Sharps Technology(STSS) - 2024 Q4 - Annual Report

Financial Performance - The company incurred net losses of $9,296,202 and$9,841,638 for the years ended December 31, 2024 and 2023, respectively[129]. - The company has not generated any revenue to date[170]. - Annual revenue for the most recently completed fiscal year was less than $100 million, allowing the company to maintain its smaller reporting company status[183]. Revenue Generation and Offerings - The company generated no revenue since its inception in 2017 until the fourth quarter of 2022, when it began building inventory of syringe products[129]. - The company raised approximately$20.0 million in gross proceeds from the 2025 Offering, with net proceeds of approximately $18.2 million after expenses[133]. - The 2025 Offering included 14,285,714 units, generating gross proceeds of$12.6 million from Common Units and $7.4 million from Pre-Funded Units[134]. - The company completed an Initial Public Offering on April 19, 2022, raising net proceeds of approximately$14.2 million[132]. - The company entered into a securities purchase agreement on September 20, 2024, for an aggregate principal amount of $4,375,000, resulting in gross proceeds of approximately$3.5 million[138]. Expenses and Financial Position - The company has incurred significant research and development expenses, primarily related to its syringe products, and expects these expenses to increase in the foreseeable future[131]. - Research and Development (R&D) expenses increased to $2,471,762 in 2024 from$1,605,547 in 2023, representing a 54% increase[171]. - General and Administrative (G&A) expenses decreased to $7,154,948 in 2024 from$8,521,103 in 2023, a reduction of 16%[172]. - Net interest expense changed from income of $138,118 in 2023 to an expense of$1,664,712 in 2024, a change of 1,305%[173]. - Cash balance decreased to $864,041 in 2024 from$3,012,908 in 2023, indicating a significant reduction in liquidity[176]. - Working capital deficit increased to $2,011,678 in 2024 from a working capital of$1,145,569 in 2023[176]. - Net cash used in operating activities was $6,929,545 in 2024, down from$8,507,300 in 2023[178]. - Net cash used in investing activities increased to $1,163,137 in 2024 from$698,277 in 2023[179]. - Net cash provided by financing activities decreased to $5,907,407 in 2024 from$8,029,628 in 2023[180]. Compliance and Regulatory Status - The company received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement, and is awaiting a hearing date for its appeal[141]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to take advantage of various reporting exemptions[181]. - The company will cease to be an emerging growth company if annual gross revenue exceeds $1.07 billion or if the market value of common stock held by non-affiliates exceeds$700 million[182]. - The company is also a "smaller reporting company," with a market value of stock held by non-affiliates and gross proceeds from the IPO being less than $700 million[183]. - As a smaller reporting company, the company may present only the two most recent fiscal years of audited financial statements in its Annual Report on Form 10-K[183]. - The company intends to utilize exemptions from certain disclosure requirements available to both emerging growth and smaller reporting companies[183]. - The company has not issued more than$1.0 billion in non-convertible debt securities in the previous three-year period[182]. - The company may face a less active trading market for its common shares if investors find the reduced disclosures less attractive[182]. - The company is not required to provide quantitative and qualitative disclosures about market risk as a smaller reporting company[184]. Distribution Agreement - The company has a distribution agreement that was mutually terminated on February 5, 2025, with no economic benefit obtained from it[140].