Retractable (RVP) 10-Q14 Nov 132013 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2013	Nov. 01, 2013
Document and Entity Information	'	'
Entity Registrant Name	'RETRACTABLE TECHNOLOGIES INC	'
Entity Central Index Key	'0000946563	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	26,972,837
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'

CONDENSED_BALANCE_SHEETS

CONDENSED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
Current assets:	'	'
Cash and cash equivalents	$27,271,755	$25,963,313
Accounts receivable, net	4,811,675	3,694,307
Inventories, net	6,112,447	4,990,253
Income taxes receivable	9,431	9,431
Other current assets	323,507	783,760
Total current assets	38,528,815	35,441,064
Property, plant and equipment, net	11,156,235	11,899,650
Intangible and other assets, net	282,283	291,444
Total assets	49,967,333	47,632,158
Current liabilities:	'	'
Accounts payable	5,201,493	5,099,884
Litigation proceeds subject to stipulation	7,724,826	'
Current portion of long-term debt	279,083	315,086
Accrued compensation	605,221	809,592
Dividends payable	'	57,613
Accrued royalties to shareholders	748,044	129,107
Other accrued liabilities	1,778,570	1,665,670
Income taxes payable	63,328	'
Total current liabilities	16,400,565	8,076,952
Long-term debt, net of current maturities	3,625,957	3,826,210
Total liabilities	20,026,522	11,903,162
Commitments and contingencies - see Note 6	'	'
Preferred stock $1 par value:	'	'
Common stock, no par value	'	'
Additional paid-in capital	58,598,790	58,617,308
Retained deficit	-28,556,315	-23,767,662
Common stock in treasury - at cost	-1,096,609	-122,202
Total stockholders' equity	29,940,811	35,728,996
Total liabilities and stockholders' equity	49,967,333	47,632,158
Series I, Class B	'	'
Preferred stock $1 par value:	'	'
Preferred stock	103,500	103,500
Series II, Class B	'	'
Preferred stock $1 par value:	'	'
Preferred stock	178,700	178,700
Series III, Class B	'	'
Preferred stock $1 par value:	'	'
Preferred stock	130,245	130,245
Series IV, Class B	'	'
Preferred stock $1 par value:	'	'
Preferred stock	542,500	542,500
Series V, Class B	'	'
Preferred stock $1 par value:	'	'
Preferred stock	$40,000	$46,607

CONDENSED_BALANCE_SHEETS_Paren

CONDENSED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
CONDENSED BALANCE SHEETS	'	'
Preferred stock, par value (in dollars per share)	$1	$1
Common stock, no par value (in dollars per share)	$0	$0

CONDENSED_STATEMENTS_OF_OPERAT

CONDENSED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
CONDENSED STATEMENTS OF OPERATIONS (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
CONDENSED STATEMENTS OF OPERATIONS	'	'	'	'
Sales, net	$9,160,278	$9,444,157	$23,240,623	$25,602,046
Cost of sales	'	'	'	'
Cost of manufactured product	5,094,432	5,318,351	13,534,753	14,114,956
Royalty expense to shareholders	748,044	772,142	1,872,553	1,962,780
Total cost of sales	5,842,476	6,090,493	15,407,306	16,077,736
Gross profit	3,317,802	3,353,664	7,833,317	9,524,310
Operating expenses:	'	'	'	'
Sales and marketing	1,092,505	1,034,419	3,235,528	2,939,142
Research and development	267,991	244,015	648,224	601,008
General and administrative	2,782,623	2,286,614	8,527,295	7,372,663
Total operating expenses	4,143,119	3,565,048	12,411,047	10,912,813
Loss from operations	-825,317	-211,384	-4,577,730	-1,388,503
Interest and other income	6,551	11,286	27,149	34,199
Interest expense, net	-59,533	-68,994	-172,236	-211,344
Loss before income taxes	-878,299	-269,092	-4,722,817	-1,565,648
Provision for income taxes	62,085	3,869	65,836	26,372
Net loss	-940,384	-272,961	-4,788,653	-1,592,020
Preferred stock dividend requirements	-228,999	-229,527	-687,066	-688,581
Loss applicable to common shareholders	($1,169,383)	($502,488)	($5,475,719)	($2,280,601)
Basic loss per share (in dollars per share)	($0.04)	($0.02)	($0.20)	($0.09)
Diluted loss per share (in dollars per share)	($0.04)	($0.02)	($0.20)	($0.09)
Weighted average common shares outstanding - basic and diluted (in shares)	26,719,608	26,972,818	27,000,158	25,870,073

