# EDGAR Filing Document

**Accession Number:** 0000101295
**File Stem:** 0001171843-26-003276
**Filing Date:** 2026-5
**Character Count:** 78832
**Document Hash:** aac6f0f6d2bd290b4f6ba766c267529e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001171843-26-003276.hdr.sgml**: 20260512

**ACCESSION NUMBER**: 0001171843-26-003276

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 70

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260512

**DATE AS OF CHANGE**: 20260512

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** UNITED GUARDIAN INC
- **CENTRAL INDEX KEY:** 0000101295
- **STANDARD INDUSTRIAL CLASSIFICATION:** PERFUMES, COSMETICS & OTHER TOILET PREPARATIONS [2844]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 111719724
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-10526
- **FILM NUMBER:** 26966097

**BUSINESS ADDRESS:**
- **STREET 1:** 230 MARCUS BLVD
- **CITY:** HAUPPAUGE
- **STATE:** NY
- **ZIP:** 11788
- **BUSINESS PHONE:** 631-273-0900

**MAIL ADDRESS:**
- **STREET 1:** 230 MARCUS BLVD.
- **CITY:** HAUPPAUGE
- **STATE:** NY
- **ZIP:** 11788

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** UNITED INTERNATIONAL RESEARCH INC
- **DATE OF NAME CHANGE:** 19820422

?xml version='1.0' encoding='ASCII'? ug20260331_10q.htm

**U.S. SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10-Q**

**(Mark One)**

---

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

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**For the quarterly period ended <u>March 31, 2026</u>**

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

**For the transition period from ________ to ________**

**COMMISSION FILE NUMBER: <u>1-10526</u>**

**UNITED-GUARDIAN, INC.**.

**(Exact Name of Registrant as Specified in Its Charter)**

---

| | |
|:---|:---|
| <u>**Delaware**</u> | <u>**11-1719724**</u> |
| **(State or Other Jurisdiction of** | **(I.R.S. Employer Identification No.)** |
| **Incorporation or Organization)** |  |

---

**<u>230 Marcus Boulevard, Hauppauge, New York 11788</u>**

**(Address of Principal Executive Offices)**

**<u>(631) 273-0900</u>**

**(Registrant**'**s Telephone Number)**

<u>N/A</u> 

**(Former name, former address, and former fiscal year, if changed since last report)**

Cover Page 1 of 2

------

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| Common Stock, $0.10 par value per share | UG | NASDAQ Global Market |

---

**Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**Yes** ☑ **No** ☐

**Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (**§**232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**Yes** ☑ **No** ☐

**Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of** "**large accelerated filer**"**,** "**accelerated filer**"**,** "**smaller reporting company**"**, and** "**emerging growth company**" **in Rule 12b-2 of the Exchange Act.**

---

| | |
|:---|:---|
| **Large accelerated filer** ☐ | **Accelerated filer** ☐ |
| **Non-accelerated filer** ☑ | **Smaller reporting company** ☑ |
|  | **Emerging growth company**☐ |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.** ☐

**Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.)** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**Yes** ☐ **No** ☑

**Indicate the number of shares outstanding of each of the issuer**'**s classes of common stock, as of the latest practicable date:** 

As of May 1, 2026, the Registrant had issued and outstanding 4,594,319 shares of Common Stock, $.10 par value per share ("Common Stock").

Cover Page 2 of 2

------

**UNITED-GUARDIAN, INC.**

**INDEX TO FINANCIAL STATEMENTS**

<u>Page No.</u>

---

| | |
|:---|:---|
| **Part I. FINANCIAL INFORMATION** |  |
| [Item 1 - Condensed Financial Statements (unaudited unless indicated otherwise):](#itm1) | [2](#itm1) |
| &nbsp;&nbsp;&nbsp; [Statements of Income - Three months ended March 31, 2026 and 2025](#statement_of_income) | [2](#statement_of_income) |
| &nbsp;&nbsp;&nbsp; [Balance Sheets - March 31, 2026 (unaudited) and December 31, 2025 (audited)](#BS) | [3](#BS)-[4](#bs2) |
| &nbsp;&nbsp;&nbsp; [Statements of Changes in Stockholders' Equity – Three months ended March 31, 2026 and 2025](#stock) | [5](#stock) |
| &nbsp;&nbsp;&nbsp; [Statements of Cash Flows – Three months ended March 31, 2026 and 2025](#cf) | [6](#cf) |
| &nbsp;&nbsp;&nbsp; [Notes to Condensed Financial Statements](#Notes1) | [7](#Notes1)-[15](#notesend) |
| &nbsp;&nbsp; [Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations](#itm2) | [16](#itm2)-[19](#itm2end) |
| &nbsp;&nbsp; [Item 3 - Quantitative and Qualitative Disclosures About Market Risk](#itm3) | [19](#itm3) |
| [Item 4 - Controls and Procedures](#itm4) | [19](#itm4) |
| **Part II. OTHER INFORMATION** |  |
| [Item 1 - Legal Proceedings](#a2itm1) | [20](#a2itm1) |
| [Item 1A - Risk Factors](#a2itm1a) | [20](#a2itm1a) |
| [Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds](#a2itm2) | [20](#a2itm2) |
| [Item 3 - Defaults Upon Senior Securities](#a2itm3) | [20](#a2itm3) |
| [Item 4 - Mine Safety Disclosures](#a2itm4) | [20](#a2itm4) |
| [Item 5 - Other Information](#a2itm5) | [20](#a2itm5) |
| [Item 6 - Exhibits](#a2itm6) | [20](#a2itm6) |
| [**Signatures**](#sig) | [21](#sig) |

---

Page 1 of 21

------

**Part I. FINANCIAL INFORMATION**

**ITEM 1. Condensed Financial Statements.**

**UNITED-GUARDIAN, INC.**<br> **STATEMENTS OF INCOME** <br> (UNAUDITED)<br>

---

| | | |
|:---|:---|:---|
|  | **THREE MONTHS ENDED**<br> **MARCH 31,** | **THREE MONTHS ENDED**<br> **MARCH 31,** |
|  | **2026** | **2025** |
| **Net sales** | $2872222 | $2481127 |
| **Costs and expenses:** |  |  |
| Cost of sales | 1447789 | 1123076 |
| Operating expenses | 666963 | 632735 |
| Research and development | 115021 | 114394 |
| Total costs and expenses | 2229773 | 1870205 |
| **Income from operations** | 642449 | 610922 |
| **Other income:** |  |  |
| Investment income | 69814 | 84687 |
| Net gain on marketable securities | 17742 | 12350 |
| Settlement income | 303133 |  |
| Total other income | 390689 | 97037 |
| **Income before provision for income taxes** | 1033138 | 707959 |
| **Provision for income taxes** | 214236 | 147064 |
| **Net income** | $818902 | $560895 |
| **Earnings per common share (basic and diluted)** | $0.18 | $0.12 |
| Weighted average shares – basic and diluted | 4594319 | 4594319 |

