(Former name, former address, and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yesxþ No¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). Yesxþ No¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes¨No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: ~~32,682,454~~33,816,604 shares of Common Stock, no par value, issued and outstanding on ~~May 1,~~November 2, 2020.

The following shows the changes in stockholders’ equity for the three-month period ended ~~March 31,~~September 30, 2020:

The following shows the changes in stockholders’ equity for the three-month period ended ~~March 31,~~September 30, 2019:

The following shows the changes in stockholders’ equity for the nine-month period ended September 30, 2020:

The following shows the changes in stockholders’ equity for the nine-month period ended September 30, 2019:

Retractable Technologies, Inc. (the “Company”) was incorporated in Texas on May 9, 1994, and designs, develops, manufactures, and markets safety syringes and other safety medical products for the healthcare profession. The Company began to develop its manufacturing operations in 1995. The Company’s manufacturing and administrative facilities are located in Little Elm, Texas. The Company’s products are the VanishPoint^® 0.5mL insulin syringe; 1mL tuberculin, insulin, and allergy antigen syringes; 0.5mL, 1mL, 2mL, 3mL, 5mL, and 10mL syringes; the blood collection tube holder; the small diameter tube adapter; the allergy tray; the IV safety catheter; the Patient Safe^® syringes; the Patient Safe^® Luer Cap; the VanishPoint^®Blood Collection Set; and the EasyPoint^® needle as well as a standard 3mL syringe packaged with an EasyPoint^® needle. The Company also sells VanishPoint^®autodisable syringes in the international market in addition to the Company’s other products.

The accompanying condensed financial statements are unaudited and, in the opinion of Management, reflect all adjustments that are necessary for a fair presentation of the financial position and results of operations for the periods presented. All such adjustments are of a normal and recurring nature. The results of operations for the periods presented are not necessarily indicative of the results to be expected for the entire year. The unaudited condensed financial statements should be read in conjunction with the financial statement disclosures contained in the Company’s audited financial statements incorporated into its Form 10-K filed on March 30, 2020 for the year ended December 31, 2019.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates.

For purposes of reporting cash flows, cash and cash equivalents include cash, money market accounts, and investments with original maturities of three months or less.

The Company records trade receivables when revenue is recognized. No product has been consigned to customers. The Company’s allowance for doubtful accounts is primarily determined by review of specific trade receivables. Those accounts that are doubtful of collection are included in the allowance. This provision is reviewed to determine the adequacy of the allowance for doubtful accounts. Trade receivables are charged off when there is certainty as to their being uncollectible. Trade receivables are considered delinquent when payment has not been made within contract terms. The Allowance for bad debt was $271 thousand and $147 thousand as of ~~March 31,~~September 30, 2020 and December 31, 2019, respectively.

The Company requires certain customers to make a prepayment prior to beginning production or shipment of their order. Customers may apply such prepayments to their outstanding invoices or pay the invoice and

continue to carry forward the deposit for future orders. Such amounts are included in Other accrued liabilities on the Condensed Balance Sheets and are shown in Note 6, Other Accrued Liabilities.

The Company records an allowance for estimated returns as a reduction to Accounts receivable and Gross sales. Historically, returns have been insignificant.

Inventories are valued at the lower of cost or net realizable value, with cost being determined using actual average cost. The Company compares the average cost to the net realizable value and records the lower value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Management considers such factors as the amount of inventory on hand and in the distribution channel, estimated time to sell such inventory, the shelf life of inventory, and current market conditions when determining excess or obsolete inventories. A reserve is established for any excess or obsolete inventories or they may be written off.

The Company holds high-grade exchange-traded and closed-end funds (ETFs), mutual funds, equity securities, and debt securities as investments. These assets are readily marketable and are carried at fair value as of the date of the Condensed Balance Sheets.Net unrealized and realized gains or losses on investments in debt and equity securities are reflected as a component of Interest and other income. Realized gains or losses on investments in debt and equity securities are recognized using the specific identification method.

Property, plant, and equipment are stated at cost. Expenditures for maintenance and repairs are charged to operations as incurred. Cost includes major expenditures for improvements and replacements which extend useful lives or increase capacity and interest cost associated with significant capital additions. Gains or losses from disposals are included in operations.

The Company's property, plant, and equipment primarily consist of buildings, land, assembly equipment, molding machines, molds, office equipment, furniture, and fixtures. Depreciation and amortization are calculated using the straight-line method over the following useful lives:

The Company assesses the recoverability of long-lived assets using an assessment of the estimated undiscounted future cash flows related to such assets. In the event that assets are found to be carried at amounts which are in excess of estimated gross future cash flows, the assets will be adjusted for impairment to a level commensurate with fair value determined using a discounted cash flow analysis or appraised values of the underlying assets.

For assets and liabilities that are measured using quoted prices in active markets, total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs are valued by reference to similar assets or liabilities, adjusted for contract restrictions and other terms specific to that asset or liability. For these items, a significant portion of fair value is derived by reference to quoted prices of similar assets or

liabilities in active markets. For all remaining assets and liabilities, fair value is derived using a fair value model, such as a discounted cash flow model or Black-Scholes model.

The Company estimates the fair value of financial instruments through the use of public market prices, quotes from financial institutions, and other available information. Judgment is required in interpreting data to develop estimates of fair value and, accordingly, amounts are not necessarily indicative of the amounts that could be realized in a current market exchange. Short-term financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and other liabilities, consist primarily of instruments without extended maturities, the fair value of which, based on Management's estimates, equals their recorded values. Investments in equity securities consist primarily of individual equity securities, exchange-traded and closed-end funds, and mutual funds and are reported at their fair value based upon quoted prices in active markets.Investments in U.S. Treasury Notes are reported at their fair value based upon quoted prices in active markets. Investments in certificates of deposit (CD) with original maturities of greater than three months are reported at their estimated fair value based upon the duration of the CD and the interest rate earned on the CD versus current interest rates of similar duration CDs. The fair value of long-term liabilities, based on Management’s estimates, approximates their reported values.

The Company’s financial instruments exposed to concentrations of credit risk consist primarily of cash, cash equivalents, certificates of deposit, U.S. Treasury Notes, exchange-traded and closed-end funds, mutual funds, equity securities, and accounts receivable. Cash balances, some of which exceed federally insured limits, are maintained in financial institutions; however, Management believes the institutions are of high credit quality. The Company assesses market risk in debt and equity securities through consultation with its outside investment advisors. Management is responsible for directing investment activity based on current economic conditions. The majority of accounts receivable are due from companies which are well-established entities. In the third quarter of 2020, a significant portion of the Company’s sales were to the U.S. government, which Management does not consider a credit risk. As a consequence, Management considers any exposure from concentrations of credit risks to be limited.

The following table reflects ~~our~~ significant customers for the ~~first quarters~~three- and nine-month periods ending September 30, 2020 and 2019, respectively:

In the third quarter of 2020, approximately $12.9 million of the Company’s sales were to the Department of Health and Human Services of the United States in partial fulfillment of a recent $83.8 million delivery order to supply automated retraction safety syringes (the “HHS Order”). Management expects the U.S. government to remain a significant customer through the remainder of 2020, and ~~2019:~~sales under the HHS Order to increase quarterly through May 2021.

The Company manufactures some of its products in Little Elm, Texas as well as utilizing manufacturers in China. The Company obtained roughly ~~80.3%~~82.2% and ~~76.1%~~82.1% of its products in the first ~~three~~nine months of 2020 and 2019, respectively, from its Chinese manufacturers. Purchases from Chinese manufacturers aggregated 80.5% and 84.2% of products in the three-month periods ended September 30, 2020 and 2019, respectively. In the

event that the Company becomes unable to purchase products from its Chinese manufacturers, the Company would need to find an alternate manufacturer for its blood collection set, IV catheter, Patient Safe^® syringe, 0.5mL insulin syringe, 0.5mL autodisable syringe, and 2mL, 5mL, and 10mL syringes, and would increase domestic production for the 1mL and 3mL syringes and EasyPoint^® needles. Regardless of vendor availability, the Company expects to increase its domestic syringe production capacity at its facilities pursuant to the plans outlined in the TIA as hereinafter defined.

