RETRACTABLE TECHNOLOGIES INC

Previous wording

We have been manufacturing and marketing our products since 1997. Syringes comprised 80.8% of our sales in the first quarter of 2026. EasyPoint®products accounted for 13.8% and other products, including our IV safety catheter and blood collection products, were 5.4% of our sales in the first quarter.

Current wording

We have been manufacturing and marketing our products since 1997. Syringes comprised 83.8% of our sales in the first six months of 2026. In the first six months of 2026, EasyPoint®products accounted for 11.4% of sales, while other

Previous wording

We expect international sales of VanishPoint syringes and EasyPoint needles to increase in the second half of 2026 following the recent certification under the European Union Medical Device Regulation 2017/745 which is required for the sale of medical devices within the European Union.

Current wording

We expect international sales of VanishPoint syringes and EasyPoint needles to increase in the second half of 2026 following the recent certification under the European Union Medical Device Regulation 2017/745 which is required for the sale of medical devices within the European Union.** **We are currently in the process of implementing the inclusion of the certification on our packaging and operational documents.

Previous wording

On September 13, 2024, the Office of the U.S. Trade Representative (“USTR”) revealed final adjustments to increase tariffs on certain goods imported from China under Section 301 (“Section 301”) of the Trade Act of 1974 (“Trade Act”). Among those products included were syringes and needles, at a rate of 100%. Throughout much of 2025, additional widespread tariffs were imposed on most products imported into the U.S. citing authority under the International Emergency Economic Powers Act (“IEEPA”). Those tariffs were in addition to the Section 301 tariffs which existed at the time. The prevailing tariff rates on various products and certain countries of origin, including many of our products, fluctuated greatly during 2025. These fluctuations negatively impacted our ability to predict the cost of importing certain goods or groups of goods and negatively impacted our business. In February 2026, the U.S. Supreme Court ruled that the President’s use of IEEPA to impose reciprocal tariffs exceeded his authority and that the IEEPA tariffs must be vacated. The 2024 Section 301 tariff of 100% on syringes and needles from China remains unchanged. Effective February 20,

Current wording

On September 13, 2024, the Office of the U.S. Trade Representative (“USTR”) revealed final adjustments to increase tariffs on certain goods imported from China under Section 301 (“Section 301”) of the Trade Act of 1974 (“Trade Act”). Among those products included were syringes and needles, at a rate of 100%. Throughout much of 2025, additional widespread tariffs were imposed on most products imported into the U.S. citing authority under the International Emergency Economic Powers Act (“IEEPA”). Those tariffs were in addition to the Section 301 tariffs which existed at the time. The prevailing tariff rates on various products and certain countries of origin, including many of our products, fluctuated greatly during 2025. These fluctuations negatively impacted our ability to predict the cost of importing certain goods or groups of goods and negatively impacted our business. In February 2026, the U.S. Supreme Court ruled that the President’s use of IEEPA to impose reciprocal tariffs exceeded his authority and that the IEEPA tariffs must be vacated. The 2024 Section 301 tariff of 100% on syringes and needles from China remains unchanged. Effective February 20, 2026, a 10% ad valorem duty went into effect under Section 122 of the Trade Act. Effective July 24, 2026, the 10% duty has been replaced with a new Section 301 tariff of 12.5%. The newly announced 12.5% tariff is in addition to the above-mentioned 100% Section 301 tariffs.

Previous wording

As of May 1, 2026, the prevailing tariff rate on most syringe and needle products imported from China was 110%. Other products we import from China, which do not fall under the category of needles and syringes, are subject to a 10% tariff rate. As foreign trade policy continues to evolve, including the impact of the Supreme Court’s ruling, uncertainty as to future tariff rates and affected products remains. Tariffs are expected to have a continuing material impact on our ability to source finished goods and certain raw materials and component parts, and to our results of operations and financial position. We continue working to lessen the financial impact of the tariffs through strategic ordering of products from our Chinese suppliers and continuing to manufacture 1mL, 3mL, and EasyPoint® needles in our domestic manufacturing facility.

Current wording

As of August 1, 2026, the prevailing tariff rate on most syringe and needle products imported from China was 112.5%. Other products we import from China, which do not fall under the category of needles and syringes, are subject to a 12.5% tariff rate. As foreign trade policy continues to evolve, including the impact of the Supreme Court’s ruling, uncertainty as to future tariff rates and affected products remains. Tariffs may continue to have a material impact on our ability to source finished goods and certain raw materials and component parts, and to our results of operations and financial position. We continue working to lessen the financial impact of the tariffs through strategic ordering of products from our Chinese suppliers and continuing to manufacture 1mL, 3mL, and EasyPoint® needles in our domestic manufacturing facility.

