Note 10 - Marketable Securities

9 Months Ended

Sep. 30, 2025

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

10.	Marketable Securities

The Company’s marketable securities include investments in equity mutual funds, United States Treasury Bills (“U.S. Treasury Bills”) and Certificates of Deposit 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 and Certificates of Deposit 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 income statements for the three and nine months ended September 30, 2025 and 2024, respectively, are as follows:

	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Net gains recognized during the period on marketable securities	$	36,238	$	47,223	$	73,164	$	79,218
Less: Net losses recognized during the period on marketable securities sold during the period		-		-		1,507		-
Unrealized gains recognized during the reporting period on marketable securities still held at the reporting date	$	36,238	$	47,223	$	74,671	$	79,218

The fair values of the Company’s 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, the Company utilizes the three-tier value hierarchy, as prescribed by US GAAP, which prioritizes the inputs used in measuring fair value as follows:

• 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.

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 Company’s fixed income U.S. Treasury Bills and Certificates of Deposit are considered held-to-maturity securities and are valued at amortized cost.

The following tables summarize the Company’s investments:

September 30, 2025(Unaudited)

	Cost		Fair Value		Unrealized Gain
Equity Securities:
Equity and other mutual funds	$	647,602	$	751,250	$	103,648

Other short-term investments:
U.S. Treasury Bills (original maturities > 3 months)		6,692,506		6,692,506		-
Total marketable securities	$	7,340,108	$	7,443,756	$	103,648

December 31, 2024(Audited)

					Unrealized Gain
Equity Securities:
Equity and other mutual funds	$	634,705	$	663,682	$	28,977

Other short-term investments:
Fixed income Certificates of Deposit (original maturities > 3 months)		570,000		570,000		-

U.S Treasury Bills (original maturities > 3 months)		6,288,943		6,288,943		-
Total other short-term investments		6,858,943		6,858,943		-
Total marketable securities	$	7,493,648	$	7,522,625	$	28,977

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

Proceeds from the sale and redemption of marketable securities amounted to $12,294,942 for the nine months ended September 30, 2025, with realized losses of $1,507 recognized on these sales. Proceeds from the sale and redemption of marketable securities amounted to $1,065,000 for the nine months ended September 30, 2024 and there were no unrealized gains or losses.

UNITED GUARDIAN INC 10-Q