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What changed in RETRACTABLE TECHNOLOGIES INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of RETRACTABLE TECHNOLOGIES INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+116 added−119 removedSource: 10-K (2026-03-27) vs 10-K (2025-03-28)

Top changes in RETRACTABLE TECHNOLOGIES INC's 2025 10-K

116 paragraphs added · 119 removed · 89 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

17 edited+9 added−9 removed29 unchanged
Biggest changeOur products are sold to and used by healthcare providers. Historically, an overwhelming majority of our products have been sold domestically. However, in 2022, 44.9% of our sales were international sales and in the first quarter of 2023, 50.7% of our sales were international.
Biggest changeFood and Drug Administration (FDA) for review. No products under development are expected to be commercially available in 2026. Our products are sold to and used by healthcare providers. Historically, an overwhelming majority of our products have been sold domestically.
Our VanishPoint ® 1mL syringes meet the criteria set by pharmaceutical manufacturers for low dead space, which results in a reduction of wasted medication caused by residual medication remaining in the syringe after a dose has been administered. In some instances, the low dead space allows for additional doses to be obtained from a medication vial.
Our VanishPoint ® 1mL syringes meet the criteria set by pharmaceutical manufacturers for low dead space, which results in a reduction of wasted medication caused by residual medication remaining in the syringe after a dose has been administered. In some instances, the low dead space allows for additional doses to be obtained from a medication vial.
The TIA (under its April 2023 successor agreement, Other Transaction Agreement) governs ongoing terms until June 30, 2030 which include maintenance of equipment, availability of capacity, and U.S. government preference in the event of a public health emergency. 2 Table of Contents Description of Business Our goal is to become a leading provider of safety medical products.
The TIA (under its April 2023 successor agreement, Other Transaction Agreement) governs ongoing terms until June 30, 2030 which include maintenance of equipment, availability of capacity, and U.S. government preference in the event of a public health emergency. Description of Business Our goal is to become a leading provider of safety medical products.
Army Contracting Command-Aberdeen Proving Ground, Natick Contracting Division & Edgewood Contracting Division (ACC-APG, NCD & ECD) on behalf of the Biomedical Advanced Research and Development Authority (BARDA). The TIA funded the $81.0 million facilities expansion and purchase of new manufacturing equipment and related ancillary equipment.
Army Contracting Command-Aberdeen Proving Ground, Natick Contracting Division & Edgewood Contracting Division (ACC-APG, NCD & ECD) on behalf of the Biomedical Advanced Research and Development Authority (BARDA). The TIA funded the $81.0 million facilities expansion and 1 Table of Contents purchase of new manufacturing equipment and related ancillary equipment.
There is no current scarcity of such materials or such suppliers. Intellectual Property Intellectual property rights, particularly patent rights, are material to our business. The patent rights are jointly owned by the Company and Thomas J. Shaw, our founder and CEO, and have varying expiration dates.
There is no current scarcity of such materials or such suppliers. 2 Table of Contents Intellectual Property Intellectual property rights, particularly patent rights, are material to our business. The patent rights are jointly owned by the Company and Thomas J. Shaw, our founder and CEO, and have varying expiration dates.
Failure to comply could delay the release of a new product or result in regulatory and enforcement actions, the seizure or recall of a product, the suspension or revocation of the authority necessary for a product’s production and sale, and other civil or criminal sanctions including fines and penalties.
Failure to comply could delay the release of a new product or result in regulatory and enforcement actions, the seizure or recall of a product, 3 Table of Contents the suspension or revocation of the authority necessary for a product’s production and sale, and other civil or criminal sanctions including fines and penalties.
Item 1. Business. DESCRIPTION OF BUSINESS General Development of Business Retractable Technologies, Inc. was incorporated in Texas in 1994. Our business is the manufacturing and marketing of safety medical products (predominately syringes) for the healthcare industry. We have manufacturing facilities in Little Elm, Texas and use manufacturers in China as well.
Item 1. Business. DESCRIPTION OF BUSINESS General Development of Business Retractable Technologies, Inc. was incorporated in Texas in 1994. Our business is the manufacturing and marketing of safety medical products (predominately syringes) for the healthcare industry. We have manufacturing facilities in Little Elm, Texas and use manufacturers in China as well. Our syringes are well-suited for administering vaccinations.
Under the terms of an exclusive license agreement that has been in effect since 1995, the Company is exclusively licensed to use the patent 3 Table of Contents rights held by Mr. Shaw, and Mr.
Under the terms of an exclusive license agreement that has been in effect since 1995, the Company is exclusively licensed to use the patent rights held by Mr. Shaw, and Mr.
In years not dominated by direct sales to the U.S. government, representatives of group purchasing organizations (“GPOs”) and purchasing representatives (rather than the end-users of the product) make the vast majority of decisions relating to the purchase of medical supplies. The GPOs and larger manufacturers often enter into contracts which can prohibit or limit entry in the marketplace by competitors.
Representatives of group purchasing organizations (“GPOs”) and purchasing representatives (rather than the end-users of the product) make the vast majority of decisions relating to the purchase of medical supplies. The GPOs and larger manufacturers often enter into contracts which can prohibit or limit entry in the marketplace by competitors.
VanishPoint ® syringe sales have historically comprised most of our sales. Syringe sales were 68.5%; 78.3%; and 91.5% of our revenues in 2024, 2023, and 2022. EasyPoint ® products accounted for 27.1%; 16.6%; and 5.0% of sales in 2024, 2023, and 2022.
VanishPoint ® syringe sales have historically comprised most of our sales. Syringe sales were 65.1%; 68.5%; and 78.3% of our revenues in 2025, 2024, and 2023. EasyPoint ® products accounted for 31.2%; 27.1%; and 16.6% of sales in 2025, 2024, and 2023.
EasyPoint ® retractable needles are compatible with Luer-fitting syringes, including pre-filled syringes. In addition, EasyPoint ® retractable needles may be activated with fluid in the syringe, making it applicable for aspiration procedures such as blood collection. Employees As of March 10, 2025, we had 227 employees. 221 of such employees were full time employees.
EasyPoint ® retractable needles are compatible with Luer-fitting 4 Table of Contents syringes, including pre-filled syringes. In addition, EasyPoint ® retractable needles may be activated with fluid in the syringe, making it applicable for aspiration procedures such as blood collection. Employees As of March 9, 2026, we had 201 employees. 195 of such employees were full-time employees.
