Retractable Technologies Inc 10-Q for FY2021 Q2

Retractable Technologies Inc (RVP)

10-Q 2021-08-16 For: 2021-06-30

Added on April 06, 2026

About this 10-Q

Retractable Technologies Inc filed this 10-Q on August 16, 2021, covering the quarter ended June 30, 2021 (FY2021 Q2).

Headline figures

Quarter ended June 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $42.5M; up 267.2% from $11.57M a year earlier
Net income: $10.66M; up 183.1% from net income of $3.77M a year earlier
Diluted EPS: $0.31; up 181.8% from $0.11 a year earlier


Period		Total Number of Shares (or Units) Purchased		Average Price Paid Per Share (or Unit)		Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs		Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
June 18, 2021 through June 30, 2021		13,500⁽¹⁾		$11.40		13,500		$9,845,576⁽¹⁾

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

Texas		75-2599762
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

511 Lobo Lane
Little Elm, Texas		75068-5295
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	RVP	NYSE American


Large accelerated filer	☐	Accelerated filer	☐

Non-accelerated filer	☑	Smaller reporting company	þ
		Emerging growth company	☐


	PART I – FINANCIAL INFORMATION

Item 1.	Financial Statements	1
	CONDENSED BALANCE SHEETS	1
	CONDENSED STATEMENTS OF OPERATIONS	2
	CONDENSED STATEMENTS OF CASH FLOWS	3
	CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY	4
	NOTES TO CONDENSED FINANCIAL STATEMENTS	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25
Item 4.	Controls and Procedures	25

	PART II—OTHER INFORMATION

Item 1.	Legal Proceedings	25
Item 1A.	Risk Factors	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3.	Defaults Upon Senior Securities	26
Item 6.	Exhibits	26
SIGNATURES		27


	June 30, 2021		December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	22,439,672	$	17,566,682
Accounts receivable, net		26,194,508		21,131,841
Receivable from Technology Investment Agreement (TIA)		22,103,890		11,779,078
Investments in debt and equity securities, at fair value		13,903,032		8,081,833
Inventories		10,579,262		10,234,646
Other current assets		673,586		684,317
Total current assets		95,893,950		69,478,397

Property, plant, and equipment, net		68,538,031		30,816,504
Deferred tax asset		11,246,970		4,631,206
Other assets		18,761		44,567
Total assets	$	175,697,712	$	104,970,674

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	30,249,662	$	16,256,444
Current portion of long-term debt		281,871		1,030,763
Accrued compensation		1,094,365		826,762
Dividends payable		5,056,946		49,091
Accrued royalties to shareholder		2,600,405		1,973,781
Other accrued liabilities		3,829,121		3,398,904
Income taxes payable		4,522,033		4,365,770
Total current liabilities		47,634,403		27,901,515

Other long-term liabilities		51,461,639		24,478,697
Long-term debt, net of current maturities		1,959,440		2,710,337
Total liabilities		101,055,482		55,090,549

Commitments and contingencies – see Note 8

Stockholders’ equity:
Preferred stock, $1 par value:
Series II, Class B		156,200		156,200
Series III, Class B		80,245		106,745
Common stock, no par value		—		—
Additional paid-in capital		60,706,417		59,285,401
Retained earnings		13,853,792		(9,668,221)
Common stock in treasury – at cost		(154,424)		—
Total stockholders’ equity		74,642,230		49,880,125
Total liabilities and stockholders’ equity	$	175,697,712	$	104,970,674


	Three Months		Three Months		Six Months		Six Months
	Ended		Ended		Ended		Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020

Sales, net	$	42,496,944	$	11,573,845	$	92,570,669	$	22,776,062
Cost of sales
Cost of manufactured product		20,253,357		6,948,567		39,410,698		13,751,242
Royalty expense to shareholder		2,600,405		951,532		5,522,002		1,820,640
Total cost of sales		22,853,762		7,900,099		44,932,700		15,571,882
Gross profit		19,643,182		3,673,746		47,637,969		7,204,180

