# Retractable Technologies Inc: Form 10-Q for the period ended Mar 31, 2026

- Company: [Retractable Technologies Inc](/companies/rvp.md) (CIK 946563)
- Form: 10-Q
- Filed: 2026-05-15
- Accepted by EDGAR: May 15, 2026, 13:34 ET
- Period: 2026-03-31
- Accession: 0001104659-26-062253
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/946563/000110465926062253/tmb-20260331x10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/946563/000110465926062253/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2026-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2026-01-01 to 2026-03-31 | $7.2m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2026-01-01 to 2026-03-31 | $8.0m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months, 2026-01-01 to 2026-03-31 | −$838.4k | us-gaap:GrossProfit |
| Research and development | 3 months, 2026-01-01 to 2026-03-31 | $170.4k | us-gaap:ResearchAndDevelopmentExpense |
| Operating income | 3 months, 2026-01-01 to 2026-03-31 | −$6.2m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2026-01-01 to 2026-03-31 | $20.4k | us-gaap:InterestExpenseNonoperating |
| Income tax | 3 months, 2026-01-01 to 2026-03-31 | $1.8k | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2026-01-01 to 2026-03-31 | −$4.2m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2026-01-01 to 2026-03-31 | −$0.14 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2026-01-01 to 2026-03-31 | −$0.14 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2026-01-01 to 2026-03-31 | 29,937,159 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2026-01-01 to 2026-03-31 | −$1.4m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2026-01-01 to 2026-03-31 | $6.2k | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Cash and equivalents | at 2026-03-31 | $2.8m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2026-03-31 | $60.0m | us-gaap:AssetsCurrent |
| Total assets | at 2026-03-31 | $137.6m | us-gaap:Assets |
| Current liabilities | at 2026-03-31 | $10.4m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2026-03-31 | $67.5m | us-gaap:Liabilities |
| Shareholders' equity | at 2026-03-31 | $70.1m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 21,352 characters.

### FORWARD-LOOKING STATEMENT WARNING

Certain statements included by reference in this filing containing the words “could,” “may,” “believes,” “anticipates,” “intends,” “expects,” and similar such words constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Any forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among others: tariffs; oil prices; material changes in demand; our ability to maintain liquidity; our maintenance of patent protection; our ability to maintain favorable third party manufacturing and supplier arrangements and relationships; foreign trade risk; our ability to access the market; production costs; the impact of larger market players in providing devices to the safety market; and any other factors referenced in our periodic reports filed with the SEC. Given these uncertainties, undue reliance should not be placed on forward-looking statements.

### MATERIAL CHANGES IN FINANCIAL CONDITION AND RESULTS OF OPERATIONS

#### Overview

We have been manufacturing and marketing our products since 1997. Syringes comprised 80.8% of our sales in the first quarter of 2026. EasyPoint® products accounted for 13.8% and other products, including our IV safety catheter and blood collection products, were 5.4% of our sales in the first quarter.

Our products have been and continue to be distributed nationally and internationally through numerous distributors. Some of our popular syringe products provide low dead-space. Low dead-space syringes reduce residual medication remaining in the syringe after the dose has been administered. In some instances, the low dead-space allows for additional doses of medication to be obtained from the vials.

We expect international sales of VanishPoint syringes and EasyPoint needles to increase in the second half of 2026 following the recent certification under the European Union Medical Device Regulation 2017/745 which is required for the sale of medical devices within the European Union.