We continue to face fierce competition from much larger and more established companies across the U.S. healthcare market. While our products were widely used in the mass vaccination efforts during the COVID-19 pandemic, there is no assurance that we will be able to gain market share due to our relative size and presence in the overall U.S. healthcare market.
While our products were widely used in the mass vaccination efforts during the COVID-19 pandemic, there is no assurance that we will be able to gain market share due to our relative size and presence in the overall U.S. healthcare market.
We provide equal employment opportunities to all employees and applicants for employment without regard to race, color, religion, 5 Table of Contents gender, national origin, age, disability, marital status, ancestry, veteran status, workers’ compensation status or any other characteristic protected by federal, state, or local law.
We provide equal employment opportunities to all employees and applicants for employment without regard to race, color, religion, gender, national origin, age, disability, marital status, ancestry, veteran status, workers’ compensation status or any other characteristic protected by federal, state, or local law. We have adopted a policy of zero tolerance for any form of unlawful discrimination or retaliation.
For example, the European Union, various other countries, and various U.S. states (e.g., California) have 4 Table of Contents enacted stricter data protection laws that contain enhanced financial penalties for noncompliance. Similarly, the U.S.
The regulation of data privacy and security, and the protection of the confidentiality of certain personal information (including patient health information, financial information, and other sensitive personal information), is increasing. For example, the European Union, various other countries, and various U.S. states (e.g., California) have enacted stricter data protection laws that contain enhanced financial penalties for noncompliance. Similarly, the U.S.
From a business perspective, our competitive position has been made more difficult with the implementation of tariffs on products we import from China. In September of 2024, a 100% tariff was placed on syringes and needles, and in 2025 an additional 20% tariff was placed on other products we import which had not previously been covered under the 2024 tariffs.
From a business perspective, our competitive position has been made more difficult with the implementation of tariffs on products we import from China. As of March 9, 2026, the prevailing tariff rate on most syringe and needle products imported from China was 120%.
From January 1 to March 21, 2025 under a system of increasing tariffs, we have paid a total of approximately $951,000 on tariff expenses. We are currently working to lessen the financial impact of the tariffs, including shifting a larger portion of manufacturing of 1mL, 3mL, and EasyPoint ® needles to our domestic manufacturing facility.
We continue working to lessen the financial impact of the tariffs through strategic ordering of products from our Chinese suppliers and shifting a larger portion of manufacturing of 1mL, 3mL, and EasyPoint ® needles to our domestic manufacturing facility.
The extent to which these supplies still exist and the effect it has on future ordering patterns is difficult to estimate. We currently have under development additional safety products that add to or build upon our current product line offering. Such products are not expected to be commercially available in 2025.
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. We currently have under development additional safety products that add to or build upon our current product line offering. One such product has been submitted to the U.S.
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Our syringes are well-suited for administering vaccinations and our revenues materially increased in 2020-2021 due to COVID-19 vaccination demand. Our revenues decreased as sales to the U.S. government for vaccinations wound down in the first quarter of 2022, although international vaccination demand positively and materially impacted sales throughout 2022 and the first quarter of 2023.
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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%.
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In September 2024, a new 100% tariff on syringes and needles imported from China became effective. Additionally, effective February 4th and March 4th of 2025, tariffs on Chinese imports were increased by an aggregate total of 20%. The increase of 20% applied not only to syringes and needles, but to other products we import from China.
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Beginning in early 2025 and throughout much of the year, 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.
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While we have manufacturing capabilities to manufacture most of the products we currently sell domestically, some of our products are sourced exclusively from China. Approximately $1.6 million was spent on tariff expenses from September - December 2024 when the tariff rate was 100% on syringes and needles imported from China.
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Throughout 2025, the prevailing tariff rates on various products and certain countries of origin, including many of our products, fluctuated greatly. 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.
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Additionally, we have recently adapted some equipment to increase our domestic manufacturing capabilities. These adaptations will allow us to manufacture 0.5 mL syringes domestically, reducing our reliance on imports for those products. We expect that commercial quantities will be available for sale in the second half of 2025.
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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. Looking forward after the Supreme Court’s ruling, the 2024 Section 301 tariff of 100% on syringes and needles from China remains unchanged.
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From 2020 through the first quarter of 2022, the U.S. government was a significant customer due to efforts to vaccinate the U.S. population against COVID-19. Sales to the Department of Health and Human Services for safety syringes totaled $15.7 million in 2022 (concentrated in the first quarter), $113.7 million in 2021, and $31.6 million in 2020.
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Additionally, following the Supreme Court’s ruling on the tariffs imposed under IEEPA, effective February 20, 2026 a 10% ad valorem duty went into effect under Section 122 of the Trade Act, which is in addition to the above-mentioned Section 301 tariffs.
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The orders from the Department of Health and Human Services included reimbursement of freight costs. As such, comparability of 2024 revenue and expenses to revenues and expenses in recent years may be challenging. Moreover, we believe domestic customers may have retained product provided for vaccination purposes in inventory, leading to a decrease in overall demand.
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As of March 9, 2026, the prevailing tariff rate on most syringe and needle products imported from China was 120%. Other products we import from China, which do not fall under the category of needles and syringes, are subject to a 20% tariff rate.
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For the remainder of 2023 and for 2024, international sales were closer to 10% of total sales. The increase in 2022 and the first quarter of 2023 is attributable to higher international revenues from vaccination efforts which lagged domestic vaccination sales by a year or more.
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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.
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The regulation of data privacy and security, and the protection of the confidentiality of certain personal information (including patient health information, financial information, and other sensitive personal information), is increasing.
Added
We believe domestic customers may have retained product provided for vaccination purposes in inventory, leading to a decrease in overall demand. The extent to which these supplies still exist and the effect they have on future ordering patterns is difficult to estimate. Overall demand may also be affected by public sentiment and acceptance of the safety and efficacy of vaccinations.
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We have adopted a policy of zero tolerance for any form of unlawful discrimination or retaliation.