---

See notes to condensed financial statements

Page 2 of 21

------

**UNITED-GUARDIAN, INC.**

**BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
| **ASSETS** | MARCH 31, | DECEMBER 31, |
|  | 2026 | 2025 |
|  | (UNAUDITED) | (AUDITED) |
| **Current assets:** |  |  |
| Cash and cash equivalents | $735854 | $1251097 |
| Marketable securities | 7300389 | 7322646 |
| Accounts receivable, net of allowance for credit losses of $21,270 at March 31, 2026 and $17,169 at December 31, 2025 | 2008159 | 1586889 |
| Inventories (net) | 1320670 | 1507763 |
| Prepaid expenses and other current assets | 212186 | 207839 |
| Prepaid income taxes | 234163 | 325163 |
| **Total current assets** | **11811421** | **12201397** |
| **Property, plant and equipment:** |  |  |
| Land | 69000 | 69000 |
| Factory equipment and fixtures | 4796195 | 4786309 |
| Building and improvements | 3352276 | 3352276 |
| **Total property, plant and equipment** | **8217471** | **8207585** |
| Less: accumulated depreciation | 7329411 | 7300403 |
| **Total property, plant and equipment (net)** | **888060** | **907182** |
| **TOTAL ASSETS** | $**12699481** | $**13108579** |

---

See notes to condensed financial statements

Page 3 of 21

------

**UNITED-GUARDIAN, INC.**

**BALANCE SHEETS**

(continued)

**<u>LIABILITIES AND</u> <u>STOCKHOLDERS</u>**<u>'</u> **<u>EQUITY</u>**

---

| | | |
|:---|:---|:---|
|  | MARCH 31, | DECEMBER 31, |
|  | 2026 | 2025 |
| **Current liabilities:** | (UNAUDITED) | (AUDITED) |
| Accounts payable | $114544 | $480791 |
| Accrued expenses | 1316387 | 1164948 |
| Deferred revenue | 25641 | 12177 |
| Dividends payable | 10093 | 11405 |
| **Total current liabilities** | **1466665** | **1669321** |
| Deferred income taxes, net | 330482 | 207246 |
| **Total liabilities**  | **1797147** | **1876567** |
| **Commitments and contingencies** |  |  |
| **Stockholders**' **equity:** |  |  |
| Common stock $.10 par value; 10,000,000 shares authorized; 4,594,319 shares issued and outstanding at March 31, 2026 and December 31, 2025 | 459432 | 459432 |
| Retained earnings | 10442902 | 10772580 |
| **Total stockholders**' **equity** | **10902334** | **11232012** |
| **TOTAL LIABILITIES AND STOCKHOLDERS**' **EQUITY** | $**12699481** | $**13108579** |

---

See notes to condensed financial statements

Page 4 of 21

------

**UNITED-GUARDIAN, INC.**

**STATEMENTS OF CHANGES IN** 

 **STOCKHOLDERS**' **EQUITY**

 **(UNAUDITED)**

<u>THREE MONTHS ENDED MARCH 31, 2026</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | **Retained** |  |
|  | **Shares** | **Amount** | **Earnings** | **Total** |
| Balance, January 1, 2026 | 4594319 | $459432 | $10772580 | $11232012 |
| Net income |  |  | 818902 | 818902 |
| Dividends declared and paid ($0.25 per share) |  |  | (1148536) | (1148536) |
| Dividends declared, not paid ($0.25 per share) |  |  | (44) | (44) |
| Balance, March 31, 2026 | 4594319 | $459432 | $10442902 | $10902334 |

---

<u>THREE MONTHS ENDED MARCH 31, 2025</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | **Retained** | **Total** |
|  | **Shares** | **Amount** | **Earnings** |  |
| Balance, January 1, 2025 | 4594319 | $459432 | $11423434 | $11882866 |
| Net income |  |  | 560895 | 560895 |
| Dividends declared and paid ($0.35 per share) |  |  | (1607893) | (1607893) |
| Dividends declared, not paid ($0.35 per share) |  |  | (119) | (119) |
| Balance, March 31, 2025 | 4594319 | $459432 | $10376317 | $10835749 |

---

See notes to condensed financial statements

Page 5 of 21

------

**UNITED-GUARDIAN, INC.**

**STATEMENTS OF CASH FLOWS**

(UNAUDITED)

---

| | | |
|:---|:---|:---|
|  | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** |
|  | **MARCH 31,** | **MARCH 31,** |
|  | **2026** | **2025** |
| **Cash flows from operating activities:** |  |  |
| Net income | $818902 | $560895 |
| Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| Depreciation | 29008 | 25030 |
| Net gain on marketable securities | (17742) | (12350) |
| Allowance for credit losses | 4101 | 3772 |
| Change in allowance for obsolete inventory | (5000) | (2786) |
| Deferred income taxes | 123236 | 38391 |
| (Increase) decrease in operating assets: |  |  |
| Accounts receivable | (425371) | (127396) |
| Inventories | 192093 | (48280) |
| Prepaid expenses and other current assets | (4347) | (36919) |
| Prepaid income taxes | 91000 | (91327) |
| (Decrease) increase in operating liabilities: |  |  |
| Accounts payable | (366247) | (46753) |
| Accrued expenses and other current liabilities | 151439 | 59803 |
| Deferred revenue | 13464 |  |
| **Net cash provided by operating activities** | 604536 | 322080 |
| **Cash flows from investing activities:** |  |  |
| Acquisition of property, plant, and equipment | (9886) | (3608) |
| Proceeds from sale of marketable securities | 5986392 | 6148493 |
| Purchase of marketable securities | (5946393) | (5465515) |
| **Net cash provided by investing activities** | 30113 | 679370 |
| **Cash flows from financing activities:** |  |  |
| Dividends paid | (1149892) | (1607893) |
| **Net cash used in financing activities** | (1149892) | (1607893) |
| **Net decrease in cash and cash equivalents** | (515243) | (606443) |
| **Cash and cash equivalents at beginning of period** | 1251097 | 1875655 |
| **Cash and cash equivalents at end of period** | $735854 | $1269212 |
| **Supplemental disclosure of cash flow information**: |  |  |
| Taxes paid | $--- | $200000 |
| **Supplemental disclosure of non-cash items:** |  |  |
| Dividends payable | $44 | $119 |