On September 13, 2024, the Office of the U.S. Trade Representative (“USTR”) revealed final adjustments to increase tariffs on certain goods imported from China under Section 301 (“Section 301”) of the Trade Act of 1974 (“Trade Act”). Among those products included were syringes and needles, at a rate of 100%. Throughout much of 2025, additional widespread tariffs were imposed on most products imported into the U.S. citing authority under the International Emergency Economic Powers Act (“IEEPA”). Those tariffs were in addition to the Section 301 tariffs which existed at the time. The prevailing tariff rates on various products and certain countries of origin, including many of our products, fluctuated greatly during 2025. These fluctuations negatively impacted our ability to predict the cost of importing certain goods or groups of goods and negatively impacted our business. In February 2026, the U.S. Supreme Court ruled that the President’s use of IEEPA to impose reciprocal tariffs exceeded his authority and that the IEEPA tariffs must be vacated. The 2024 Section 301 tariff of 100% on syringes and needles from China remains unchanged. Effective February 20,

2026, a 10% ad valorem duty went into effect under Section 122 of the Trade Act. This duty is in addition to the above-mentioned Section 301 tariffs.

As of May 1, 2026, the prevailing tariff rate on most syringe and needle products imported from China was 110%. Other products we import from China, which do not fall under the category of needles and syringes, are subject to a 10% tariff rate. As foreign trade policy continues to evolve, including the impact of the Supreme Court’s ruling, uncertainty as to future tariff rates and affected products remains. Tariffs are expected to have a continuing material impact on our ability to source finished goods and certain raw materials and component parts, and to our results of operations and financial position. We continue working to lessen the financial impact of the tariffs through strategic ordering of products from our Chinese suppliers and continuing to manufacture 1mL, 3mL, and EasyPoint® needles in our domestic manufacturing facility.

During 2024 and 2025, certain tariffs were incorrectly assessed on a portion of our imported finished goods. During 2025, we filed claims with U.S. Customs and Border Protection seeking corrections of those tariff assessments. During the three months ended March 31, 2026, we received approximately $137 thousand in tariff refunds related to these claims. In addition, we received approximately $467 thousand, including interest, in tariff refunds that were processed incorrectly and are subject to potential repayment. Accordingly, these amounts have been recorded as a liability within other accrued liabilities on our condensed balance sheets. None of the foregoing tariff refunds relate to the IEEPA tariffs or the 10% ad valorem duty imposed in 2026.

While we have manufacturing capabilities to manufacture most of the products we currently sell domestically, some of our products are sourced exclusively from China. We obtained 61.0% of our products from our manufacturers in China in the first quarter of 2026, most of which are impacted by the tariffs, however, a portion was shipped directly to international customers, on which no tariffs were assessed. Tariffs may continue to have a material impact to our results of operations and financial position. Approximately $11.6 thousand was incurred in tariff expense in the first quarter of 2026. We are working to lessen the financial impact of the tariffs, including continuing to manufacture 1mL, 3mL, and EasyPoint® needles in our domestic manufacturing facility.

We have recently adapted some equipment to increase our domestic manufacturing capabilities. The adaptations to existing equipment will allow us to produce 0.5 mL syringes domestically. Once operational, we will no longer rely on imports for these products. We currently anticipate that commercial quantities will become available, as market demand necessitates, in the second half of 2026.

Certain products must be purchased from third party suppliers as we do not currently have the machinery to manufacture our entire product line in our U.S. facility. When equipment was added to our U.S. facility pursuant to the TIA, it was strictly for product lines typically used in the administration of vaccines, as required by the TIA.

In 2020 and 2021, we were awarded significant orders and contracts by the U.S. government for safety syringes for COVID-19 vaccination efforts. From 2020 through the first quarter of 2022, the U.S. government was a significant customer. We cannot predict whether any future U.S. government orders may occur.

Recent additions of manufacturing equipment and facilities under the 2020 TIA have increased our production capacity and our overhead costs. Under the TIA and its successor agreement, until June 30, 2030 we must continue to abide by ongoing terms which include maintenance of equipment, availability of capacity, and U.S. government preference in the event of a public health emergency.

The U.S. government orders as well as the TIA were material events particular to the COVID-19 pandemic and are not indicative of future operations.

