Retractable (RVP) 10-K30 Mar 162015 FY Annual reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2015	Mar. 01, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	RETRACTABLE TECHNOLOGIES INC
Entity Central Index Key	946,563
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 56,495,482
Entity Common Stock, Shares Outstanding		28,619,874
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 18,045,044	$ 22,128,977
Restricted cash		600,897
Accounts receivable, net of allowance for doubtful accounts of $1,795,481 and $1,725,806, respectively	4,900,997	5,642,091
Inventories, net	6,296,625	4,663,548
Other current assets	1,568,032	1,194,055
Total current assets	30,810,698	34,229,568
Property, plant, and equipment, net	11,468,061	10,852,853
Intangible and other assets, net	262,105	270,693
Total assets	42,540,864	45,353,114
Current liabilities:
Accounts payable	5,697,518	5,142,796
Litigation proceeds subject to stipulation		7,724,826
Current portion of long-term debt	249,349	149,744
Accrued compensation	763,576	504,188
Dividends payable	55,414
Accrued royalties to shareholders	631,145	787,434
Other accrued liabilities	690,535	782,322
Income taxes payable	8,176	8,290
Total current liabilities	8,095,713	15,099,600
Long-term debt, net of current maturities	3,417,471	3,425,028
Total liabilities	$ 11,513,184	$ 18,524,628
Commitments and contingencies - see Note 8
Preferred stock $1 par value:
Common Stock, no par value; authorized: 100,000,000 shares; outstanding: 28,619,874 and 27,613,397 shares, respectively
Additional paid-in capital	$ 58,268,036	$ 59,273,769
Retained deficit	(28,021,801)	(32,336,119)
Common stock in treasury - at cost; 0 and 722,920 shares, respectively		(1,096,609)
Total stockholders' equity	31,027,680	26,828,486
Total liabilities and stockholders' equity	42,540,864	45,353,114
Series I, Class B
Preferred stock $1 par value:
Preferred stock	98,500	98,500
Series II, Class B
Preferred stock $1 par value:
Preferred stock	171,200	176,200
Series III, Class B
Preferred stock $1 par value:
Preferred stock	129,245	130,245
Series IV, Class B
Preferred stock $1 par value:
Preferred stock	342,500	542,500
Series V, Class B
Preferred stock $1 par value:
Preferred stock	$ 40,000	$ 40,000

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
BALANCE SHEETS
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 1,795,481	$ 1,725,806
Common stock, par value (in dollars per share)	$ 0	$ 0
Common Stock, authorized shares	100,000,000	100,000,000
Common Stock, outstanding shares	28,619,874	27,613,397
Common stock in treasury - at cost; outstanding	0	722,920
Class B
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred Stock, authorized shares	5,000,000	5,000,000
Series I, Class B
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred Stock, outstanding shares	98,500	98,500
Preferred Stock, liquidation preference (in dollars)	$ 615,625	$ 615,625
Series II, Class B
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred Stock, outstanding shares	171,200	176,200
Preferred Stock, liquidation preference (in dollars)	$ 2,140,000	$ 2,202,500
Series III, Class B
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred Stock, outstanding shares	129,245	130,245
Preferred Stock, liquidation preference (in dollars)	$ 1,615,563	$ 1,628,063
Series IV, Class B
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred Stock, outstanding shares	342,500	542,500
Preferred Stock, liquidation preference (in dollars)	$ 3,767,500	$ 5,967,500
Series V, Class B
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred Stock, outstanding shares	40,000	40,000
Preferred Stock, liquidation preference (in dollars)	$ 176,000	$ 176,000