The Company recognizes revenue when it has satisfied all performance obligations to the customer, generally when title and risk of loss pass to the customer. Payments from customers with approved credit terms are typically due 30 days from the invoice date. Under certain contracts, revenue is recorded on the basis of sales price to distributors, less contractual pricing allowances. Contractual pricing allowances consist of: (i) rebates granted to distributors who provide tracking reports which show, among other things, the facility that purchased the products, and (ii) a provision for estimated contractual pricing allowances for products for which

the Company has not received tracking reports. Rebates are recorded when issued and are applied against the customer’s receivable balance. Distributors receive a rebate for the difference between the Wholesale Acquisition Cost and the appropriate contract price as reflected on a tracking report provided by the distributor to the Company. If product is sold by a distributor to an entity that has no contract, there is a standard rebate (lower than a contracted rebate) given to the distributor. One of the purposes of the rebate is to encourage distributors to submit tracking reports to the Company. The provision for contractual pricing allowances is recognized in the period the related sales are recognized and is reviewed at the end of each quarter and adjusted for changes in levels of products for which there is no tracking report. Additionally, if it becomes clear that tracking reports will not be provided by individual distributors, the provision is further adjusted. The estimated contractual allowance is included in Accounts payable in the Condensed Balance Sheets and deducted from Revenues in the Condensed Statements of Operations. Accounts payable included estimated contractual allowances for ~~$3,113,608~~$3,714,002 and $3,586,726 as of ~~March 31,~~September 30, 2020 and December 31, 2019, respectively. The terms and conditions of contractual pricing allowances are governed by contracts between the Company and its distributors. Revenue for shipments directly to end-users is recognized when title and risk of ownership pass from the Company. End-users do not receive any contractual allowances on their purchases. Any product shipped or distributed for evaluation purposes is expensed.

The Company provides product warranties that: i) the products are fit for medical use as generally defined within the boundaries of United States FDA approval; ii) the products are not defective; and iii) the products will conform to the descriptions set forth in their respective labeling, provided that they are used in accordance with such labeling and the Company’s written directions for use. The Company has historically not incurred significant warranty claims.

The Company’s domestic return policy provides that a customer may return incorrect shipments within 10 days following arrival at the distributor’s facility. In all such cases, the distributor must obtain an authorization code from the Company and affix the code to the returned product. The Company’s domestic return policy also generally provides that a customer may return product that is overstocked. Overstocking returns are limited to two times in each 12-month period up to 1% of distributor’s total purchase of products for the prior 12-month period. All product overstocks and returns are subject to inspection and acceptance by the Company.

The Company’s international distribution agreements generally do not provide for any returns.

The Company requires certain customers to pay in advance of product shipment. Such prepayments from customers are recorded in Other accrued liabilities and are generally recognized as revenue within 30 to 60 days of ~~receipt at~~shipment of the ~~time product is shipped.~~product.

The Company recognizes revenue from licensing agreements when collection of such amounts from third parties is reasonably assured. If the Company licenses its products for sale, the Company is obligated to pay Thomas J. Shaw, the owner of certain patented technology, a certain percentage of such revenue pursuant to the terms of the Technology License Agreement between the Company and Mr. Shaw.

Disaggregated information of revenue recognized from contracts with customers and licensing fees recognized are as follows:

The Company evaluates tax positions taken or expected to be taken in a tax return for recognition in the financial statements based on whether it is “more-likely-than-not” that a tax position will be sustained based

upon the technical merits of the position. Measurement of the tax position is based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement.

The Company provides for deferred income taxes through utilizing an asset and liability approach for financial accounting and reporting based on the tax effects of differences between the financial statement and tax bases of assets and liabilities, based on enacted rates expected to be in effect when such differences reverse in future periods. Deferred tax assets are periodically reviewed for realizability. ~~The~~In prior periods, the Company ~~has~~ established a valuation allowance for its net deferred tax asset as future taxable income ~~cannot~~which could not be reasonably assured. ~~Penalties and interest related to income taxes are classified as General and administrative expense and Interest expense, respectively,~~During the quarter ended June 30, 2020, the Company released its valuation allowance based on available evidence supporting that its deferred tax assets will be realized in ~~the Condensed Statements of Operations.~~full.

The Company computes basic earnings or loss per share (“EPS”) by dividing net earnings for the period (adjusted for any cumulative dividends for the period) by the weighted average number of common shares outstanding during the period. Diluted EPS includes the determinants of basic EPS and, in addition, reflects the dilutive effect, if any, of the common stock deliverable pursuant to stock options or common stock issuable upon the conversion of convertible preferred stock. The calculation of diluted EPS ~~excluded 382,800 and 1,357,803~~included 226,150 shares of ~~common~~Common Stock underlying issued and outstanding stock ~~option at March 31, 2020~~options for both the three and ~~2019, respectively, as their effect was antidilutive. All common stock~~nine months ended September 30, 2020. Common Stock issuable upon the conversion of convertible preferred stock is excluded from the calculation of of diluted EPS for the three months ended September 30, 2019 and for the nine months ended September 30, 2020 and 2019 as their effect was antidilutive for ~~all periods presented.~~those periods. Common Stock issuable upon the conversion of convertible preferred stock is included in the calculation of diluted EPS for the three months ended September 30, 2020 as their effect was dilutive for the period. The potential dilution, if any, is shown on the following schedule:

The FASB Codification 260-10-S99-2, Effect on the Calculation of Earnings per Share for the Redemption or Induced Conversion of Preferred Stock, requires the gain or loss on extinguishment of equity-classified preferred stock to be included in the net income per common stockholder used to calculate earnings per share (similar to the treatment of dividends paid on preferred stock). The difference between (1) the fair value of the consideration transferred to the holders of the preferred stock and (2) the carrying amount of the preferred stock (net of issuance costs) is subtracted from (or added to) net income to arrive at income available to common stockholders in the calculation of earnings per share.

The Company has determined to apply this guidance to its accounting treatment of the preferred stock transactions described in Note 12.

The Company classifies shipping and handling costs as part of Cost of sales in the Condensed Statements of Operations.

The Company determines if an arrangement is a lease at inception. Operating and finance leases are included in Other assets, Other accrued liabilities, and Other long-term liabilities on the Condensed Balance Sheets. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the incremental borrowing rate based on information available at the commencement date was used in determining the present value of lease payments.

The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of twelve months or less are not recorded on the Condensed Balance Sheets; however, rent expense is recognized on a straight-line basis over the lease term.

Effective July 1, 2020, the Company entered into a Technology Investment Agreement (“TIA”) with the United States Government Department of Defense, U.S. 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) (“Government”) for $53,664,286 in Government funding for expanding the Company’s domestic production of needles and syringes. Pursuant to the terms of the TIA, the Company is expected to make significant additions to its facilities which should allow the Company to increase domestic production. As reimbursements are received from the Government for such expenditures, the Company records a deferred liability. The deferred liability will be systematically amortized as a gain over the life of the related property, plant, and equipment as to offset the related depreciation expense of the assets acquired. The amortization will be presented separately from the depreciation expense on the Condensed Statements of Operations.

The Company adopted ASU 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” as well as subsequent clarifying amendments on January 1, ~~2020 effective for the quarter ended March 31,~~ 2020. Among other things, these amendments require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Many of the loss estimation techniques applied previously will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. The adoption of ASU 2016-13, as well as the Targeted Transition Relief as provided by ASU 2019-05, “Financial Instruments – Credit Losses (Topic 326) – Targeted Transition Relief” did not have a ~~material~~significant impact on the Company’s financial statements.

The Company adopted ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (a Consensus of the FASB Emerging Issues Task Force)” on January 1, ~~2020 effective for the quarter ended March 31,~~ 2020. This amendment requires that implemented costs incurred in a hosting arrangement that is a service contract should be accounted for in accordance with ASC 350-40 Internal-Use Software. Accordingly, costs incurred during the preliminary project and post-implementation stages are expensed and costs associated with the application development phase are capitalized. The amendment also requires that capitalized costs be amortized over the term of the hosting arrangement and that capitalized costs should be evaluated for impairment. The adoption of this ASU did not have a ~~material~~significant impact on the Company’s financial statements or disclosures.

In August 2018, the FASB issued ASU 2018-13 “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” The amendment modifies, among other things, disclosure requirements on fair value measurements and eliminates certain disclosures related to transfers and valuation levels of Level 3 fair value measurements. Additionally, the amendment requires disclosure of changes in unrealized gains and losses in other comprehensive income for Level 3 fair value measurements and certain qualitative factors related to significant unobservable inputs used in Level 3 valuations. The amendment is effective for annual periods beginning after December 15, 2019 and interim periods within the annual period. The adoption of ASU 2018-13 ~~does~~did not ~~currently~~ have a ~~material~~significant effect on the Company’s financial statements, as the Company does not currently have any investments classified as Level 3 fair value measurements.

In December 2019, the FASB issued ASU 2019-12, ~~Income~~“Income Taxes: Simplifying the Accounting for Income ~~Taxes.~~Taxes”. The new standard is intended to simplify the accounting for income taxes by eliminating certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard is effective for annual periods beginning after December 15, 2020 and interim periods within the annual period, with early adoption permitted. Adoption of the standard requires certain changes to primarily be made prospectively, with some changes to be made retrospectively. The Company ~~is currently evaluating~~has determined that the ~~impact~~ adoption of ASU 2019-12 will not have a material impact on its financial statements.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients for contracts that reference LIBOR, if certain criteria are met, that can be applied through December 31, 2022. As reference rate reform is still an ongoing process, the Company will continue to evaluate the timing and potential impact of adoption for optional expedients when deemed necessary.