---

See notes to condensed financial statements

Page 6 of 21

------

**UNITED-GUARDIAN, INC.**

**NOTES TO CONDENSED FINANCIAL STATEMENTS** 

 **(UNAUDITED)**

1. Business

United-Guardian, Inc. ("Company") is a Delaware corporation that, through its Guardian Laboratories division, manufactures, markets and develops specialty cosmetic, personal care and sexual wellness ingredients and a line of healthcare products including pharmaceuticals and medical lubricants. The Company conducts various research and development ("R&D") activities. The Company's R&D department primarily develops new and unique specialty cosmetic and sexual wellness ingredients using natural and environmentally friendly raw materials, which is a priority for many of our cosmetic customers. The R&D department also modifies, refines, and expands the uses for existing products, with the goal of further developing the markets that our products are used in. All the products that the Company markets, except for Renacidin<sup>®</sup>, are produced at our facility in Hauppauge, New York. Renacidin, a urological product, is manufactured for us by an outside contract manufacturer.

2. Basis of Presentation

Interim condensed financial statements of the Company are prepared in accordance with generally accepted accounting principles in the United States of America ("US GAAP") for interim financial information, pursuant to the requirements for reporting on Form 10-Q and Regulation S-X. In the opinion of management, all adjustments considered necessary for the fair presentation of financial statements for the interim periods have been included. The results of operations for the three months ended March 31, 2026 (also referred to as the "first quarter of 2026") are not necessarily indicative of results that ultimately may be achieved for any other interim period or for the year ending December 31, 2026. The interim unaudited condensed financial statements and notes thereto should be read in conjunction with the audited condensed financial statements and notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2025.

3. Segment Information

The Company operates its business under one operating segment, which is also its reportable segment. The Company's chief operating decision maker ("CODM"), who is the President, reviews financial information presented at the consolidated level and decides how to allocate resources based on financial metrics, including net income. The measure of segment assets is reported on the balance sheet as total consolidated assets. The CODM, along with our Board of Directors, use such financial metrics, including net income, to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits or allocate them to other parts of the business, such as working capital needs, mandatory and discretionary capital expenditures or other growth opportunities that may arise that are in our best interest and the best interest of our stockholders.

Net income, other financial metrics and sales forecasts are used to monitor budget versus actual results. The reported segment revenue, segment profit or loss and significant segment expenses are the same as the consolidated results disclosed on the consolidated statements of income.

4. Impact of Global Supply Chain Instability, Inflation and Tariffs

Recent and ongoing geopolitical tensions and conflicts in key oil- and gas-producing regions, including Iran, Venezuela, the Middle East, and Eastern Europe, have created significant uncertainty and volatility in global energy markets. The immediate impact on the Company has primarily been related to an increase in freight costs and raw materials that are dependent on the petrochemical industry. The availability and cost of direct materials, including raw materials and packaging materials, are critical to our operations. Our business, financial condition and results of operations could be adversely affected by developments in these regions.

Page 7 of 21

------

In addition, during 2025, the United States ("U.S.") changed its long-standing trade policies and announced significant new tariffs, with certain exceptions, on virtually all imported goods. These actions triggered the negotiation of new trade agreements with certain U.S. trading partners. While these negotiations resulted in the reduction of certain recently imposed tariffs, the average U.S. tariff rate remains at its highest level since the 1930s. In response to the changes in U.S. trade policies, certain U.S. trading partners imposed retaliatory tariffs on U.S. imports. Shifts in tariffs, trade agreements, import/export restrictions, trade sanctions, sector specific trade barriers, and other governmental trade actions, whether enacted by the U.S. or other countries, especially those instituted in the Company's significant markets or markets where its significant customers are located and the associated uncertainty of long-term trade policies, could impact the Company's sales volume, sales prices, and other costs. Changes in trade policies may also cause disruptions to material sourcing and availability, global supply chains and logistics and access to end markets. Additionally, changes in U.S. trade policy and associated responses from trading partners may create shifts in global market dynamics and result in continued global financial market volatility. The impact of these changes in trade policies and the resulting trade and market uncertainty could have a negative impact on the Company's results of operations. There can be no assurance that in the future, the U.S. or other countries or international trade bodies will not institute new tariffs or more restrictive trade policies or remedies and, as a result, the Company may face additional uncertainty and adverse impact on its business, financial condition and results of operations.

5. Use of Estimates

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

6. Cash and Cash Equivalents

For financial statement purposes, the Company considers as cash equivalents all highly liquid investments with an original maturity of three months or less at the time of purchase. The Company deposits cash and cash equivalents with financially strong, FDIC-insured financial institutions, and believes that any amounts above FDIC insurance limitations are at minimal risk. The amounts held in excess of FDIC limits at any point in time are considered temporary and are primarily due to the timing of maturities of U.S. Treasury Bills. Cash and cash equivalents held in these accounts are currently insured by the Federal Deposit Insurance Corporation ("FDIC") up to a maximum of $250,000. At March 31, 2026 approximately $414,000 exceeded the FDIC limit, compared with $1,300 at December 31, 2025. The Company also invests in certain money market mutual funds that are protected as securities by the Securities Investor Protection Corporation ("SIPC"). At March 31, 2026, cash held in these money market mutual funds was below the SIPC limit. At December 31, 2025, cash held in these money market mutual funds of approximately $502,000 exceeded the SIPC limit.

The following table summarizes our cash and cash equivalents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
|  | March 31, | December 31, |
|  | 2026 | 2025 |
| Demand Deposits | $630748 | $248997 |
| Money Market Funds | 105106 | 1002100 |
| Total cash and cash equivalents | $735854 | $1251097 |

---

Page 8 of 21

------

7. Accounts Receivable and Reserves

The Company presents financial assets at the net amount expected to be collected, requiring immediate recognition of estimated credit losses expected to occur over the asset's remaining life. This is in contrast to previous U.S. GAAP, under which credit losses were not recognized until it was probable that a loss had been incurred. The Company performed its expected credit loss calculation based on historical accounts receivable write-offs, including consideration of then-existing economic conditions.