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
STATEMENTS OF OPERATIONS - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
STATEMENTS OF OPERATIONS
Sales, net	$ 29,552,200	$ 34,520,630	$ 30,785,127
Cost of sales:
Cost of manufactured product	16,509,446	19,770,226	18,000,408
Royalty expense to shareholders	2,477,583	2,728,701	2,474,762
Total cost of sales	18,987,029	22,498,927	20,475,170
Gross profit	10,565,171	12,021,703	10,309,957
Operating expenses:
Sales and marketing	3,837,491	3,967,081	4,414,339
Research and development	607,527	616,784	837,073
General and administrative	9,328,029	9,595,399	10,989,790
Total operating expenses	13,773,047	14,179,264	16,241,202
Loss from operations	(3,207,876)	(2,157,561)	(5,931,245)
Litigation proceeds	7,724,826
Interest and other income	24,917	33,941	38,943
Interest expense, net	(219,672)	(222,808)	(230,578)
Income (loss) before income taxes	4,322,195	(2,346,428)	(6,122,880)
Provision for income taxes	7,877	8,177	90,972
Net income (loss)	4,314,318	(2,354,605)	(6,213,852)
Preferred stock dividend requirements	(709,351)	(915,225)	(916,065)
Deemed capital contribution on extinguishment of preferred stock	2,305,678
Income (loss) applicable to common shareholders	$ 5,910,645	$ (3,269,830)	$ (7,129,917)
Basic earnings (loss) per share (in dollars per share)	$ 0.21	$ (0.12)	$ (0.26)
Diluted earnings (loss) per share (in dollars per share)	$ 0.20	$ (0.12)	$ (0.26)
Weighted average common shares outstanding:
Basic (in shares)	27,822,593	27,375,450	26,999,698
Diluted (in shares)	29,481,294	27,375,450	26,999,698

STATEMENTS OF CHANGES IN STOCKH

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Preferred StockSeries I, Class B	Preferred StockSeries II, Class B	Preferred StockSeries III, Class B	Preferred StockSeries IV, Class B	Preferred StockSeries V, Class B	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Total
Balance at Dec. 31, 2012	$ 103,500	$ 178,700	$ 130,245	$ 542,500	$ 46,607		$ 58,617,308	$ (23,767,662)	$ (122,202)	$ 35,728,996
Balance (in shares) at Dec. 31, 2012	103,500	178,700	130,245	542,500	46,607	27,252,463
Increase (Decrease) in Stockholders' Equity
Conversion of Preferred Stock into Common Stock					$ (6,607)		6,607
Conversion of Preferred Stock into Common Stock (in shares)					(6,607)	6,607
Recognition of stock option compensation							52,775			52,775
Recognition of stock option exercise							536,925			536,925
Recognition of stock option exercise (in shares)						584,450
Dividends							(230,449)			(230,449)
Repurchase of Common Stock									(974,407)	(974,407)
Repurchase of Common Stock (in shares)						(655,818)
Net income (loss)								(6,213,852)		(6,213,852)
Balance at Dec. 31, 2013	$ 103,500	$ 178,700	$ 130,245	$ 542,500	$ 40,000		58,983,166	(29,981,514)	(1,096,609)	28,899,988
Balance (in shares) at Dec. 31, 2013	103,500	178,700	130,245	542,500	40,000	27,187,702
Increase (Decrease) in Stockholders' Equity
Conversion of Preferred Stock into Common Stock	$ (5,000)	$ (2,500)					7,500
Conversion of Preferred Stock into Common Stock (in shares)	(5,000)	(2,500)				7,500
Recognition of stock option compensation							398,328			398,328
Recognition of stock option exercise (in shares)						418,195
Dividends							(115,225)			(115,225)
Net income (loss)								(2,354,605)		(2,354,605)
Balance at Dec. 31, 2014	$ 98,500	$ 176,200	$ 130,245	$ 542,500	$ 40,000		59,273,769	(32,336,119)	(1,096,609)	26,828,486
Balance (in shares) at Dec. 31, 2014	98,500	176,200	130,245	542,500	40,000	27,613,397
Increase (Decrease) in Stockholders' Equity
Conversion of Preferred Stock into Common Stock		$ (5,000)	$ (1,000)	$ (200,000)			206,000
Conversion of Preferred Stock into Common Stock (in shares)		(5,000)	(1,000)	(200,000)		206,000
Recognition of stock option exercise							283,933			283,933
Recognition of stock option exercise (in shares)						272,477
Issuance of new Common stock (in shares)						528,000
Registration of new shares							(60,101)			(60,101)
Retirement of treasury stock							(1,096,609)		$ 1,096,609
Dividends							(338,956)			(338,956)
Net income (loss)								4,314,318		4,314,318
Balance at Dec. 31, 2015	$ 98,500	$ 171,200	$ 129,245	$ 342,500	$ 40,000		$ 58,268,036	$ (28,021,801)		$ 31,027,680
Balance (in shares) at Dec. 31, 2015	98,500	171,200	129,245	342,500	40,000	28,619,874