CONDENSED_STATEMENTS_OF_CASH_F

CONDENSED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities	'	'
Net loss	($4,788,653)	($1,592,020)
Adjustments to reconcile net loss to net cash provided by (used by) operating activities:	'	'
Depreciation and amortization	957,090	986,761
Share based compensation	52,775	'
Provision for doubtful accounts	50,000	30,854
Provision for inventory valuation	'	90,000
Gain on disposal of assets	-1,000	'
Accreted interest	'	3,773
(Increase) decrease in assets:	'	'
Inventories	-1,122,194	1,201,385
Accounts receivable	-1,167,368	-1,675,218
Income taxes receivable	'	-39,849
Other current assets	460,253	-454,412
Increase (decrease) in liabilities:	'	'
Accounts payable	101,609	-761,912
Litigation proceeds subject to stipulation	7,724,826	'
Other accrued liabilities	527,466	1,009,720
Income taxes payable	63,328	-1,174
Net cash provided by (used by) operating activities	2,858,132	-1,202,092
Cash flows from investing activities	'	'
Purchase of property, plant, and equipment	-204,514	-282,560
Proceeds from sale of assets	1,000	'
Net cash used by investing activities	-203,514	-282,560
Cash flows from financing activities	'	'
Repayments of long-term debt and notes payable	-236,255	-543,293
Proceeds from the exercise of stock options	37,325	1,620,000
Repurchase of Common Stock	-974,407	-83,792
Payment of Preferred Stock dividends	-172,839	-172,838
Net cash provided by (used by) financing activities	-1,346,176	820,077
Net increase (decrease) in cash and cash equivalents	1,308,442	-664,575
Cash and cash equivalents at:	'	'
Beginning of period	25,963,313	25,673,263
End of period	27,271,755	25,008,688
Supplemental schedule of cash flow information:	'	'
Interest paid	182,711	207,571
Income taxes paid	7,988	71,328
Supplemental schedule of noncash investing and financing activities:	'	'
Preferred dividends declared, not paid	'	$57,613

BUSINESS_OF_THE_COMPANY_AND_BA

BUSINESS OF THE COMPANY AND BASIS OF PRESENTATION	9 Months Ended
BUSINESS OF THE COMPANY AND BASIS OF PRESENTATION	Sep. 30, 2013
BUSINESS OF THE COMPANY AND BASIS OF PRESENTATION	'
BUSINESS OF THE COMPANY AND BASIS OF PRESENTATION	'
	1. BUSINESS OF THE COMPANY AND BASIS OF PRESENTATION

	Business of the Company

	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 primary products with Notice of Substantial Equivalence to the FDA are the VanishPoint® 0.5mL insulin syringe; 1mL tuberculin, insulin, and allergy antigen syringes; the 0.5mL, 3mL, 5mL, and 10mL syringes; the small diameter tube adapter; the blood collection tube holder; the allergy tray; the IV safety catheter; the Patient Safe® syringe; the Patient Safe® Luer Cap; and the VanishPoint® Blood Collection Set.

	Basis of presentation

	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 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 April 1, 2013 for the year ended December 31, 2012.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2013
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

	Accounting estimates

	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.

	Cash and cash equivalents

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

	Accounts receivable

	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 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 5, Other Accrued Liabilities.

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

	Inventories

	Inventories are valued at the lower of cost or market, with cost being determined using actual average cost. The Company compares the average cost to the market price and records the lower value. 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.

	Property, plant, and equipment

	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 property disposals are included in income.

	Depreciation and amortization are calculated using the straight-line method over the following useful lives:

	Production equipment		3 to 13 years
	Office furniture and equipment		3 to 10 years
	Buildings		39 years
	Building improvements		15 years
	Automobiles		7 years

	Long-lived assets

	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 of the underlying assets.

	The Company’s property, plant, and equipment primarily consists of buildings, land, assembly equipment for syringes, molding machines, molds, office equipment, furniture, and fixtures.

	Intangible assets

	Intangible assets are stated at cost and consist primarily of patents and trademarks which are amortized using the straight-line method over 17 years.

	Financial instruments

	The Company estimates the fair market 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 market 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. The fair value of long-term liabilities, based on Management’s estimates, approximates their reported values.

	Concentration risks

	The Company’s financial instruments exposed to concentrations of credit risk consist primarily of cash, cash equivalents, 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 majority of accounts receivable are due from companies which are well-established entities. As a consequence, Management considers any exposure from concentrations of credit risks to be limited.

	The following table reflects our significant customers in 2013 and 2012:

			Nine Months ended		Nine Months ended		Three Months ended		Three Months ended
			September 30, 2013		September 30, 2012		September 30, 2013		September 30, 2012
	Number of significant customers		2		3		3		2
	Aggregate dollar amount of net sales to significant customers		$7.6 million		$10.6 million		$4.3 million		$3.4 million
	Percentage of net sales to significant customers		32.90%		41.30%		47.40%		35.60%

	The Company manufactures syringes in Little Elm, Texas as well as utilizing manufacturers in China. The Company purchases most of its product components from single suppliers, including needle adhesives and packaging materials. There are multiple sources of these materials. The Company obtained roughly 73.1% and 69.6% of its finished products in the first nine months of 2013 and 2012, respectively, from Double Dove, a Chinese manufacturer. Purchases from Double Dove aggregated 75.6% and 71.9% of finished products in the three month periods ended September 30, 2013 and 2012, respectively. In the event that the Company becomes unable to purchase such product from Double Dove, the Company would need to find an alternate supplier for its 0.5mL insulin syringe, its 2 mL, 5mL, and 10mL syringes and its autodisable syringe and increase domestic production for 1mL and 3mL syringes.