Over the past several years, we have experienced certain cost increases in raw materials. Those costs primarily affected our domestic manufacturing because the finished goods we purchased from China were subject to a long-term fixed price contract. Sensitivity to cost fluctuations is likely to become more pronounced as we transition away from production under such a fixed price contract. Other factors that could affect our unit costs include tariffs, oil prices, supplier cost increases, increases in workforce costs associated with increased domestic production, and changing production volumes. Increases in costs may not be recoverable through price increases of our products.

In April 2026, we reduced our workforce by approximately 16%. The reduction is expected to save an estimated $2.2 million in annual wages and employment benefits, or approximately 13% of total estimated workforce costs. The expected savings are offset by one-time separation payments of approximately $122 thousand to the affected workers. Approximately 58% of the targeted payroll reduction affected manufacturing or manufacturing support positions and the remainder of the reductions affected sales and sales support roles.

In the first quarter of 2026, we made payments to certain consultants in the approximate total amount of $300 thousand and charitable product donations in the approximate total amount of $593 thousand. Such costs increased our operating expenses and are non-recurring. The charitable product donations were related to certain overstock inventory items. These products were not included in our first quarter 2026 inventory write down, as the items were not within 12 months of expiration. We continue to monitor market demand for these products and currently believe there remain potential sales channels available prior to the products reaching the 12 month expiration threshold.

We believe domestic customers retained products provided for vaccination purposes in inventory. Customers have reported that demand was diminished due to their remaining syringe inventory. It is difficult to estimate how much, if any, of the remaining inventory might still remain in the market.

As detailed in Note 4 to the financial statements, we held $32.8 million in debt and equity securities as of March 31, 2026, which represented 23.9% of our total assets. The unrealized gain on debt and equity securities was $192 thousand due to the increased market values of those securities.

Historically, unit sales have increased during the flu season. Additionally, there may be more demand for EasyPoint® products during the flu season, particularly in the retail pharmacy market. Purchases from our retail pharmacy customers may differ from purchasing patterns of general line distributors.

Overall demand may be affected by public sentiment and acceptance of the safety and efficacy of vaccinations. While some products in our catalog of products are unrelated to the administration of vaccines, changes in the acceptance of vaccinations could have a material impact on our business.

In 1995, we entered into a license agreement with Thomas J. Shaw for the exclusive right to manufacture, market, and distribute products utilizing his patented automated retraction technology and other patented technology. This technology is the subject of various patents and patent applications owned by Mr. Shaw. The license agreement generally provides for quarterly payments of a 5% royalty fee on gross sales of products subject to the license and he receives fifty percent (50)% of the royalties paid to us by certain sublicensees of the technology subject to the license.

### RESULTS OF OPERATIONS

The following discussion may contain trend information and other forward-looking statements that involve a number of risks and uncertainties. Our actual future results could differ materially from our historical results of operations and those discussed in any forward-looking statements. All period references are to periods ended March 31, 2026 or 2025, as applicable. Dollar amounts have been rounded for ease of reading.

### Comparison of Three Months Ended March 31, 2026 and March 31, 2025

Domestic sales accounted for 82.9% and 89.6% of total revenues for the three months ended March 31, 2026 and 2025, respectively. Domestic revenues decreased 20.0%, while domestic unit sales decreased 11.5%. Domestic unit sales represented 72.1% of total unit sales for the three months ended March 31, 2026 compared to 84.9% for the same period last year. The decrease in sales was not proportional to the decrease in unit sales, primarily due to a decrease in average selling price, which was due to change in product mix and higher transaction costs associated with distributor agreements.

International revenues for the three months ended March 31, 2026 increased 42.4% compared to the same period in 2025. The increase in international sales was primarily driven by increase in EasyPoint® needle sales. Traditionally, international sales carry lower average selling prices compared to our domestic sales. There remains uncertainty regarding the timing of future international orders.

Overall, units sales increased 3.6%.

Cost of manufactured product decreased 3.1% compared to the same period last year primarily due to a decrease in freight and tariff expense Royalty expense decreased 7.0% due to the decrease in gross sales.