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities
Net income (loss)	$ 4,314,318	$ (2,354,605)	$ (6,213,852)
Adjustments to reconcile net income (loss) to net cash used by operating activities:
Depreciation and amortization	858,391	1,074,520	1,284,249
Share based compensation			52,775
Provision for doubtful accounts	116,395	27,300	50,000
Provision for inventory valuation			530,000
Gain on disposal of assets			(1,000)
(Increase) decrease in assets:
Inventories	(1,633,077)	1,072,041	(1,275,336)
Accounts receivable	624,699	(2,192,673)	167,589
Income taxes receivable			9,431
Other current assets	(373,977)	(128,414)	(281,881)
Increase (decrease) in liabilities:
Accounts payable	554,722	35,018	7,895
Litigation proceeds subject to stipulation	(7,724,826)		7,724,826
Other accrued liabilities	11,312	(1,318,327)	787,902
Income taxes payable	(114)	(82,682)	90,971
Net cash (provided) used by operating activities	(3,252,157)	(3,867,822)	2,933,569
Cash flows from investing activities
Purchase of property, plant, and equipment	(1,465,010)	(1,007,933)	(283,289)
Changes in restricted cash	600,897	(600,897)
Proceeds from sale of assets			1,000
Net cash used by investing activities	(864,113)	(1,608,830)	(282,289)
Cash flows from financing activities
Repayments of long-term debt and notes payable	(184,447)	(249,220)	(317,303)
Proceeds from long-term debt	276,495
Proceeds from the exercise of stock options	283,933	398,328	536,925
Repurchase of Common Stock			(974,407)
Stock registration fees	(60,101)
Payment of Preferred Stock dividends	(283,543)	(172,838)	(230,449)
Net cash provided (used) by financing activities	32,337	(23,730)	(985,234)
Net increase (decrease) in cash and cash equivalents.	(4,083,933)	(5,500,382)	1,666,046
Cash and cash equivalents at:
Beginning of period	22,128,977	27,629,359	25,963,313
End of period	18,045,044	22,128,977	27,629,359
Supplemental schedule of cash flow information:
Interest paid	219,672	222,808	241,052
Income taxes paid	3,700	$ 94,332	7,988
Supplemental schedule of noncash investing and financing activities:
Preferred dividends declared, not paid	$ 55,414		$ 57,613