	Revenue recognition

Revenue is recognized for sales when title and risk of ownership passes to the customer, generally upon shipment. 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 that 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 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 and deducted from revenues in the Statements of Operations. Accounts payable included estimated contractual allowances for $4.4 million and $3.0 million as of September 30, 2013 and December 31, 2012, 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. Any product shipped or distributed for evaluation purposes is expensed.

Certain distributors have taken rebates to which they are not entitled, such as utilizing a rebate for products not purchased directly from the Company. The Company has been in discussions with the principal customers that claimed non-contractual rebates. Major customers said they have ceased the practices resulting in claiming non-contractual rebates. Rebates can only be claimed on purchases made directly from the Company. The Company has established a reserve for the collectability of these non-contractual rebate amounts. The expense for the reserve is recorded in Operating expense, General and administrative. The reserve for such non-contractual deductions is included in the allowance for doubtful accounts. There has been no change to the reserve regarding non-contractual rebates in the periods currently presented.

The Company’s domestic return policy is set forth in its standard Distribution Agreement. This 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 will not accept returned goods without a returned goods authorization number. The Company may refund the customer’s money or replace the product.

The Company’s domestic return policy also 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 do not provide for any returns.

Litigation Proceeds

Proceeds from litigation are recognized when realizable. Generally, realization is not reasonably assured and expected until proceeds are collected. See Note 6, COMMITMENTS AND CONTINGENCIES, for a discussion of proceeds received from Becton Dickinson and Company (“BD”) pursuant to a stipulation in the patent infringement case Retractable Technologies, Inc. and Thomas Shaw v. Becton Dickinson and Company, Civil Action No. 2:07-cv-250, in the U.S. District Court for the Eastern District of Texas, Marshall Division.

Income taxes

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 Company has established a valuation allowance for its net deferred tax asset as future taxable income cannot be reasonably assured. Penalties and interest related to income tax are classified as General and administrative expense and Interest expense, respectively, in the Condensed Statements of Operations.

Earnings per share

The Company computes basic earnings 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 and convertible debt. The calculation of diluted EPS excluded 1,640,480 and 1,076,523 issued and outstanding stock options for the three and nine months ended September 30, 2013, respectively; and 666,899 and 759,620 issued and outstanding stock options for the three and nine months ended September 30, 2012, respectively, as their effect was antidilutive. The potential dilution, if any, is shown on the following schedule:

		Three Months			Three Months			Nine Months			Nine Months
		Ended			Ended			Ended			Ended
		September 30, 2013			September 30, 2012			September 30, 2013			September 30, 2012
Net loss	$	(940,384	)	$	(272,961	)	$	(4,788,653	)	$	(1,592,020	)
Preferred dividend requirements		(228,999	)		(229,527	)		(687,065	)		(688,581	)
Loss applicable to common shareholders	$	(1,169,383	)	$	(502,488	)	$	(5,475,718	)	$	(2,280,601	)
Weighted average common shares outstanding - basic and diluted		26,719,608			26,972,818			27,000,158			25,870,073
Basic loss per share	$	(0.04	)	$	(0.02	)	$	(0.20	)	$	(0.09	)
Diluted loss per share	$	(0.04	)	$	(0.02	)	$	(0.20	)	$	(0.09	)

Shipping and handling costs

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

Research and development costs

Research and development costs are expensed as incurred.

Share-based compensation

The Company’s share-based payments are accounted for using the fair value method. The Company records share-based compensation expense on a straight-line basis over the requisite service period.

Recent Pronouncement

In July 2013, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 requires, unless certain conditions exists, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, similar tax loss, or a tax credit carryforward. ASU 2013-11 is effective prospectively for reporting periods beginning after December 15, 2013, with early adoption permitted. Retrospective application is also permitted. The adoption of ASU 2013-11, effective with the Company’s reporting period beginning January 1, 2014, is not expected to have an impact on the Company’s financial statements.

INVENTORIES

INVENTORIES	9 Months Ended
INVENTORIES	Sep. 30, 2013
INVENTORIES	'
INVENTORIES	'
	3. INVENTORIES

	Inventories consist of the following:

			September 30, 2013			December 31, 2012
	Raw materials	$	1,681,029		$	1,692,133
	Finished goods		4,671,170			3,537,872
			6,352,199			5,230,005
	Inventory reserve		(239,752	)		(239,752	)
		$	6,112,447		$	4,990,253

INCOME_TAXES

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2013
INCOME TAXES	'
INCOME TAXES	'
	4. INCOME TAXES

	The Company’s effective tax rate on the net loss before income taxes was (1.4)% and (1.7)% for the nine months ended September 30, 2013 and September 30, 2012, respectively. For the three months ended September 30, 2013 and September 30, 2012, the Company’s effective tax rate on the net loss before income taxes was (7.1)% and (1.4)%, respectively.