Tariffs may continue to materially impact our costs in future periods. Approximately $11.6 thousand was spent on tariff expenses in the first quarter of 2026. The reduction in tariff costs compared to prior periods is attributable to ongoing mitigation efforts, including strategic sourcing decisions and increased domestic production. These costs are included in Cost of manufactured product.

Operating expenses increased 14.0% primarily due to increased donation expense.

The loss from operations was $6.2 million compared to a loss of approximately $4.7 million for the same period last year. The increase in loss from operations was primarily driven by negative gross margin for the period and higher donation expense.

The unrealized gain on debt and equity securities was $192 thousand for the three month period ended March 31, 2026 due to the increased market values of those securities. In contrast, there was a material unrealized loss on debt and equity securities of $7.2 million for the three month period ended March 31, 2025.

The provision for income taxes was $1.8 thousand as compared to a benefit for income taxes of $286 thousand for the same period in 2025. The change is primarily due to a decrease in net loss in the current period.

### Discussion of Balance Sheet and Cash Flow Items

Cash flow used by operations was $1.4 million for the three months ended March 31, 2026 due to a number of factors. Aside from the various reconciling items used in determining the overall use of cash, our net loss for the period was the predominant factor. We recognized approximately $1.5 million in other income from the TIA. Changes in working capital also impacted cash flows from operating activities. Accounts receivable decreased by $926 thousand, inventories increased by $107 thousand, accounts payable increased by $44 thousand, and accrued liabilities increased by $794 thousand.

Cash flow from investing activities was $1.7 million for the three months ended March 31, 2026, primarily reflecting net investment activity driven by a reallocation between debt and equity securities within the investment portfolio and liquidation of $2 million of investments to support operating activities during the first quarter of 2026. The funds were used to support operating activities during the first quarter of 2026.

Cash used by financing activities was $147 thousand for the first quarter of 2026. This was primarily due to repayments of long-term debt and payment of preferred stock dividends.

### LIQUIDITY AND CAPITAL RESOURCES

We have historically funded operations primarily from the proceeds from revenues, private placements, investment proceeds, and loans. We may fund operations going forward from revenues, cash reserves, and investments in trading securities should the need to access those funds arise.

The imposition of tariffs on our products may continue to have a material effect on our operating results and liquidity. The workforce reduction implemented in April 2026 is expected to result in cost savings in future periods.

#### Margins

The mix of domestic and international sales, along with product mix, affects the average sales price of our products. Generally, the higher the ratio of domestic sales to international sales, the higher the average sales price will be. Additionally, product mix plays a role, with syringe sales typically having higher average selling prices and gross profit margins than our other product lines. Some international sales of our products are shipped directly from China to the customer. The number of units produced by us versus manufactured in China can have a significant effect on the carrying costs of Inventory as well as Cost of sales. Generally, an overall increase in units sold can positively affect our margins. The cost of raw materials used in manufacturing, transportation costs, and the impact of tariffs can also significantly affect our margins.

Our margins have experienced significant fluctuations over the past two years. Most recently, our margins have faced negative pressure from numerous factors. The tariffs enacted in 2024-2026 have had a direct negative impact on products we import from China to date. In reaction to the tariffs, we have acted to increase our domestic production and reduce, to the extent possible, our reliance on imports. While we believe these efforts will enable us to avoid some of the impact of the tariffs, we will be forced to import the products we are unable to produce in the U.S. As we work to continue our domestic production and achieve manufacturing efficiencies, we expect to incur high manufacturing costs in the near term and will continue to work to minimize our reliance on imported products.