Previous wording

During 2024 and 2025, certain tariffs were incorrectly assessed on a portion of our imported finished goods. During 2025, we filed claims with U.S. Customs and Border Protection seeking corrections of those tariff assessments. During the three months ended March 31, 2026, we received approximately $137 thousand in tariff refunds related to these claims. In addition, we received approximately $467 thousand, including interest, in tariff refunds that were processed incorrectly and are subject to potential repayment. Accordingly, these amounts have been recorded as a liability within other accrued liabilities on our condensed balance sheets. None of the foregoing tariff refunds relate to the IEEPA tariffs or the 10% ad valorem duty imposed in 2026.

Current wording

During 2024 and 2025, certain tariffs were incorrectly assessed on a portion of our imported finished goods. During 2025, we filed claims with U.S. Customs and Border Protection seeking corrections of those tariff assessments. During the six months ended June 30, 2026, we received approximately $329 thousand in tariff refunds related to these claims. In addition, we received approximately $1.3 million, including interest, in tariff refunds that were processed incorrectly and are subject to potential repayment in the six months ended June 30, 2026. Accordingly, these amounts have been recorded as a liability within other accrued liabilities on our condensed balance sheets. None of the foregoing tariff refunds relate to the IEEPA tariffs or the 10% ad valorem duty imposed in 2026.** **

Previous wording

While we have manufacturing capabilities to manufacture most of the products we currently sell domestically, some of our products are sourced exclusively from China. We obtained 61.0% of our products from our manufacturers in China in the first quarter of 2026, most of which are impacted by the tariffs, however, a portion was shipped directly to international customers, on which no tariffs were assessed. Tariffs may continue to have a material impact to our results of operations and financial position. Approximately $11.6 thousand was incurred in tariff expense in the first quarter of 2026. We are working to lessen the financial impact of the tariffs, including continuing to manufacture 1mL, 3mL, and EasyPoint® needles in our domestic manufacturing facility.

Current wording

While we have manufacturing capabilities to manufacture most of the products we currently sell domestically, some of our products are sourced exclusively from China. We obtained 57.6% of units manufactured during the first six months of 2026 from our manufacturers in China, most of which are impacted by the tariffs, however, a portion was shipped directly to international customers, on which no tariffs were assessed. Tariffs may continue to have a material impact to our results of operations and financial position. Approximately $58 thousand was incurred in tariff expense in the first six months of 2026. We are working to lessen the financial impact of the tariffs by continuing to manufacture 1mL, 3mL, and EasyPoint® needles in our domestic manufacturing facility.

Previous wording

We have recently adapted some equipment to increase our domestic manufacturing capabilities.** **The adaptations to existing equipment will allow us to produce 0.5 mL syringes domestically. Once operational, we will no longer rely on imports for these products. We currently anticipate that commercial quantities will become available, as market demand necessitates, in the second half of 2026.

Current wording

We have recently adapted some equipment to increase our domestic manufacturing capabilities.** **The adaptations to existing equipment will allow us to produce 0.5 mL syringes domestically. Once operational, we will no longer rely on

Previous wording

Over the past several years, we have experienced certain cost increases in raw materials. Those costs primarily affected our domestic manufacturing because the finished goods we purchased from China were subject to a long-term fixed price contract. Sensitivity to cost fluctuations is likely to become more pronounced as we transition away from production under such a fixed price contract. Other factors that could affect our unit costs include tariffs, oil prices,

Current wording

Over the past several years, we have experienced certain cost increases in raw materials. Those costs primarily affected our domestic manufacturing because the finished goods we purchased from China were subject to a long-term fixed price contract. Sensitivity to cost fluctuations is likely to become more pronounced as we transition away from production under such a fixed price contract. Other factors that could affect our unit costs include tariffs, oil prices, supplier cost increases, increases in workforce costs associated with increased domestic production, and changing production volumes. Increases in costs may not be recoverable through price increases of our products.

Previous wording

In the first quarter of 2026, we made payments to certain consultants in the approximate total amount of $300 thousand and charitable product donations in the approximate total amount of $593 thousand. Such costs increased our operating expenses and are non-recurring. The charitable product donations were related to certain overstock inventory items. These products were not included in our first quarter 2026 inventory write down, as the items were not within 12 months of expiration. We continue to monitor market demand for these products and currently believe there remain potential sales channels available prior to the products reaching the 12 month expiration threshold.

Current wording

In the first half of 2026, we made payments to certain consultants in the approximate total amount of $423 thousand and charitable product donations in the approximate total amount of $959 thousand. Such costs increased our operating expenses and are non-recurring. The charitable product donations were related to certain overstock inventory items.