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Other products we import from China, which do not fall under the category of needles and syringes, are subject to a 20% tariff rate. We continue to face fierce competition from much larger and more established companies across the U.S. healthcare market.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAny disruption in our suppliers’ operations or timely availability of shipments from our third-party freight carriers could disrupt our ability to provide product to our customers in a timely manner, which could materially and adversely affect our results of operations and cash flows. ​ Inflationary Price Pressures and Uncertain Availability of Commodities, Raw Materials, Utilities, Labor or Other Inputs Used by us and our Suppliers, or Instability in Logistics and Related Costs, Could Negatively Impact our Profitability Increases in the price of commodities, raw materials, utilities, labor or other inputs that we or our suppliers use in manufacturing and supplying products, components and parts, along with logistics and other related costs, may lead to higher production and shipping costs for our products, parts, and components.
Biggest changeAny disruption in our suppliers’ operations or timely availability of shipments from our third-party freight carriers could disrupt our ability to provide product to our customers in a timely manner, which could materially and adversely affect our results of operations and cash flows. ​ Geopolitical conflicts, including ongoing tensions in the Middle East, could disrupt our supply chain and limit the timely availability of components or finished goods, which could materially and adversely affect our results of operations and cash flows. ​ 7 Table of Contents Inflationary Price Pressures and Uncertain Availability of Commodities, Raw Materials, Utilities, Labor or Other Inputs Used by us and our Suppliers, or Instability in Logistics and Related Costs, Could Negatively Impact our Profitability Increases in the price of commodities, raw materials, utilities, labor or other inputs that we or our suppliers use in manufacturing and supplying products, components and parts, along with logistics and other related costs, may lead to higher production and shipping costs for our products, parts, and components.
We expect that as we increase our materials acquisition levels for domestic production, we will be able to achieve economies of scale and greater volume-purchasing agreements with our suppliers, but there is no guarantee such benefits will materialize. ​ 8 Table of Contents Vaccine Hesitancy Could Impact Demand ​ Overall demand may be affected by public sentiment and acceptance of the safety and efficacy of vaccinations.
We expect that as we increase our materials acquisition levels for domestic production, we will be able to achieve economies of scale and greater volume-purchasing agreements with our suppliers, but there is no guarantee such benefits will materialize. ​ Vaccine Hesitancy Could Impact Demand ​ Overall demand may be affected by public sentiment and acceptance of the safety and efficacy of vaccinations.
In the event of a resurgence of COVID-19 or in the case of any future pandemic, there is no guarantee that revenues from syringes needed for vaccines would offset the effects to our business of a global economic decline. 9 Table of Contents Travel and import restrictions may also disrupt our ability to manufacture or distribute our products.
In the event of a resurgence of COVID-19 or in the case of any future pandemic, there is no guarantee that revenues from syringes needed for vaccines would offset the effects to our business of a global economic decline. Travel and import restrictions may also disrupt our ability to manufacture or distribute our products.
Because 25.1% of our total assets are invested in the market, fluctuations in market values could have a material adverse impact on our business, financial condition, results of operations, or cash flows.
Because 24.1% of our total assets are invested in the market, fluctuations in market values could have a material adverse impact on our business, financial condition, results of operations, or cash flows.
Health Crises Could Have an Adverse Effect on Our Business In any future health crisis, we may elect or be required to close temporarily which would result in a disruption in our activities and operations. Our supply chain, including transportation channels, may be impacted by any such restrictions as well. Any such disruption could impact our sales and operating results.
Health Crises Could Have an Adverse Effect on Our Business In any future health crisis, we may elect or be required to close temporarily which would result in a disruption in our activities and operations. Our supply chain, including transportation channels, may be impacted by any such restrictions as well.
As such, independent of the rights granted to Mr. Shaw under the Amendment, as beneficial owner of 53.3% of our stock and Chairman of the Board, Mr. Shaw has considerable influence on all business combination decisions.
As such, independent of the rights granted to Mr. Shaw under the Amendment, as beneficial owner of 55.7% of our stock and Chairman of the Board, Mr. Shaw has considerable influence on all business combination decisions.
Even with increased domestic production, we may not be able to avoid a disruption in supply. We derived 11.1% of our revenues in 2024 from international sales. International sales, particularly in emerging market countries, are further subject to a variety of regulatory, economic, and political risks as well.
Even with increased domestic production, we may not be able to avoid a disruption in supply. We derived 15.8% of our revenues in 2025 from international sales. International sales, particularly in emerging market countries, are further subject to a variety of regulatory, economic, and political risks as well.
We are dependent on patent rights, and if the patent rights are invalidated or circumvented, our business would be adversely affected. Patent protection is considered, in the aggregate, to be of material importance in the design, development, and marketing of our products. Syringes comprised 68.5% of sales in 2024.
We are dependent on patent rights, and if the patent rights are invalidated or circumvented, our business would be adversely affected. Patent protection is considered, in the aggregate, to be of material importance in the design, development, and marketing of our products. Syringes comprised 65.1% of sales in 2025.
With resources greatly in excess of our own, we expect Embecta will be a formidable competitor. 7 Table of Contents We Are Controlled by One Shareholder Thomas J. Shaw, our President and Chief Executive Officer, has investment or voting power over a total of 53.3% of the outstanding Common Stock as of March 10, 2025. Mr.
With resources greatly in excess of our own, we expect Embecta will be a formidable competitor. We Are Controlled by One Shareholder Thomas J. Shaw, our President and Chief Executive Officer, has investment or voting power over a total of 55.7% of the outstanding Common Stock as of March 9, 2026. Mr.
We could be subject to risks associated with doing business outside of the U.S, including risks associated with global economic, regulatory, or political changes, or health crises. Current or worsening economic conditions may adversely affect our business and financial condition. ​
We could be subject to risks associated with doing business outside of the U.S, including risks associated with global economic, regulatory, or political changes, or health crises. Current or worsening economic conditions may adversely affect our business and financial condition. 9 Table of Contents ​ Item 1B. Unresolved Staff Comments. Not applicable and none. ​
Among the political risk we face with regard to international sales is the risk that our products may be subject to reciprocal tariffs in foreign countries in reaction to recently enacted and threatened tariffs by the U.S.
Among the political risk we face with regard to international sales is the risk that our products may be subject to reciprocal tariffs in foreign 5 Table of Contents countries in reaction to recently enacted and threatened tariffs by the U.S. The overall risk to our successful efforts in international markets is unknown and difficult to predict.