OTHER_ACCRUED_LIABILITIES

OTHER ACCRUED LIABILITIES	9 Months Ended
OTHER ACCRUED LIABILITIES	Sep. 30, 2013
OTHER ACCRUED LIABILITIES	'
OTHER ACCRUED LIABILITIES	'
	5. OTHER ACCRUED LIABILITIES

	Other accrued liabilities consist of the following:

			September 30, 2013		December 31, 2012
	Prepayments from customers	$	1,216,157	$	1,400,740
	Accrued property taxes		307,342		—
	Accrued professional fees		122,685		162,969
	Other accrued expenses		132,386		101,961
		$	1,778,570	$	1,665,670

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2013
COMMITMENTS AND CONTINGENCIES	'
COMMITMENTS AND CONTINGENCIES	'
	6. COMMITMENTS AND CONTINGENCIES

	On May 19, 2010, final judgment was entered in the U.S. District Court for the Eastern District of Texas, Marshall Division for the Company which ordered that the Company recover $5,000,000 plus prejudgment and post-judgment interest, and ordered a permanent injunction for BD’s 1mL and 3mL Integra syringes until the expiration of certain patents. The permanent injunction was stayed for the longer of the exhaustion of the appeal of the district court’s case or twelve months from May 19, 2010. In June 2010, BD filed an appeal in the U.S. Court of Appeals for the Federal Circuit appealing the final judgment entered on May 19, 2010. In July 2011, a three-judge panel of the U.S. Court of Appeals for the Federal Circuit reversed the district court’s judgment that BD’s 3mL Integra infringed the Company’s ‘224 patent and ‘077 patent. The U.S. Court of Appeals for the Federal Circuit affirmed the district court’s judgment that the 1mL Integra infringes the Company’s ‘244 and ‘733 patents. The U.S. Court of Appeals for the Federal Circuit also affirmed the district court’s judgment that the ‘077 patent is not invalid for anticipation or obviousness. The Company had petitioned for a rehearing by all the judges of the Federal Circuit as to whether the three-judge panel properly construed the Company’s patent claim language in finding that the 3mL Integra did not infringe. The Company’s petition for rehearing by all of the judges of the Federal Circuit was denied with two dissents being issued. The Company filed a petition for certiorari asking the Supreme Court to review the matter. That petition was denied in January of 2013. On August 7, 2013, the U.S. District Court for the Eastern District of Texas issued an order adopting the Magistrate Judge’s Report and Recommendation and denying BD’s Rule 60 motion seeking a reduction in damages. On October 29, 2013, BD filed its Notice of Appeal of the August 7, 2013 order to the Federal Circuit. On September 30, 2013, the Company received payment of $7,724,826 (the “Judgment Amount”) from BD pursuant to a stipulation in this case. The stipulation provides that if, as a result of BD’s appeal of the District Court’s denial of BD’s Rule 60 motion, it is judicially determined that BD owes an amount less than the Judgment Amount, BD shall be entitled to restitution by the Company of any excess payment, with interest. Otherwise, the payment of the Judgment Amount shall constitute satisfaction of the patent infringement judgment and BD shall owe no further money damages to the Company in this case. The Judgment Amount has been reflected as a current liability in the Condensed Balance Sheets since the proceeds are not yet realizable.

	In May 2010, the Company and an officer’s suit against BD in the U.S. District Court for the Eastern District of Texas, Marshall Division alleging violations of antitrust acts, false advertising, product disparagement, tortious interference, and unfair competition was reopened. The Company and an officer filed a Second Amended Complaint on July 23, 2010 setting forth additional detail regarding the allegations of BD’s illegal conduct. BD filed a motion to dismiss and the U.S. District Court for the Eastern District of Texas, Marshall Division denied that motion in part and granted it in part, granting the Company the right to re-plead certain allegations by May 13, 2011. The Company and an officer filed a Third Amended Complaint in May 2011, setting forth additional detail regarding the alleged illegal conduct by BD. Trial was initially set for February 2012. However, in January 2012 the parties agreed to a continuance to allow the petition for certiorari to be considered. As stated above, the petition was denied in January of 2013. A hearing to re-set a trial date in light of BD’s motion for continuance was held May 3, 2013. The trial commenced on September 9, 2013 in Tyler, Texas, and the jury returned its verdict on September 19, 2013, finding that BD illegally engaged in anticompetitive conduct with the intent to acquire or maintain monopoly power in the safety syringe market and engaged in false advertising under the Lanham Act. The jury awarded the Company $113,508,014 in damages for the antitrust claim, which is subject to being trebled pursuant to statute. A final judgment in this matter has not been entered by the Court yet. The Court has set a hearing for post-trial motions on December 12, 2013. BD has stated that it plans to appeal the verdict.

	In September 2007, BD and MDC Investment Holdings, Inc. (“MDC”) sued the Company in the United States District Court for the Eastern District of Texas, Texarkana Division, initially alleging that the Company is infringing two U.S. patents of MDC (6,179,812 and 7,090,656) that are licensed to BD. BD and MDC seek injunctive relief and unspecified damages. The Company counterclaimed for declarations of non-infringement, invalidity, and unenforceability of the asserted patents. The plaintiffs subsequently dropped allegations with regard to patent no. 7,090,656 and the Company subsequently dropped its counterclaims for unenforceability of the asserted patents. The United States District Court for the Eastern District of Texas, Texarkana Division conducted a claims construction hearing on September 25, 2008 and issued its claims construction order on November 14, 2008. The case has been stayed pending resolution of the Company’s first filed case against BD described above. As of November 7, 2013, there has been no activity in this case since the stay.