Operating expenses:
Sales and marketing		1,447,430		851,898		2,378,661		1,987,878
Research and development		399,042		126,255		548,325		264,792
General and administrative		5,121,885		1,735,718		8,615,121		3,510,922
Total operating expenses		6,968,357		2,713,871		11,542,107		5,763,592
Income from operations		12,674,825		959,875		36,095,862		1,440,588

Gain on forgiveness of PPP loan		1,377,652		—		1,377,652		—
Interest and other income		138,232		1,110,217		1,333,011		968,800
Interest expense		(54,687)		(35,986)		(119,782)		(69,835)
Income before income taxes		14,136,022		2,034,106		38,686,743		2,339,553
Provision (benefit) for income taxes		3,473,897		(1,732,007)		10,068,734		(1,749,333)
Net income		10,662,125		3,766,113		28,618,009		4,088,886
Preferred Stock dividend requirements		(59,170)		(174,148)		(124,108)		(348,291)
Income applicable to common shareholders	$	10,602,955	$	3,591,965	$	28,493,901	$	3,740,595

Basic earnings per share	$	0.31	$	0.11	$	0.84	$	0.11

Diluted earnings per share	$	0.31	$	0.11	$	0.83	$	0.11

Weighted average common shares outstanding:
Basic		34,000,771		32,789,047		33,984,271		32,735,126
Diluted		34,376,335		32,985,381		34,365,092		32,856,003


			Series II		Series III
			Class B		Class B		Additional
	Common		Preferred		Preferred		Paid-In		Retained		Treasury
	Stock		Stock		Stock		Capital		Earnings		Stock – at cost		Total
Balance at March 31, 2021	$	—	$	156,200	$	101,745	$	59,333,751	$	8,248,613	$	—	$	67,840,309
Conversion of Preferred Stock into Common Stock		—		—		(21,500)		21,500		—		—		—
Stock Option Exercises		—		—		—		5,250		—		—		5,250
Dividends		—		—		—		—		(5,056,946)		—		(5,056,946)
Stock Option Compensation		—		—		—		1,345,916		—		—		1,345,916
Repurchase of Common Stock – at cost		—		—		—		—		—		(154,424)		(154,424)
Net Income		—		—		—		—		10,662,125		—		10,662,125
Balance at June 30, 2021	$	—	$	156,200	$	80,245	$	60,706,417	$	13,853,792	$	(154,424)	$	74,642,230


			Series I		Series II		Series III		Series IV		Series V
			Class B		Class B		Class B		Class B		Class B		Additional
	Common		Preferred		Preferred		Preferred		Preferred		Preferred		Paid-In		Accumulated
	Stock		Stock		Stock		Stock		Stock		Stock		Capital		Deficit		Total
Balance at March 31, 2020	$	—	$	96,000	$	171,200	$	126,745	$	337,500	$	34,000	$	61,538,444	$	(33,568,461)	$	28,735,428
Exchange of Preferred Stock for Common Stock		—		—		—		—		(2,500)		—		(22,500)		—		(25,000)
Stock Option Exercises		—		—		—		—		—		—		626,687		—		626,687
Dividends		—		—		—		—		—		—		(54,800)		—		(54,800)
Net Income		—		—		—		—		—		—		—		3,766,113		3,766,113
Balance at June 30, 2020	$	—	$	96,000	$	171,200	$	126,745	$	335,000	$	34,000	$	62,087,831	$	(29,802,348)	$	33,048,428


Production equipment		3 to 13 years
Office furniture and equipment		3 to 10 years
Buildings		39 years
Building improvements		15 years


	Three Months Ended			Three Months Ended			Six Months Ended			Six Months Ended
	June 30, 2021			June 30, 2020			June 30, 2021			June 30, 2020
Number of significant customers		1			4			1			2
Aggregate dollar amount of net sales to significant customers	$	27.4 million		$	6.0 million		$	65.1 million		$	6.9 million
Percentage of net sales to significant customers		64.4	%		52.1	%		70.4	%		30.2	%