Though newly formed, Embecta licenses existing BD intellectual property and has continued to use the BD branding on its products and is provided with certain other services by BD. Embecta’s 2024 annual report indicated that the company had 2,100 employees, as compared to our workforce of 227 employees.
(“Embecta”) in April 2022. Embecta licenses existing BD intellectual property and has continued to use the BD branding on its products and is provided with certain other services by BD. Embecta’s 2025 annual report indicated that the company had 1,850 employees, as compared to our workforce of 201 employees.
In 2024, we used Chinese manufacturers to produce 83.9% of our products. Recently enacted tariffs on our products are expected to have a material negative impact to our results of operations and financial position.
In 2025, we used Chinese manufacturers to produce 62.6% of our products. Tariffs on our products continue to have a material negative impact to our results of operations and financial position.
These competitors may be able to use these resources to improve their products through research and acquisitions or develop new products which may compete more effectively with our products. If our competitors choose to use their resources to create products superior to ours, we may be unable to sell our products and our ability to continue operations would be weakened.
These competitors may be able to use these resources to improve their products through research and acquisitions or develop new products which may compete more effectively with our products.
A material increase in the cost of inputs to our production could lead to higher costs for our products and could negatively impact our operating results. The full impact of greater domestic production on our sourcing materials through our supply chain is not yet known and difficult to estimate.
A material increase in the cost of inputs to our production could lead to higher costs for our products and could negatively impact our operating results.
However, we have recently adapted some equipment to increase our domestic manufacturing capabilities. ​ While we are committed to decreasing our reliance on imported products, and decreasing the negative financial impact such tariffs carry, there is no guarantee that our efforts will be successful.
Notwithstanding our efforts to shift the majority of our manufacturing to our domestic facility, we are still reliant on our Chinese manufacturers to provide products we are not able to manufacture. ​ While we are committed to decreasing our reliance on imported products, and decreasing the negative financial impact such tariffs carry, there is no guarantee that our efforts will be successful.
We are working to lessen the financial impact of the tariffs, including shifting a larger portion of manufacturing of 1mL, 3mL, and EasyPoint ® needles to our domestic manufacturing facility, but these actions are expensive, and the timeline remains uncertain. In addition, the tariffs implemented in 2025 are expanded beyond the original 2024 tariffs placed on syringes and needles.
We are working to lessen the financial impact of the tariffs, including shifting a larger portion of manufacturing of 1mL, 3mL, and EasyPoint ® needles to our domestic manufacturing facility.
For instance, Becton, Dickinson and Company (“BD”), a global company which we had previously considered our primary competitor, spun off a portion of its syringe, needle, and injection product division as Embecta Corp. (“Embecta”) in April 2022.
If our competitors choose to use their resources to create products superior to ours, we may be unable to sell our products and our ability to continue operations would be weakened. 6 Table of Contents For instance, Becton, Dickinson and Company (“BD”), a global company which we had previously considered our primary competitor, spun off a portion of its syringe, needle, and injection product division as Embecta Corp.
Widespread health crises also negatively affect economies which could affect demand for our products.
Any such disruption could impact our sales and operating results. 8 Table of Contents Widespread health crises also negatively affect economies which could affect demand for our products.
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. ​ We Face Inherent Product Liability Risks As a manufacturer and provider of safety needle products, we face an inherent business risk of exposure to product liability claims.
Centers for Disease Control and Prevention (CDC) may negatively impact demand for our products used in vaccine administration. ​ We Face Inherent Product Liability Risks As a manufacturer and provider of safety needle products, we face an inherent business risk of exposure to product liability claims.
The overall risk to our successful efforts in international markets is unknown and difficult to predict. 6 Table of Contents We Are Concerned that Our Stock Price is Not Correlated with Value As of December 31, 2024, our market capitalization was $20.7 million (based on a $0.69 per share closing price) and total stockholders’ equity was $87.2 million.
We Are Concerned that Our Stock Price is Not Correlated with Value As of December 31, 2025, our market capitalization was $23.1 million (based on a $0.77 per share closing price) and total stockholders’ equity was $74.4 million. Our stock price reached a low of $0.62 per share in 2025 despite our strong balance sheet.
If a superior technology is created, the demand for our products could greatly diminish. Our Competitors Have Greater Resources Our competitors have greater financial resources, larger and more established sales and marketing and distribution organizations, and greater market influence, including long-term contracts.
Any such changes could materially and adversely affect our net sales, margins, financial condition, results of operations, and cash flows. Our Competitors Have Greater Resources Our competitors have greater financial resources, larger and more established sales and marketing and distribution organizations, and greater market influence, including long-term contracts.
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Notwithstanding our efforts to shift the majority of our manufacturing to our domestic facility, we are still reliant on our Chinese manufacturers to provide products we are not able to manufacture. We expect a material increase in the costs of imported goods which is expected to materially impact our operations.
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If a superior technology is created, the demand for our products could greatly diminish.
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Our stock price reached a low of $0.57 per share in 2024 despite our strong balance sheet.
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In addition, ongoing innovation in pharmaceutical therapies, delivery methods, and clinical guidelines, including glucagon-like peptide 1 (“GLP 1”) based treatments and other long acting therapies, may alter traditional treatment patterns and reduce, delay, or change the use of insulin and other injectable therapies, which could result in lower demand for certain products or changes in the mix and volume of devices sold.
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As disclosed in a Current Report on Form 8-K on February 16, 2024, we initiated a voluntary recall on February 5, 2024 of our EasyPoint Needle lot number K220402 which was shipped within the U.S. between July 20, 2022 and September 20, 2023.
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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 addition to public sentiment regarding vaccinations, U.S. public health policy and recommendations by the U.S.
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The recall was due to the possible detachment of the needle cannula from the needle holder, which could result in serious injury. The possible defect increases our risk of liability in connection with those units.
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Historically, we have not incurred a negative material impact from product recalls of our products. We and our contract manufacturers adhere to stringent quality control standards and processes to ensure that our products are of the highest quality and remain safe and effective. The safety of healthcare workers and patients remains our highest priority.
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Since the initiation of the voluntary recall, all reasonable efforts have been made to remove EasyPoint Needle lot K220402 from the market in accordance with the recall strategy. We believe the recall is complete and we have requested termination of the voluntary recall from the FDA.
