

|                                                                                                                  | Page No. |
|-----------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                                  |     |
| Part I.  FINANCIAL INFORMATION                                                                              |     |
|                                                                                                                  |     |
| Item 1 -  Condensed Financial Statements                                                                    |     |
|                                                                                                                  |     |
| Statements of Income - Three and Six Months ended June 30, 2010 and 2009 (unaudited)                                  | 2        |
|                                                                                                                  |     |
| Balance Sheets – June 30, 2010 (unaudited) and December 31, 2009                                                | 3-4      |
|                                                                                                                  |     |
| Statements of Cash Flows –  Six months ended June 30, 2010 and 2009 (unaudited)                       | 5        |
|                                                                                                                  |     |
| Notes to Financial Statements (unaudited)                                                                             | 6-11     |
|                                                                                                                  |     |
| Item 2 -    Management's Discussion and Analysis of Financial Condition and Results of Operations | 11-16    |
|                                                                                                                  |     |
| Item 3 -    Quantitative and Qualitative Disclosures About Market Risk                            | 16       |
|                                                                                                                  |     |
| Item 4T -  Controls and Procedures                                                                          | 16       |
|                                                                                                                  |     |
| Part II.  OTHER INFORMATION                                                                                 |     |
|                                                                                                                  |     |
| Item 1 -    Legal Proceedings                                                                     | 17       |
|                                                                                                                  |     |
| Item 1A -  Risk Factors                                                                                     | 17       |
|                                                                                                                  |     |
| Item 2 -    Unregistered Sales of Equity Securities and Use of Proceeds                           | 17       |
|                                                                                                                  |     |
| Item 3 -    Defaults Upon Senior Securities                                                       | 17       |
|                                                                                                                  |     |
| Item 4 -    Submission of Matters to a Vote of Security Holders                                   | 17       |
|                                                                                                                  |     |
| Item 5 -    Other Information                                                                     | 17       |
|                                                                                                                  |     |
| Item 6 -    Exhibits                                                                              | 17       |
|                                                                                                                  |     |
| Signatures                                                                                                            | 18       |
|                                                                                                                  |     |

----

Part 

| ITEM 1. | Condensed Financial Statements |
|---------|--------------------------------|

UNITED

|                                                                                                 |   | SIX MONTHS ENDED JUNE 30, |      |   | THREE MONTHS ENDED JUNE 30, |   |
|------------------------------------------------------------------------------------------------------|--------|--------------------------------|-----------|--------|----------------------------------|--------|
|                                                                                                 |   | 2010                           |      |   | 2009                             |   |   | 2010 |   |   | 2009 |   |
|                                                                                                 |   |                           |      |   |                             |   |   |   |   |   |   |   |
| Net sales                                                                                            |   | $                              | 7,311,467 |   |                             | $      | 6,888,287 |   |   | $ | 3,734,552 |   |   | $ | 2,993,144 |   |
|                                                                                                 |   |                           |      |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Costs and expenses:                                                                                  |   |                           |      |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                                                                        |   |                           | 2,811,946 |   |                             |   | 2,819,916 |   |   |   | 1,397,379 |   |   |   | 1,273,597 |   |
| Operating expenses                                                                                   |   |                           | 1,326,629 |   |                             |   | 1,397,382 |   |   |   | 708,580 |   |   |   | 687,397 |   |
| Pension plan termination                                                                             |   |                           | 847,744   |   |                             |   | --- |   |   |   | 847,744 |   |   |   | --- |   |
|                                                                                                 |   |                           | 4,986,319 |   |                             |   | 4,217,298 |   |   |   | 2,953,703 |   |   |   | 1,960,994 |   |
|              Income from operations |   |                           | 2,325,148 |   |                             |   | 2,670,989 |   |   |   | 780,849 |   |   |   | 1,032,150 |   |
|                                                                                                 |   |                           |      |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Other income:                                                                                        |   |                           |      |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Investment income                                                                                    |   |                           | 225,146   |   |                             |   | 185,083 |   |   |   | 132,876 |   |   |   | 93,481 |   |
|                                                                                                 |   |                           |      |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations before income taxes                                                           |   |                           | 2,550,294 |   |                             |   | 2,856,072 |   |   |   | 913,725 |   |   |   | 1,125,631 |   |
|                                                                                                 |   |                           |      |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income taxes                                                                           |   |                           | 829,926   |   |                             |   | 945,400 |   |   |   | 289,201 |   |   |   | 370,200 |   |
|                                                                                                 |   |                           |      |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                                                           |   | $                              | 1,720,368 |   |                             | $      | 1,910,672 |   |   | $ | 624,524 |   |   | $ | 755,431 |   |
|                                                                                                 |   |                           |      |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per common share(Basic and Diluted)                                                         |   | $                              | 0.35      |   |                             | $      | 0.39 |   |   | $ | 0.13 |   |   | $ | 0.15 |   |
|                                                                                                 |   |                           |      |   |                             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares – basic and diluted                                                    |   |                           | 4,882,627 |   |                             |   | 4,946,439 |   |   |   | 4,819,516 |   |   |   | 4.946,439 |   |