ASC 820, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value and requires additional disclosures regarding certain fair value measurements. ASC 820 establishes a three-tier hierarchy for measuring fair value, as follows:

The following tables summarize the values of assets designated as Investments in debt and equity securities:

The Company holds high-grade ~~exchange-traded and closed-end~~ETFs, mutual funds, ~~(ETFs)~~individual equity stocks (predominately in the energy sector), ~~mutual funds,~~ and debt securities as investments. These assets are readily marketable and are carried at fair value as of the date of theCondensed Balance Sheets. The Company intends to hold these assets for possible future operating requirements.

The following table summarizes gross unrealized gains and losses from Investments in debt and equity securities:

Unrealized gains (losses) on investments in debt and equity securities ~~was ($164,342)~~were $559,543 and ~~$43,102~~$129,728 for the ~~three~~nine months ended ~~March 31,~~September 30, 2020 and 2019, respectively.

The Company’s effective tax rate on the net income ~~(loss)~~ before income taxes was ~~0.2%~~15.63% and ~~0.0%~~(1.2)% for the three and nine months ended ~~March 31,~~September 30, 2020, respectively, and 0.4% and 0.6% for each of the three- and nine-month periods ended September 30, 2019. For the three and nine months ended September 30, 2020 and ~~March 31,~~ 2019, ~~respectively.~~the Company's effective tax rate was determined based on the estimated annual effective income tax rate.

The effective tax rate for the three and nine months ended September 30, 2020 was different from the federal statutory rate due primarily to the income tax benefit recorded in connection with the release of the valuation allowance on deferred tax assets.

On November 7, 2019, the Company filed a lawsuit in the 44^th District Court of Dallas County, Texas (No. DC-19-17946) against Locke Lord, LLP and Roy Hardin in connection with their legal representation of the Company in its previous litigation against Becton, Dickinson and Company (“BD”). The Company alleges that the defendants breached their fiduciary duties, committed malpractice, and were negligent in their representation of the Company. The Company seeks actual and exemplary damages, disgorgement, costs, and interest. ~~The defendants have filed a~~On October 6, 2020, the Court dismissed Defendants’ motion to dismiss, ~~and~~which order was appealed by the Defendants on October 9, 2020 to the Court ~~has scheduled a hearing on such motion on June 3, 2020.~~of Appeals, Fifth District of Texas at Dallas.

The Company does not operate in separate reportable segments. Shipments to international customers generally require a prepayment either by wire transfer or an irrevocable confirmed letter of credit. The Company does extend credit to international customers on some occasions depending upon certain criteria, including, but not limited to, the credit worthiness of the customer, the stability of the country, banking restrictions, and the size of the order. All transactions are in U.S. currency.

	Three Months Ended September 30, 2020		Three Months Ended September 30, 2019		Nine Months Ended September 30, 2020		Nine Months Ended September 30, 2019
U.S. sales (excluding HHS Order)	$	12,624,055	$	9,039,208	$	29,203,105	$	23,031,222
HHS Order sales to U.S. Government		12,898,080		—		14,065,623		—
North and South America sales (excluding U.S.)		1,295,530		2,432,734		5,985,820		4,960,486

	Three Months Ended March 31, 2020		Three Months Ended March 31, 2019		Three Months Ended September 30, 2020		Three Months Ended September 30, 2019		Nine Months Ended September 30, 2020		Nine Months Ended September 30, 2019
U.S. sales	$	8,336,797	$	6,139,911
North and South America sales (excluding U.S.)		2,746,400		1,335,370
Other international sales		119,020		457,193		273,399		167,644		612,578		1,176,242
Total sales	$	11,202,217	$	7,932,474	$	27,091,064	$	11,639,586	$	49,867,126	$	29,167,950

Long-lived assets by geography are as follows:

	March 31, 2020		December 31, 2019			September 30, 2020		December 31, 2019
Long-lived assets
U.S.	$	10,524,380	$	10,542,688	$	19,413,966	$	10,542,688
International		83,338		89,369		71,276		89,369
Total	$	10,607,718	$	10,632,057	$	19,485,242	$	10,632,057

9.10.

DIVIDENDS

The Board declared and the Company paid dividends to Series I and Series II Class B Preferred Shareholders in the following amounts: $12,313 and $42,800, respectively, on January 18, 2019 and April 22, 2019. The Board declared and the Company paid dividends to Series I and Series II Class B Preferred Shareholders in the following amounts: $12,000 and $42,800, respectively, on July 19, 2019, October 21, 2019, January 22, 2020, ~~and~~ April 20, 2020, and July 20, 2020. The Board declared and the Company paid dividends on October 22, 2020 to Series I and Series II Class B Preferred Shareholders in the following amounts: $12,000 and $40,242.

In the third quarter of 2020, a shareholder converted 15,000 shares of Series II Class B Preferred Stock into the same number of shares of Common Stock.

~~10.~~11.

LEASES

The Company has operating leases for a corporate office and ~~equipment.~~warehouse space. The leases have a remaining lease term of less than one year. The Company currently has no finance leases. The right-of-use (“ROU”) asset is determined based on the lease liability adjusted for lease incentives received. Lease expense is recognized on a straight-line basis over the lease term. The leases may include various expenses incidental to the use of the property, such as common area maintenance, property taxes and insurance. These costs are separate from the minimum rent payment and are not considered in the determination of the lease liability and ROU asset. The Company has not noted any material instances in its leases where these costs were combined with the minimum rent payment and has therefore elected the policy to not separate lease from non-lease components if they are combined with the minimum rent payment. The option periods are not included in the determination of the lease liability and right-of-use asset as the Company is not reasonably certain if it will extend at the time of lease commencement.

The operating lease cost component of the lease expense was ~~$20,283~~$69,689 for the ~~3-month~~nine-month period ended ~~March 31,~~September 30, 2020. The cash paid for amounts included in the measurement of lease liabilities as a component of cash flows related to leases was ~~$20,283~~$69,689 for the ~~three~~nine months ended ~~March 31,~~September 30, 2020. The operating lease cost component of the lease expense was ~~$19,854 at March 31,~~$60,175 for the nine months ended September 30, 2019. The cash paid for amounts included in the measurement of lease liabilities as a component of cash flows related to leases was ~~$19,854~~$60,175 for the ~~three~~nine months ended ~~March 31,~~September 30, 2019.

Assets and liabilities associated with these leases included in the Condensed Balance Sheets are as follows:

	March 31, 2020		December 31, 2019			September 30, 2020		December 31, 2019
OPERATING LEASES
Other assets	$	62,077	$	82,359	$	72,515	$	82,359
Other accrued liabilities	$	62,077	$	82,359	$	72,515	$	82,359
Other long-term liabilities		—		—		—		—
Total operating lease liabilities	$	62,077	$	82,359	$	72,515	$	82,359

The weighted average remaining lease term is ~~nine~~9.4 months and the weighted average discount rate is ~~4.0%~~3.82%.

Future minimum payments under non-cancelable operating leases and financing leases consist of the following at ~~March 31,~~September 30, 2020:

Year ending December 31, 2020	$	63,116		$	73,709

Less imputed interest		(1,039	)		(1,194)
Total	$	62,077		$	72,515

~~11.~~12.

EXCHANGE OF COMMON STOCK FOR PREFERRED STOCK

Effective January 13, 2020, the Company ~~agreed with two preferred stockholders to purchase~~purchased outstanding Class B Convertible Preferred Stock (the “Preferred Stock”) from preferred shareholders for cash and Common Stock. Such preferred stockholders tendered to the Company a total of 2,500 shares of Series III Preferred Stock and 5,000 shares of Series IV Preferred Stock. A total of $75,000 and 7,500 shares of Common Stock were issued as consideration therefor. In accordance with the terms of the agreements, the preferred stockholders agreed to waive all unpaid dividends in arrears associated with their Preferred Stock, which resulted in a waiver of a total of $149,795 in unpaid dividends in arrears.

Effective May 18, 2020, the Company purchased 2,500 shares of Series IV Preferred Stock from one shareholder for $25,000 and 2,500 shares of Common Stock. Such preferred stockholder agreed to waive all unpaid dividends in arrears associated with its Preferred Stock, which resulted in a waiver of a total of $50,370 in unpaid dividends in arrears.

On September 30, 2020, the Company purchased 300,000 shares of Series IV Preferred Stock from a shareholder for $3,000,000 in cash, with a net present value of $2,723,248, to be paid over a three-year period beginning February 2021 and 600,000 shares of Common Stock. Such preferred stockholder agreed to waive all unpaid dividends in arrears associated with its Preferred Stock, which resulted in a waiver of a total of $6,091,233 in unpaid dividends in arrears.

~~12.~~13.

STOCK OPTIONS

Stock options were exercised by the Company’s employees and directors at various dates during the quarter ended September 30, 2020, and, consequently, a total of 121,800 shares of Common Stock were issued for an aggregate payment to the Company of $224,325 to exercise such options. For the nine months ended September 30, 2020, as a result of exercised stock options, a total of 406,650 shares of Common Stock were issued for an aggregate payment to the Company of $851,012.

14.