The carrying amount of accounts receivable is reduced by an allowance for credit losses that reflects the Company's best estimate of the amounts that will not be collected as of the balance sheet date. This allowance is based on the credit losses expected to arise over the life of the asset and is based on the Current Expected Credit Losses ("CECL"). At March 31, 2026 and December 31, 2025 the allowance for credit losses related to accounts receivable amounted to $21,270 and $17,169, respectively.

8. Revenue Recognition

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

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

During 2026 and 2025, we participated in various government drug rebate programs related to the sale of Renacidin, our most important pharmaceutical product. These programs include the Veterans Affairs Federal Supply Schedule ("FSS"), and the Medicare Manufacturer Discount Program ("MDP") (formerly the Medicare Part D Coverage Gap Discount Program ("CGDP")). These programs require us to sell our product at a discounted price, typically given in the form of a rebate. Our sales, as reported, are net of these rebates, some of which are estimated and are recorded in the same period that the revenue is recognized.

On January 1, 2025, the Centers for Medicare & Medicaid Services ("CMS") implemented a new Medicare Part D Manufacturer Discount Program ("Discount Program"), which replaced the prior CGDP. The new Discount Program eliminates the coverage gap benefit phase, introduces pharmaceutical manufacturer discounts in the initial and catastrophic coverage phases, and lowers the cap on enrollee out-of-pocket costs. Under the new Discount Program, additional rebates are expected to be owed by pharmaceutical manufacturers due to the restructuring of the benefit periods and removal of the cap that was in place that limited the drug manufacturer's liability. The overall financial impact of this new program will vary depending on the products being reimbursed but it is expected to increase Medicare Part D rebates for drug manufacturers.

The Company's status as a "specified small manufacturer" by CMS, entitles us to a multi-year phase-in period during which we would pay a lower percentage discount on drugs dispensed to beneficiaries. Based on our current level of sales through the Medicare Part D Program, we would have reduced rebate liabilities beginning in 2025, with rebates gradually increasing each year thereafter, until they reach their full phase-in by 2031. By the end of the phase in period in 2031, these rebate liabilities are expected to exceed the liabilities we have recorded under the CGDP in previous years.

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

Page 9 of 21

------

The Company does not make sales on consignment, and the collection of the proceeds of the sale of any of our products is not contingent upon the customer being able to sell the goods to a third party.

Any allowances for returns are taken as a reduction of sales within the same period the revenue is recognized. Such allowances are determined based on historical experience under ASC Topic 606-10-32-8. At March 31, 2026 and December 31, 2025, the Company had an allowance of $200,781 and $194,947, respectively, for possible outdated material returns, which is included in accrued expenses. There is no asset value associated with these outdated material returns, as these products are destroyed. We have not experienced significant fluctuations between estimated allowances and actual activity.

The Company has distribution agreements with certain distributors of our pharmaceutical products that entitle those distributors to distribution and service-related fees. We record distribution fees, and estimates of distribution fees, as offsets to revenue.

Disaggregated revenue by product class is as follows:

---

| | | |
|:---|:---|:---|
|  | Three months ended March 31, | Three months ended March 31, |
|  | 2026 | 2025 |
| Pharmaceuticals | $1445324 | $1168458 |
| Cosmetic ingredients | 843907 | 698998 |
| Medical lubricants | 582991 | 613671 |
| Net Sales | $2872222 | $2481127 |

---

The Company's cosmetic ingredients are marketed worldwide by five distributors, of which U.S.-based Ashland Specialty Ingredients ("ASI") purchases the largest volume. Approximately 22% of the Company's total sales were to customers located outside of the United States in the first quarter of 2026, compared with approximately 29% in the first quarter of 2025.

Disaggregated revenue by geographic region is as follows:

---

| | | |
|:---|:---|:---|
|  | Three months ended March 31, | Three months ended March 31, |
|  | 2026 | 2025 |
| United States**\*** | $2236248 | $1757267 |
| Other countries | 635974 | 723860 |
| Net Sales | $2872222 | $2481127 |

---

**\***Since all purchases by ASI are shipped to ASI's warehouses in the U.S. they are reported as U.S. sales for financial reporting purposes. However, ASI has reported to the Company that in the first quarter of 2026, approximately 71% of ASI's sales of the Company's products were to customers in other countries, with China representing approximately 36% of ASI's sales of the Company's products. In the first quarter of 2025, approximately 69% of ASI's sales of the Company's products were to customers in other countries, with China representing approximately 41% of ASI's sales of the Company's products.

Page 10 of 21

------

9. Accounting for Financial Instruments – Credit Losses

The Company recognizes an allowance for trade receivables to present the net amount expected to be collected as of the balance sheet date in accordance with ASU 2025-05. In July 2025, the Financial Accounting Standard Board ("FASB") issued ASU 2025-05, which provides (1) all entities with a practical expedient and (2) entities other than public business entities with an accounting policy election when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606, Revenue from Contracts with Customers. The practical expedient allows an entity to assume that, when estimating expected credit losses, current conditions as of the balance sheet date remain unchanged for the remaining life of the asset. The Company adopted ASU 2025-05 for the year ended December 31, 2025. The adoption did not have a material impact on its financial condition, results of operations or cash flows.

The Company performs ongoing credit evaluations of its customers and adjust credit limits, as determined by a review of current credit information. In addition, the Company continuously monitors collection and payments from customers and maintains an allowance for credit losses based upon historical experience, anticipation of uncollectible accounts receivable and any specific customer collection issues that have been identified. While the Company's credit losses have historically been low and within expectations, we may not experience the same credit loss rates that have historically been attained in the future. The receivables are highly concentrated in a relatively small number of customers. Therefore, a significant change in the liquidity, financial position, or willingness to pay timely, or at all, of any one of our significant customers would have a significant impact on our results of operations and cash flows.

The timing between recognition of revenue for product sales and the receipt of payment is not significant. The Company's standard credit terms, which vary depending on the customer, range between 30 and 60 days. Prompt-pay discounts are offered to some customers; however, due to the uncertainty of the customers taking the discounts, the discounts are recorded when they are taken.