BUSINESS_SEGMENTS

BUSINESS SEGMENTS	9 Months Ended
BUSINESS SEGMENTS	Sep. 30, 2013
BUSINESS SEGMENTS	'
BUSINESS SEGMENTS	'
	7. BUSINESS SEGMENTS

			Three Months		Three Months		Nine Months		Nine Months
			Ended		Ended		Ended		Ended
			September 30, 2013		September 30, 2012		September 30, 2013		September 30, 2012
	U.S. sales	$	7,350,342	$	7,157,486	$	17,855,657	$	19,943,687
	North and South America sales (excluding U.S.)		456,712		124,988		2,946,631		544,960
	Other international sales		1,353,224		2,161,683		2,438,335		5,113,399
	Total sales	$	9,160,278	$	9,444,157	$	23,240,623	$	25,602,046

			September 30, 2013			December 31, 2012
	Long-lived assets
	U.S.		$	10,916,085		$	11,679,592
	International		$	240,150		$	220,058

	The Company does not operate in separate reportable segments. The Company has minimal long-lived assets in foreign countries. 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.

STOCK_REPURCHASE_PROGRAM

STOCK REPURCHASE PROGRAM	9 Months Ended
STOCK REPURCHASE PROGRAM	Sep. 30, 2013
STOCK REPURCHASE PROGRAM	'
STOCK REPURCHASE PROGRAM	'
	8. STOCK REPURCHASE PROGRAM

	On July 10, 2012, the Company authorized a Common Stock repurchase plan structured to comply with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934. Under the plan, the Company purchased 316,909 and 655,818 shares in the three and nine months ended September 30, 2013, respectively. The plan was terminated effective August 30, 2013.

	Pursuant to the Certificates of Designation, Preferences, Rights And Limitations of the Series I Class B and Series II Class B Convertible Preferred Stock, the Company would have been prohibited from purchasing its Common Stock while dividends were in arrears. Therefore, to facilitate the Common Stock repurchase plan, the Company paid dividends on the Series I Class B Preferred Stock in the amount of $12,938 on January 21, April 22, and July 22, 2013. The Company paid dividends to Series II Class B Preferred Stockholders in the amount of $44,675 on the same dates listed in the preceding sentence.

STOCK_OPTION_GRANT

STOCK OPTION GRANT	9 Months Ended
STOCK OPTION GRANT	Sep. 30, 2013
STOCK OPTION GRANT	'
STOCK OPTION GRANT	'
	9. STOCK OPTION GRANT

	The Compensation and Benefits Committee approved a grant of a non-qualified stock option pursuant to the 2008 Stock Option Plan to Walter O. Bigby, Jr. for the purchase of 50,000 shares of Common Stock on May 14, 2013. Related share based compensation of $52,755 is included in general and administrative expense in the accompanying Condensed Statements of Operations.

DIVIDENDS

DIVIDENDS	9 Months Ended
DIVIDENDS	Sep. 30, 2012
DIVIDENDS	'
DIVIDENDS	'
	10. DIVIDENDS

	On October 21, 2013, the Board of Directors declared a dividend on the Series I Class B Preferred Stock in the amount of $12,938 which was paid on November 11, 2013. The Company also paid declared and paid dividends to Series II Class B Preferred Stockholders in the amount of $44,675 on the same dates. See Note 8 for information about dividends paid during the term of the Stock Repurchase Program.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2013

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Accounting estimates

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.

Cash and cash equivalents

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

Accounts receivable

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 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 5, Other Accrued Liabilities.

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

Inventories

Inventories are valued at the lower of cost or market, with cost being determined using actual average cost. The Company compares the average cost to the market price and records the lower value. 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.

Property, plant, and equipment

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 property disposals are included in income.

Depreciation and amortization are calculated using the straight-line method over the following useful lives:

Production equipment

3 to 13 years

Office furniture and equipment

3 to 10 years

Buildings

39 years

Building improvements

15 years

Automobiles

7 years

Long-lived assets

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 of the underlying assets.

The Company’s property, plant, and equipment primarily consists of buildings, land, assembly equipment for syringes, molding machines, molds, office equipment, furniture, and fixtures.

Intangible assets

Intangible assets are stated at cost and consist primarily of patents and trademarks which are amortized using the straight-line method over 17 years.

Financial instruments

The Company estimates the fair market 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 market 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. The fair value of long-term liabilities, based on Management’s estimates, approximates their reported values.

Concentration risks

The Company’s financial instruments exposed to concentrations of credit risk consist primarily of cash, cash equivalents, 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 majority of accounts receivable are due from companies which are well-established entities. As a consequence, Management considers any exposure from concentrations of credit risks to be limited.

