Retractable Technologies, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, revealing a mixed performance compared to the previous fiscal period. For the three months ended September 30, 2024, net sales reached $10.3 million, slightly up from $10.3 million in the same period of 2023. However, for the nine months ended September 30, 2024, net sales declined to $24.0 million from $29.3 million in the prior year, reflecting a decrease in demand and market conditions.

The company's gross profit for the third quarter turned negative at $(14,810), a significant drop from a profit of $4.3 million in Q3 2023. For the nine-month period, gross profit fell to $1.5 million from $7.6 million year-over-year. The total cost of sales surged by 72.5% in Q3 2024, driven by increased production costs and sales volume, leading to a loss from operations of $(5.1 million) compared to $(935,867) in Q3 2023. The nine-month loss from operations also widened to $(13.9 million) from $(8.7 million) in the previous year.

The net loss for the third quarter was $(1.9 million), an improvement from $(4.1 million) in Q3 2023. However, the nine-month net loss increased to $(15.7 million) from $(6.9 million) in the same period last year. The company attributed part of this increase to an $8.4 million change in the valuation allowance on deferred tax assets.

Total assets decreased to $157.8 million as of September 30, 2024, down from $179.7 million at the end of 2023. Cash and cash equivalents also fell significantly to $3.9 million from $12.7 million. Total stockholders' equity decreased to $83.5 million from $99.3 million, primarily due to the net loss.

Strategically, Retractable Technologies is shifting a larger portion of its manufacturing for syringes and needles to domestic facilities to mitigate the impact of a 100% tariff on imports from China, which took effect on September 27, 2024. The company has incurred $568,000 in tariff expenses to date and anticipates total expenses of approximately $1.5 million through February 2025. Additionally, the company is involved in a lawsuit against the U.S. government regarding these tariffs.

The company continues to expand its domestic production capabilities under the Technology Investment Agreement (TIA) with the U.S. government, initiated in response to COVID-19. As of September 30, 2024, the company held $32.8 million in debt and equity securities, representing 20.8% of total assets.