Sharps Technology(US:STSS)2025-08-13 21:22Financial Performance - The company reported a net income of $5,488,141 and a net loss of $3,084,713 for the six months ended June 30, 2025, compared to the same period in 2024[160]. - For the three months ended June 30, 2025, the Company reported net revenue of $222,722, a 100% increase compared to the same period in 2024[183]. - For the six months ended June 30, 2025, net revenue was $222,722, with the supply agreement with Stericare contributing 60% of this revenue[192]. - The total cost of goods manufactured for the same period was $1,254,749, resulting in a gross margin loss of $1,032,027, reflecting a 100% change[183]. - The Company established a lower of cost or market reserve resulting in a cost of $730,086 for the period, contributing to a negative gross margin of $301,278[193]. - The Company recorded a net interest income of $96,953 for the three months ended June 30, 2025, a significant increase of 1,733% from $5,288 in 2024[188]. Cash and Working Capital - As of June 30, 2025, the company had working capital of $8,081,406, which is not expected to be sufficient to fund operations for the next 12 months[161]. - As of June 30, 2025, the Company had a cash balance of $8,322,192, a significant increase from $864,041 at December 31, 2024[199]. - The Company used cash of $4,355,930 in operating activities for the six months ended June 30, 2025, compared to $3,528,676 in 2024, primarily due to higher G&A expenses[201]. Business Operations and Agreements - The company commenced revenue generation in the quarter ended June 30, 2025, marking its transition to a revenue-generating business[160]. - A supply agreement with Stericare Solutions, LLC involves the purchase of 520 million units of 10ml polypropylene Sologard syringes, with expected revenues exceeding $50 million[172]. - The company has received an initial purchase order under a supply agreement, indicating ongoing discussions with healthcare companies and distributors[164]. - The company is committed to driving revenue growth from the Securegard and Sologard projects in 2025, supported by recent financing[174]. Debt and Compliance - The company is currently debt-free following the repayment of outstanding notes as of the close of the January 2025 offering[161]. - The company has faced compliance issues with Nasdaq regarding minimum bid price and stockholders' equity requirements, but was notified on May 21, 2025, that it met the required listing requirements[175][177]. Research and Development - The company has incurred substantial research and development expenses primarily related to its syringe products, with ongoing efforts to optimize technology for future commercialization[166][167]. - Research and Development expenses decreased to $61,455 for the three months ended June 30, 2025, down 66% from $180,297 in 2024[186]. Company Classification - The company is classified as a "smaller reporting company" with a market value of stock held by non-affiliates below $700 million and annual revenue under $100 million[207]. - The company may continue to qualify as a smaller reporting company if the market value of stock held by non-affiliates remains below $250 million or annual revenue stays under $100 million[207]. - As a smaller reporting company, the company can present only the two most recent fiscal years of audited financial statements in its Annual Report on Form 10-K[207]. - Smaller reporting companies have reduced disclosure obligations regarding executive compensation[207]. - Quantitative and qualitative disclosures about market risk are not required for smaller reporting companies[208].