BUSINESS OF THE COMPANY AND BAS

BUSINESS OF THE COMPANY AND BASIS OF PRESENTATION	12 Months Ended
BUSINESS OF THE COMPANY AND BASIS OF PRESENTATION	Dec. 31, 2015
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 commercially available 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 small diameter tube adapter; the blood collection tube holder; the allergy tray; the IV safety catheter; the Patient Safe ® syringes; the Patient Safe ® Luer Cap; and the VanishPoint ® Blood Collection Set. The Company also sells VanishPoint ® autodisable syringes in the international market in addition to our other products.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2015
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. Restricted cash Amounts pledged as collateral for an underlying letter of credit for equipment is classified as restricted cash. Changes in restricted cash have been presented as investing activities in the Statements of Cash Flows. 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 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 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 consist 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 intellectual property which is 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 2015, 2014, and 2013: Years Ended December 31, 2015 2014 2013 Number of significant customers Aggregate dollar amount of net sales to significant customers $ 13.5 million $ 16.5 million $ 9.3 million Percentage of net sales to significant customers % % % Considering the current economic climate, the Company increased its allowance for doubtful accounts by approximately $70,000 this year. 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 77.7% of its VanishPoint ® finished products in 2015 from its primary Chinese manufacturer. Purchases from this Chinese manufacturer aggregated 73.1% and 72.9% of VanishPoint ® finished products in 2014 and 2013, respectively. In the event that the Company becomes unable to purchase products from its primary Chinese manufacturer, the Company would need to find an alternate manufacturer for its 0.5mL insulin syringe, its 2mL, 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 for which the Company has not received tracking reports. Rebates are recorded when issued and are applied against the customer’s receivable balance. D istributor s 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 in the Balance Sheets and deducted from revenues in the Statements of Operations. Accounts payable included estimated contractual allowances for $3,733,199 and $4,160,099 for 2015 and 2014, 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. 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 for 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 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. Litigation proceeds Proceeds from litigation are recognized when realizable. Generally, realization is not reasonably assured and expected until proceeds are collected. On September 30, 2013, the Company received payment of $7,724,826 (the “Judgment Amount”) 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. The Judgment Amount was included as income in the second quarter of 2015 due to the conclusion of the case and related appeals. Prior to the second quarter of 2015, the Judgment Amount had been shown as a liability on the balance sheet since the Company was paid the Judgment Amount and the litigation did not come to a final conclusion until the second quarter of 2015. 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 utilized some of its net operating loss carry forwards in 2013 and paid Alternative Minimum Tax on its taxable income. 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 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. The calculation of diluted EPS excluded 1,774,520 and 1,305,847 shares of Common Stock underlying issued and outstanding stock options at December 31, 2014 and 2013, respectively, as their effect was antidilutive. The potential dilution, if any, is shown on the following schedule: Years Ended December 31, 2015 2014 2013 Net income (loss) $ $ ) $ ) Preferred dividend requirements ) ) ) Deemed capital contribution on extinguishment of preferred stock — — Income (loss) applicable to common shareholders after assumed conversions $ $ ) $ ) Average common shares outstanding Average common and common equivalent shares outstanding - assuming dilution Basic earnings (loss) per share $ $ ) $ ) Diluted earnings (loss) per share $ $ ) $ ) The Financial Accounting Standards Board Accounting Standards 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 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 transaction described in note 20. From a legal standpoint, the transaction was neither a redemption nor conversion pursuant of the terms of the Certificate of Designation, Preferences, Rights and Limitations of the Series IV Class B Convertible Preferred Stock. Shipping and handling costs The Company classifies shipping and handling costs as part of Cost of sales in the 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. The Company incurred $52,775 in General and administrative cost related to share-based compensation in 2013. No share-based compensation costs were incurred in 2015 or 2014. All stock options are fully vested; therefore, all stock option expense has been fully recognized. Recent Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (topic 842). Under the new ASU, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance lessor accounting is largely unchanged. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. This ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of this standard. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. This ASU amends Topic 740, Income Taxes, requiring deferred tax assets and liabilities to be classified as non-current in the statement of financial position. As required by ASU No. 2015-17, all deferred tax assets and liabilities will be classified as non-current in the Company’s consolidated balance sheets. Effective for public business entities for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The amendments may be applied prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company is currently evaluating the impact of this standard. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330) Simplifying the Measurement of Inventory,” which is part of the FASB’s Simplification Initiative. Inventory, including inventory measured at average cost, would be valued at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 is effective for the Company’s annual periods and interim periods within those annual periods beginning January 1, 2017. Amendments in this ASU should be applied prospectively with earlier application permitted at the beginning of an interim or annual reporting period. The Company is currently assessing the potential impact of this ASU on its financial statements. In May 2014, FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, which provides guidance for revenue recognition. This ASU’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU No. 2014-09 allows for either full retrospective or modified retrospective adoption. In July 2015, the FASB voted to delay the effective date of this ASU by one year. The ASU will now be effective commencing with the Company’s quarter ending March 31, 2018. Early adoption of this ASU is allowed no sooner than the original effective date. The Company is currently assessing the potential impact of this ASU on its financial statements. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements Going Concern (Subtopic 205-40) — Disclosure of Uncertainties about and Entity’s Ability to Continue as a Going Concern”. Currently there is no guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern. This ASU requires management to assess the entity’s ability to continue as a going concern. This guidance is effective for the Company’s annual reporting period ending December 31, 2016 and for subsequent interim periods. Early adoption is permitted. The Company expects to adopt this guidance when effective, and upon adoption, will evaluate going concern based on this guidance. In April 2015, the FASB issued ASU 2015-03, “Interest—Imputation of Interest”. To simplify presentation of debt issuance costs, the amendments in this ASU would require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected by the amendments in this ASU. This ASU is the final version of Proposed Accounting Standards Update 2014-250—“Interest—Imputation of Interest” (Subtopic 835-30), which has been deleted. The amendments in this ASU are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company has no unamortized debt issuance costs.

