Retractable Technologies Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Retractable Technologies Inc. has filed its 2023 10-K report, detailing financial performance and operational aspects.</b>

AI Summary

RETRACTABLE TECHNOLOGIES INC (RVP) filed a Annual Report (10-K) with the SEC on March 29, 2024. The company filed its 10-K report for the fiscal year ending December 31, 2023. The filing includes detailed financial information and risk factors. Key financial statement accounts such as Inventory Valuation Reserve, Allowance For Credit Loss, and Allowance For Provision Of Rebates are detailed for multiple fiscal years. Information regarding Treasury Stock, Common Stock, Retained Earnings, and Additional Paid In Capital is provided for fiscal years 2020 through 2023. The company's business address is 511 Lobo Lane, Little Elm, TX 75068-0009, with a phone number of 9722941010.

Why It Matters

For investors and stakeholders tracking RETRACTABLE TECHNOLOGIES INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Retractable Technologies Inc.'s financial health and operational risks for the fiscal year 2023, crucial for investors to assess the company's performance and future outlook. The detailed breakdown of various allowance accounts and equity components offers insights into the company's financial management, credit risk assessment, and capital structure, which are important for understanding its financial stability.

Risk Assessment

Risk Level: medium — RETRACTABLE TECHNOLOGIES INC shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not present any immediate red flags or significant negative developments that would elevate the risk beyond medium.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Retractable Technologies Inc.'s performance and potential challenges for the upcoming fiscal year.

Key Numbers

• 20231231 — Fiscal Year End (Period of report)
• 20240329 — Filing Date (Date filed)
• 001-16465 — SEC File Number (SEC file number)
• 24803773 — Film Number (Film number)

Key Players & Entities

• RETRACTABLE TECHNOLOGIES INC (company) — Filer name
• 0000946563 (company) — Central Index Key
• 3841 (company) — Standard Industrial Classification
• TX (company) — State of Incorporation
• 511 LOBO LANE (company) — Business Address Street 1
• LITTLE ELM (company) — Business Address City
• 75068-0009 (company) — Business Address ZIP
• 9722941010 (company) — Business Phone

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-03-29: Filing Date — Date the 10-K was officially filed with the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document for investors to understand a company's financial health and operations over the past year.)

Inventory Valuation Reserve

An account used to reduce the carrying value of inventory to its market value when the market value is lower than the cost. (Indicates how the company accounts for potential decreases in inventory value, impacting reported asset values.)

Allowance For Credit Loss

A contra-asset account that reduces the carrying amount of accounts receivable to the amount expected to be collected. (Reflects the company's estimate of uncollectible accounts, impacting reported receivables and potential bad debt expenses.)

Key Financial Figures

• $1.15 — 15 million, assuming a closing price of $1.15 and outstanding shares held by non-affi
• $81.0 million — as amended ("TIA"). The TIA funded the $81.0 million facilities expansion and purchase of ne
• $15.7 million — an Services for safety syringes totaled $15.7 million in 2022 (concentrated in the first quar
• $113.7 million — 22 (concentrated in the first quarter), $113.7 million in 2021, and $31.6 million in 2020. The
• $31.6 million — t quarter), $113.7 million in 2021, and $31.6 million in 2020. The orders from the Department
• $1.7 million — aries and wage expense of approximately $1.7 million in 2023, net of separation costs of $15
• $154 thousand — ion in 2023, net of separation costs of $154 thousand. Available Information We make avai
• $33.2 million — 29, 2023, our market capitalization was $33.2 million (based on a $1.11 per share closing pri
• $1.11 — alization was $33.2 million (based on a $1.11 per share closing price) and total stoc
• $99.3 million — ice) and total stockholders' equity was $99.3 million. Our stock price reached a low of $0.95
• $0.95 — llion. Our stock price reached a low of $0.95 per share in 2023 despite our strong ba

Filing Documents

• tmb-20231231x10k.htm (10-K) — 2073KB
• tmb-20231231xex31d1.htm (EX-31.1) — 14KB
• tmb-20231231xex31d2.htm (EX-31.2) — 14KB
• tmb-20231231xex32.htm (EX-32) — 8KB
• tmb-20231231xex97.htm (EX-97) — 15KB
• tmb-20231231x10k001.jpg (GRAPHIC) — 44KB
• 0001558370-24-004361.txt (&nbsp;) — 10007KB
• tmb-20231231.xsd (EX-101.SCH) — 63KB
• tmb-20231231_cal.xml (EX-101.CAL) — 73KB
• tmb-20231231_def.xml (EX-101.DEF) — 250KB
• tmb-20231231_lab.xml (EX-101.LAB) — 576KB
• tmb-20231231_pre.xml (EX-101.PRE) — 427KB
• tmb-20231231x10k_htm.xml (XML) — 2007KB