----

UNITED

| ASSETS                                                                                                                                                        |   | JUNE 30,    |       |   | DECEMBER 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|------------|--------|--------------|--------|
|                                                                                                                                                          |   | 2010        |       |   | 2009         |   |
| Current assets:                                                                                                                                               |   | (UNAUDITED) |       |   |         |   |
|                                                                                                                                                          |   |        |       |   |         |   |
| Cash and cash equivalents                                                                                                                                     |   | $           | 1,368,922  |   |         | $      | 5,021,073 |   |
| Certificates of deposit                                                                                                                                       |   |        | 436,467    |   |         |   | 1,014,866 |   |
| Marketable securities                                                                                                                                         |   |        | 7,364,872  |   |         |   | 8,438,757 |   |
| Accounts receivable, net of allowance for doubtful     accounts of $27,000 at June 30, 2010 and     December 31, 2009 |   |        | 2,020,888  |   |         |   | 1,364,886 |   |
| Inventories (net)                                                                                                                                             |   |        | 1,317,982  |   |         |   | 1,153,134 |   |
| Prepaid expenses and other current assets                                                                                                                     |   |        | 192,841    |   |         |   | 220,815 |   |
| Deferred income taxes                                                                                                                                         |   |        | 263,393    |   |         |   | 443,034 |   |
| Total current assets                                                                                                                                          |   |        | 12,965,365 |   |         |   | 17,656,565 |   |
|                                                                                                                                                          |   |        |       |   |         |   |   |   |
| Property, plant and equipment:                                                                                                                                |   |        |       |   |         |   |   |   |
| Land                                                                                                                                                          |   |        | 69,000     |   |         |   | 69,000 |   |
| Factory equipment and fixtures                                                                                                                                |   |        | 3,446,740  |   |         |   | 3,302,967 |   |
| Building and improvements                                                                                                                                     |   |        | 2,598,244  |   |         |   | 2,541,115 |   |
| Waste disposal plant                                                                                                                                          |   |        | 133,532    |   |         |   | 133,532 |   |
|                                                                                                                                                          |   |        | 6,247,516  |   |         |   | 6,046,614 |   |
| Less: Accumulated depreciation                                                                                                                                |   |        | 5,181,373  |   |         |   | 5,099,903 |   |
| Total property, plant and equipment, net                                                                                                                      |   |        | 1,066,143  |   |         |   | 946,711 |   |
|                                                                                                                                                          |   |        |       |   |         |   |   |   |
| Other assets                                                                                                                                                  |   |        | 137,473    |   |         |   | 113,016 |   |
|                                                                                                                                                          |   |        |       |   |         |   |   |   |
| TOTAL ASSETS                                                                                                                                                  |   | $           | 14,168,981 |   |         | $      | 18,716,292 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                       |   | JUNE 30,    |       |   | DECEMBER 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|------------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                       |   |  2010  |       |   |  2009   |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                                                                                       |   | (UNAUDITED) |       |   |         |   |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |        |       |   |         |   |
| Dividends payable                                                                                                                                                                                                                                                                                                                                                                     |   | $           | ---        |   |         | $      | 1,582,860 |   |
| Accounts payable                                                                                                                                                                                                                                                                                                                                                                      |   |        | 259,457    |   |         |   | 322,325 |   |
| Accrued expenses                                                                                                                                                                                                                                                                                                                                                                           |   |        | 897,455    |   |         |   | 819,194 |   |
| Pension liability                                                                                                                                                                                                                                                                                                                                                                     |   |        | 446,270    |   |         |   | 108,892 |   |
| Income taxes payable                                                                                                                                                                                                                                                                                                                                                                       |   |        | 35,603     |   |         |   | 87,403 |   |
| Total current liabilities                                                                                                                                                                                                                                                                                                                                                             |   |        | 1,638,785  |   |         |   | 2,920,674 |   |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |        |       |   |         |   |   |   |
| Deferred income taxes                                                                                                                                                                                                                                                                                                                                                                 |   |        | 18,251     |   |         |   | 138,007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |        |       |   |         |   |   |   |
| Stockholders’ equity:                                                                                                                                                                                                                                                                                                                                                           |   |        |       |   |         |   |   |   |
| Common stock $.10 par value; 10,000,000 shares       authorized; 4,596,439 and 5,008,639       shares issued, and 4,596,439 and 4,946,439       shares outstanding, at June 30, 2010 and       December 31, 2009, respectively. |   |        | 459,644    |   |         |   | 500,864 |   |
| Capital in excess of par value                                                                                                                                                                                                                                                                                                                                                        |   |        | ---        |   |         |   | 3,819,480 |   |
| Accumulated other comprehensive income (loss)                                                                                                                                                                                                                                                                                                                                         |   |        | 34,406     |   |         |   | (345,992 | ) |
| Retained earnings                                                                                                                                                                                                                                                                                                                                                                     |   |        | 12,017,895 |   |         |   | 12,042,889 |   |
| Treasury stock, at cost; 62,200 shares at       December 31, 2009                                                                                                                                                                                                                                                                                  |   |        | ---        |   |         |   | (359,630 | ) |
| Total stockholders’ equity                                                                                                                                                                                                                                                                                                                                                      |   |        | 12,511,945 |   |         |   | 15,657,611 |   |
|                                                                                                                                                                                                                                                                                                                                                                                       |   |        |       |   |         |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’     EQUITY                                                                                                                                                                                                                                                                                                    |   | $           | 14,168,981 |   |         | $      | 18,716,292 |   |