INVENTORIES

INVENTORIES	12 Months Ended
INVENTORIES	Dec. 31, 2015
INVENTORIES
INVENTORIES	3. INVENTORIES Inventories consist of the following: Year Ended December 31, 2015 2014 Raw materials $ $ Finished goods Inventory reserve ) ) $ $

PROPERTY, PLANT, AND EQUIPMENT

PROPERTY, PLANT, AND EQUIPMENT	12 Months Ended
PROPERTY, PLANT, AND EQUIPMENT	Dec. 31, 2015
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT	4. PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment consist of the following : December 31, 2015 2014 Land $ $ Buildings and building improvements Production equipment Office furniture and equipment Construction in progress Automobiles Accumulated depreciation ) ) $ $ Depreciation expense for the years ended December 31, 2015, 2014, and 2013 was $849,804; $1,065,248; and $1,272,770, respectively.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
INTANGIBLE ASSETS	Dec. 31, 2015
INTANGIBLE ASSETS
INTANGIBLE ASSETS	5. INTANGIBLE ASSETS Intangible assets consist of the following: December 31, 2015 2014 Intellectual property $ $ Accumulated amortization ) ) $ $ In 1995, the Company entered into a license agreement with the Chief Executive Officer of the Company for the exclusive right to manufacture, market, and distribute products utilizing automated retraction technology, which agreement has been amended twice. This technology is the subject of various patents and patent applications owned by such officer of the Company. The initial licensing fee of $500,000 was amortized over 17 years. The license agreement also provides for quarterly payments of a 5% royalty fee on gross sales. The royalty fee expense is recognized in the period in which it is earned. Royalty fees of $2,477,583; $2,728,701; and $2,474,762 are included in Cost of sales for the years ended December 31, 2015, 2014, and 2013, respectively. Royalties payable under this agreement aggregated $631,145 and $787,434 at December 31, 2015 and 2014, respectively. Gross sales upon which royalties are based were $49,551,660; $54,574,020; and $49,495,232 for 2015, 2014, and 2013, respectively. Amortization expense for the years ended December 31, 2015, 2014, and 2013, was $8,587; $9,272; and $11,479, respectively.

OTHER ACCRUED LIABILITIES

OTHER ACCRUED LIABILITIES	12 Months Ended
OTHER ACCRUED LIABILITIES	Dec. 31, 2015
OTHER ACCRUED LIABILITIES
OTHER ACCRUED LIABILITIES	6. OTHER ACCRUED LIABILITIES Other accrued liabilities consist of the following: December 31, 2015 2014 Prepayments from customers $ $ Accrued property taxes — Accrued professional fees Other accrued expenses $ $

LONG-TERM DEBT

LONG-TERM DEBT	12 Months Ended
LONG-TERM DEBT	Dec. 31, 2015
LONG-TERM DEBT
LONG-TERM DEBT	7. LONG-TERM DEBT Long-term debt consists of the following: December 31, 2015 2014 Loan from American First National Bank. It has a 20 year amortization and 10 year maturity from December 10, 2009. The loan provided funding for the expansion of the warehouse, additional office space, and a new Controlled Environment. The loan is secured by the Company’s land and buildings. The interest rate is 5.968%. $ $ Note payable to Deutsche Leasing USA, Inc. The interest rate is 3.69%. The original amount of the note was $276,495 with a 36 month maturity ending in July 2018. Beginning August 2015, the loan became payable in equal installments of principal and interest of approximately $8,100. Collateralized by molding machines and ancillary equipment. — Less: current portion ) ) $ $ The fair value of long-term liabilities, based on Management’s estimates, approximates their reported values. The aggregate maturities of long-term debt as of December 31, 2015, are as follows: 2016 $ 2017 2018 2019 Thereafter — $