COVID-19

To date, the Company’s manufacturing facility in Little Elm, Texas has continued to operate due to its status as an essential business. As a result of the COVID-19 pandemic, the Company has implemented certain safety precautions at its facility to reduce the risk of the potential spread of the novel coronavirus. The Company has implemented arrangements to reduce the number of office staff employees working on-site at the production facility, as well as instituting personal distancing policies and monitoring of essential production staff to minimize the risk of infection. ~~Such precautions have not reduced the Company’s ability or capacity to operate at normal manufacturing levels.~~ The Company continues to monitor the evolving situation and will work to further mitigate risks to ~~our~~ staff and to ~~our~~ customers. At this time, the Company believes that it has sufficient inventory, manufacturing capacity, and the ability to source products to meet current demand. The Company is unable to predict with certainty the course of the pandemic and resulting potential effect on our ability to maintain current operational functionality. The Company is continuing to evaluate the ever-changing circumstances surrounding this pandemic as it relates to its ability to continue to source materials and products, maintain a workforce, and operate ~~our~~its business effectively and efficiently.Despite the global disruption of the coronavirus pandemic, the Company has not experienced a significant disruption to its supply chain. During 2020, the Company has experienced an increase in demand for its products and has been able to meet such demand with increased volumes despite the pandemic. The Company is unable to predict with certainty its ability to maintain its current operational functionality.

~~13.~~15.

~~SUBSEQUENT EVENTS~~PAYCHECK PROTECTION PROGRAM LOAN

On April 17, 2020, the Company entered into a promissory note in the principal amount of $1,363,000 (the “PPP Loan”) in favor of Independent Bank (the “Lender”) pursuant to the Paycheck Protection Program (the ~~“PPP”~~

“PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), administered by the U.S. Small Business Administration (“SBA”). The PPP Loan matures on April 17, 2022 and bears interest at a rate of 1.0% per annum. Commencing November 17, 2020, the Company is required to pay the Lender equal monthly payments of principal and interest as necessary to fully amortize the principal amount outstanding by the maturity date. The PPP Loan may be prepaid by the Company at any time prior to maturity with no prepayment penalties. The PPP Loan is unsecured and is a non-recourse obligation. ~~All~~ PPP loan recipients can apply for and be granted forgiveness for all or a portion of the loan granted under the PPP, ~~Loan~~with such forgiveness to be determined, subject to limitations, based on the use of the loan proceeds for payment of payroll costs, rent, utilities, and interest on debt. The terms of any forgiveness may also be ~~forgiven upon application~~subject to further requirements in any regulations and guidelines the ~~Lender during~~SBA may adopt.

As of September 30, 2020, the ~~8-week~~Company believes it has incurred qualifying expenses equal to or greater than the principal amount of the PPP Loan; however, the Company is not able to determine the amount, if any, that might be forgiven.

On June 5, 2020, the PPP Flexibility Act was signed into law which, among other things, (i) extended the covered period ~~beginning on~~from 8 weeks after the date of ~~first disbursement~~PPP funding to 24 weeks after the date of PPP funding, (ii) reduced the required amount of payroll expenditures from 75% to 60%, (iii) removed the prior ban on borrowers taking advantage of payroll tax deferral after loan forgiveness and (iv) extended the repayment deferral period to be the earlier of (a) the date forgiveness funds are received or (b) ten months from the end of the covered period. The Company is evaluating the impact of these changes on the PPP Loan, including the payment date and the amounts available for ~~certain expenditure amounts, including payroll costs, in accordance with the requirements under the PPP. In the event all or any portion of~~forgiveness.

Assuming the PPP Loan is not forgiven, the ~~amount forgiven is applied to outstanding principal.~~Company’s obligations thereunder are as follows as of September 30, 2020 for years ending December 31:

2020	$	151,244
2021		912,826
2022		298,930
	$	1,363,000

~~On May~~

16.	TECHNOLOGY INVESTMENT AGREEMENT

Effective July 1, 2020, the Company ~~was awarded a delivery order under an existing contract by~~entered into the ~~Department of Health and Human Services~~TIA with the Government. The principle purpose of the ~~United States~~TIA is to ~~supply automated retraction~~fund the expansion of the Company’s manufacturing capacity for hypodermic safety syringes. The total fixed price under the delivery order is $83,788,440. The existing contract was executed in September 2018, but the order placed on May 1, 2020 is unusually significant to the Company. The Company expects to increase both domesticneedles and ~~foreign production and add additional personnel~~corresponding syringes in response to ~~this material delivery order.~~the worldwide COVID-19 global pandemic. The Government award is an expenditure-type TIA, whereby the Government will make payments to the Company for the Company’s expenditures for equipment and supplies in carrying out the expansion of the Company’s domestic production. The Company’s contributions under the terms of the TIA to enhance domestic capacity of pandemic-essential technology include providing facilities, technical expertise, labor, and maintenance of the TIA-funded equipment for a ten-year term.

As of early November 2020, the Company has negotiated contracts for the purchase of automated assembly equipment, molds, and molding equipment, as well as portions of auxiliary equipment, for approximately $38 million. The Company ~~expects~~has engaged architects and general construction contractors for the completion of new controlled environment facilities and additional warehousing facilities. The expanded facilities consist of approximately 27,800 square feet of additional controlled environment within existing properties and new construction of approximately 55,000 square feet of new warehouse space in conjunction with the overall production capacity expansion. The estimated cost of the controlled environment within existing properties is $6 million, and construction of the new warehouse is estimated to ~~perform~~be $5.8 million. The cost of the controlled environment will be funded by the Government under ~~this delivery order during 2020 and a portion~~the TIA, while the cost of the new warehouse will be funded by the Company. Building permits were obtained for both buildings in October 2020. The scheduled completion dates for the construction are within the second quarter of 2021.

17.	SUBSEQUENT EVENTS

In October 2020, the Company purchased a total of 30,000 shares of Series IV Preferred Stock and 25,000 shares of Series V Preferred Stock from six shareholders in exchange for a total of $400,000 (of which $303,330 is to be paid over a three-year period beginning February 2021) and 110,000 shares of Common Stock. Such preferred shareholders agreed to waive all unpaid dividends in arrears associated with its Preferred Stock, which resulted in a waiver of a total of $757,759 in unpaid dividends in arrears.

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

FORWARD-LOOKING STATEMENT WARNING

Certain statements included by reference in this filing containing the words “could,” “may,” “believes,” “anticipates,” “intends,” “expects,” and similar such words constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Any forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among others, ~~global pandemics,~~the impact of COVID-19 on all facets of logistics and operations, as well as costs, our ability to complete capital improvements and ramp up domestic production in response to government agreements, potential 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 ~~quickly increase capacity in response to an increase in demand, our ability to~~ access the market, ~~our ability to maintain or lower~~ production costs, ~~our ability to continue to finance research and development as well as operations and expansion of production,~~ the impact of larger market players, specifically Becton, Dickinson and Company ("BD"), in providing devices to the safety market, and other factors referenced in Item 1A. Risk Factors in Part II. Given these uncertainties, undue reliance should not be placed on forward-looking statements.

MATERIAL CHANGES IN FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

We have been manufacturing and marketing our products since 1997. VanishPoint^® syringes comprised ~~81.6%~~82.3% of our sales in the first ~~quarter~~nine months of 2020. We also manufacture and market the EasyPoint^®needle, blood collection tube holder, IV safety catheter, and VanishPoint^®Blood Collection Set. We currently provide other safety medical products in addition to safety products utilizing retractable technology. One such product is the Patient Safe^® syringe, which is uniquely designed to reduce the risk of bloodstream infections associated with catheter hub contamination.

In the second quarter of 2016, we began selling the EasyPoint^® needle. EasyPoint^®needles made up ~~6.9%~~12.0% of revenues for the ~~quarter~~nine months ended ~~March 31,~~September 30, 2020. The EasyPoint^® is a retractable needle that can be used with Luer lock syringes, Luer slip syringes, and prefilled syringes to give injections. The EasyPoint^® needle can also be used to aspirate fluids and collect blood.

Our products have been and continue to be distributed nationally and internationally through numerous distributors. Although we have made limited progress in some areas, such as the alternate care market, our volumes are not as high as they should be given the nature and quality of our products and the federal and state legislation requiring the use of safe needle devices. The alternate care market is composed of facilities that provide long-term nursing and out-patient surgery, emergency care, physician services, health clinics, and retail pharmacies.

We continue to pursue various strategies to have better access to the hospital market, as well as other markets, including attempting to gain access to the market through our sales efforts, our innovative technology, introduction of new products, and, when necessary, litigation.

Historically, unit sales have increased in the latter part of the year due, in part, to the demand for syringes during the flu season. ~~As discussed below, we expect an increase~~Experts and industry professionals predicted that flu shots would be critical for the public in ~~sales due to a recent order from~~ the ~~United States government. We can reasonably expect the order relates to the novel coronavirus pandemic. We cannot predict whether our sales trends will correspond with the usual~~2020 flu season ~~this year and~~because of the continuing COVID-19 pandemic. Although our domestic sales outside of the HHS Order increased approximately 40% during the three months ended September 30, 2020, we cannot ~~estimate~~determine what percent of the ~~consequences~~increased sales were attributable to ~~our industry of stay-at-home orders and other precautions on sales to our customers other than the United States government.~~flu shots versus preparation for a COVID-19 vaccine.