#### Cash Requirements

We believe we will have adequate means to meet our short-term needs to fund operations for at least 12 months from the date of issuance of the financial statements. Besides cash reserves, we also have access to our investments which may be liquidated in the event that we need to access the funds for operations. Expected short-term uses of cash include payroll and benefits, royalty expense, inventory purchases, tariffs, contractual obligations, payment of income taxes, quarterly preferred stock dividends, and other operational priorities. Our liabilities are our bank debt as set forth as Long-term debt on our Condensed Balance Sheets and other liabilities detailed herein in Note 6 and 7 to the financial statements. We believe we will have adequate means to meet our currently foreseeable long-term liquidity needs although the new tariffs and our costs related to an increase in domestic manufacturing have increased our expenses materially. For the next 1-3 years, we believe our liquidity will decline materially, but we expect that we may be able to satisfy our long-term cash requirements using a combination of cash and liquidation of our equity investments. If cash needs cannot be met using existing cash and investments, management may further reduce operational costs. In the event that the foregoing is insufficient, we may liquidate certain assets.

#### Capital Resources

As of March 31, 2026, there were no commitments for material capital expenditures.

CRITICAL ACCOUNTING ESTIMATES

We are responsible for developing estimates for amounts reported as assets and liabilities, and revenues and expenses in conformity with U.S. generally accepted accounting principles (“GAAP”). Those estimates require that we develop assumptions of future events based on past experience and expectations of economic factors. Among the more critical estimates management makes is the estimate for customer rebates. The amount reported as a contractual allowance for rebates involves examination of past historical trends related to our sales to distributors and the related credits issued once our distributors have satisfied their contractual obligations. The estimate includes consideration of historical redemption rates, discount rates, and a combination of estimated distributor inventories based on tracking information provided by the distributors or if known, inventory turnover rates. The establishment of a liability for future claims of rebates against sales in the current period requires that we have an understanding of the relevant sales with respect to product categories, sales distribution channels, and the likelihood of contractual obligations being satisfied. We examine the results of estimates against actual results historically and use the determination to further develop our basis for assumptions in future periods, as well as the accuracy of past estimates. Based on distributors’ purchasing and claiming rebates practices, we do not expect significant changes to the current inputs and assumption used in the estimate calculations. While we believe that we have sufficient historical data, and a firm basis for establishing reserves for contractual obligations, there is an inherent risk that our estimates and the underlying assumptions may not reflect actual future results. In the event that these estimates and/or assumptions are incorrect, adjustments to our reserves may have a material impact on future results. As of March 31, 2026, we estimate that the total potential future credits to be issued as a result of prior purchases which have not yet been claimed is $2.8 million.

## Controls and procedures

As filed, 2,118 characters.

#### Disclosure Controls and Procedures

Pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934, Management, with the participation of our President, Chairman, and Chief Executive Officer, Thomas J. Shaw (the “CEO”), and our Vice President and Chief Financial Officer, John W. Fort III (the “CFO”), acting in their capacities as our principal executive and principal financial officers, evaluated the effectiveness of our disclosure controls and procedures, as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934. The term “disclosure controls and procedures” means controls and other procedures that are designed to ensure that information required to be disclosed by us in our periodic reports is: i) recorded, processed, summarized, and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms; and ii) accumulated and communicated to our Management, including our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Based upon this evaluation, the CEO and CFO concluded that, as of March 31, 2026, our disclosure controls and procedures were not effective as of March 31, 2026.

#### Changes in Internal Control Over Financial Reporting

Since material weaknesses were reported as of December 31, 2025, we have improved our monthly close process and account reconciliations to prevent and/or detect misstatements in a timely manner. Management intends to continue to engage in strengthening review procedures, increasing the level of precision applied in account analyses, and ensuring timely preparation and review of reconciliations. Other than these steps implemented as part of Management’s ongoing efforts to address the previously-reported weakness in internal control over financial reporting, there have been no other changes during the first quarter of 2026 or subsequent to March 31, 2026 in our internal control over financial reporting that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

Filed May 15, 2026.
Source: SEC EDGAR, the filing index for accession 0001104659-26-062253. Last ingested by Listed: Oct 24, 2026, 15:01 ET. No prices; not investment advice.