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The Medical Devices and Radiological Health Risk Mitigation and Response Branch has: confirmed our request for termination, notified us that the division is currently experiencing a severe backlog of termination requests which are being processed in the order they are received and informed us that once the termination process begins, they will follow up with us concerning any additional questions they may have.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe Information Security Officer (ISO) reports directly to the Chief Financial Officer (CFO) and regularly briefs the executive team on cybersecurity risks and mitigation strategies. We engage independent cybersecurity firms to conduct penetration testing, vulnerability assessments, and security audits of our IT and OT infrastructure. We also use external expertise for incident response support and regulatory compliance guidance.
Biggest changeStrengthened by SANS LDR512 and LDR514 training, he provides the strategic frameworks and digital expertise needed to navigate complex enterprise security landscapes. We engage independent cybersecurity firms to conduct penetration testing, vulnerability assessments, and security audits of our IT and OT infrastructure. We also use external expertise for incident response support and regulatory compliance guidance.
Business unit and departmental leaders are responsible for implementing cybersecurity controls within their areas of responsibility and reporting potential risks to the ISO. Regular cybersecurity awareness training is provided to all employees to educate them on cyber threats, best practices, and reporting procedures. Management and IT personnel receive additional training on specific security concepts and risk management techniques.
Business unit and departmental leaders are responsible for implementing cybersecurity controls within their areas of responsibility and 10 Table of Contents reporting potential risks to the ISO. Regular cybersecurity awareness training is provided to all employees to educate them on cyber threats, best practices, and reporting procedures.
We are committed to continuous improvement of our cybersecurity risk management program. We actively monitor industry best practices and adapt our program to address evolving threats and risks. ​ 11 Table of Contents ​
Management and IT personnel receive additional training on specific security concepts and risk management techniques. We are committed to continuous improvement of our cybersecurity risk management program. We actively monitor industry best practices and adapt our program to address evolving threats and risks. ​
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The Information Security Officer (ISO) reports directly to the Chief Financial Officer (CFO) and regularly briefs the executive team on cybersecurity risks and mitigation strategies. Our ISO has 20 years of Chief Information Security Officer (CISO) experience and has served in IT leadership roles for multiple organizations. He specializes in cybersecurity and disaster recovery.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeHowever, we do not currently have the necessary equipment to produce every product we offer, and may continue to rely on our international manufacturers to supply those products, incurring the cost of import tariffs. A loan in the original principal amount of approximately $4,210,000 is secured by our land and buildings.
Biggest changeSince 2020, we have significant additional domestic production capacity for some of our products, primarily vaccination syringes and needles associated with the TIA. However, we do not currently have the necessary equipment to produce every product we offer and may continue to rely on our international manufacturers to supply those products, incurring the cost of import tariffs.
Item 2. Properties. Our headquarters are located at 511 Lobo Lane, on 35 acres, which we own, overlooking Lake Lewisville in Little Elm, Texas. The headquarters are in good condition and houses our administrative offices and manufacturing facility. The manufacturing facility produced approximately 16.1% of the units that were manufactured in 2024.
Item 2. Properties. Our headquarters are located at 511 Lobo Lane, on 35 acres, which we own, overlooking Lake Lewisville in Little Elm, Texas. The headquarters are in good condition and houses our administrative offices and manufacturing facility. The manufacturing facility produced approximately 37.4% of the units that were manufactured in 2025.
See Note 8 to our financial statements for more information. In the opinion of Management, the property and equipment are suitable for their intended use and are adequately covered by an insurance policy.
A loan in the original principal amount of approximately $4,210,000 is secured by our land and buildings. See Note 9 to our financial statements for more information. In the opinion of Management, the property and equipment are suitable for their intended use and are adequately covered by an insurance policy. Item 3. Legal Proceedings.
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As a result of recent expansions, we have significant additional domestic production capacity for some of our products, primarily vaccination syringes and needles associated with the TIA.
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As of March 9, 2026, we were not a party to or subject to any material legal proceedings. ​ Item 4. Mine Safety Disclosures. Not applicable. ​ PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeEQUITY COMPENSATION PLAN INFORMATION The following table sets forth information relating to our equity compensation plans as of December 31, 2024: ​ 12 Table of Contents ​ Equity Compensation Plan Information ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ Number of securities ​ ​ ​ ​ average exercise ​ remaining available for ​ ​ Number of securities ​ price of ​ future issuance under ​ ​ to be issued upon ​ outstanding ​ equity compensation ​ ​ exercise of ​ options, ​ plans (excluding ​ ​ outstanding options, ​ warrants and ​ securities reflected in ​ ​ warrants and rights ​ rights ​ column(a)) Plan category (a) (b) (c) Equity compensation plans approved by security holders 145,950 ​ $ 2.05 2,000,000 Total 145,950 ​ $ 2.05 2,000,000 ​ STOCK PERFORMANCE GRAPH The following graph compares the cumulative total return for our Common Stock (RVP) from December 31, 2019 to December 31, 2024, to the total returns for the Russell Microcap ® and the Dow Jones U.S.
Biggest changeWe have no current plans to pay any cash dividends on the Common Stock. 11 Table of Contents EQUITY COMPENSATION PLAN INFORMATION The following table sets forth information relating to our equity compensation plans as of December 31, 2025: Equity Compensation Plan Information ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ Number of securities ​ ​ ​ ​ average exercise ​ remaining available for ​ ​ Number of securities ​ price of ​ future issuance under ​ ​ to be issued upon ​ outstanding ​ equity compensation ​ ​ exercise of ​ options, ​ plans (excluding ​ ​ outstanding options, ​ warrants and ​ securities reflected in ​ ​ warrants and rights ​ rights ​ column(a)) Plan category ​ ​ ​ (a) ​ ​ ​ (b) ​ ​ ​ (c) Equity compensation plans approved by security holders 122,150 ​ $ 1.91 2,000,000 Total 122,150 ​ $ 1.91 2,000,000 ​ STOCK PERFORMANCE GRAPH The following graph compares the cumulative total return for our Common Stock (RVP) from December 31, 2020 to December 31, 2025, to the total returns for the Russell Microcap ® and the Dow Jones U.S.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities. MARKET INFORMATION Our Common Stock has been listed on the NYSE American (or its predecessor entities) under the symbol “RVP” since May 4, 2001. The closing market price on March 10, 2025 was $0.72 per share.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities. MARKET INFORMATION Our Common Stock has been listed on the NYSE American (or its predecessor entities) under the symbol “RVP” since May 4, 2001. The closing market price on March 9, 2026 was $0.66 per share.