On May 1, 2020, we were awarded a delivery order under an existing contract by the Department of Health and Human Services of the United States to supply automated retraction safety ~~syringes.~~syringes (the “HHS Order”). The total fixed price under the delivery order is $83,788,440. The existing contract was executed in September 2018, but the order placed on May 1, 2020 is unusually significant. WeIn the third quarter of 2020, our sales under this order were approximately $12.9 million and we expect such sales to increase ~~both domestic and foreign production and add~~each quarter through May 2021. We

understand that the purpose of the HHS Order is to provide syringes for the COVID-19 vaccine, when available. Additionally, in October 2020, the contract value was increased by $10 million when the U.S. government agreed to expedite freight into our facilities by paying for airfreight costs from China.

Effective July 1, 2020, we entered into a Technology Investment Agreement (“TIA”) with the United States Government Department of Defense, U.S. 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) (“Government”) for $53,664,286 in government funding for expanding our domestic production of needles and syringes. Pursuant to the terms of the TIA, we are expecting to make significant additions to our facilities which should allow us to increase domestic production. Additionally, the TIA provides for reimbursement for equipment and supplies. As of early November 2020, we have negotiated contracts for the purchase of automated assembly equipment, molds, and molding equipment, as well as portions of auxiliary equipment, for approximately $38 million. We have engaged architects and general construction contractors for the completion of new controlled environment facilities and additional ~~personnel~~warehousing facilities. The expanded facilities consist of approximately 27,800 square feet of additional controlled environment within existing properties and new construction of approximately 55,000 square feet of new warehouse space in ~~response~~conjunction with the overall production capacity expansion. The estimated cost of the controlled environment within existing properties is $6 million, and construction of the new warehouse is estimated to ~~this material delivery order. We expect to perform~~be $5.8 million. The cost of the controlled environment will be funded by the Government under ~~this delivery order during 2020 and a portion~~the TIA, while the cost of the new warehouse will be our financial obligation. Building permits were obtained for both buildings in October 2020. The scheduled completion dates for the construction are within the second quarter of 2021.

~~As discussed in Note 13 to the financial statements, on~~On April 17, 2020, we entered into a promissory note in the principal amount of $1,363,000 (the “PPP Loan”) in favor of Independent Bank (the “Lender”) pursuant to the Paycheck Protection Program (the “PPP”) of the Coronavirus Aid, Relief, and Economic Security Act, administered by the U.S. Small Business Administration (“SBA”).The PPP Loan matures on April 17, 2022 and bears interest at a rate of 1.0% per annum. Commencing November 17, 2020, we may be required to pay the Lender equal monthly payments of principal and interest as necessary to fully amortize the principal amount outstanding by the maturity date. PPP loan recipients can apply for and be granted forgiveness for all or a portion of the loan granted under the PPP. We have not yet applied for forgiveness and we cannot be certain of the amount, if any, which may be forgiven.

~~The Further Consolidated Appropriations Act signed into law on December 20, 2019, has permanently repealed the 2.3% medical device excise tax. Prior~~As detailed in Note 4 to the ~~repeal,~~financial statements, we held $6.7 million in debt and equity securities as of September 30, 2020, which represents 14.3% of our current assets. During the ~~tax was on~~third quarter of 2020, we liquidated a ~~4-year moratorium. As~~portion of our investment portfolio (approximately $4.0 million) for operational needs. We continually monitor our invested balances.

During the third quarter of 2020, we hired 15 new full-time employees, predominantly as production line workers, and terminated several back office employees. We also moderately increased non-executive pay. The net effect of these actions caused a ~~result~~net increase of approximately $150 thousand in our operating expenses for the ~~repeal and the prior moratorium, sales of taxable medical devices after December 31, 2015, are not subject to the tax.~~quarter ended September 30, 2020.

Product purchases from our Chinese manufacturers have enabled us to increase manufacturing capacity with little capital outlay and have provided a competitive manufacturing cost. In the first ~~quarter~~nine months of 2020, our Chinese manufacturers produced approximately ~~80.3%~~82.2% of our products. Despite the global disruption of the coronavirus pandemic, we have not experienced a significant disruption to our supply chain. In the event that we become unable to purchase products from our Chinese manufacturers, we would need to find an alternate manufacturer for the blood collection set, IV catheter, Patient Safe^® syringe, 0.5mL insulin syringe, 0.5mL autodisable syringe, and 2mL, 5mL, and 10mL syringes and we would increase domestic production for the 1mL and 3mL syringes and EasyPoint^®needles. Regardless of vendor availability, we expect to increase our domestic syringe production capacity at our facilities pursuant to the plans outlined in the TIA.

In 1995, we entered into a license agreement with Thomas J. Shaw for the exclusive right to manufacture, market, and distribute products utilizing his patented automated retraction technology and other patented technology. This technology is the subject of various patents and patent applications owned by Mr. Shaw. The

license agreement generally provides for quarterly payments of a 5% royalty fee on gross sales of products subject to the license and he receives fifty percent (50%) of the royalties paid to ~~the Company~~us by certain sublicensees of the technology subject to the license.

With increased volumes, our manufacturing unit costs have generally tended to decline. Factors that could affect our unit costs include possible tariffs, increases in costs by third party manufacturers, changing production volumes, costs of petroleum products, and transportation costs. Increases in such costs may not be recoverable through price increases of our products. ~~Recently, decreases~~Decreases in costs of petroleum products during the first nine months of 2020 have reduced certain raw material costs.

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. Dollar amounts have been rounded for ease of reading. All period references are to the periods ended ~~March 31,~~September 30, 2020 or 2019.

Comparison of Three Months Ended ~~March 31,~~September 30, 2020 and ~~March 31,~~September 30, 2019

Domestic sales, including sales to the U.S. government, accounted for ~~74.4%~~94.2% and ~~77.4%~~77.7% of ~~our~~the revenues for the three months ended ~~March 31,~~September 30, 2020 and 2019, respectively. Domestic revenues increased ~~35.8%~~182.3% principally due to ~~increased volumes.~~the increase in units sold. Domestic unit sales increased ~~31.4%~~151.7%. Domestic unit sales were ~~65.2%~~90.6% of total unit sales for the three months ended ~~March 31,~~September 30, 2020. Domestic sales excluding the HHS Order rose approximately 40%. International revenue and unit sales decreased 39.7% and ~~revenues increased 56.8% and 59.9%~~41.3%, ~~respectively, due~~representing a return to ~~higher unit sales.~~normal levels after the unusually high volumes in 2019. Our international orders may be subject to significant fluctuation over ~~time.~~time and there is limited predictability with respect to the timing of international orders. Overall unit sales increased ~~39.2%~~92.2%. ~~While we cannot predict~~Other than the ~~effect~~Department of ~~the novel coronavirus on future periods, we~~Health and Human Services, our increased sales are predominantly attributable to existing customers as well as several new smaller customers who do not ~~believe that~~operate as distributors. Our sales under the ~~virus had a material effect on sales~~HHS Order in the ~~first~~ quarter ~~of 2020.~~

~~Gross profit increased 41.8% primarily due~~ended September 30, 2020 were approximately $12.9 million and we expect such sales to ~~higher unit sales volumes and average unit pricing.~~increase each quarter through May 2021.

The ~~cost~~Cost of manufactured ~~products sold~~product increased by ~~42.4%~~67.0% principally due to anthe increase in ~~overall~~the volume of units ~~sold and the composition of product mix.~~sold. Profit margins can fluctuate depending upon, among other things, the cost of

manufactured product and the capitalized cost of product recorded in inventory, as well as product sales mix. Royalty expense increased ~~30.6%~~79.6% due to increased gross sales.

Gross profit increased 267.0% primarily due to the increase in net revenues.

Operating expenses increased ~~14.4% or $385 thousand.~~24.8%. The increase was ~~primarily~~ due to employee expenses such as added payroll and ~~employee-related~~related costs ~~including health insurance benefits.~~and consulting fees.

Our ~~operating~~ income from operations was ~~$481 thousand~~$10.3 million compared to an operating ~~loss~~income of ~~$175~~$978 thousand for the same period last ~~year. The increase was~~year due primarily to anthe increase in ~~sales.~~net revenues and resulting gross profit.

Interest and other income decreased $179 thousand for the quarter ended September 30, 2020 compared to the same period last year principally due to unrealized losses in investments.

Our effective tax rate on ~~the net loss~~income before income taxes was ~~0.2%~~15.63% and ~~0.0%~~0.4% for the three months ended ~~March 31,~~September 30, 2020 and ~~March 31,~~September 30, 2019, respectively.

