RETRACTABLE TECHNOLOGIES INC

RETRACTABLE TECHNOLOGIES INC_March 31, 2025

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UNITED STATES

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

For the quarterly period ended March 31, 2025

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

For the transition period from to

Commission file number: 001-16465

Retractable Technologies, Inc.

(Exact name of registrant as specified in its charter)


Texas		75-2599762
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

511 Lobo Lane
Little Elm, Texas		75068-5295
(Address of principal executive offices)		(Zip Code)

(972) 294-1010

(Registrant’s telephone number, including area code)

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

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


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	RVP	NYSE American

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. 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). 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 the 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	☐

If an emerging growth company, indicate by check mark 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). Yes ☐ No ☑

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ◻ No ◻

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 29,937,159 shares of Common Stock outstanding, excluding 4,087,145 treasury shares, on May 1, 2025.

Table of Contents

RETRACTABLE TECHNOLOGIES, INC.

FORM 10-Q

For the Quarterly Period Ended March 31, 2025

TABLE OF CONTENTS


	PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements	1
	CONDENSED BALANCE SHEETS	1
	CONDENSED STATEMENTS OF OPERATIONS	2
	CONDENSED STATEMENTS OF CASH FLOWS	3
	CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY	4
	NOTES TO CONDENSED FINANCIAL STATEMENTS	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	20
Item 4.	Controls and Procedures	20

	PART II—OTHER INFORMATION

Item 1.	Legal Proceedings	21
Item 1A.	Risk Factors	21
Item 5.	Other Information	21
Item 6.	Exhibits	22
SIGNATURES		22

Table of Contents

PART I—FINANCIAL INFORMATION

Item 1.Financial Statements.

RETRACTABLE TECHNOLOGIES, INC.

CONDENSED BALANCE SHEETS

(unaudited)


	March 31, 2025		December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	3,382,915	$	4,235,388
Accounts receivable, net		5,359,098		7,786,697
Investments in debt and equity securities, at fair value		32,322,786		40,328,308
Inventories		21,182,745		19,189,753
Income taxes receivable		694,904		978,851
Other current assets		719,928		753,062
Total current assets		63,662,376		73,272,059

Property, plant, and equipment, net		85,552,625		87,348,518
Other assets		92,448		103,625
Total assets	$	149,307,449	$	160,724,202

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	4,723,664	$	4,290,588
Current portion of long-term debt		343,216		332,480
Accrued compensation		918,104		1,073,357
Dividends payable		1,417,437		1,417,437
Accrued royalties to shareholder		706,421		789,358
Other accrued liabilities		1,387,304		873,254
Income taxes payable		1,815		4,442
Total current liabilities		9,497,961		8,780,916

Other long-term liabilities		62,389,734		63,872,553
Long-term debt, net of current maturities		807,390		900,042
Total liabilities		72,695,085		73,553,511

Commitments and contingencies – see Note 10

Stockholders’ equity:
Preferred stock, $1 par value:
Class B; authorized: 5,000,000 shares
Series II, Class B		156,200		156,200
Series III, Class B		74,245		74,245
Common Stock, no par value		—		—
Additional paid-in capital		73,160,333		73,160,333
Retained earnings		16,110,264		26,668,591
Common stock in treasury – at cost		(12,888,678)		(12,888,678)
Total stockholders’ equity		76,612,364		87,170,691
Total liabilities and stockholders’ equity	$	149,307,449	$	160,724,202

See accompanying notes to condensed unaudited financial statements

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RETRACTABLE TECHNOLOGIES, INC.

CONDENSED STATEMENTS OF OPERATIONS

(unaudited)


	Three Months		Three Months
	March 31, 2025		March 31, 2024
Sales, net	$	8,295,173	$	7,599,363
Cost of sales:
Cost of manufactured product		7,590,663		5,049,046
Royalty expense to shareholder		706,421		649,388
Total cost of sales		8,297,084		5,698,434
Gross profit (loss)		(1,911)		1,900,929

Operating expenses:
Sales and marketing		1,601,808		1,434,742
Research and development		191,192		142,262
General and administrative		2,881,841		3,310,062
Total operating expenses		4,674,841		4,887,066
Loss from operations		(4,676,752)		(2,986,137)

Other income - TIA		1,482,819		1,484,620
Unrealized gain (loss) on debt and equity securities		(7,156,513)		1,732,649
Interest and other income		158,946		317,321
Interest expense		(23,455)		(33,483)
Income (loss) before income taxes		(10,214,955)		514,970
Provision for income taxes		285,761		85,586
Net income (loss)		(10,500,716)		429,384
Preferred Stock dividend requirements		(57,611)		(57,611)
Net income (loss) applicable to common shareholders	$	(10,558,327)	$	371,773

Basic earnings (loss) per share	$	(0.35)	$	0.01

Diluted earnings (loss) per share	$	(0.35)	$	0.01

Weighted average common shares outstanding:
Basic		29,937,159		29,937,159
Diluted		29,937,159		29,945,353

See accompanying notes to condensed unaudited financial statements

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RETRACTABLE TECHNOLOGIES, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(unaudited)


	Three Months		Three Months
	Ended		Ended
	March 31, 2025		March 31, 2024
Cash flows from operating activities
Net income (loss)	$	(10,500,716)	$	429,384
Adjustments to reconcile net income (loss) to net cash from (used) operating activities:
Depreciation and amortization		1,882,927		1,889,467
Net unrealized (gain) loss on investments		7,156,513		(1,732,649)
Bond amortization		(264)		(251)
Deferred taxes		—		83,891
Net realizable value inventory adjustment		—		1,845
Other income - TIA		(1,482,819)		(1,484,620)
(Increase) decrease in operating assets:
Accounts receivable		2,427,599		3,247,092
Inventories		(1,992,992)		(1,909,296)
Other current assets		33,134		(51,550)
Income taxes receivable		283,947		—
Other assets		11,177		14,904
Increase (decrease) in operating liabilities:
Accounts payable		433,076		(2,184,723)
Accrued liabilities		275,860		(322,754)
Income taxes payable		(2,627)		(3,147)
Net cash used in operating activities		(1,475,185)		(2,022,407)

Cash flows from investing activities
Purchase of property, plant, and equipment		(87,034)		(226,396)
Purchase of debt and equity securities		(150,727)		(276,326)
Proceeds from the sales of debt and equity securities		1,000,000		—
Net cash from (used in) investing activities		762,239		(502,722)

Cash flows from financing activities
Repayments of long-term debt		(81,916)

SEC Form 10-Q filed by Retractable Technologies Inc.