----

UNITED

|                                                                                                                                                                           |   | SIX MONTHS ENDED |       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|------------|
|                                                                                                                                                                           |   | June 30,         |       |
|                                                                                                                                                                           |   | 2010             |       |   | 2009 |   |
| Cash flows from operating activities:                                                                                                                                          |   |             |       |   |   |   |
| Net income                                                                                                                                                                     |   | $                | 1,720,368  |   |   | $ | 1,910,672 |   |
| Adjustments to reconcile net income to net cash  provided by operating activities:                                                                                   |   |             |       |   |   |   |   |   |
|                                                                                                                                                                           |   |             |       |   |   |   |   |
| Depreciation and amortization                                                                                                                                                  |   |             | 108,266    |   |   |   | 85,419 |   |
| Realized (gain) loss  on sales of marketable  securities                                                                                                        |   |             | (47,909    | ) |   |   | 498 |   |
| Realized loss on pension termination                                                                                                                                           |   |             | 338,655    |   |   |   | --- |   |
| Reduction in allowance for bad debts                                                                                                                                           |   |             | ---        |   |   |   | (2,616 | ) |
| Increase (decrease) in cash resulting from  changes in operating assets and liabilities:                                                                                  |   |             |       |   |   |   |   |   |
|                                                                                                                                                                           |   |             |       |   |   |   |   |
| Accounts receivable                                                                                                                                                            |   |             | (656,002   | ) |   |   | 256,740 |   |
| Inventories                                                                                                                                                                    |   |             | (164,848   | ) |   |   | 167,898 |   |
| Prepaid expenses and other current  and non-current assets                                                                                                                |   |             |       |   |   |   |   |   |
|                                                                                                                                                                           |   | (15,319          | )          |   |   | (107,242 | ) |
| Deferred income taxes                                                                                                                                                          |   |             | 37,742     |   |   |   | --- |   |
| Accounts payable                                                                                                                                                               |   |             | (62,868    | ) |   |   | (50,746 | ) |
| Accrued expenses and taxes payable                                                                                                                                             |   |             | 26,461     |   |   |   | 172,038 |   |
| Pension liability                                                                                                                                                              |   |             | 337,378    |   |   |   | --- |   |
| Net cash provided by operating activities                                                                                                                                 |   |             | 1,621,924  |   |   |   | 2,432,661 |   |
|                                                                                                                                                                           |   |             |       |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                                                          |   |             |       |   |   |   |   |   |
| Acquisition of property, plant and equipment                                                                                                                                   |   |             | (208,862   | ) |   |   | (15,304 | ) |