Previous wording

As detailed in Note 4 to the financial statements, we held $32.8 million in debt and equity securities as of March 31, 2026, which represented 23.9% of our total assets. The unrealized gain on debt and equity securities was $192 thousand due to the increased market values of those securities.

Current wording

As detailed in Note 4 to the financial statements, we held $37.2 million in debt securities as of June 30, 2026, which represented 26.3% of our total assets. The unrealized gain on debt securities was $13 thousand due to the increased market values of those securities. The realized gain from the sale of equity was $6.4 million in the second quarter of 2026.

Previous wording

Historically, unit sales have increased during the flu season. Additionally, there may be more demand for EasyPoint® products during the flu season, particularly in the retail pharmacy market. Purchases from our retail pharmacy customers may differ from purchasing patterns of general line distributors.

Current wording

Historically, unit sales have increased during the flu season. Additionally, there may be more demand for EasyPoint® products during the flu season, particularly in the retail pharmacy market. Purchases from our retail pharmacy customers may differ from purchasing patterns of general line distributors. While the majority of flu season sales typically occur in the third quarter, in 2025, purchasing patterns differed with unusually high unit sales related to flu season products in the second quarter of 2025, impacting comparability to second quarter 2026 unit sales related to flu season products which follows a more traditional purchasing pattern.

Previous wording

International revenues for the three months ended March 31, 2026 increased 42.4% compared to the same period in 2025. The increase in international sales was primarily driven by increase in EasyPoint® needle sales. Traditionally, international sales carry lower average selling prices compared to our domestic sales. There remains uncertainty regarding the timing of future international orders.

Current wording

International revenues for the three months ended June 30, 2026 decreased 32.2% compared to the same period in 2025. The decrease in international sales was primarily driven by a decrease in EasyPoint® needle sales. Traditionally, international sales carry lower average selling prices compared to our domestic sales. There remains uncertainty regarding the timing of future international orders.

Previous wording

Cost of manufactured product decreased 3.1% compared to the same period last year primarily due to a decrease in freight and tariff expense Royalty expense decreased 7.0% due to the decrease in gross sales.

Current wording

Cost of manufactured product decreased 34.7% compared to the same period last year primarily due to a decrease in sales.** **Royalty expense decreased 20.8% due to the decrease in gross sales.

Previous wording

Tariffs may continue to materially impact our costs in future periods. Approximately $11.6 thousand was spent on tariff expenses in the first quarter of 2026. The reduction in tariff costs compared to prior periods is attributable to ongoing mitigation efforts, including strategic sourcing decisions and increased domestic production. These costs are included in Cost of manufactured product.

Current wording

Tariffs may continue to materially impact our costs in future periods. Approximately $46 thousand was spent on tariff expenses in the second quarter of 2026. The reduction in tariff costs compared to prior periods is attributable to ongoing mitigation efforts, including strategic sourcing decisions and increased domestic production. These costs are included in Cost of manufactured product.

Previous wording

Domestic sales accounted for 82.9% and 89.6% of total revenues for the three months ended March 31, 2026 and 2025, respectively. Domestic revenues decreased 20.0%, while domestic unit sales decreased 11.5%. Domestic unit sales represented 72.1% of total unit sales for the three months ended March 31, 2026 compared to 84.9% for the same period last year. The decrease in sales was not proportional to the decrease in unit sales, primarily due to a decrease in average selling price, which was due to change in product mix and higher transaction costs associated with distributor agreements.

Current wording

Domestic sales accounted for 82.2% and 85.0% of total revenues for the six months ended June 30, 2026 and 2025, respectively. Domestic revenues decreased 25.8%, while domestic unit sales decreased 25.0%. Domestic unit sales represented 71.2% of total unit sales for the six months ended June 30, 2026 compared to 74.9% for the same period last year. The decrease in sales was primarily due to a decrease in EasyPoint® needle unit sales.

Previous wording

The loss from operations was $6.2 million compared to a loss of approximately $4.7 million for the same period last year. The increase in loss from operations was primarily driven by negative gross margin for the period and higher donation expense.

Current wording

The loss from operations was $11.3 million compared to a loss of approximately $9.8 million for the same period last year. The increase in loss from operations was primarily driven by a decrease in revenue and increase in operating expenses due to donation expense.

Previous wording

The unrealized gain on debt and equity securities was $192 thousand for the three month period ended March 31, 2026 due to the increased market values of those securities. In contrast, there was a material unrealized loss on debt and equity securities of $7.2 million for the three month period ended March 31, 2025.

Current wording

The unrealized gain on debt securities was $13 thousand for the six months ended June 30, 2026 due to the increased market values of those securities. The realized gain from the sale of equity was $6.4 million in the first six months of 2026.