SHAREHOLDERS As of March 10, 2025, there were 34,024,304 shares of Common Stock issued, of which 4,087,145 shares were held in treasury. There were 143 shareholders of record, not including Cede & Co. participants or beneficial owners thereof. DIVIDENDS We have not ever declared or paid any dividends on the Common Stock.
SHAREHOLDERS As of March 9, 2026, there were 34,024,304 shares of Common Stock issued, of which 4,087,145 shares were held in treasury. There were 135 shareholders of record, not including Cede & Co. participants or beneficial owners thereof. DIVIDENDS We have not ever declared or paid any dividends on the Common Stock.
Select Medical Equipment Index (DJSMDQ). The graph assumes an investment of $100 in the aforementioned equities as of December 31, 2019, and that all dividends are reinvested. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS Not applicable. ​ PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS None. ​
Select Medical Equipment Index (DJSMDQ). The graph assumes an investment of $100 in the aforementioned equities as of December 31, 2020, and that all dividends are reinvested. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS Not applicable. ​ PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS None. ​ 12 Table of Contents Item 6. Reserved.
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We have no current plans to pay any cash dividends on the Common Stock.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeBesides cash reserves and expected income from operations, 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.
Biggest changeExpected 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 year-end liabilities are detailed in our financial statements, including Notes 7, 8 and 9 to the financial statements.
Such factors include, among others, material changes in demand, tariffs, 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 other factors referenced in Item 1A.
Such factors include, among others, tariffs, 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 other factors referenced in Item 1A.
Other factors that could affect our unit costs include tariffs, 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. ​ We believe domestic customers have retained products provided for vaccination purposes in inventory.
Other factors that could affect our unit costs include tariffs, 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. ​ We believe domestic customers retained products provided for vaccination purposes in inventory.
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 in 2024, our margins have faced negative pressure from numerous factors.
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 estimate includes consideration of historical redemption rates, discount rates, a combination of estimated distributor inventories based on tracking information provided by the distributors or if known, inventory turnover rates.
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 tariffs enacted in 2024 have had a direct negative impact on products we import from China in 2024 and to date in 2025. In reaction to the tariffs, we have acted to increase our domestic production and reduce, to the extent possible, our reliance on imports.
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.
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 15 Table of Contents and those discussed in any forward-looking statements. All period references are to our fiscal years ended December 31, 2024 and 2023.
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 our fiscal years ended December 31, 2025 and 2024.
As of December 31, 2024, we estimate that the total potential future credits to be issued as a result of prior purchases which have not yet been claimed is $2.1 million. ​
As of December 31, 2025, we estimate that the total potential future credits to be issued as a result of prior purchases which have not yet been claimed is $2.4 million. ​
Risk Factors. Given these uncertainties, undue reliance should not be placed on forward-looking statements. Overview We have been manufacturing and marketing our products since 1997. Syringes comprised 68.5% of our sales in 2024.
Risk Factors. Given these uncertainties, undue reliance should not be placed on forward-looking statements. Overview ​ We have been manufacturing and marketing our products since 1997. Syringes comprised 65.1% of our sales in 2025.
The provision for income taxes was $8.4 million as compared to a benefit for income taxes of $1.9 million for 2023. The difference is primarily related to fully reserving our deferred tax asset in the second quarter of 2024.
The provision for income taxes was $291 thousand as compared to a provision for income taxes of $8.4 million as for 2024. The difference is primarily related to fully reserving our deferred tax asset in the second quarter of 2024.
Such comparison was included in our Annual Report on Form 10-K filed with the SEC on March 29, 2024 in Item 7 of Part II thereof. LIQUIDITY AND CAPITAL RESOURCES Cash flow used by operations was $11.6 million in 2024 due to a number of factors.
Such comparison was included in our Annual Report on Form 10-K filed with the SEC on March 28, 2025 in Item 7 of Part II thereof. 15 Table of Contents LIQUIDITY AND CAPITAL RESOURCES Cash flow used by operations was $7.1 million in 2025 due to a number of factors.
Those costs primarily affected our domestic manufacturing because the finished goods we purchased from China (being 83.9% of our products in 2024) were subject to a long-term fixed price contract. Sensitivity to cost fluctuations may become more pronounced as we transition away from production under such a fixed price contract.
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.
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 US government preference in the event of a public health emergency.
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.
Our year-end liabilities are detailed in our financial statements, including Notes 7 and 8 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 will increase our expenses materially.
We believe we will have adequate means to meet our currently foreseeable long-term liquidity needs, although the tariffs and our costs related to an increase in domestic manufacturing will increase 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 would reduce operational costs.
For the next 1-3 years, we believe our liquidity will decline 16 Table of Contents 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 investments.
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. The decline in units sold in 2024 has also had a negative impact on our margins.
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.
Trade Representative (“USTR”) revealed final adjustments to increase tariffs on certain goods imported from China under Section 301 of the Trade Act of 1974. Among those products included were syringes and needles, at a rate of 100%. Additionally, effective February 4th and March 4th of 2025, tariffs on Chinese imports were increased by an aggregate total of 20%.
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%.
During 2024, we liquidated $6 million in mutual funds for operating purposes. Historically, unit sales have increased during the flu season. From 2020-2022, seasonal effects of the flu season on our revenues were less impactful due to the dramatic increase in sales attributable to COVID-19 vaccinations. Seasonal trends for syringe sales may now be following pre-pandemic patterns.
From 2020-2022, seasonal effects of the flu season on our revenues were less impactful due to the dramatic increase in sales attributable to COVID-19 vaccinations. Seasonal trends for syringe sales may now be following pre-pandemic patterns. Additionally, there may be more demand for EasyPoint ® products during the flu season, particularly in the retail pharmacy market.
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, and they will no longer be affected by tariff costs.
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.
We have historically funded operations primarily from the proceeds from revenues, private placements, litigation settlements, 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 will have a material effect on our operating results and liquidity.