| Proceeds from sale  of marketable securities                                                                                                                         |   |             | 5,104,428  |   |   |   | 300,000 |   |
| Purchases of marketable securities                                                                                                                                             |   |             | (3,918,748 | ) |   |   | (490,841 | ) |
| Net change in certificates of deposit                                                                                                                                          |   |             | 578,399    |   |   |   | (14,376 | ) |
| Net cash used in investingactivities                                                                                                                                           |   |             | (1,555,217 | ) |   |   | (220,521 | ) |
|                               |   |             |       |   |   |   |   |   |
| Cash flows from financing activities:                                                                                                                                          |   |             |       |   |   |   |   |   |
| Acquisition of treasury stock                                                                                                                                                  |   |             | (3,762,500 | ) |   |   | --- |   |
| Payment of long term debt                                                                                                                                                      |   |             | ---        |   |   |   | (6,657 | ) |
| Dividends paid                                                                                                                                                                 |   |             | (3,066,792 | ) |   |   | (2,770,006 | ) |
| Net cash used in financing activities                                                                                                                                          |   |             | (6,829,292 | ) |   |   | (2,776,663 | ) |
|                                                                                                                                                                           |   |             |       |   |   |   |   |   |
| Net decrease in cash and cashequivalents                                                                                                                                       |   |             | (3,652,151 | ) |   |   | (564,523 | ) |
| Cash and cash equivalents at beginning of period                                                                                                                               |   |             | 5,021,073  |   |   |   | 3,425,538 |   |
| Cash and cash equivalents at end of period                                                                                                                                     |   | $                | 1,368,922  |   |   | $ | 2,861,015 |   |

----

UNITED

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

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

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

----

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

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

----

|   | •   | 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  |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|------------|--------|-----------|-------------|--------|
| June 30, 2010                                                                                             |   | Cost   |      |   | Fair Value |   |      | Gain/(Loss) |   |
|                                                                                                      |   |   |      |   |       |   |      |        |   |
|  Available for Sale:                                                                            |   |   |      |   |       |   |      |        |   |
|        U.S. Treasury and agencies                                                |   |   |      |   |       |   |      |        |   |
|           Mature within 1 year                          |   | $      | 1,145,747 |   |       | $      | 1,154,133 |        |   | $ | 8,386 |   |
|           Mature after 1 year through 5 years           |   |   | 507,126   |   |       |   | 500,628   |        |   |   | (6,498 | ) |
|             Total US Treasury and agencies    |   |   | 1,652,873 |   |       |   | 1,654,761 |        |   |   | 1,888 |   |
|        Corporate bonds                                                 |   |   |      |   |       |   |      |        |   |   |   |   |
|            Maturities after 1 year through 5 years |   |   | 267,251   |   |       |   | 259,833   |        |   |   | (7,418 | ) |
|        Fixed income mutual funds                                                 |   |   | 5,145,290 |   |       |   | 5,252,633 |        |   |   | 107,343 |   |
|        Equity and other mutual funds                                             |   |   | 246,801   |   |       |   | 197,645   |        |   |   | (49,156 | ) |
|                                                                                                      |   | $      | 7,312,215 |   |       | $      | 7,364,872 |        |   | $ | 52,657 |   |