Previous wording

The provision for income taxes was $1.8 thousand as compared to a benefit for income taxes of $286 thousand for the same period in 2025. The change is primarily due to a decrease in net loss in the current period.

Current wording

The provision for income taxes was $3.7 thousand as compared to a benefit for income taxes of $288 thousand for the same period in 2025. The change is primarily due to a decrease in the net loss in the current period.

Previous wording

Cash flow used by operations was $1.4 million for the three months ended March 31, 2026 due to a number of factors. Aside from the various reconciling items used in determining the overall use of cash, our net loss for the period was the predominant factor. We recognized approximately $1.5 million in other income from the TIA. Changes in working capital also impacted cash flows from operating activities. Accounts receivable decreased by $926 thousand, inventories increased by $107 thousand, accounts payable increased by $44 thousand, and accrued liabilities increased by $794 thousand.

Current wording

Cash flow used by operations was $3.1 million for the six months ended June 30, 2026 due to a number of factors. Aside from the various reconciling items used in determining the overall use of cash, our net loss for the period was the predominant factor. We recognized approximately $2.9 million in other income from the TIA. Changes in working capital also impacted cash flows from operating activities. Accounts receivable increased by $1.3 million, inventories decreased by $370 thousand, accounts payable increased by $1.4 million, and accrued liabilities increased by $2.4 million.

Previous wording

Cash used by financing activities was $147 thousand for the first quarter of 2026. This was primarily due to repayments of long-term debt and payment of preferred stock dividends.

Current wording

Cash used by financing activities was $345 thousand for the first six months of 2026. This was primarily due to repayments of long-term debt and payment of preferred stock dividends.

Previous wording

We have historically funded operations primarily from the proceeds from revenues, private placements, investment proceeds, and loans. We may fund operations going forward from revenues, cash reserves, and investments in trading securities should the need to access those funds arise.

Current wording

We have historically funded operations primarily from the proceeds from revenues, private placements, investment proceeds, and loans. We may fund operations going forward from revenues, cash reserves, and investments in debt and equity securities should the need to access those funds arise. In the second quarter of 2026, a series of material transactions resulted in $3.5 million in increased liquidity, primarily from a gain on the sale of equity securities.

Previous wording

We are responsible for developing estimates for amounts reported as assets and liabilities, and revenues and expenses in conformity with U.S. generally accepted accounting principles (“GAAP”). Those estimates require that we develop assumptions of future events based on past experience and expectations of economic factors. Among the more critical estimates management makes is the estimate for customer rebates. The amount reported as a contractual allowance for rebates involves examination of past historical trends related to our sales to distributors and the related credits issued once our distributors have satisfied their contractual obligations. The estimate includes consideration of historical redemption rates, discount rates, and a combination of estimated distributor inventories based on tracking information provided by the distributors or if known, inventory turnover rates. The establishment of a liability for future claims of rebates against sales in the current period requires that we have an understanding of the relevant sales with respect to product categories, sales distribution channels, and the likelihood of contractual obligations being satisfied. We examine the results of estimates against actual results historically and use the determination to further develop our basis for assumptions in future periods, as well as the accuracy of past estimates. Based on distributors’ purchasing and claiming rebates practices, we do not expect significant changes to the current inputs and assumption used in the estimate calculations. While we believe that we have sufficient historical data, and a firm basis for establishing reserves for

Current wording

We are responsible for developing estimates for amounts reported as assets and liabilities, and revenues and expenses in conformity with U.S. generally accepted accounting principles (“GAAP”). Those estimates require that we develop assumptions of future events based on past experience and expectations of economic factors. Among the more critical estimates management makes is the estimate for customer rebates. The amount reported as a contractual allowance for rebates involves examination of past historical trends related to our sales to distributors and the related credits issued once our distributors have satisfied their contractual obligations. The estimate includes consideration of historical redemption rates, discount rates, and a combination of estimated distributor inventories based on tracking information provided by the distributors or if known, inventory turnover rates. The establishment of a liability for future claims of rebates against sales in the current period requires that we have an understanding of the relevant sales with respect to product categories, sales distribution channels, and the likelihood of contractual obligations being satisfied. We examine the results of estimates against actual results historically and use the determination to further develop our basis for assumptions in future periods, as well as the accuracy of past estimates. Based on distributors’ purchasing and claiming rebates practices, we do not expect significant changes to the current inputs and assumption used in the estimate calculations. While we believe that we have sufficient historical data, and a firm basis for establishing reserves for contractual obligations, there is an inherent risk that our estimates and the underlying assumptions may not reflect actual future results. In the event that these estimates and/or assumptions are incorrect, adjustments to our reserves may have a material impact on future results. As of June 30, 2026, we estimate that the total potential future credits to be issued as a result of prior purchases which have not yet been claimed is $4.0 million.