Comparison of Nine Months Ended September 30, 2020 and September 30, 2019

Domestic sales, including sales to the U.S. government, accounted for 86.8% and 79.4% of the revenues, excluding product licensing fees, for the nine months ended September 30, 2020 and 2019, respectively. Domestic revenues increased 87.9% principally due to the increase in units sold. Domestic unit sales increased 76.4%. Domestic unit sales were 81.6% of total unit sales for the nine months ended September 30, 2020. International

revenue and unit sales increased 10.1% and 3.7%, respectively, due to increased orders and the timing of the same. Our international orders may be subject to significant fluctuation over time and there is limited predictability with respect to the timing of international orders. Overall unit sales increased 56.3%. As discussed above, our sales under the HHS Order contributed $14.3 million to our results for the nine months ended September 30, 2020.

The Cost of manufactured product increased by 45.2% principally due to the increase in the volume of units sold. Profit margins can fluctuate depending upon, among other things, the cost of manufactured product and the capitalized cost of product recorded in inventory, as well as product sales mix. Royalty expense increased 38.5% due to increased gross sales.

Gross profit increased 128.9% primarily due to the increase in net revenues.

Operating expenses increased 14.7%. The increase was due to an increase in employee headcount and related costs as well as consulting fees and an increase in the allowance for doubtful accounts.

Our operating income was $11.8 million compared to an operating income for the same period last year of $1.1 million due primarily to increased net revenues and resulting gross profit.

Interest and other income for the first nine months of 2020 increased $589 thousand compared to the same period last year principally due to realized and unrealized gains on investments.

Our effective tax rate on income before income taxes was (1.2)% and 0.6% for the nine months ended September 30, 2020 and September 30, 2019, respectively. As of June 30, 2020, we released our valuation allowance for deferred tax assets based on evidence supporting the position that the potential benefit would be “more-likely-than-not” realized. As a result of the release of the valuation allowance, we recognized approximately $1.8 million in deferred tax assets and recognized the corresponding amount as a beneficial income tax provision. The recognition of the benefit and deferred tax asset is reflected in the second quarter of 2020.

Discussion of Balance Sheet and Statement of Cash Flow Items

Cash comprises ~~19.9%~~23% of total assets. Working capital was ~~$20.4~~$32.0 million at ~~March 31,~~September 30, 2020, an increase of ~~$177 thousand~~$11.8 million from December 31, 2019.

Cash provided by operations was ~~$2.1~~$8.8 million for the ~~three~~nine months ended ~~March 31,~~September 30, 2020 due primarily to net income for the period, offset by a ~~decrease~~significant increase in accounts receivable.

Cash used by investing activities was $7.7 million for the nine months ended September 30, 2020 due primarily to the net sales of ~~both accounts receivable~~equity securities and ~~inventories.~~the purchase of fixed assets. The $9.5 million impact to cash from the purchase of such fixed assets reflects down payments on orders for certain assets detailed in this report in connection with the TIA. In the third quarter of 2020, we liquidated approximately $4.0 million of our investment portfolio for operational needs.

Cash provided by financing activities was $8.6 million for the nine months ended September 30, 2020. This was primarily due to the proceeds from the PPP loan, proceeds from the exercise of stock options, and proceeds from the government under the TIA for down payments on our orders for fixed assets.

LIQUIDITY

~~At the present time, Management does not intend to publicly raise equity capital. Our ability to obtain additional funds through traditional loans is uncertain.~~

Historical Sources of Liquidity

We have historically funded operations primarily from the proceeds from revenues, private placements, litigation settlements, and loans.

Internal Sources of Liquidity

Margins ~~and Market Access~~

To achieve routinely positive or break-even quarters, we need increased access to hospital markets which has been difficult to obtain. We will continue to attempt to gain access to the market through our sales efforts, innovative technology, the introduction of new products, and, when necessary, litigation.

We continue to focus on methods of upgrading our manufacturing capability and efficiency. In the second quarter of 2020, we plan to increase our workforce in response to a material order from the United States government. Additional equipment may also be necessary for foreign and/or domestic production.

Fluctuations in the cost and availability of raw materials and inventory and our ability to maintain favorable manufacturing arrangements and relationships could result in the need to manufacture all (as opposed to 19.7%) of our products in the U.S. or find other manufacturers. This could temporarily increase unit costs as we ramp up domestic production.

The mix of domestic and international sales affects the average sales price of our products. Generally, the higher the ratio of domestic sales to international sales, the higher the average sales price will be. Some international sales of our products are shipped directly from China to the customer. The number of units produced by us versus manufactured in China can have a significant effect on the carrying costs of Inventory as well as Cost of sales. Additionally, the effect of an overall increase in units sold also has a positive effect on margins. We will continue to evaluate the appropriate mix of products manufactured domestically and those manufactured in China to achieve economic benefits as well as to maintain our domestic manufacturing capability.

Seasonality

Historically, unit sales have increased during the flu season. ~~However, we expect an~~We cannot determine what percent of our recent increase in domestic sales ~~due~~(excluding the HHS Order) were attributable to flu shots versus preparation for a recent order from the United States government. We can reasonably expect the order relates to the novel coronavirus pandemic. We cannot predict whether our sales trends will correspond with the usual flu season this year and we cannot estimate the consequences to our industry of stay-at-home orders and other precautions on sales to our customers other than the United States government.COVID-19 vaccine.

Cash Requirements

We have sufficient cash reserves, ~~recently~~ received a PPP loan, and have begun to realize ~~profits~~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.

Contracts with the U.S. Government

As discussed above, we were awarded a material delivery order by the Department of Health and Human Services of the United States in the total amount of approximately $83.8 million, plus certain expedited freight expenses. In the third quarter of 2020, our sales under this HHS Order were approximately $12.9 million and we expect such sales to increase each quarter through May 2021.

As discussed above, we entered into a TIA with United States government for approximately $53.7 million in Government funding for expanding our domestic production of needles and syringes. To date, we have received approximately $6.9 million for down payments on the purchase of certain fixed assets. Pursuant to the terms of the TIA, we are expecting to make significant additions to our facilities which should allow us to increase domestic production. We have engaged architects and construction contractors for the completion of new controlled environment facilities and warehousing facilities which are expected to be completed in the second quarter of 2021.

Option Exercises

Stock options were exercised by our employees and directors at various dates during the quarter ended September 30, 2020, and, consequently, we received approximately $224 thousand to exercise such options.

External Sources of Liquidity

~~Our ability to obtain additional funds through traditional loans is uncertain, but we~~We recently received a PPP Loan, as described above, in the principal amount of $1,363,000. PPP loan recipients can apply for and be granted forgiveness for all or a portion of the loan granted under the PPP. We have not yet applied for forgiveness and we cannot be certain of the amount, if any, which may be forgiven.

We may obtain a construction loan for the construction of new facilities in connection with our expansion plans in connection with the TIA. While a portion of the planned construction will be funded by the Government, we expect to fund the construction of the new warehouse and expect the cost to be approximately $5.8 million.

It is unlikely we would choose to raise funds by the public sale of ~~equity.~~equity despite recent increases in the value of our stock. Our stock price increased materially during the first nine months of 2020. The closing price per share on January 1, 2020 was $1.53. On September 30, 2020, our stock price closed at $6.66 per share and it was $8.25 on November 10, 2020.

We consider our investment portfolio a source of liquidity as well. For example, in the third quarter of 2020, we liquidated approximately $4.0 million from our investment portfolio for operational needs. As of September 30, 2020, $6.7 million was invested in third party securities.

CAPITAL RESOURCES

~~There were no material commitments~~Since the execution of the TIA on July 1, 2020, we have been planning significant expansion to our facilities. We have engaged architects and general construction contractors for ~~capital expenditures~~the completion of controlled environment facilities and additional warehousing facilities. The expanded facilities consist of approximately 27,800 square feet of additional controlled environment within existing properties and new construction of approximately 55,000 square feet of new warehouse space in conjunction with the overall production capacity expansion. We expect this construction to be completed in the ~~first~~second quarter of ~~2020.~~2021. We have also contracted for additional automated assembly equipment, along with necessary auxiliary equipment, costing approximately $38 million in the aggregate.

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

Not applicable.

Item 4.

Controls and Procedures.

Disclosure Controls and Procedures

Pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934, Management, with the participation of our President, Chairman, and Chief Executive Officer, Thomas J. Shaw (the “CEO”), and our Vice President and Chief Financial Officer, John W. Fort III (the “CFO”), acting in their capacities as our principal executive and principal financial officers, evaluated the effectiveness of our disclosure controls and procedures, as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934. The term disclosure controls and procedures means controls and other procedures that are designed to ensure that information required to be disclosed by us in our periodic reports is: i) recorded, processed, summarized, and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms; and ii) accumulated and communicated to our Management, including our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. Based upon this evaluation, the CEO and CFO concluded that, as of ~~March 31,~~September 30, 2020, our disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

There have been no changes during the ~~first~~third quarter of 2020 or subsequent to ~~March 31,~~September 30, 2020 in our internal control over financial reporting that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

PART II—OTHER INFORMATION

Item 1.

Legal Proceedings.

Please refer to Note 78 to the financial statements for a complete description of all legal proceedings.

Item 1A.

Risk Factors.