10. Marketable Securities

The Company's marketable securities include investments in equity mutual funds and United States Treasury Bills ("U.S. Treasury Bills") with maturities longer than 3 months. Our marketable equity securities are reported at fair value with the related unrealized and realized gains and losses included in net income. U.S Treasury Bills are recorded at amortized cost. Realized gains or losses on mutual funds are determined on a specific identification basis. We evaluate our investments periodically for possible other-than-temporary impairment by reviewing factors such as the length of time and extent to which fair value had been below cost basis, the financial condition of the issuer and our ability and intent to hold the investment for a period of time which may be sufficient for anticipated recovery of market value.

The disaggregated net gains and losses on the marketable securities recognized in the statements of income for the three months ended March 31, 2026 and 2025 are as follows:

---

| | | |
|:---|:---|:---|
|  | Three months ended March 31, | Three months ended March 31, |
|  | 2026 | 2025 |
| Net gains recognized during the period on marketable securities | $17742 | $12350 |
| Less: Net losses (gains) realized on marketable securities sold during the period | (27948) | 1507 |
| <br> Net unrealized (losses) gains recognized during the reporting period on marketable securities still held at the reporting date | $(10206) | $13857 |

---

Page 11 of 21

------

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company's marketable equity securities, which are considered available-for-sale securities, are re-measured to fair value on a recurring basis and are valued using Level 1 inputs using quoted prices (unadjusted) for identical assets in active markets. The following tables summarize the Company's investments:

**<u>March 31, 2026</u> (unaudited)** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
|  | **Cost** | **Fair Value** | **Unrealized Gain** |
| <u>**Equity securities:**</u> |  |  |  |
| Equity and other mutual funds | $746159 | $800796 | $54637 |
| **<u>Other short-term investments:</u>** |  |  |  |
| U.S. Treasury Bills (original maturities > 3 months) | 6499593 | 6499593 |  |
| **Total marketable securities** | $7245752 | $7300389 | $54637 |

---

**<u>December 31, 2025</u> (audited)**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
|  | **Cost** | **Fair Value** | **Unrealized Gain** |
| <u>**Equity securities:**</u> | | | |
| Equity and other mutual funds | $713120 | $777963 | $64843 |
| **<u>Other short-term investments:</u>** |  |  |  |
| U.S. Treasury Bills (original maturities > 3 months) | 6544683 | 6544683 |  |
| **Total marketable securities** | $7257803 | $7322646 | $64843 |

---

Investment income is recognized when earned and consists principally of dividend income from equity mutual funds and interest income on U. S. Treasury Bills and money market funds. Realized gains and losses on sales of investments are determined on a specific identification basis.

Proceeds from the redemption of marketable securities were $5,986,392 in the first quarter of 2026 and included realized gains of $27,948. Proceeds from the redemption of marketable securities were $6,148,493 in the first quarter of 2025, and included realized losses of $1,507.

Page 12 of 21

------

11. Inventories

---

| | | |
|:---|:---|:---|
|  | March 31, | December 31, |
|  | 2026 | 2025 |
| Inventories consist of the following: | (Unaudited) | (Audited) |
| Raw materials | $446209 | $442993 |
| Work in process | 26544 | 5505 |
| Finished products | 847917 | 1059265 |
| **Total inventories** | $1320670 | $1507763 |

---

Inventories are valued at the lower of cost and net realizable value. Net realizable value is equal to the selling price less the estimated costs of selling and/or disposing of the product. Cost is determined using the average cost method, which approximates cost determined by the first-in, first-out ("FIFO") method. Finished product inventories at March 31, 2026 and December 31, 2025 are stated net of a reserve of $27,000 and $32,000 respectively, for slow-moving and obsolete inventory.

12. Income Taxes

The Company's tax provision is based on its estimated annual effective tax rate. We continue to fully recognize our tax benefits, and as of March 31, 2026 and December 31, 2025, we did not have any unrecognized tax benefits. Our provision for income taxes for the three months ended March 31, 2026 and 2025 comprises the following:

---

| | | |
|:---|:---|:---|
|  | Three months ended | Three months ended |
|  | March 31, | March 31, |
|  | 2026 | 2025 |
| Provision for federal income taxes – current | $90187 | $107860 |
| Provision for state income taxes – current | 813 | 813 |
| Provision for federal income taxes – deferred | 123236 | 38391 |
| **Total provision for income taxes** | $214236 | $147064 |

---

13. Defined Contribution Plan

The Company sponsors a 401(k) defined contribution plan ("DC Plan") that provides for a dollar-for-dollar employer matching contribution of the first 4% of each employee's pay that is deferred by the employee. Employees become fully vested in employer matching contributions immediately.

The Company can also elect to make discretionary contributions to each employee's account based on a "pay-to-pay" safe-harbor formula that qualifies the 401(k) Plan under current IRS regulations. Employees become vested in the discretionary contributions as follows: 20% after two years of employment, and 20% for each year of employment thereafter until the employee becomes fully vested after six years of employment. The Company accrued $20,000 in contributions to the DC Plan for the three months ended March 31, 2026 and $28,750 for the three months ended March 31, 2025. In the first quarter of 2026, there were no discretionary contributions made to the DC Plan. This was due to the Company's Board of Directors electing not to fund a discretionary contribution for the year ended December 31, 2025 based on reduced sales and earnings. In the first quarter of 2025, the Company made discretionary contributions of $115,000 to the DC Plan. This payment represented the Company's 2024 accrued discretionary contributions.

Page 13 of 21

------

14. Other Information

<u>Accrued expenses</u>:

---

| | | |
|:---|:---|:---|
|  | March 31, 2026 | December 31, 2025 |
|  | (unaudited) | (audited) |
| Bonuses | $251946 | $182383 |
| Distribution fees | 470081 | 463331 |
| Payroll and related expenses | 111877 | 90151 |
| Reserve for outdated material | 200781 | 194947 |
| Insurance | 94026 |  |
| Audit fees | 30453 | 72708 |
| Annual report expenses | 45668 | 80387 |
| Company 401K contribution | 20000 |  |
| Sales rebates | 65323 | 55983 |
| Other | 26232 | 25058 |
| **Total accrued expenses** | $**1316387** | $**1164948** |

---

15. Recent Accounting Pronouncements

In July 2025, the FASB issued ASU 2025-05, which provides (1) all entities with a practical expedient and (2) entities other than public business entities with an accounting policy election when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606, Revenue from Contracts with Customers. The practical expedient allows an entity to assume that, when estimating expected credit losses, current conditions as of the balance sheet date remain unchanged for the remaining life of the asset. The accounting policy election permits nonpublic entities that elect the practical expedient to also consider collection activity occurring after the balance sheet date when estimating expected credit losses. The standard is effective for fiscal years beginning after December 15, 2025, and for interim periods within those annual reporting periods. Early adoption is permitted. The Company adopted ASU 2025-05 for the year ended December 31, 2025. The adoption did not have a material impact on its financial condition, results of operations or cash flows.

