Retractable Technologies(US:RVP)2023-03-30 20:39Revenue Performance - In 2022, domestic sales accounted for 55.1% of total revenues, a significant decrease from 88.9% in 2021, with domestic revenues dropping by 68.8% due to reduced U.S. government orders and declining demand for COVID-19 vaccinations [124]. - International revenues increased by 105% in 2022, attributed to international vaccination campaigns, while overall revenues decreased by 49.7% [124]. - Net sales for the year ended December 31, 2022, were $94.82 million, a decrease of 49.6% compared to $188.38 million in 2021 [165]. - Total sales for 2022 were $94,818,938, a decrease of 49.5% from $188,382,454 in 2021 [274]. - U.S. sales (excluding U.S. government) for 2022 amounted to $36.49 million, down from $53.89 million in 2021, indicating a decline of approximately 32% [199][201]. Financial Performance - The company reported a loss from operations of $853 thousand in 2022, compared to an income of $72.6 million in 2021, primarily due to the decline in U.S. government sales and increased operating expenses [127]. - The company reported a net income of $5.08 million for 2022, a significant decline from $56.06 million in 2021 [165]. - Basic and diluted earnings per share for 2022 were both $0.15, compared to $1.65 and $1.63 in 2021, respectively [165]. - The total income tax provision for 2022 was $83,870, a significant decrease from $18,886,570 in 2021, influenced by federal net operating losses of $22.7 million [239]. - The effective tax rate for 2022 was 1.6%, significantly lower than 25.2% in 2021 [246]. Operating Expenses - Operating expenses rose by 27.9% in 2022, largely due to a $5.5 million increase in stock option expenses related to the cancellation of underwater stock options [126]. - Operating expenses increased to $29.11 million in 2022, up 27.9% from $22.76 million in 2021 [165]. - Stock-based compensation expense for 2022 totaled $10.1 million, which included an additional $5.5 million recognized due to the cancellation of stock options [271][276]. Cash Flow and Investments - Cash flow from operations was $16.8 million in 2022, primarily due to a $29.7 million reduction in accounts receivable [131]. - Cash used in investing activities amounted to $31.2 million in 2022, mainly for property, plant, and equipment purchases [134]. - The company reported a net cash used by investing activities of $31.20 million in 2022, compared to $63.04 million in 2021 [170]. - The company has access to liquid investments to fund operations if necessary [138]. Assets and Liabilities - Total current liabilities decreased from $35.32 million in 2021 to $12.14 million in 2022, a reduction of approximately 65.6% [162]. - Total assets decreased from $206.30 million in 2021 to $195.67 million in 2022, a decline of approximately 5.1% [162]. - The company held $29.7 million in debt and equity securities as of December 31, 2022, representing 15.2% of total assets, with an unrealized gain of $2.3 million recognized during the year [111]. - As of December 31, 2022, total inventories amounted to $20,684,168, a slight increase from $20,589,919 in 2021, with raw materials at $4,896,904 and finished goods at $15,787,264 [222]. Workforce and Cost Management - The company reduced its workforce by approximately 22% in March 2023, resulting in expected annualized savings of about $1.7 million, or 13% compared to 2022 expenses [112][114]. - The company maintains a focus on managing raw material costs and transportation expenses to positively affect margins [137]. - The company experienced a significant increase in freight costs in 2022, which materially impacted the cost of manufactured products [108]. Research and Development - Research and development expenses decreased to $0.53 million in 2022 from $0.90 million in 2021, reflecting a reduction of 41.7% [165]. - Research and development costs are expensed as incurred, reflecting the Company's commitment to innovation [211]. Shareholder Information - The Company paid dividends of $96,679 to Series III Class B Stockholders in 2022, down from $3,245,693 in 2021 [257]. - A total of 11,200 shares of Common Stock were issued in 2022 from stock options exercised, generating $13,800 in payments [267]. - The Company has 29,937,159 shares of Common Stock outstanding as of December 31, 2022, down from 33,484,935 in 2021 [259]. - The Company repurchased three million shares of stock at $1.60 per share from a related party on December 26, 2022 [262]. Investment Performance - The fair value of equity securities increased significantly to $27,692,459 in 2022 from $9,112,607 in 2021, reflecting a substantial growth in marketable assets [223]. - The cumulative unrealized gains on equity securities reached $4,778,720 as of December 31, 2022, compared to $2,383,362 in 2021, indicating improved investment performance [225]. - The company reported unrealized gains on investments of $2,343,359 for the year ended December 31, 2022, compared to $513,529 in 2021 [225].