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	8. COMMITMENTS AND CONTINGENCIES 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 trial commenced on September 9, 2013 in the U.S. District Court for the Eastern District of Texas, Tyler Division, and the jury found 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, which was trebled pursuant to statute. The Court granted injunctive relief to take effect January 15, 2015. In doing so, the Court found that BD’s business practices limited innovation, including false advertisements that suppressed sales of the VanishPoint ® . The specific injunctive relief includes: (1) enjoining BD’s use of “World’s Sharpest Needle” or any similar assertion of superior sharpness; (2) requiring notification to all customers who purchased BD syringe products from July 2, 2004 to date that BD wrongfully claimed that its syringe needles were sharper and that its statement that it had “data on file” was false and misleading; (3) requiring notification to employees, customers, distributors, GPOs, and government agencies that the deadspace of the VanishPoint ® has been within ISO standards since 2004 and that BD overstated the deadspace of the VanishPoint ® to represent that it was higher than some of BD’s syringes when it was actually less, and that BD’s statement that it had “data on file” was false and misleading, and, in addition, posting this notice on its website for a period of three years; (4) enjoining BD from advertising that its syringe products save medication as compared to VanishPoint ® products for a period of three years; (5) requiring notification to all employees, customers, distributors, GPOs, and government agencies that BD’s website, cost calculator, printed materials, and oral representations alleging BD’s syringes save medication as compared to the VanishPoint ® were based on false and inaccurate measurement of the VanishPoint ® , and, in addition, posting this notice on its website for a period of three years; and (6) requiring the implementation of a comprehensive training program for BD employees and distributors that specifically instructs them not to use old marketing materials and not to make false representations regarding VanishPoint ® syringes. Final judgment was entered on January 15, 2015, awarding the Company $340,524,042 in damages and $11,722,823 in attorneys’ fees, as well as granting injunctive relief consistent with the orders as indicated above. The parties stipulated that the amount of litigation costs recoverable by the Company is $295,000. On January 14, 2015, the District Court stayed the portion of the injunctive relief that requires BD to notify end-user customers but also ordered BD to comply with internal correction activities as well as mandatory disclosures as set out above to its employees, customers, distributors and Group Purchasing Organizations. BD filed an appeal of that ruling with the 5 th Circuit Court of Appeals and that appeal was denied on February 3, 2015. On February 12, 2015, BD filed a motion to amend the judgment directed most specifically to the issue of award of prejudgment interest. On April 23, 2015, the Court entered an Amended Final Judgment that removed prejudgment interest but kept all other monetary and injunctive relief the same as was granted in the original Final Judgment. BD filed its brief in the appeal on July 20, 2015. The Company filed its responsive brief on September 18, 2015 and BD filed its brief in reply on October 19, 2015 to complete the briefing. Oral argument occurred on Monday, February 29, 2016. In many cases the 5th Circuit Court of Appeals issues its decision several months after oral argument, but there is no set time limit. 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. On June 30, 2015, the Court ordered that further proceedings in this matter be stayed and that this case remain administratively closed until resolution of all appeals in the case detailed in the first paragraph of this Note 8. Operating Leases In 2010, the Company entered into a non-cancellable operating lease for additional office space. Rent expense under this lease for the years ended December 31, 2015, 2014, and 2013 was $64,683; $62,813; and $61,607, respectively. The Company renewed the lease in 2015. Future annual minimum rental payments as of December 31, 2015 are presented below: 2016 $ 2017 2018 2019 2020 Total $