| December 31, 2009                                                                                            |   | Cost   |      |   | Fair Value |   |      | UnrealizedGain/(Loss) |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|------------|--------|-----------|-----------------------|--------|
|                                                                                                         |   |   |      |   |       |   |      |                  |   |
|  Available for Sale:                                                                               |   |   |      |   |       |   |      |                  |   |
|        U.S. Treasury and agencies                                                   |   |   |      |   |       |   |      |                  |   |
|           Mature within 1 year                             |   | $      | 1,650,218 |   |       | $      | 1,659,596 |                  |   | $ | 9,378 |   |
|           Maturities after 1 year through 5 years          |   |   | 1,108,726 |   |       |   | 1,124,527 |                  |   |   | 15,801 |   |
|              Total US Treasury and agencies |   |   | 2,758,944 |   |       |   | 2,784,123 |                  |   |   | 25,179 |   |
|        Corporate bonds                                                    |   |   |      |   |       |   |      |                  |   |   |   |   |
|            Maturities after 1 year through 5 years    |   |   | 267,251   |   |       |   | 262,846   |                  |   |   | (4,405 | ) |
|        Fixed income mutual funds                                                    |   |   | 5,179,005 |   |       |   | 5,181,990 |                  |   |   | 2,985 |   |
|        Equity and other mutual funds                                                |   |   | 244,786   |   |       |   | 209,798   |                  |   |   | (34,988 | ) |
|                                                                                                         |   | $      | 8,449,986 |   |       | $      | 8,438,757 |                  |   | $ | (11,229 | ) |

----

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

|                                        |   | June 30, |      |   | December 31, |   |
|---------------------------------------------|--------|----------|-----------|--------|--------------|--------|
|                                        |   | 2010     |      |   | 2009         |   |
| Inventories consist of the following:  |   |     |      |   |         |   |
| Raw materials and work in process           |   | $        | 564,029   |   |         | $      | 329,562 |   |
| Finished products                      |   |     | 753,953   |   |         |   | 823,572 |   |
|                                        |   | $        | 1,317,982 |   |         | $      | 1,153,134 |   |

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

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

----

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

|                                                                                                                                                                                 |   | Six months ended June 30, |      |   | Three months ended June 30 |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|-----------|--------|---------------------------------|---------|
|                                                                                                                                                                            |   | 2010                           |      |   | 2009                            |    |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                                                 |   |                           |      |   |                            |    |   |   |   |   |   |   |
| Net income                                                                                                                                                                      |   | $                              | 1,720,368 |   |                            | $       | 1,910,672 |   |   | $ | 624,524 |   |   | $ | 755,431 |   |
|                                                                                                                                                                                 |   |                           |      |   |                            |    |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income                                                                                                                                                           |   |                           |      |   |                            |    |   |   |   |   |   |   |   |   |   |   |
| Unrealized gain on marketable     securities during period                                                                                             |   |                           |      |   |                            |    |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                 |   | 63,886                         |      |   |                            | 146,777 |   |   |   | 23,724 |   |   |   | 141,705 |   |
| Adjustment for pension     termination                                                                                                                           |   |                           | 518,296   |   |                            |    | --- |   |   |   | 518,296 |   |   |   |  --- |   |
|                                                                                                                                                                                 |   |                           |      |   |                            |    |   |   |   |   |   |   |   |   |   |   |
| Income tax (benefit) expense     related to other     comprehensive income            |   |                           |      |   |                            |    |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                 |   | (201,784                       | )         |   |                            | 50,873  |   |   |   | (187,864 | ) |   |   |    49,115 |   |
|                                                                                                                                                                                 |   |                           |      |   |                            |    |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income,     net of tax                                                                                                                  |   |                           |      |   |                            |    |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                 |   | 380,398                        |      |   |                            | 95,904  |   |   |   | 354,156 |   |   |   | 92,590 |   |
| Comprehensive income                                                                                                                                                            |   | $                              | 2,100,766 |   |                            | $       | 2,006,576 |   |   | $ | 978,680 |   |   | $ | 848,021 |   |