	For the three months ended June 30, 2021:
			Blood						Total
			Collection		EasyPoint^®		Other		Product
Geographic Segment	Syringes		Products		Needles		Products		Sales
U.S. sales (excluding U.S. government)	$	10,892,733	$	456,818	$	1,358,935	$	13,410	$	12,721,896
Sales to U.S. government		27,357,840		—		—		—		27,357,840
North and South America sales (excluding U.S.)		1,467,508		—		44,880		—		1,512,388
Other international sales		572,520		25,290		305,660		1,350		904,820
Total	$	40,290,601	$	482,108	$	1,709,475	$	14,760	$	42,496,944


	For the six months ended June 30, 2021:
			Blood						Total
			Collection		EasyPoint^®		Other		Product
Geographic Segment	Syringes		Products		Needles		Products		Sales
U.S. sales (excluding U.S. government)	$	19,652,047	$	1,030,826	$	2,971,268	$	28,946	$	23,683,087
Sales to U.S. government		65,140,200		—		—		—		65,140,200
North and South America sales (excluding U.S.)		2,293,328		—		56,848		109,440		2,459,616
Other international sales		771,836		62,640		450,440		2,850		1,287,766
Total	$	87,857,411	$	1,093,466	$	3,478,556	$	141,236	$	92,570,669


	For the six months ended June 30, 2020:
			Blood						Total
			Collection		EasyPoint^®		Other		Product
Geographic Segment	Syringes		Products		Needles		Products		Sales
U.S. sales	$	14,465,322	$	815,843	$	2,422,572	$	42,855	$	17,746,592
North and South America sales (excluding U.S.)		3,616,026		8,000		1,496		1,064,768		4,690,290
Other international sales		330,990		3,590		—		4,600		339,180
Total	$	18,412,338	$	827,433	$	2,424,068	$	1,112,223	$	22,776,062


	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Cost of Sales	$	—	$	—	$	—	$	—
Sales and Marketing		—		—		—		—
Research and development		—		—		—		—
General and administrative		1,345,915		—		1,345,915		—
	$	1,345,915	$	—	$	1,345,915	$	—


	June 30, 2021		December 31, 2020
Raw materials	$	1,712,792	$	1,320,214
Finished goods		8,866,470		8,914,432
	$	10,579,262	$	10,234,646


	Six Months		Six Months
	Ended		Ended
	June 30, 2021		June 30, 2020
Cash flows from operating activities
Net income	$	28,618,009	$	4,088,886
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		429,709		419,488
Net unrealized gain on investments		(1,189,724)		(870,760)
Accreted interest		58,160		—
Deferred taxes		(6,615,764)		(1,801,996)
Provision for doubtful accounts		146,395		125,000
Share-based compensation		1,345,915		—
Gain on forgiveness of PPP loan		(1,377,652)		—
(Increase) decrease in operating assets:
Accounts receivable		(5,209,061)		(2,021,098)
Inventories		(344,617)		(1,945,014)
Other current assets		10,731		10,917
Other assets		25,806		41,049
Increase (decrease) in operating liabilities:
Accounts payable		13,993,219		2,182,838
Accrued liabilities		1,465,375		(87,702)
Income taxes payable		156,263		69,989
Net cash provided by operating activities		31,512,764		211,597

Cash flows from investing activities
Purchase of property, plant, and equipment		(38,151,235)		(374,128)
Purchase of debt and equity securities		(4,631,475)		(2,118,410)
Net cash used by investing activities		(42,782,710)		(2,492,538)