This was primarily due to repayments of long-term debt and payment of preferred stock dividends. We have historically funded operations primarily from the proceeds from revenues, private placements, litigation settlements, 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 loss from operations was $21.1 million as compared to a loss from operations of $11.5 million in 2023. The increased loss was due to lower gross profit for the year. The unrealized gain on debt and equity securities was $10.8 million due to the increased market values of those securities.
The loss from operations was $21.2 million as compared to a loss from operations of $21.1 million in 2024. The unrealized loss on debt and equity securities in 2025 was $5.0 million due to the decreased market values of those securities. A $5.6 million gain was realized from the sale of debt and equity securities in 2025.
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. In 2020 and 2021, we were awarded significant orders and contracts by the U.S. government for safety syringes for COVID-19 vaccination efforts.
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. On September 13, 2024, the Office of the U.S.
Accounts receivable decreased by $2.0 million, inventories increased by $1.6 million, and accounts payable decreased by $488 thousand. 16 Table of Contents Cash flow from investing activities was $3.7 million in 2024 due primarily to the net sale of debt and equity securities, offset by $1.4 million for the purchase of property, plant, and equipment.
Accounts receivable increased by $451 thousand, inventories increased by $197 thousand, and accounts payable decreased by $1.0 million. Cash flow from investing activities was $6.0 million in 2025 due primarily to the sale of $37.1 million in debt and equity securities. Cash used by financing activities was $567 thousand for 2025.
Dollar amounts have been rounded for ease of reading. Comparison of Year Ended December 31, 2024 and Year Ended December 31, 2023 Domestic sales accounted for 88.9% and 79.4% of the revenues in 2024 and 2023, respectively.
Dollar amounts have been rounded for ease of reading. Comparison of Year Ended December 31, 2025 and Year Ended December 31, 2024 Domestic sales accounted for 84.2% and 88.9% of the revenues in 2025 and 2024, respectively. Domestic revenues increased 9.7% principally due to an increase in VanishPoint ® and EasyPoint ® needle sales. Domestic unit sales increased 3.6%.
Aside from the various reconciling items used in determining the overall use of cash, our net loss for the year was the predominant factor.
Aside from the various reconciling items used in determining the overall use of cash, our net loss for the year was the predominant factor. We recognized approximately $6.0 million in other income from the TIA. Changes in working capital also impacted cash flows from operating activities.
For a detailed description of the determination and components of calculating the provision, please refer to Note 11 of the financial statements. A comparison of the results of operations for the years ended December 31, 2023 and December 31, 2022 is omitted from this discussion.
A comparison of the results of operations for the years ended December 31, 2024 and December 31, 2023 is omitted from this discussion.
We expect that commercial quantities will be available in the second half of 2025. 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.
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.
As previously noted, 83.9% of the products the Company obtained in 2024 were purchased from our manufacturers in China, most of which are impacted by the tariffs. The adjusted tariffs were effective on September 27, 2024. Tariffs are expected to have a material impact to our results of operations and financial position.
We obtained 62.6% of our products from our manufacturers in China in 2025, most of which are impacted by the tariffs, however, a portion was shipped directly to international customers, on which no tariffs were assessed. Tariffs are expected to continue to have a material impact to our results of operations and financial position.
Additional capital improvements and increases to our manufacturing workforce will also increase expenses in the near-term as a result of the tariffs and our expected increase in domestic manufacturing. The conversion of existing equipment to produce products which have never been produced domestically is expected to cost approximately $1 million.
The imposition of tariffs on our products will continue to have a material effect on our operating results and liquidity. Recent capital improvements and increases to our manufacturing workforce will also increase expenses in the near term as a result of the tariffs and our expected increase in domestic manufacturing.
While additional equipment expenditures may be necessary in the future, this near-term equipment conversion is expected to be completed by the second quarter of 2025. 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”).
Capital Resources As of December 31, 2025, 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”).
As we work to increase our domestic production and achieve manufacturing efficiencies, we 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.
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.
Customers have reported that demand was diminished due to their remaining syringe inventory. It is difficult to estimate how much of the remaining inventory might still remain in the market. As detailed in Note 4 to the financial statements, we held $40.3 million in debt and equity securities as of December 31, 2024, which represented 25.1% of our total assets.
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.
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.
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. 14 Table of Contents The unrealized loss on debt and equity securities was $5.0 million due to the decreased market values of those securities; however, we realized gain on the sale of equity securities of $5.6 million.
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. 14 Table of Contents Recent additions of manufacturing equipment and facilities under the 2020 TIA have increased our production capacity and our overhead costs.
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.
We are working to lessen the financial impact of the tariffs, including shifting a larger portion of manufacturing of 1mL, 3mL, and EasyPoint ® needles to our domestic manufacturing facility, but while these actions would decrease tariff expenses, they have led to an annualized estimated $3.8 million increase in compensation and benefits expense as we have hired additional manufacturing personnel.
Approximately $1.8 million was incurred in tariff expense in 2025. We are working to lessen the financial impact of the tariffs, including shifting a larger portion of manufacturing of 1mL, 3mL, and EasyPoint ® needles to our domestic manufacturing facility. We implemented reductions in force in the second and third quarters of 2025 in both manufacturing and non-manufacturing functions.
Additionally, there may be more demand for EasyPoint ® products during the flu season, particularly in the retail pharmacy market. Overall demand may be affected by public sentiment and acceptance of the safety and efficacy of vaccinations.
Purchases from our retail pharmacy customers may differ from purchasing patterns of general line distributors. EasyPoint ® sales volumes increased primarily for this reason. Overall demand may be affected by public sentiment and acceptance of the safety and efficacy of vaccinations.
The increase of 20% applied not only to syringes and needles, but to other products we import from China. 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 continue working to lessen the financial impact of the tariffs through strategic ordering of products from our Chinese suppliers and shifting a larger portion of manufacturing of 1mL, 3mL, and EasyPoint ® needles to our domestic manufacturing facility. 13 Table of Contents While we have manufacturing capabilities to manufacture most of the products we currently sell domestically, some of our products are sourced exclusively from China.
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. 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.
EasyPoint ® products accounted for 31.2% of sales in 2025 and other products, including our IV safety catheter and blood collection products were 3.7% of our total product sales in 2025. 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.