INCOME TAXES

INCOME TAXES	12 Months Ended
INCOME TAXES	Dec. 31, 2015
INCOME TAXES
INCOME TAXES	9. INCOME TAXES The provision for income taxes consists of the following: For the Years Ended December 31, 2015 2014 2013 Current tax provision Federal $ — $ — $ State Total current provision Deferred tax provision Federal — — — State — — — Total deferred tax provision — — — Total income tax provision $ $ $ The Company has $15.8 million in tax benefits attributable to carry back losses for federal tax purposes. The loss carry forwards will begin to expire in 2028 for federal tax purposes and began to expire for state tax purposes in 2013. The Company also has credits for alternative minimum taxes (“AMT”) paid of $202 thousand that are available to offset future federal income taxes, excluding AMT. Such credits do not expire. Deferred taxes are provided for those items reported in different periods for income tax and financial reporting purposes. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: December 31, 2015 2014 Deferred tax assets Net operating loss carry forwards $ $ Credit for alternative minimum tax paid Accrued expenses and reserves Employee stock option expense Nonemployee stock option expense Inventory Litigation proceeds subject to stipulation — Deferred tax assets Deferred tax liabilities Property and equipment ) ) Deferred tax liabilities ) ) Net deferred assets Valuation allowance ) ) Net deferred tax assets $ — $ — The valuation allowance decreased $1,633,485 for 2015. The valuation allowance increased $807,790 for 2014. A reconciliation of income taxes based on the federal statutory rate and the effective income tax rate is summarized as follows: December 31, 2015 2014 2013 Income tax at the federal statutory rate % % % State tax, net of federal tax Change in valuation allowance ) ) ) Permanent differences ) ) Alternative minimum tax — — ) Other ) ) Effective tax rate % )% )% The Company files income tax returns in the U.S. federal jurisdiction and in various state and local jurisdictions. The Company’s federal income tax returns for all tax years ended on or after December 31, 2012, remain subject to examination by the Internal Revenue Service. The Company’s state and local income tax returns are subject to examination by the respective state and local authorities over various statutes of limitations, most ranging from three to five years from the date of filing.

STOCK REPURCHASE PROGRAM

STOCK REPURCHASE PROGRAM	12 Months Ended
STOCK REPURCHASE PROGRAM	Dec. 31, 2015
STOCK REPURCHASE PROGRAM
STOCK REPURCHASE PROGRAM	10. 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 655,818 shares in 2013. 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 at each date on January 21, 2013, April 22, 2013, and July 22, 2013. The Company paid dividends to Series II Class B Preferred Stockholders in the amount of $44,675 on each of the same three dates listed in the preceding sentence.

STOCK OPTION GRANT

STOCK OPTION GRANT	12 Months Ended
STOCK OPTION GRANT	Dec. 31, 2015
STOCK OPTION GRANT
STOCK OPTION GRANT	11. 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., a Director, for the purchase of 50,000 shares of Common Stock on May 14, 2013. Related share based compensation of $52,775 is included in general and administrative expense in the accompanying Statements of Operations for 2013.

DIVIDENDS

DIVIDENDS	12 Months Ended
DIVIDENDS	Dec. 31, 2015
DIVIDENDS
DIVIDENDS	12. DIVIDENDS The Board declared and the Company paid dividends to Series I and Series II Class B Preferred Stockholders in the amounts of $12,938 and $44,675, respectively, in each of the four quarters of 2013. The Board declared and the Company paid the same amounts to the Series I and Series II Class B Preferred Stockholders in only the first two quarters of 2014. See Note 10 for information about dividends paid during the term of the Stock Repurchase Program. In 2015, the Board declared and the Company paid dividends to Series I and Series II Class B Preferred Shareholders in the following amounts: $37,891 and $132,926 paid to Series I Class B and Series II Class B Preferred Stockholders, respectively, on April 30, 2015; $12,313 and $44,050 paid to Series I Class B and Series II Class B Preferred Stockholders, respectively, on July 20, 2015; $12,313 and $44,050 paid to Series I Class B and Series II Class B Preferred Stockholders, respectively, on October 22, 2015; and $12,313 and $43,101 paid to Series I Class B and Series II Class B Preferred Stockholders, respectively, on February 1, 2016.