On November 4, 2024, the FASB issued ASU 2024-03 "*Disaggregation of Income Statement Expenses*" ("DISE"). This guidance requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. Subsequently issued ASU 2025-01, clarified the effective date of this standard. This guidance is effective for annual reporting periods beginning after December 15, 2026, and for interim periods, within annual reporting periods beginning after December 15, 2027.

In December 2023, the FASB issued ASU 2023-09 "*Income Taxes- Improvements to Income Tax Disclosures.*" This guidance enhances the transparency and decision usefulness of income tax disclosures. More specifically, the amendments relate to the income tax rate reconciliation and income taxes paid disclosures and require 1) consistent categories and greater disaggregation of information in the rate reconciliation and 2) income taxes paid disaggregated by jurisdiction. This guidance is effective for fiscal years beginning after December 31, 2024. On January 1, 2025, the Company implemented this standard and applied the guidance under the new standard to include additional disclosures in this Form 10-K for the year ended December 31, 2025.

16. Concentration of Credit Risk

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

Page 14 of 21

------

For the three months ended March 31, 2026, three of the Company's pharmaceutical distributors and one of its cosmetic ingredient distributors collectively accounted for 75% of the Company's gross sales and 75% of its outstanding accounts receivable. During the three months ended March 31, 2025, the same three pharmaceutical distributors and cosmetic ingredient distributor were together responsible for a total of approximately 67% of the Company's gross sales. They also accounted for 67% of the Company's outstanding accounts receivable at March 31, 2025.

17. Supplier Concentration

Most of the principal raw materials used by the Company consist of common industrial organic and inorganic chemicals and are available in ample supply from numerous sources. However, there are some raw materials used by the Company that are not readily available or require long lead times. During the first quarter of 2026, the Company had three major raw material vendors that collectively accounted for approximately 83% of the raw material purchases by the Company. During the first quarter of 2025, the Company had three major raw material vendors that collectively accounted for approximately 78% of the raw material purchases by the Company. In addition to the Company's raw materials concentration, the Company utilizes one contract manufacturer for the production of its pharmaceutical product, Renacidin. Any disruption in this manufacturer's operations could have a material impact on the Company's revenue stream.

18. Earnings Per Share

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued.

Basic and diluted earnings per share amounted to $0.18 and $0.12 for the three months ended March 31, 2026 and 2025, respectively.

19. Related Party Transactions

For the quarters ended March 31, 2026 and 2025, the Company paid PKF O'Connor Davies ("PKF") $9,833 and $4,000 respectively, for accounting and tax services. Lawrence Maietta, a former partner at PKF, is a director of the Company and is currently serving as a senior consultant at PKF.

20. Dividends

On January 26, 2026, the Company's Board of Directors declared a cash dividend of $0.25 per share, which was paid on February 17, 2026, to all holders of record as of February 9, 2026. During the first quarter of 2026, the Company declared a total of $1,148,580 in dividends, of which $1,148,536 was paid. The balance of $44 is payable to stockholders whose old Guardian Chemical shares have not yet been exchanged to United-Guardian, Inc. shares or are pending escheatment. In addition, during the quarter ended March 31, 2026, the Company made payments of $1,356 in dividends in arrears to shareholders who had either converted their Guardian Chemical shares to United-Guardian, Inc. shares or whose shares had been escheated.

On January 27, 2025, the Company's Board of Directors declared a cash dividend of $0.35 per share, which was paid on February 18, 2025, to all holders of record as of February 10, 2025. During the first quarter of 2025, the Company declared a total of $1,608,012 in dividends, of which $1,607,893 was paid. The balance of $119 is payable to stockholders whose old Guardian Chemical shares have not yet been exchanged to United-Guardian, Inc. shares or are pending escheatment.

Page 15 of 21

------

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

**FORWARD-LOOKING STATEMENTS**

*You should read the following discussion and analysis in conjunction with our financial statements and related notes contained elsewhere in this Quarterly Report. This discussion contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors discussed in this report and those discussed in other documents we file with the SEC. In light of these risks, uncertainties and assumptions, readers are cautioned not to place undue reliance on such forward-looking statements. These forward-looking statements represent beliefs and assumptions as of the date of this report. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change. Past performance does not guarantee future results.*

**EXECUTIVE LEVEL OVERVIEW**

Through our Guardian Laboratories division, we specialize in manufacturing cosmetic, personal care and sexual wellness ingredients and a line of healthcare products including pharmaceuticals and medical lubricants. With a long-standing reputation for delivering high-quality specialty products, we are committed to serving diverse markets with innovative solutions.

In January 2026, we entered into a new distribution agreement with Brenntag Specialties, a global market leader in chemicals and ingredients distribution, for the distribution of our new Natrajel<sup>®</sup> line of sexual wellness ingredients in the United States, Canada, and Mexico, and the distribution of Lubrajel<sup>®</sup> and Natrajel products in France. The new agreement provides an opportunity to grow the French market, which is known for innovation in personal care products. Although there have been no sales of our new sexual wellness products yet, the sexual wellness segment is expected to grow at a higher compound annual growth rate ("CAGR") than other segments such as skin care, personal care and cosmetics. We are ready to begin manufacturing and distribution of this new line of products once orders are received.

With a refined product portfolio and strategic partnerships, we are well-positioned for future growth, leveraging our expertise in specialty ingredients to capitalize on emerging market opportunities.

In 2025, we launched an insurance payer outreach program with the goal of having Renacidin, our most important pharmaceutical product, included on additional drug formularies. As a result of this effort, we have received approval from two major Pharmacy Benefit Managers for inclusion on their formularies beginning in 2026. We will continue our insurance payer outreach as we move through 2026 and will also introduce a new outreach program with the focus on increasing awareness among healthcare professionals to grow the market for Renacidin.