Business

Item 1. Business 2

Risk Factors

Item 1A. Risk Factors 6

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 9

Cybersecurity

Item 1C. Cybersecurity 10

Properties

Item 2. Properties 10

Legal Proceedings

Item 3. Legal Proceedings 11

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 11 PART II

Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities 11

Selected Financial Data

Item 6. Selected Financial Data 12

Management's Discussion and Analysis of Financial Condition and Results of Operation

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation 12

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 16

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data F- 1

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 17

Controls and Procedures

Item 9A. Controls and Procedures 17

Other Information

Item 9B. Other Information 17

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 18 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 18

Executive Compensation

Item 11. Executive Compensation 18

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 18

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 18

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 18 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 18

Form 10-K Summary

Item 16. Form 10-K Summary 20

SIGNATURES

SIGNATURES 21 i Table of Contents PART I FORWARD-LOOKING STATEMENT WARNING Certain statements included by reference in this filing containing the words "could," "may," "believes," "anticipates," "intends," "expects," and similar such words constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Any forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among others, material changes in demand, potential tariffs, our ability to maintain liquidity, our maintenance of patent protection, our ability to maintain favorable third party manufacturing and supplier arrangements and relationships, foreign trade risk, our ability to access the market, production costs, the impact of larger market players in providing devices to the safety market, and other factors referenced in Item 1A. Risk Factors. Given these uncertainties, undue reliance should not be placed on forward-looking statements.

Business

Item 1. Business. DESCRIPTION OF BUSINESS General Development of Business Retractable Technologies, Inc. was incorporated in Texas in 1994. Our business is the manufacturing and marketing of safety medical products (predominately syringes) for the healthcare industry. We have manufacturing facilities in Little Elm, Texas and use manufacturers in China as well. Our syringes are well-suited for administering vaccinations and our revenues materially increased in 2020-2021 due to COVID-19 vaccination demand. Our revenues decreased as sales to the U.S. government for vaccinations wound down in the first quarter of 2022, although international vaccination demand positively and materially impacted sales throughout 2022 and the first quarter of 2023. We increased our manufacturing capacity in Little Elm, Texas, funded in part by the Technology Investment Agreement ("TIA") with the United States Government Department of Defense, U.S. Army Contracting Command-Aberdeen Proving Ground, Natick Contracting Division & Edgewood Contracting Division (ACC-APG, NCD & ECD) on behalf of the Biomedical Advanced Research and Development Authority (BARDA), as amended ("TIA"). The TIA funded the $81.0 million facilities expansion and purchase of new manufacturing equipment and related ancillary equipment. At our own expense, we constructed a new warehouse onsite for housing finished goods and raw materials to be used in the manufacturing process as well as an expansion to our administrative offices. Description of Business Our goal is to become a leading provider of safety medical products. Our principal products were designed to protect healthcare workers, patients, and others from needlestick injuries, cross-contamination through reuse, and reduce disposal costs. Our dominant revenue-generating products are our injection devices (syringes and needles). Such products are marketed under the VanishPoint , Patient Safe , and EasyPoint brands. We have only one reporting segment. Mos

Risk Factors

Item 1A. Risk Factors. You should carefully consider the following material risks facing us. If any of these risks occur, our business, results of operations, or financial condition could be materially affected. We Are Concerned that Our Stock Price is Not Correlated with Value As of December 29, 2023, our market capitalization was $33.2 million (based on a $1.11 per share closing price) and total stockholders' equity was $99.3 million. Our stock price reached a low of $0.95 per share in 2023 despite our strong balance sheet. Our Customers Have Excess Product In Inventory and We Cannot Predict When It Will Be Depleted We believe domestic customers have retained Retractable products (as well as competitive products) purchased or provided for vaccination purposes in inventory, leading to a decrease in demand for our products. It is unclear when the excess inventory surplus will clear. Until the inventory is depleted, we expect domestic demand to continue to be depressed. We Are Challenged by Uncertainties in Obtaining and Enforcing Intellectual Property Rights Our main competitive strength is our technology. We are dependent on patent rights, and if the patent rights are invalidated or circumvented, our business would be adversely affected. Patent protection is considered, in the aggregate, to be of material importance in the design, development, and marketing of our products. Syringes comprised 78.3% of sales in 2023. When the patents of the VanishPoint syringes and other products expire, we may experience a significant and rapid loss of sales, and our competitive position in the marketplace may weaken if other competitors use our technology. Such occurrences could have a material adverse effect on profitability. We do not maintain patent or trademark protection in all foreign countries, but, where possible, have taken steps to protect our patents and trademarks in those countries where we market our products or where we believe other manufacturers are mo

View Full Filing

View this 10-K filing on SEC EDGAR