~~In addition to the~~There were no material changes in our Risk Factors as set forth in our most recent annual ~~report~~and quarterly reports which isare available on EDGAR, we note that the novel coronavirus has disrupted daily life in the United States and remains a significant risk to every aspect of our operations including the health and welfare of our workforce, our ability to secure transportation, and the maintenance of our supply chain. Additionally, our material $83.8 million delivery order from the United States government presents unusual challenges for our business. Our performance may not be realized if we cannot timely and adequately increase domestic and foreign production. Moreover, in light of such volume requirements, we may not be able to maintain our usual service levels to our existing customers.EDGAR.

Item2.

Unregistered Sales of Equity Securities and Use of Proceeds.

~~Effective January 13,~~On September 30, 2020, we agreed with two preferred stockholders to purchase outstanding Class B Convertible Preferred Stock (the “Preferred Stock”) for cash and Common Stock. Such preferred stockholders tendered to us a total of 2,500 shares of Series III Preferred Stock and 5,000the Company purchased 300,000 shares of Series IV Preferred ~~Stock. A total of $75,000~~Stock from a shareholder for $3,000,000 in cash over a three-year period beginning February 2021 and ~~7,500~~600,000 shares of Common ~~Stock were issued as consideration therefor. In accordance with the terms of the agreements, the~~Stock. Such preferred ~~stockholders~~stockholder agreed to waive all unpaid dividends in arrears associated with ~~their~~its Preferred Stock, which resulted in a waiver of a total of ~~$149,795~~$6,091,233 in unpaid dividends in arrears. We are relying on Section 3(a)(9) of the Securities Act of 1933, as amended (the “Securities Act”) to exempt ~~these transactions~~this transaction from the registration requirements of the Securities Act.

Item 3.

Defaults Upon Senior Securities.

Working Capital Restrictions and Limitations on the Payment of Dividends

~~The Company~~We declared a dividend to the Series I Class B and Series II Class B Convertible Preferred Shareholders in the aggregate amount of $~~54,800.~~52,242. This dividend was paid on ~~April 20,~~October 22, 2020.

The certificates of designation for each of the outstanding series of Class B Convertible Preferred Stock each currently provide that, if a dividend upon any shares of Preferred Stock is in arrears, no dividends may be paid or declared upon any stock ranking junior to such stock and generally no junior preferred stock may be redeemed. However, under certain conditions, and for certain Series of Class B Convertible Preferred Stock, we may purchase junior stock when dividends are in arrears.

Series I Class B Convertible Preferred Stock

For the ~~three~~nine months ended ~~March 31, 2020,~~September 30, 2020, no dividends were in arrears.

Series II Class B Convertible Preferred Stock

For the ~~three~~nine months ended ~~March 31, 2020,~~September 30, 2020, no dividends were in arrears.

Series III Class B Convertible Preferred Stock

For the ~~three~~nine months ended ~~March 31, 2020,~~September 30, 2020, the amount of dividends in arrears was ~~$30,587~~$95,209 and the total arrearage was ~~$4,383,270~~$4,447,893 as of ~~March 31,~~September 30, 2020.

Series IV Class B Convertible Preferred Stock

For the ~~three~~nine months ended ~~March 31,~~September 30, 2020, the amount of dividends in arrears was $~~86,036~~$228,615 and the total arrearage was ~~$6,813,771~~$814,747 as of ~~March 31,~~September 30, 2020.

Series V Class B Convertible Preferred Stock

For the ~~three~~nine months ended ~~March 31,~~September 30, 2020, the amount of dividends in arrears was ~~$2,720~~$8,160 and the total arrearage was ~~$1,022,916~~$1,028,356 as of ~~March 31,~~September 30, 2020.

Item 6.

Exhibits.

Exhibit No.		Description of Document
10.1		Technology Investment Agreement dated as of July 1, 2020

~~10.1~~31.1		U.S. Small Business Administration Note*Certification of Principal Executive Officer

~~31.1~~31.2		Certification of Principal ~~Executive~~Financial Officer

~~31.2~~32		~~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 March 31, 2020, formatted in XBRL (eXtensible Business Reporting Language): (i) Condensed Balance Sheets as of March 31, 2020 and December 31, 2019, (ii) Condensed Statements of Operations for the three months ended March 31, 2020 and 2019, (iii) Condensed Statements of Cash Flows for the three months ended March 31, 2020 and 2019, (iv) Condensed Statement of Changes in Stockholders’ Equity for the three months ended March 31, 2020 and 2019; and (v) Notes to Condensed Financial Statements

* Incorporated herein by reference to RTI’s Form 8-K filed on April 22, 2020

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

DATE: ~~May 15,~~November 16, 2020	RETRACTABLE TECHNOLOGIES, INC.
	(Registrant)


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

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 xþ	Smaller reporting company xþ
	Emerging growth company ¨

	PART I – FINANCIAL INFORMATION

Item 1.	Financial ~~Statements.~~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	56
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of ~~Operations.~~Operations	1519
Item 3.	Quantitative and Qualitative Disclosures About Market ~~Risk.~~Risk	1824
Item 4.	Controls and ~~Procedures.~~Procedures	1824

PART II—OTHER INFORMATION

Item 1. ~~Legal Proceedings.~~	18Legal Proceedings	24
Item 1A. ~~Risk Factors.~~	19Risk Factors	24
Item 2.	Unregistered Sales of Equity Securities and Use of ~~Proceeds.~~Proceeds	1925
Item 3.	Defaults Upon Senior ~~Securities.~~Securities	1925
Item 6. ~~Exhibits.~~	20Exhibits	25
SIGNATURES		2027

	March 31, 2020			December 31, 2019			September 30, 2020			December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	7,605,134		$	5,934,749		$	15,716,798		$	5,934,749
Accounts receivable, net		5,193,840			6,564,371			15,860,937			6,564,371
Investments in debt and equity securities, at fair value		7,649,081			7,771,660			6,703,449			7,771,660
Inventories, net		6,373,132			7,450,592			7,752,543			7,450,592
Income taxes receivable		100,785			50,392			100,785			50,392
Other current assets		669,767			635,201			653,254			635,201
Total current assets		27,591,739			28,406,965			46,787,766			28,406,965

Property, plant, and equipment, net		10,607,718			10,632,057			19,485,242			10,632,057
Income taxes receivable		—			50,393			—			50,393
Deferred tax asset								804,357			—
Other assets		67,832			88,315			78,190			88,315
Total assets	$	38,267,289		$	39,177,730		$	67,155,555		$	39,177,730

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	4,434,967		$	5,007,604		$	7,279,907		$	5,007,604
Current portion of long-term debt		264,579			260,939			1,101,864			260,939
Accrued compensation		774,659			607,339			974,438			607,339
Dividends payable		54,800			54,800			52,242			54,800
Accrued royalties to shareholder		869,108			921,445			1,681,885			921,445
Other accrued liabilities		822,882			1,387,149			3,032,030			1,387,149
Income taxes payable		618			17,944			671,149			17,944
Total current liabilities		7,221,613			8,257,220			14,793,515			8,257,220

Other long-term liabilities								10,533,161			—
Long-term debt, net of current maturities		2,310,248			2,378,055			2,705,865			2,378,055
Total liabilities		9,531,861			10,635,275			28,032,541			10,635,275

Commitments and contingencies — see Note 7
Commitments and contingencies — see Note 8

Stockholders’ equity:
Preferred stock, $1 par value:
Series I, Class B		96,000			96,000			96,000			96,000
Series II, Class B		171,200			171,200			156,200			171,200
Series III, Class B		126,745			129,245			126,745			129,245
Series IV, Class B		337,500			342,500			35,000			342,500
Series V, Class B		34,000			34,000			34,000			34,000
Common stock, no par value		—			—			—			—
Additional paid-in capital		61,538,444			61,660,744			59,851,666			61,660,744
Accumulated deficit		(33,568,461	)		(33,891,234	)		(21,176,597	)		(33,891,234	)
Total stockholders’ equity		28,735,428			28,542,455			39,123,014			28,542,455
Total liabilities and stockholders’ equity	$	38,267,289		$	39,177,730		$	67,155,555		$	39,177,730

	Three Months Ended March 31, 2020			Three Months Ended March 31, 2019
Sales, net	$	11,202,217		$	7,932,474
Cost of sales
Cost of manufactured product		6,802,675			4,776,744
Royalty expense to shareholder		869,108			665,411
Total cost of sales		7,671,783			5,442,155
Gross profit		3,530,434			2,490,319

Operating expenses
Sales and marketing		1,135,980			875,546
Research and development		138,537			127,456
General and administrative		1,775,204			1,662,095
Total operating expenses		3,049,721			2,665,097
Income (loss) from operations		480,713			(174,778	)

Interest and other income (expense)		(141,417	)		91,432
Interest expense		(33,849	)		(45,875	)
Income (loss) before income taxes		305,447			(129,221	)
Provision (benefit) for income taxes		(17,326	)		—
Net income (loss)		322,773			(129,221	)
Preferred Stock dividend requirements		(174,143	)		(176,249	)
Income (loss) applicable to common shareholders	$	148,630		$	(305,470	)

