Retractable Technologies(RVP) - 2023 Q4 - Annual Report

Revenue Performance - In 2023, domestic sales accounted for 79.4% of revenues, a decrease of 33.7% compared to 2022, primarily due to the lack of U.S. government sales[122] - International revenues decreased by 78.9% in 2023, largely due to fewer international vaccination-related sales[122] - Overall revenues decreased by 54.0% in 2023, with total unit sales down by 58.7%[122] - Total net sales for 2023 were $43.6 million, a decrease of 54% compared to $94.8 million in 2022[159] - Total revenue for the year ended December 31, 2023, was $43.6 million, a decrease from $94.8 million in 2022[194] - U.S. sales (excluding U.S. government) for blood collection syringes amounted to $26.1 million in 2023, down from $29.3 million in 2022[194] - U.S. sales (excluding U.S. government) in 2023 were $34.6 million, down from $36.5 million in 2022 and $53.9 million in 2021[263] - Total sales for 2023 were $43.6 million, a significant decrease of 54% from $94.8 million in 2022 and 77% from $188.4 million in 2021[263] Profitability and Loss - Gross profit margins fell from 29.8% in 2022 to 20.9% in 2023 due to significant declines in net revenues[124] - Gross profit for 2023 was $9.1 million, down from $28.3 million in 2022, reflecting a gross margin decline[159] - The company reported a net loss of $7.0 million for 2023, compared to a net income of $5.1 million in 2022[159] - Basic earnings per share for 2023 were $(0.24), compared to $0.15 in 2022, reflecting a significant decline in profitability[159] - The diluted earnings per share (EPS) for 2023 was $(0.24), compared to $0.15 in 2022 and $1.63 in 2021[200] - Net income for 2023 was a loss of $7,011,036, compared to a profit of $5,078,557 in 2022 and $56,064,241 in 2021[163] Cash Flow and Liquidity - Cash flow from operations was $2.8 million in 2023, bolstered by an $8 million tax refund[129] - Cash flows from operating activities generated $2,766,848 in 2023, down from $16,768,128 in 2022 and $32,793,499 in 2021[163] - Cash and cash equivalents fell to $12.7 million in 2023, down from $19.7 million in 2022, representing a decrease of 35%[157] - Total cash and cash equivalents decreased to $12,667,550 at the end of 2023 from $19,721,345 at the end of 2022[163] - The company reported a net cash used by investing activities of $10,762,283 in 2023, compared to $31,202,814 in 2022[163] Assets and Liabilities - The company held $34.6 million in debt and equity securities as of December 31, 2023, representing 19.3% of total assets[113] - Total assets decreased to $179.7 million in 2023 from $195.7 million in 2022, a decline of approximately 8.2%[157] - The company’s total liabilities decreased to $80.4 million in 2023 from $89.1 million in 2022, a reduction of about 9.7%[157] - The allowance for credit losses increased to $890,541 in 2023 from $675,208 in 2022[168] - The company has a long-term debt of $1,537,510 as of December 31, 2023, with an interest rate of 8.75%[219] Inventory and Expenses - Total inventories decreased to $17,581,368 in 2023 from $20,684,168 in 2022, with raw materials at $4,349,029 and finished goods at $13,232,339[209] - The Company recognized estimated contractual pricing allowances for rebates at $2.2 million as of December 31, 2023[150] - Research and development expenses increased slightly to $581,172 in 2023 from $525,727 in 2022, indicating continued investment in innovation[159] - Research and development costs are expensed as incurred, indicating a focus on innovation and product development[204] Stock and Shareholder Information - The average common shares outstanding decreased to 29,937,159 in 2023 from 32,896,348 in 2022[200] - The company has 3,649,508 stock options issued under the 2008 Stock Option Plan, with 147,150 options outstanding as of December 31, 2023[249] - The Company has 2,000,000 shares available for future issuance under the 2021 Stock Option Plan[250] - The Class B Series II and III stock had 156,200 and 74,245 shares outstanding, respectively, at December 31, 2023[239] - The company matched employee contributions to the 401(k) Plan up to 2% of compensation, totaling $240,635 in 2023[262] Tax and Government Funding - The total income tax provision for 2023 was $(1,905,161), compared to $83,870 in 2022, indicating a significant tax benefit shift[227] - The effective tax rate for the Company in 2023 was 21.5%, compared to 1.6% in 2022, reflecting a substantial increase[233] - The Company has received $81,029,518 in government funding under the Technology Investment Agreement to expand domestic production capacity[206] Other Financial Metrics - The company incurred a net unrealized loss on investments of $10,521,166 in 2023, compared to a gain of $2,343,359 in 2022[163] - The company reported depreciation and amortization of $7,527,227 in 2023, an increase from $4,602,961 in 2022[163] - Preferred dividends declared but not paid amounted to $1,417,437 in 2023, consistent with $1,417,937 in 2022[163] - The Company recorded a $101 thousand lower of cost or net realizable value inventory adjustment associated with the VanishPoint® 3mL and EasyPoint® needle product segments[172] - The Company recognized $778 thousand in licensing fees for the year ended December 31, 2023, compared to no licensing fees recognized for the year ended December 31, 2022[191]