Wed, Aug 14, 6:24 PM (153 days ago)
Retractable Technologies, Inc. reported significant financial challenges for Q2 2024, with net sales declining to $6.03 million, a 24.4% decrease from $7.97 million in Q2 2023. The company experienced a gross loss of $419,924, contrasting with a gross profit of $376,907 in the previous year. Operating losses increased to $5.76 million, compared to $5.03 million in Q2 2023, driven by lower sales volume and higher costs. The net loss applicable to common shareholders surged to $14.22 million, influenced by an $8.3 million increase in the valuation allowance for deferred tax assets. Cash flow from operations showed a usage of $4.73 million, with total cash and investments constituting 26.1% of total assets. The company faces uncertainties due to potential tariffs on imported syringes from China, which could materially affect their cost structure. As of June 30, 2024, 91% of products were sourced from Chinese manufacturers. The company is exploring options to mitigate tariff impacts, including increasing domestic production. Overall, the financial outlook remains uncertain amidst declining revenues and rising operational costs.