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

----

| 11.  | Other Information |
|-----------|-------------------|

|                      |   | June 30, |    |   | December 31, |   |
|---------------------------|--------|----------|---------|--------|--------------|--------|
|                      |   | 2010     |    |   | 2009         |   |
|                      |   |     |    |   |         |   |
| Accrued bonuses           |   | $        | 366,645 |   |         | $      | 182,000 |   |
| Accrued distribution fees |   |     | 186,595 |   |         |   | 303,493 |   |
| Other                     |   |     | 344,215 |   |         |   | 333,701 |   |
|                      |   | $        | 897,455 |   |         | $      | 819,194 |   |

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

----

----

| (a)   | Pharmaceuticals:  Pharmaceutical sales for the six months ended June 30, 2010 decreased $276,026 (16.4%) compared with the same period in 2009, and pharmaceutical sales for the three months ended June 30, 2010 decreased $389,286 (38.4%) when compared with the three months ended June 30, 2009.  This was the result of a price increase that was implemented on May 1, 2009, which caused a significant increase in sales in April 2009 as customers purchased additional inventory in anticipation of the price increase. The Company implemented a price increase on April 1, 2010, but the increase in sales prior to the effective date of the 2010 increase was much smaller than it was in 2009. Since the annual unit sales volume of these products is relatively stable from year-to-year, the Company estimates that the dollar value of pharmaceutical sales in calendar 2010 will increase as a result of the price increase that occurred in April 2010. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Personal care products: For the six months ended June 30, 2010, the Company’s sales of personal care products increased by $899,965 (24.7%) when compared with the six months ended June 30, 2009. For the three months ended June 30, 2010, the Company’s sales of personal care products increased by $1,032,348 (77.0%) when compared with the three months ended June 30, 2009. These increases were primarily the result of sales increases in 2010 to the Company’s two largest marketing partners, ISP and Sederma. Sales to ISP increased by $435,422 (15.5%) and $637,837 (61.5%) for the six- and three-month periods, |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | respectively, ended June 30, 2010, compared with the comparable periods in 2009. Sales to Sederma increased by $448,374 (164.1%) and $322,763 (571.8%) for the six- and three-month periods, respectively, ended June 30, 2010, compared with the comparable periods in 2009. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Medical (non-pharmaceutical) products:  Sales of the Company’s medical products decreased by $412,680 (24.2%) and $94,241 (13.0%) for the six- and three-month periods, respectively, ended June 30, 2010, when compared with the corresponding periods ended June 30, 2009.  These changes are primarily due to one of the Company’s customers that concentrated all of its 2009 purchases into the first six months of 2009 prior to moving its production facility in late 2009. That customer's purchases are expected to be made in a more orderly manner over the entire year in 2010, resulting in higher sales of these products in the second half of 2010 when compared with the second half of 2009. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 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 

| 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 |
|---------|----------|

| 10.1                     | Letter agreement dated May 5, 2010 between the Company and ISP                                                                                                                                                                                                                                  |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     |                                                                                                                                                                                                                                                                                            |
| 10.2                     | Stock Purchase Agreement dated May 17, 2010 between the Company and Kenneth H. Globus.  Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K dated May 17, 2010 and filed with the United States Securities and Exchange Commission on May 18, 2010. |
|                     |                                                                                                                                                                                                                                                                                            |
| 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

----