International revenues decreased 59.1% predominantly due to fewer international vaccination-related sales. Overall unit sales decreased 19.1% and our overall revenues decreased by 24.2%. There is uncertainty as to the timing of future international orders. Cost of manufactured product remained consistent. However, the decrease in revenue did not result in a corresponding decrease in costs.
Overall unit sales increased 23.3% and our overall revenues increased by 15.8%. There is uncertainty as to the timing of future international orders. Cost of manufactured product increased 12.7%. Royalty expense increased 6.6% due to the associated increase in gross sales. Approximately $1.8 million was incurred in tariff expense in 2025. These costs are included in Cost of manufactured product.
Those products accounted for roughly 10.5% of our overall domestic unit sales and 16.6% of our domestic syringe unit sales. The overall impact of additional workforce needed to produce these and other products is an increase of approximately $3.8 million on an annual basis.
The conversion of existing equipment plus the purchase of additional molds to produce 0.5 mL syringes which have never been produced domestically cost approximately $1 million in 2025. Those products accounted for roughly 11% of our overall domestic unit sales and 10.1% of our domestic syringe unit sales in 2025.
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EasyPoint ® products accounted for 27.1% of sales in 2024 and other products, including our IV safety catheter and blood collection products were 4.5% of our total product sales in 2024. On September 13, 2024, the Office of the U.S.
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Beginning in early 2025 and throughout much of the year, 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.
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Approximately $1.6 million was spent on tariff expenses from September - December 2024 when the tariff rate was 100% on syringes and needles imported from China. From January 1 to March 21, 2025 under a system of increasing tariffs, we have paid a total of approximately $951,000 on tariff expenses.
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Throughout 2025, the prevailing tariff rates on various products and certain countries of origin, including many of our products, fluctuated greatly. 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.
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A material portion of our net losses for the year ended December 31, 2024 is comprised of the approximately $8.4 million change in valuation allowance which occurred in the second quarter of 2024 on the deferred tax asset which is included as a provision for income taxes on the Condensed Statements of Operations.
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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. Looking forward after the Supreme Court’s ruling, the 2024 Section 301 tariff of 100% on syringes and needles from China remains unchanged.
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The devaluation of the deferred tax asset was related to our determination that, based on current information, it was more likely than not that we wouldn’t be in a position to use loss carryforwards against future taxable net income based on a variety of factors and accounting guidelines.
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Additionally, following the Supreme Court’s ruling on the tariffs imposed under IEEPA, effective February 20, 2026 a 10% ad valorem duty went into effect under Section 122 of the Trade Act, which is in addition to the above-mentioned Section 301 tariffs.
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The announced implementation of tariffs on imported syringes from China was one of the factors considered in this determination. Our assessment of the valuation allowance has not changed since the second quarter. In 1995, we entered into a license agreement with Thomas J.
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As of March 9, 2026, the prevailing tariff rate on most syringe and needle products imported from China was 120%. Other products we import from China, which do not fall under the category of needles and syringes, are subject to a 20% tariff rate.
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Included in net sales for 2024 is $189 thousand in licensing fees recorded under a sublicensing agreement with one of our Chinese manufacturers. Under the terms of our licensing agreement with Mr. Shaw, he is entitled to receive 50% of this amount, which is recorded as royalty expense to shareholder in total cost of sales for the year.
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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.
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Domestic revenues decreased 15.1% principally due to a decrease in the average selling price, largely due to higher sales of our EasyPoint ® needles which typically have a lower average selling price combined with higher transactional and order fulfillment costs with our distributors. Domestic unit sales decreased 4.3%. Domestic unit sales were 87.7% of total unit sales for 2024.
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As detailed in Note 4 to the financial statements, we held $34.4 million in debt and equity securities as of December 31, 2025, which represented 24.1% of our total assets. Historically, unit sales have increased during the flu season.
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This is primarily driven by a decrease in the volume of units sold, partially offset by higher period costs associated with increased domestic production activities. Royalty expense decreased 18.8% due to the associated decrease in gross sales and decrease in royalties from sublicenses. Tariffs are expected to materially increase our costs in future periods.
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In May 2025, we received a settlement payment of $1.9 million related to the resolution of litigation with former legal counsel. The amount was recorded in Litigation proceeds during the second quarter ended June 30, 2025. In 1995, we entered into a license agreement with Thomas J.
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Approximately $1.6 million was spent on tariff expenses from September - December 2024. These costs are included in Cost of manufactured product. As a result of the above, gross profit margins decreased from 20.9% in 2023 to (3.1)% in 2024.
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Domestic unit sales were 73.7% of total unit sales for 2025. International revenues increased 64.0%, primarily driven by higher EasyPoint ® needle sales, while international unit volume increased 164.7%. Revenue growth was lower than unit growth due to discounted pricing on international units, which had a negative impact on gross margin.
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Operating expenses decreased slightly, primarily due to a reduction in property tax expense resulting from newly enacted property tax exemption legislation related to medical device property. This decrease was partially offset by increases in litigation costs, wages, and sales and marketing expenses.
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As a result of the above, gross profit margins increased from (3.1)% in 2024 to 0.1% in 2025. Operating expenses increased 5.7%, primarily due to an impairment charge of $954 thousand and increased sales and marketing expenses due to increased headcount. The impairment charge of $954 thousand was primarily related to older syringe and tooling equipment.
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We recognized approximately $5.9 million in other income from the TIA, offset by an increase of $8.4 million in valuation allowance related to deferred tax assets which is material to the adjustments to total cash flow from operations. Changes in working capital also impacted cash flows from operating activities.
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As we work to increase our domestic production and achieve manufacturing efficiencies, we expect to incur higher manufacturing costs in the near term but will continue to work to minimize our reliance on imported products.
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The $6 million obtained as a result of the sale of securities was used to fund operating activities during the year. Cash used by financing activities was $535 thousand for 2024. This was primarily due to repayments of long-term debt and payment of preferred stock dividends.
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If cash needs cannot be met using existing cash and investments, management would reduce operational costs, similar to reductions in administrative support in the second quarter of 2025. In the event that the foregoing is insufficient, we may liquidate certain assets.
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In the event that the foregoing is insufficient, we may liquidate certain assets. 17 Table of Contents Capital Resources We expect to spend approximately $1 million over the next few months using existing cash reserves to convert a portion of our domestic equipment to align to our plan to produce more units at our U.S. facility.

Other RVP 10-K year-over-year comparisons