Retractable Technologies(RVP) - 2025 Q3 - Quarterly Report

Sales Performance - Syringes accounted for 65.0% of sales in the first nine months of 2025, with EasyPoint® products at 31.3% and other products at 3.7%[88] - Domestic revenues increased by 18.0% for the nine months ended September 30, 2025, while domestic unit sales increased by 11.8%[114] - International revenues for the nine months ended September 30, 2025 increased by 38.1% compared to the same period in 2024[115] - Domestic unit sales represented 78.0% of total unit sales for the nine months ended September 30, 2025, down from 87.6% in the same period last year[114] - The mix of domestic and international sales affects the average sales price, with higher domestic sales generally leading to higher prices[127] Financial Performance - The loss from operations was $13.5 million for the nine months ended September 30, 2025, compared to a loss of approximately $13.9 million for the same period last year[117] - Cash flow used by operations was $6.5 million for the nine months ended September 30, 2025, primarily due to a net loss for the period[121] - The unrealized loss on debt and equity securities was $3.2 million due to decreased market values of those securities[118] - Operating expenses increased by 4.3% primarily due to product donations and higher bad debt expense[111] Costs and Expenses - Approximately $2.3 million was spent on tariff expenses in the first nine months of 2025, impacting overall costs significantly[116] - Payroll costs are expected to increase by approximately $825 thousand annually due to workforce increases in manufacturing[126] - The company expects to incur higher manufacturing costs in the near term while working to minimize reliance on imported products[129] - Tariffs and raw material costs have significantly impacted the company's margins, which have experienced fluctuations over the past two years[129] Future Outlook - The company anticipates a material decline in liquidity over the next 1-3 years due to new tariffs and increased domestic manufacturing costs[130] - The total potential future credits to be issued for prior purchases not yet claimed is estimated at $2.2 million, recognized as a liability[132] - The company believes it has adequate means to meet short-term operational needs for at least 12 months from the date of the financial statements[130] Investments and Settlements - The company received a settlement payment of $1.9 million in May 2025[125] - The conversion of existing equipment and purchase of additional molds for 0.5 mL syringes is expected to cost approximately $1 million, with 9.1% of overall domestic unit sales and 15.2% of domestic syringe unit sales attributed to these products for Q3 2025[126] - Approximately $1 million was expended in Q2 2025 for molds and equipment conversion to increase production at the U.S. facility[131] Pricing Dynamics - The average domestic selling price increased due to a shift in product mix, particularly more VanishPoint® unit sales[114]