The following table reflects our significant customers in 2013 and 2012:

Nine Months ended

Three Months ended

September 30, 2013

September 30, 2012

September 30, 2013

September 30, 2012

Number of significant customers

Aggregate dollar amount of net sales to significant customers

$7.6 million

$10.6 million

$4.3 million

$3.4 million

Percentage of net sales to significant customers

32.90%

41.30%

47.40%

35.60%

The Company manufactures syringes in Little Elm, Texas as well as utilizing manufacturers in China. The Company purchases most of its product components from single suppliers, including needle adhesives and packaging materials. There are multiple sources of these materials. The Company obtained roughly 73.1% and 69.6% of its finished products in the first nine months of 2013 and 2012, respectively, from Double Dove, a Chinese manufacturer. Purchases from Double Dove aggregated 75.6% and 71.9% of finished products in the three month periods ended September 30, 2013 and 2012, respectively. In the event that the Company becomes unable to purchase such product from Double Dove, the Company would need to find an alternate supplier for its 0.5mL insulin syringe, its 2 mL, 5mL, and 10mL syringes and its autodisable syringe and increase domestic production for 1mL and 3mL syringes.

Revenue recognition

Revenue is recognized for sales when title and risk of ownership passes to the customer, generally upon shipment. 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 that 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 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 and deducted from revenues in the Statements of Operations. Accounts payable included estimated contractual allowances for $4.4 million and $3.0 million as of September 30, 2013 and December 31, 2012, 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. Any product shipped or distributed for evaluation purposes is expensed.

Certain distributors have taken rebates to which they are not entitled, such as utilizing a rebate for products not purchased directly from the Company. The Company has been in discussions with the principal customers that claimed non-contractual rebates. Major customers said they have ceased the practices resulting in claiming non-contractual rebates. Rebates can only be claimed on purchases made directly from the Company. The Company has established a reserve for the collectability of these non-contractual rebate amounts. The expense for the reserve is recorded in Operating expense, General and administrative. The reserve for such non-contractual deductions is included in the allowance for doubtful accounts. There has been no change to the reserve regarding non-contractual rebates in the periods currently presented.

The Company’s domestic return policy is set forth in its standard Distribution Agreement. This 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 will not accept returned goods without a returned goods authorization number. The Company may refund the customer’s money or replace the product.

The Company’s domestic return policy also 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 do not provide for any returns.

Litigation Proceeds

Proceeds from litigation are recognized when realizable. Generally, realization is not reasonably assured and expected until proceeds are collected. See Note 6, COMMITMENTS AND CONTINGENCIES, for a discussion of proceeds received from Becton Dickinson and Company (“BD”) pursuant to a stipulation in the patent infringement case Retractable Technologies, Inc. and Thomas Shaw v. Becton Dickinson and Company, Civil Action No. 2:07-cv-250, in the U.S. District Court for the Eastern District of Texas, Marshall Division.

Income taxes

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 Company has established a valuation allowance for its net deferred tax asset as future taxable income cannot be reasonably assured. Penalties and interest related to income tax are classified as General and administrative expense and Interest expense, respectively, in the Condensed Statements of Operations.

Earnings per share

The Company computes basic earnings 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 and convertible debt. The calculation of diluted EPS excluded 1,640,480 and 1,076,523 issued and outstanding stock options for the three and nine months ended September 30, 2013, respectively; and 666,899 and 759,620 issued and outstanding stock options for the three and nine months ended September 30, 2012, respectively, as their effect was antidilutive. The potential dilution, if any, is shown on the following schedule:

Three Months

Nine Months

Ended

September 30, 2013

September 30, 2012

September 30, 2013

September 30, 2012

Net loss

(940,384

)

(272,961

)

(4,788,653

)

(1,592,020

)

Preferred dividend requirements

(228,999

)

(229,527

)

(687,065

)

(688,581

)

Loss applicable to common shareholders

(1,169,383

)

(502,488

)

(5,475,718

)

(2,280,601

)

Weighted average common shares outstanding - basic and diluted

26,719,608

26,972,818

27,000,158

25,870,073

Basic loss per share

(0.04

)

(0.02

)

(0.20

)

(0.09

)

Diluted loss per share

(0.04

)

(0.02

)

(0.20

)

(0.09

)

Shipping and handling costs

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

Research and development costs

Research and development costs are expensed as incurred.

Share-based compensation

The Company’s share-based payments are accounted for using the fair value method. The Company records share-based compensation expense on a straight-line basis over the requisite service period.

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	Sep. 30, 2013
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
Schedule of estimated useful lives of property, plant and equipment	'


	Production equipment		3 to 13 years
	Office furniture and equipment		3 to 10 years
	Buildings		39 years
	Building improvements		15 years
	Automobiles		7 years
Schedule of significant customers	'


			Nine Months ended		Nine Months ended		Three Months ended		Three Months ended
			September 30, 2013		September 30, 2012		September 30, 2013		September 30, 2012
	Number of significant customers		2		3		3		2
	Aggregate dollar amount of net sales to significant customers		$7.6 million		$10.6 million		$4.3 million		$3.4 million
	Percentage of net sales to significant customers		32.90%		41.30%		47.40%		35.60%
Schedule of earnings per share	'