Cash flows from financing activities
Repayments of long-term debt		(136,790)		(128,797)
Proceeds of long-term debt		—		1,363,000
Proceeds from Technology Investment Agreement (TIA)		17,676,051		—
Proceeds from the exercise of stock options		48,600		626,687
Payment of preferred stock redemption price payable		(101,250)		—
Payment of preferred stock repurchase payable		(1,101,110)		(100,000)
Payment of preferred stock dividends		(88,141)		(109,600)
Repurchase of common stock		(154,424)		—
Net cash provided by financing activities		16,142,936		1,651,290


	June 30, 2021
	Level 1		Level 2		Level 3		Total
Equity securities	$	9,694,399	$	—	$	—	$	9,694,399
Mutual funds and exchange traded funds		4,132,439		—		—		4,132,439
Certificates of deposit		—		76,194		—		76,194
	$	13,826,838	$	76,194	$	—	$	13,903,032


	December 31, 2020
	Level 1		Level 2		Level 3		Total
Equity securities	$	3,990,533	$	—	$	—	$	3,990,533
Mutual funds and exchange traded funds		4,013,956		—		—		4,013,956
Certificates of deposit		—		77,344		—		77,344
	$	8,004,489	$	77,344	$	—	$	8,081,833


	June 30, 2021
			Gross Unrealized				Aggregate
	Cost		Gains		Losses		Fair Value
Equity securities	$	6,667,281	$	3,027,118	$	—	$	9,694,399
Mutual funds and exchange traded funds		3,971,702		160,737		—		4,132,439
Certificates of deposit		75,000		1,194		—		76,194
	$	10,713,983	$	3,189,049	$	—	$	13,903,032



	June 30, 2021		June 30, 2020
U.S. statutory federal tax rate	21.0	%	21.0	%
Valuation Allowance	—		(98.2)	%
PPP loan	(1.1)	%	—
State taxes	6.1	%	2.4	%
Effective tax rate	26.0	%	(74.8)	%


	June 30, 2021		December 31, 2020
Prepayments from customers	$	2,256,314	$	1,686,868
Accrued property taxes		225,693		—
Accrued professional fees		196,165		331,204
Current portion – preferred stock repurchase		1,071,637		1,092,282
Other accrued expenses		79,312		288,550
Total	$	3,829,121	$	3,398,904


	June 30, 2021		December 31, 2020
Technology Investment Agreement (TIA)	$	50,445,187	$	22,444,324
Stock repurchase		1,016,452		2,034,373
Total	$	51,461,639	$	24,478,697


	June 30, 2021		December 31, 2020
Long-lived assets
U.S.	$	66,815,307	$	30,751,259
International		1,722,724		65,245
Total	$	68,538,031	$	30,816,504


	June 30, 2021		December 31, 2020
OPERATING LEASES
Other assets	$	13,086	$	38,892
Other accrued liabilities	$	13,086	$	38,892
Other long-term liabilities		—		—
Total operating lease liabilities	$	13,086	$	38,892


Quarter ending June 30, 2021	$	13,168
Less imputed interest		(82)
Total	$	13,086


Exhibit No.		Description of Document

31.1		Certification of Principal Executive Officer

31.2		Certification of Principal Financial Officer

32		Certification Pursuant to 18 U.S.C. Section 1350


101		The following materials from Retractable Technologies, Inc.’s Form 10-Q for the quarter ended June 30, 2021, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Balance Sheets as of June 30, 2021 and December 31, 2020, (ii) Condensed Statements of Operations for the three and six months ended June 30, 2021 and 2020, (iii) Condensed Statements of Cash Flows for the six months ended June 30, 2021 and 2020, (iv) Condensed Statement of Changes in Stockholders’ Equity for the three and six months ended June 30, 2021 and 2020; and (v) Notes to Condensed Financial Statements
104		Interactive Data File (formatted Inline XBRL and contained in Exhibit 101)

DATE: August 16, 2021	RETRACTABLE TECHNOLOGIES, INC.
	(Registrant)


	By:	/s/ John W. Fort
		JOHN W. FORT III VICE PRESIDENT, CHIEF FINANCIAL OFFICER, AND CHIEF ACCOUNTING OFFICER