Basic earnings (loss) per share	$	0.00		$	(0.01	)

Diluted earnings (loss) per share	$	0.00		$	(0.01	)

Weighted average common shares outstanding:
Basic		32,681,204			32,666,454
Diluted		32,745,972			32,666,454

	Three Months Ended September 30, 2020			Three Months Ended September 30, 2019			Nine Months Ended September 30, 2020			Nine Months Ended September 30, 2019

Sales, net	$	27,091,064		$	11,639,586		$	49,867,126		$	29,167,950
Cost of sales
Cost of manufactured product		11,580,674			6,935,269			25,331,916			17,450,038
Royalty expense to shareholder		1,681,885			936,458			3,502,525			2,528,377
Total cost of sales		13,262,559			7,871,727			28,834,441			19,978,415
Gross profit		13,828,505			3,767,859			21,032,685			9,189,535

Operating expenses:
Sales and marketing		1,160,412			1,007,831			3,148,290			2,862,991
Research and development		134,575			134,919			399,367			377,881
General and administrative		2,185,980			1,646,685			5,696,901			4,816,214
Total operating expenses		3,480,967			2,789,435			9,244,558			8,057,086
Income from operations		10,347,538			978,424			11,788,127			1,132,449

Interest and other income (loss)		(87,483	)		91,105			881,316			292,476
Interest expense		(36,124	)		(40,701	)		(105,959	)		(130,085	)
Income before income taxes		10,223,931			1,028,828			12,563,484			1,294,840
Provision (benefit) for income taxes		1,598,180			4,394			(151,153	)		7,875
Net income		8,625,751			1,024,434			12,714,637			1,286,965
Preferred Stock dividend requirements		(145,535	)		(175,456	)		(493,826	)		(527,162	)
Deemed contribution on extinguishment of preferred stock		2,525,848			—			2,519,124			—
Income applicable to common shareholders	$	11,006,064		$	848,978		$	14,739,935		$	759,803

Basic earnings per share	$	0.33		$	0.03		$	0.45		$	0.02

Diluted earnings per share	$	0.33		$	0.03		$	0.45		$	0.02

Weighted average common shares outstanding:
Basic		33,371,471			32,674,954			32,947,241			32,671,648
Diluted		33,984,934			32,674,954			33,071,652			32,671,648

	Common Stock		Series I Class B Preferred Stock		Series II Class B Preferred Stock		Series III Class B Preferred Stock			Series IV Class B Preferred Stock			Series V Class B Preferred Stock		Additional Paid-In Capital			Accumulated Deficit			Total			Common Stock		Series I Class B Preferred Stock		Series II Class B Preferred Stock		Series III Class B Preferred Stock		Series IV Class B Preferred Stock		Series V Class B Preferred Stock		Additional Paid-In Capital		Accumulated Deficit			Total
Balance at December 31, 2019	$	—	$	96,000	$	171,200	$	129,245		$	342,500		$	34,000	$	61,660,744		$	(33,891,234	)	$	28,542,455
Balance at June 30, 2020																								$ —	$	96,000	$	171,200	$	126,745	$	335,000	$	34,000	$	62,087,831	$	(29,802,348	)	$	33,048,428
Exchange of Preferred Stock for Common Stock		—		—		—		(2,500	)		(5,000	)		—		(67,500	)		—			(75,000	)	—		—		—		—		(300,000	)	—		(2,423,248	)	—			(2,723,248)
Conversion																								—		—		(15,000	)	—		—		—		15,000		—			—
Stock Option Exercises																								—		—		—		—		—		—		224,325		—			224,325
Dividends		—		—		—		—			—			—		(54,800	)		—			(54,800	)	—		—		—		—		—		—		(52,242	)	—			(52,242)
Net Income		—		—		—		—			—			—		—			322,773			322,773		—		—		—		—		—		—		—		8,625,751			8,625,751
Balance at March 31, 2020	$	—	$	96,000	$	171,200	$	126,745		$	337,500		$	34,000	$	61,538,444		$	(33,568,461	)	$	28,735,428
Balance at September 30, 2020																								$ —	$	96,000	$	156,200	$	126,745	$	35,000	$	34,000	$	59,851,666	$	(21,176,597	)	$	39,123,014

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

	Three Months Ended March 31, 2020		Three Months Ended March 31, 2019
Number of significant customers	3		3
Aggregate dollar amount of net sales to significant customers	$5.4 million		$3.9 million
Percentage of net sales to significant customers	48.2	%	48.6	%

	For the three months ended March 31, 2020:										For the three months ended September 30, 2020
Geographic Segment	Syringes		Blood Collection Products		EasyPoint^®Needles		Other Products		Total Product Sales			Syringes	Blood Collection Products		EasyPoint^®Needles		Other Products		Total Product Sales
U.S. sales	$	6,972,935	$	580,123	$	765,860	$	17,879	$	8,336,797
U.S. sales (excluding HHS Order)											$	8,241,161	$	791,961	$	3,581,723	$	9,210	$	12,624,055
HHS Order sales to U.S. Government												12,898,080		—		—		—		12,898,080
North and South America sales (excluding U.S.)		2,054,784		2,700		1,496		687,420		2,746,400		1,295,080		450		—		—		1,295,530
Other international sales		114,830		1,740		—		2,450		119,020		198,440		73,019		235		1,705		273,399
Total	$	9,142,549	$	584,563	$	767,356	$	707,749	$	11,202,217	$	22,632,761	$	865,430	$	3,581,958	$	10,915	$	27,091,064

	For the nine months ended September 30, 2020:
Geographic Segment		Syringes	Blood Collection Products		EasyPoint^® Needles		Other Products		Total Product Sales
U.S. sales (excluding HHS Order)	$	21,538,941	$	1,607,804	$	6,004,295	$	52,065	$	29,203,105
HHS Order sales to U.S. Government		14,065,623		—		—		—		14,065,623
North and South America sales (excluding U.S.)		4,911,106		8,450		1,496		1,064,768		5,985,820
Other international sales		529,430		76,609		235		6,304		612,578
Total	$	41,045,100	$	1,692,863	$	6,006,026	$	1,123,137	$	49,867,126

	For the three months ended March 31, 2019:										For the nine months ended September 30, 2019:
Geographic Segment	Syringes		Blood Collection Products		EasyPoint^®Needles		Other Products		Total Product Sales			Syringes	Blood Collection Products		EasyPoint^® Needles		Other Products		Total Product Sales
U.S. sales	$	5,625,387	$	451,077	$	48,472	$	14,975	$	6,139,911	$	19,150,535	$	1,389,943	$	2,439,139	$	51,605	$	23,031,222
North and South America sales (excluding U.S.)		1,330,330		3,863		252		925		1,335,370		4,867,104		5,313		1,044		87,025		4,960,486
Other international sales		241,243		210,700		—		5,250		457,193		622,945		374,498		543		178,256		1,176,242
Total	$	7,196,960	$	665,640	$	48,724	$	21,150	$	7,932,474	$	24,640,584	$	1,769,754	$	2,440,726	$	316,886	$	29,167,950

	March 31, 2020								September 30, 2020
	Level 1		Level 2		Level 3		Total			Level 1	Level 2		Level 3		Total
Equity securities									$	2,723,410	$	—	$	—	$	2,723,410
Mutual funds and exchange traded funds	$	6,575,762	$	—	$	—	$	6,575,762		3,902,118		—		—		3,902,118
Certificates of deposit		—		1,073,319		—		1,073,319		—		77,921		—		77,921
	$	6,575,762	$	1,073,319	$	—	$	7,649,081	$	6,625,528	$	77,921	$	—	$	6,703,449

	March 31, 2020									September 30, 2020
			Gross Unrealized					Aggregate				Gross Unrealized				Aggregate
	Cost		Gains		Losses			Fair Value		Cost			Gains	Losses		Fair Value
Equity securities										$	2,068,405	$	655,005	$	—	$	2,723,410
Mutual funds and exchange traded funds	$	6,634,108	$	—	$	(58,346	)	$	6,575,762		3,871,186		30,932		—		3,902,118
Certificates of deposit		1,050,000		23,319		—			1,073,319		75,000		2,921		—		77,921
	$	7,684,108	$	23,319		(58,346	)	$	7,649,081	$	6,014,591	$	688,858		—	$	6,703,449

	March 31, 2020			December 31, 2019				September 30, 2020			December 31, 2019
Raw materials	$	1,335,568		$	1,254,313		$	1,604,051		$	1,254,313
Finished goods		5,334,772			6,493,487			6,445,700			6,493,487
		6,670,340			7,747,800			8,049,751			7,747,800
Inventory reserve		(297,208	)		(297,208	)		(297,208	)		(297,208	)
	$	6,373,132		$	7,450,592		$	7,752,543		$	7,450,592

	September 30, 2020		December 31, 2019
Long-term deferred liability - TIA	$	8,762,294	$	—
Long-term deferred liability - preferred stock repurchase		1,770,867		—
	$	10,533,161	$	—