Note F - Geographic and Other Information

12 Months Ended

Dec. 31, 2012

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 manufacturers that incorporate them into urologic catheters and other medical devices and products that they sell. These products are distinguished from the pharmaceutical products in that, unlike the pharmaceutical products, the Company is not required to obtain regulatory approval prior to marketing these products. Approvals are the responsibility of the company that markets the 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 by the Company directly to manufacturers, and generally do not require that the Company obtain regulatory approval. However, the manufacturers of the finished products 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,
	2012			2011
Personal Care	$	9,438,345		$	9,236,704
Pharmaceuticals		1,524,581			2,315,093
Medical		2,904,327			2,897,699
Industrial and other		153,498			133,826
		14,020,751			14,583,322
Less: Discounts and allowances		(194,987	)		(244,810	)
	$	13,825,764		$	14,338,512

(b)   Geographic Information

	Years ended December 31,
	2012				2011
	Revenues		Long-Lived Assets		Revenues		Long-Lived Assets
United States	$	4,648,472	$	1,235,863	$	5,805,331	$	1,245,487
Canada		2,860,154		---		2,551,980		---
China		2,462,967		---		2,144,451		---
France		903,137		---		1,029,382		---
Other countries		2,951,034		---		2,807,368		---
	$	13,825,764	$	1,235,863	$	14,338,512	$	1,245,487

(c)   Sales to Major Customers

	Years ended December 31,
	2012		2011
Customer A	$	7,664,805	$	7,333,581
Customer B		837,220		909,111
All other customers		5,323,739		6,095,820
	$	13,825,764	$	14,338,512