**CRITICAL ACCOUNTING POLICIES**

As disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, the discussion and analysis of our financial condition and results of operations are based on our financial statements, which have been prepared in conformity with US GAAP. The preparation of those financial statements required us to make estimates and assumptions that affect the carrying value of assets, liabilities, revenues, and expenses reported in those financial statements. Those estimates and assumptions can be subjective and complex, and consequently, actual results could differ from those estimates and assumptions. Our most critical accounting policies relate to revenue recognition, concentration of credit risk, investments, inventory, and income taxes. Since December 31, 2025, there have been no significant changes to the assumptions and estimates related to those critical accounting policies.

The following discussion and analysis cover material changes in our financial condition since the year ended December 31, 2025, and a comparison of the results of operations for the three months ended March 31, 2026 and March 31, 2025. This discussion and analysis should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

Page 16 of 21

------

All references in this quarterly report to "sales" or "Sales" shall mean Net Sales unless specified otherwise.

**RESULTS OF OPERATIONS**

**<u>Net Sales</u>**

Net sales for the first quarter of 2026 increased by $391,095 (approximately 16%) as compared with the first quarter of 2025. The increase in sales for the first quarter of 2026 were principally due to a significant increase in sales of our pharmaceutical products coupled with a strong increase in sales of our Lubrajel line of cosmetic ingredients. The changes in our sales by product line are as follows:

(a) **<u>Pharmaceutical Products</u>**: Because there are fees, rebates, and allowances associated with sales of the Company's two pharmaceutical products, Renacidin and Clorpactin<sup>®</sup> WCS-90, discussion of pharmaceutical sales includes references to both *gross sales* (before fees, rebates and allowances) and *net sales* (after fees, rebates, and allowances). *Net* sales of our two pharmaceutical products, Renacidin and Clorpactin WCS-90, together increased from $1,168,458 in the first quarter of 2025 to $1,445,324 in the first quarter of 2026, (approximately 24%). Gross sales of both products increased from $1,367,979 in the first quarter of 2025 to $1,694,182 in the first quarter of 2026 (approximately 24%).

The increase in sales was primarily due to a continued increase in gross sales of Renacidin, which increased from $1,232,396 in the first quarter of 2025 to $1,522,326 (approximately 24%) in the first quarter of 2026. The increase in gross sales of Renacidin was combined with an increase in sales of Clorpactin, which increased from $135,583 in the first quarter of 2025 to $171,856 in the first quarter of 2026, an increase of approximately 27%.

Commensurate with the increase in gross sales of our pharmaceutical products, we experienced an increase in pharmaceutical-related sales allowances of $49,337 (approximately 25%), compared with the same period in 2025. The increase in sales allowances was primarily due to an increase in VA chargebacks and distribution fees.

(b) **<u>Cosmetic Ingredients</u>**: Sales of our cosmetic ingredients increased by $144,909 (approximately 21%) in the first quarter of 2026 compared with the same period in 2025. The increase was primarily attributable to an increase in purchases of cosmetic ingredients by ASI, whose purchases increased by $203,099 (approximately 45%) compared with the same period in 2025. This increase was primarily due to ASI resuming regular purchases of the Company's products after experiencing an overstock situation during 2025. This increase was offset by a decrease in sales to three other distributors of $54,963 (approximately 23%), and a decrease in sales to two direct cosmetic ingredient customers located in the United States of $3,227.

We continue to experience global competition from Asian and European companies that manufacture and sell products that are competitive with our products. These competitive products are usually sold at a lower price than our products; however, they may not compare favorably to the level of performance and quality of our products. We work closely with our network of distributors to price our products as competitively as possible and, when appropriate, to offer additional volume discounts and more aggressive pricing to maintain and increase sales and expand our customer base. We expect that this competitive environment will continue in 2026 and we plan to enhance our competitive position by strengthening our core capabilities and investing in new product development, especially in the area of naturally-derived products. We will continue to provide high-quality products, technical expertise, and the reliability our customers have come to expect from us.

(c) **<u>Medical Lubricants</u>**: Sales of the Company's medical lubricants decreased by $30,680 (approximately 5%) for the first quarter of 2026 when compared with the same period in 2025. The decrease was due to customer ordering patterns.

Page 17 of 21

------

**<u>Cost of Sales</u>**

Cost of sales as a percentage of net sales for the first quarter of 2026 increased to 50%, compared with 45% for the first quarter of 2025. This increase was due to the larger ratio of our pharmaceutical products sales in the first quarter of 2026 compared to 2025. The pharmaceutical products carry higher tolling unit costs relative to our cosmetic and medical products produced in house at lower unit costs.

**<u>Operating Expenses</u>**

Operating expenses, consisting of selling, general, and administrative expenses, increased by $34,228 (approximately 5%) for the first quarter of 2026 compared with the first quarter of 2025. The increase was mainly due to increases in sales & marketing expenses and payroll and payroll related expenses.

**<u>Research and Development Expenses</u>**

R&D expenses increased by $627 (less than 1%) for the first quarter of 2026 compared with the first quarter of 2025.

**<u>Investment Income</u>**

Investment income decreased by $14,873 (approximately 18%) for the first quarter of 2026 compared with the first quarter of 2025. The decrease was primarily due to a decrease in interest income from U.S. Treasury Bills during the first quarter of 2026 compared with the same period in 2025. This was the result of lower interest rates compared with the same period in 2025.

**<u>Net Gain on Marketable Securities</u>**

The net gain on marketable securities increased from $12,350 for the quarter ended March 31, 2025, to $17,742 for the quarter ended March 31, 2026. The increase was primarily due to the recognition on a gain from the sale of equity mutual funds in the first quarter of 2026, compared to a loss on those sales in the same period in 2025. Our management team and Board of Directors continue to closely monitor our investment portfolio and have made and will continue to make any changes they believe may be necessary or appropriate to minimize the future impact on our financial position that the volatility of the global financial markets may have.

**<u>Settlement Income</u>**

Included in net income is monetary consideration agreed upon with the contract manufacturer ("CM") of our pharmaceutical product Renacidin. The settlement relates to the unexpected shutdown of the CM's facility during the latter part of 2023 and beginning of 2024. During this time, we were unable to fill complete orders of Renacidin. On October 27, 2023, we notified the CM of our intention to file a claim for damages in connection with the CM's breach of our supply contract with the CM, and we requested compensation for the loss of sales during the shutdown period. The settlement, which was agreed upon by both parties, calls for the CM to supply us with a specified volume of product at no cost. The majority of the product covered by this agreement was received at our facility in March of 2026 and was valued at $303,133. During the second quarter of 2026, we expect to receive the remaining product covered by the settlement, which is valued at approximately $35,000.