			Three Months			Three Months			Nine Months			Nine Months
			Ended			Ended			Ended			Ended
			September 30, 2013			September 30, 2012			September 30, 2013			September 30, 2012
	Net loss	$	(940,384	)	$	(272,961	)	$	(4,788,653	)	$	(1,592,020	)
	Preferred dividend requirements		(228,999	)		(229,527	)		(687,065	)		(688,581	)
	Loss applicable to common shareholders	$	(1,169,383	)	$	(502,488	)	$	(5,475,718	)	$	(2,280,601	)
	Weighted average common shares outstanding - basic and diluted		26,719,608			26,972,818			27,000,158			25,870,073
	Basic loss per share	$	(0.04	)	$	(0.02	)	$	(0.20	)	$	(0.09	)
	Diluted loss per share	$	(0.04	)	$	(0.02	)	$	(0.20	)	$	(0.09	)

INVENTORIES_Tables

INVENTORIES (Tables)	9 Months Ended
INVENTORIES (Tables)	Sep. 30, 2013
INVENTORIES	'
Schedule of inventories	'


			September 30, 2013			December 31, 2012
	Raw materials	$	1,681,029		$	1,692,133
	Finished goods		4,671,170			3,537,872
			6,352,199			5,230,005
	Inventory reserve		(239,752	)		(239,752	)
		$	6,112,447		$	4,990,253

OTHER_ACCRUED_LIABILITIES_Tabl

OTHER ACCRUED LIABILITIES (Tables)	9 Months Ended
OTHER ACCRUED LIABILITIES (Tables)	Sep. 30, 2013
OTHER ACCRUED LIABILITIES	'
Schedule of other accrued liabilities	'


			September 30, 2013		December 31, 2012
	Prepayments from customers	$	1,216,157	$	1,400,740
	Accrued property taxes		307,342		—
	Accrued professional fees		122,685		162,969
	Other accrued expenses		132,386		101,961
		$	1,778,570	$	1,665,670

BUSINESS_SEGMENTS_Tables

BUSINESS SEGMENTS (Tables)	9 Months Ended
BUSINESS SEGMENTS (Tables)	Sep. 30, 2013
BUSINESS SEGMENTS	'
Schedule of sales and long-lived assets by geographical areas	'


			Three Months		Three Months		Nine Months		Nine Months
			Ended		Ended		Ended		Ended
			September 30, 2013		September 30, 2012		September 30, 2013		September 30, 2012
	U.S. sales	$	7,350,342	$	7,157,486	$	17,855,657	$	19,943,687
	North and South America sales (excluding U.S.)		456,712		124,988		2,946,631		544,960
	Other international sales		1,353,224		2,161,683		2,438,335		5,113,399
	Total sales	$	9,160,278	$	9,444,157	$	23,240,623	$	25,602,046

			September 30, 2013			December 31, 2012
	Long-lived assets
	U.S.		$	10,916,085		$	11,679,592
	International		$	240,150		$	220,058

SUMMARY_OF_SIGNIFICANT_ACCOUNT3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	9 Months Ended
	Sep. 30, 2013
	item
Accounts receivable	'
Number of products consigned to customers	0
Intangible assets	'
Useful lives of patents and trademarks	'17 years
Production equipment \| Minimum	'
Property, plant, and equipment	'
Useful lives	'3 years
Production equipment \| Maximum	'
Property, plant, and equipment	'
Useful lives	'13 years
Office furniture and equipment \| Minimum	'
Property, plant, and equipment	'
Useful lives	'3 years
Office furniture and equipment \| Maximum	'
Property, plant, and equipment	'
Useful lives	'10 years
Buildings	'
Property, plant, and equipment	'
Useful lives	'39 years
Building improvements	'
Property, plant, and equipment	'
Useful lives	'15 years
Automobiles	'
Property, plant, and equipment	'
Useful lives	'7 years

SUMMARY_OF_SIGNIFICANT_ACCOUNT4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
	item	item	item	item	Dec. 31, 2012
Concentration risks	'	'	'	'	'
Number of significant customers	3	2	2	3	'
Aggregate dollar amount of net sales to significant customers	$9,160,278	$9,444,157	$23,240,623	$25,602,046	'
Revenue recognition	'	'	'	'	'
Estimated contractual allowance	4,400,000	'	4,400,000	'	3,000,000
Change to reserve regarding non-contractual rebates	'	'	0	'	'
Period for return of incorrect shipments	'	'	'10 days	'	'
Number of times overstocking returns are limited	'	'	2	'	'
Period for return of product due to overstock	'	'	'12 months	'	'
Maximum percentage of distributor's total purchase for the prior 12-month period	'	'	1.00%	'	'
Sales \| Customer concentration risk	'	'	'	'	'
Concentration risks	'	'	'	'	'
Aggregate dollar amount of net sales to significant customers	$4,300,000	$3,400,000	$7,600,000	$10,600,000	'
Concentration risk (as a percent)	47.40%	35.60%	32.90%	41.30%	'
Product components \| Supplier concentration risk	'	'	'	'	'
Concentration risks	'	'	'	'	'
Concentration risk (as a percent)	75.60%	71.90%	73.10%	69.60%	'

