Note F - Geographic And Other Information

12 Months Ended

Dec. 31, 2011

Segment Reporting Disclosure [Text Block]

NOTE  F -  GEOGRAPHIC and OTHER INFORMATION

Through its Guardian Laboratories division the Company manufactures and markets cosmetic ingredients, personal care products, pharmaceuticals, medical and health care products, and specialty industrial products.  It also conducts research and development, primarily related to the development of new and unique cosmetic and personal care products. The Company’s R&D department not only develops new products but also modifies and refines existing products, with the goal of expanding the potential markets for the Company's products. Many of the cosmetic ingredient products manufactured by Guardian, particularly its LUBRAJEL line of water-based moisturizing and lubricating gels, are currently used by many of the major multinational personal care products companies.

The Company operates in one business segment. The Company’s products are separated into four distinct product categories: pharmaceuticals, personal care products (including cosmetic ingredients), medical products, and industrial products.  Each product category is marketed differently. The cosmetic ingredient/personal care products are marketed through a global network of marketing partners and distributors.  These marketing partners purchase product outright from the Company and market and re-sell those products to the end users.  The Company does not make any sales on consignment.

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

The pharmaceutical products are two urological products that are sold to end users primarily through distribution agreements with the major drug wholesalers. For these products, the Company does the marketing, and the drug wholesalers supply the product to the end users, such as hospitals and pharmacies. These products are drug products that required the Company to obtain regulatory approval before marketing.

The medical products are not pharmaceutical products.  They consist primarily of medical lubricants, which are marketed by the Company directly to end users that incorporate them into urologic catheters and other medical devices.  These products are distinguished from the pharmaceutical products  in  that,  unlike  the  pharmaceutical  products, the Company does not have to obtain regulatory approval prior to marketing these products, since that is the responsibility of the end user, who markets the product as a medical device.  However, the Company is responsible for manufacturing these products in accordance with Current Good Manufacturing Practices for medical devices.

The industrial products are also marketed directly to the end users by the Company, and generally do not require that the Company obtain regulatory approval. However, the end users may have to obtain such regulatory approvals before marketing these products.

The geographic information set forth in table "(b)" below is partially based on sales information provided to the Company by Customer A (shown in table "(c)" below), which exclusively markets the Company's cosmetic ingredients in Canada and China, and also sells some of the Company's products into France on a non-exclusive basis along with Customer B.

(a)   Net Sales

	Years ended December 31,
	2011			2010
Personal Care	$	9,236,704		$	8,391,156
Pharmaceuticals		2,315,093			2,699,467
Medical		2,897,699			2,612,088
Industrial and other		133,826			169,209
		14,583,322			13,871,920
Less: Discounts and allowances		(244,810	)		(148,846	)
	$	14,338,512		$	13,723,074

(b)   Geographic Information

	Years ended December 31,
	2011				2010
			Long-Lived  Assets				Long-Lived  Assets
	Revenues				Revenues
United States	$	5,805,331	$	1,245,487	$	6,068,696	$	1,209,160
Canada		2,551,980		---		1,995,510		---
China		2,144,451		---		1,549,551		---
France		1,029,382		---		1,323,875		---
Other countries		2,807,368		---		2,785,442		---
	$	14,338,512	$	1,245,487	$	13,723,074	$	1,209,160

(c)   Sales to Major Customers

	Years ended December 31,
	2011		2010
Customer A	$	7,333,581	$	6,034,744
Customer B		909,111		1,177,231
All other customers		6,095,820		6,511,099
	$	14,338,512	$	13,723,074