**<u>Provision for Income Taxes</u>**

The Company's effective income tax rate was approximately 21% for the first quarter of 2026 and 2025 and is expected to remain at 21% for the current fiscal year.

Page 18 of 21

------

**LIQUIDITY AND CAPITAL RESOURCES**

Working capital decreased by $187,320 to $10,344,756 at March 31, 2026, down from $10,532,076 at December 31, 2025. The current ratio increased to 8.1 to 1 at March 31, 2026, up from 7.3 to 1 at December 31, 2025. The decrease in working capital was primarily due to a decrease in cash and cash equivalents. The increase in the current ratio was primarily due to a decrease in accounts payable.

The Company believes that its working capital is, and will continue to be, sufficient to support its operating requirements for at least the next twelve months. The Company's long-term liquidity position will be dependent on its ability to generate sufficient cash flow from profitable operations.

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 Company generated cash from operations of $604,536 and $322,080 for the three months ended March 31, 2026 and 2025, respectively. The increase was due primarily to an increase in net income.

Cash provided by investing activities for the three months ended March 31, 2026 and 2025 was $30,113 and $679,370, respectively. The decrease was due primarily to an increase in purchases of marketable securities in the first quarter of 2026 compared to the same period in 2025 due to decreased cash requirements.

Net cash used in financing activities was $1,149,892 and $1,607,893 for the quarters ended March 31, 2026 and 2025, respectively. The decrease in cash used in financing activities was primarily due to the payment of lower dividends in the first quarter of 2026 compared to the same period in 2025. We declared dividends of $0.25 per share in the first quarter of 2026, compared to $0.35 per share in the first quarter of 2025.

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

**CONTRACTUAL OBLIGATIONS AND COMMITMENTS**

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

**Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.**

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

**Item 4. CONTROLS AND PROCEDURES**

(a) <u>DISCLOSURE CONTROLS AND PROCEDURES</u> 

The Company's management, including its Principal Executive Officer and Principal Financial Officer, has evaluated the design, operation, and effectiveness of the Company's disclosure controls and procedures pursuant to Rule 13a-15 under the Securities Exchange Act of 1934 (the "Exchange Act"). There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. Based upon the evaluation performed by the Company's management, including its Principal Executive Officer and Principal Financial Officer, it was determined that, as of the end of the period covered by this quarterly report, the Company's disclosure controls and procedures were effective in providing reasonable assurance that information required to be disclosed in the reports filed or submitted pursuant to the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to the Company's management, including its Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding disclosures.

Page 19 of 21

------

(b) <u>CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING</u>

The Company's Principal Executive Officer and Principal Financial Officer have determined that, during the period covered by this quarterly report, there were no changes in the Company's internal control over financial reporting that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. They have also concluded that there were no significant changes in the Company's internal controls after the date of the evaluation.

**PART II - OTHER INFORMATION.**

**ITEM 1.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **LEGAL PROCEEDINGS**

None

**ITEM 1A.**&nbsp;&nbsp;&nbsp;&nbsp; **RISK FACTORS.**

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

**ITEM 2.** &nbsp;&nbsp;&nbsp;&nbsp; **UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

None&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**ITEM 3.** &nbsp;&nbsp;&nbsp;&nbsp; **DEFAULTS UPON SENIOR SECURITIES**

None

**ITEM 4.** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**MINE SAFETY DISCLOSURES**

None

**ITEM 5.** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**OTHER INFORMATION**

None

**ITEM 6.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **EXHIBITS**

---

| | |
|:---|:---|
| [31.1](ex_956933.htm)&nbsp;&nbsp;&nbsp;&nbsp;  | [Certification of Donna Vigilante, President and Principal Executive Officer of the Company, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex_956933.htm) |
| [31.2](ex_956934.htm)&nbsp;&nbsp;&nbsp;&nbsp;  | [Certification of Andrea Young, Chief Financial Officer of the Company, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex_956934.htm) |
| [32](ex_956935.htm)&nbsp;&nbsp;&nbsp;&nbsp;  | [Certifications of Principal Executive Officer and Chief Financial Officer of the Company, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex_956935.htm) |
| 101.INS | XBRL Instance Document |
| 101.SCH | XBRL Taxonomy Extension Schema |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
| 104 | Cover Page Interactive Data File (Embedded within the inline XBRL document and included in Exhibit 101.1) |

---

Page 20 of 21

------

**SIGNATURES**

In accordance with the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

UNITED-GUARDIAN, INC.

(Registrant)

---

| | |
|:---|:---|
| By: | <u>/S/ DONNA VIGILANTE</u> |
|  | Donna Vigilante |
|  | President |
| By: | <u>/S/ ANDREA YOUNG</u> |
|  | Andrea Young |
|  | Chief Financial Officer |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Date: May 7, 2026&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Page 21 of 21

## Exhibit 31.1

<u>EXHIBIT 31.1</u><u> </u>

SECTION 302 CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Donna Vigilante, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report of United-Guardian, Inc. on Form 10-Q for the three-month period ended March 31, 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: May 7, 2026 | By: | /s/ Donna Vigilante |
|  |  | Donna Vigilante |
|  |  | President and Principal Executive Officer |

---

## Exhibit 31.2

<u>EXHIBIT 31.2</u><u> </u>

SECTION 302 CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Andrea Young, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this Quarterly Report of United-Guardian, Inc. on Form 10-Q for the three-month period ended March 31, 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: May 7, 2026 | By: | /s/ Andrea Young |
|  |  | Andrea Young |
|  |  | Chief Financial Officer |

---

## Ex-32

<u>EXHIBIT 32</u>

CERTIFICATIONS PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of United-Guardian, Inc. (the "Company") on Form 10-Q for the quarterly period ended March 31, 2026, as filed with the Securities and Exchange Commission (the "Report"), I, Donna Vigilante, President and Principal Executive Officer of the Company, and I, Andrea Young, Chief Financial Officer of the Company, do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: May 7, 2026 | By: | /s/ Donna Vigilante |
|  |  | Donna Vigilante |
|  |  | President & Principal Executive Officer |
|  | By: | /s/ Andrea Young |
|  |  | Andrea Young |
|  |  | Chief Financial Officer |

---