SUMMARY_OF_SIGNIFICANT_ACCOUNT5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Earnings per share	'	'	'	'
Stock options excluded from calculation of diluted EPS	1,640,480	666,899	1,076,523	759,620
Net loss	($940,384)	($272,961)	($4,788,653)	($1,592,020)
Preferred dividend requirements	-228,999	-229,527	-687,066	-688,581
Loss applicable to common shareholders	($1,169,383)	($502,488)	($5,475,719)	($2,280,601)
Weighted average common shares outstanding - basic and diluted	26,719,608	26,972,818	27,000,158	25,870,073
Basic loss per share (in dollars per share)	($0.04)	($0.02)	($0.20)	($0.09)
Diluted loss per share (in dollars per share)	($0.04)	($0.02)	($0.20)	($0.09)

INVENTORIES_Details

INVENTORIES (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
INVENTORIES	'	'
Raw materials	$1,681,029	$1,692,133
Finished goods	4,671,170	3,537,872
Inventory, gross	6,352,199	5,230,005
Inventory reserve	-239,752	-239,752
Inventory, net	$6,112,447	$4,990,253

INCOME_TAXES_Details

INCOME TAXES (Details)	3 Months Ended		9 Months Ended
INCOME TAXES (Details)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
INCOME TAXES	'	'	'	'
Effective tax rate (as a percent)	-7.10%	-1.40%	-1.40%	-1.70%

OTHER_ACCRUED_LIABILITIES_Deta

OTHER ACCRUED LIABILITIES (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
OTHER ACCRUED LIABILITIES	'	'
Prepayments from customers	$1,216,157	$1,400,740
Accrued property taxes	307,342	'
Accrued professional fees	122,685	162,969
Other accrued expenses	132,386	101,961
Other accrued liabilities	$1,778,570	$1,665,670

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	0 Months Ended		1 Months Ended
	Sep. 30, 2013	Sep. 19, 2013	Jul. 31, 2011	31-May-10	Sep. 30, 2007
	BD	BD	BD	BD	BD and MDC Investment Holdings, Inc.
			item		item
COMMITMENTS AND CONTINGENCIES	'	'	'	'	'
Recovery amount	'	'	'	$5,000,000	'
Period from specified date for permanent injunction to stay	'	'	'	'12 months	'
Number of judges on panel	'	'	3	'	'
Number of dissents being issued	'	'	2	'	'
Judgment amount received pursuant to stipulation	7,724,826	'	'	'	'
Value of damages awarded	'	$113,508,014	'	'	'
Number of U.S. patents infringed upon	'	'	'	'	2

BUSINESS_SEGMENTS_Details

BUSINESS SEGMENTS (Details) (USD $)	3 Months Ended		9 Months Ended
BUSINESS SEGMENTS (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Sales by geographical areas	'	'	'	'	'
Total sales	$9,160,278	$9,444,157	$23,240,623	$25,602,046	'
Long-lived assets	'	'	'	'	'
U.S.	10,916,085	'	10,916,085	'	11,679,592
International	240,150	'	240,150	'	220,058
U.S. sales	'	'	'	'	'
Sales by geographical areas	'	'	'	'	'
Total sales	7,350,342	7,157,486	17,855,657	19,943,687	'
North and South America sales (excluding U.S.)	'	'	'	'	'
Sales by geographical areas	'	'	'	'	'
Total sales	456,712	124,988	2,946,631	544,960	'
Other international sales	'	'	'	'	'
Sales by geographical areas	'	'	'	'	'
Total sales	$1,353,224	$2,161,683	$2,438,335	$5,113,399	'

STOCK_REPURCHASE_PROGRAM_Detai

STOCK REPURCHASE PROGRAM (Details) (USD $)	3 Months Ended	9 Months Ended		0 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2012	Nov. 11, 2013	Jul. 22, 2013	Apr. 22, 2013	Jan. 21, 2013	Nov. 11, 2013	Jul. 22, 2013	Apr. 22, 2013	Jan. 21, 2013
	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2012	Series I, Class B	Series I, Class B	Series I, Class B	Series I, Class B	Series II, Class B	Series II, Class B	Series II, Class B	Series II, Class B
Stock repurchase program	'	'	'	'	'	'	'	'	'	'	'
Stock repurchased under the Common Stock repurchase plan (in shares)	316,909	655,818	'	'	'	'	'	'	'	'	'
Preferred stock dividends paid	'	$172,839	$172,838	$12,938	$12,938	$12,938	$12,938	$44,675	$44,675	$44,675	$44,675

STOCK_OPTION_GRANT_Details

STOCK OPTION GRANT (Details) (Non-qualified stock option, 2008 Stock Option Plan, Walter O. Bigby, Jr., USD $)	0 Months Ended
	14-May-13
Non-qualified stock option \| 2008 Stock Option Plan \| Walter O. Bigby, Jr.	'
Stock option grant	'
Shares of Common Stock granted	50,000
Share-based compensation expense	$52,755

DIVIDENDS_Details

DIVIDENDS (Details) (USD $)

9 Months Ended

0 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Nov. 11, 2013

Oct. 21, 2013

Jul. 22, 2013

Apr. 22, 2013

Jan. 21, 2013

Nov. 11, 2013

Oct. 21, 2013

Jul. 22, 2013

Apr. 22, 2013

Jan. 21, 2013

Series I, Class B

Series II, Class B

Dividends

Preferred stock dividends paid

$172,839

$172,838

$12,938

$44,675

Preferred dividends declared, not paid

$57,613

$12,938

$44,675