STOCK OPTION EXERCISES

STOCK OPTION EXERCISES	12 Months Ended
STOCK OPTION EXERCISES	Dec. 31, 2015
STOCK OPTION EXERCISES
STOCK OPTION EXERCISES	13. STOCK OPTION EXERCISES Stock options were exercised at various dates in 2015, 2014, and 2013 and, consequently, a total of 272,477 shares of Common Stock were issued in 2015, 418,195 shares of Common Stock in 2014, and a total of 584,450 shares of Common Stock in 2013 for an aggregate payment of $283,933 in 2015, $398,328 in 2014, and $536,925 in 2013 to exercise such options. These options were granted in 2008 and 2009 at exercise prices of $0.81 and $1.30.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
STOCKHOLDERS' EQUITY	Dec. 31, 2015
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	14. STOCKHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue 5,000,000 shares of Preferred Stock Class A with a par value of One Dollar ($1.00) per share; 5,000,000 shares of Preferred Stock Class B with a par value of One Dollar ($1.00) per share; and 5,000,000 shares of Preferred Stock Class C with a par value of One Dollar ($1.00) per share. The Company has one class of Preferred Stock outstanding: Class B Convertible Preferred Stock (“Class B Stock”). The Class B Stock has five series: Series I, Series II, Series III, Series IV, and Series V. The Class B Stock has been allocated among Series I, II, III, IV, and V in the amounts of 98,500; 171,200; 129,245; 342,500; and 40,000 shares, respectively as of December 31, 2015. The remaining 4,218,555 authorized shares have not been assigned a series. Series I Class B Stock There were 98,500 shares of $1 par value Series I Class B Stock outstanding at December 31, 2015 and 2014. Holders of Series I Class B Stock are entitled to receive a cumulative annual dividend of $0.50 per share, payable quarterly if declared by the Board of Directors. The Company paid dividends of $62,516; $38,814; and $38,814 in 2015, 2014, and 2013, respectively. At December 31, 2015, no dividends were in arrears. Series I Class B Stock is redeemable after three years from the date of issuance at the option of the Company at a price of $7.50 per share, plus all unpaid dividends. Each share of Series I Class B Stock may, at the option of the stockholder, be converted to one share of Common Stock after three years from the date of issuance or in the event the Company files an initial registration statement under the Securities Act of 1933. Pursuant to these terms, 5,000 shares of Series I Class B Stock were converted into Common Stock in 2014. No shares were converted in 2015. In the event of voluntary or involuntary dissolution, liquidation, or winding up of the Company, holders of Series I Class B Stock then outstanding are entitled to $6.25 per share, plus all unpaid dividends prior to any distributions to holders of Series II Class B Stock, Series III Class B Stock, Series IV Class B Stock, Series V Class B Stock, or Common Stock. Series II Class B Stock There were 171,200 and 176,200 shares of $1 par value Series II Class B Stock outstanding at December 31, 2015 and 2014, respectively. Holders of Series II Class B Stock are entitled to receive a cumulative annual dividend of $1.00 per share, payable quarterly if declared by the Board of Directors. Holders of Series II Class B Stock generally have no voting rights until dividends are in arrears and unpaid for twelve consecutive quarters. In such case, the holders of Series II Class B Stock have the right to elect one-third of the Board of Directors of the Company. The Company paid dividends of $221,026; $134,025; and $134,025 in 2015, 2014, and 2013, respectively. At December 31, 2015, no dividends were in arrears. Series II Class B Stock is redeemable after three years from the date of issuance at the option of the Company at a price of $15.00 per share plus all unpaid dividends. Each share of Series II Class B Stock may, at the option of the stockholder, be converted to one share of Common Stock after three years from the date of issuance or in the event the Company files an initial registration statement under the Securities Act of 1933. Pursuant to these terms, 5,000 shares of Series II Class B Stock were converted into Common Stock in 2015. 2,500 shares were converted in 2014. In the event of voluntary or involuntary dissolution, liquidation, or winding up of the Company, holders of Series II Class B Stock then outstanding are entitled to $12.50 per share, plus all unpaid dividends, after distribution obligations to holders of Series I Class B Stock have been satisfied and prior to any distributions to holders of Series III Class B Stock, Series IV Class B Stock, Series V Class B Stock, or Common Stock. Series III Class B Stock There were 129,245 and 130,245 shares of $1 par value Series III Class B Stock outstanding at December 31, 2015 and 2014. Holders of Series III Class B Stock are entitled to receive a cumulative annual dividend of $1.00 per share, payable quarterly if declared by the Board of Directors. At December 31, 2015, approximately $3,887,000 of dividends which have not been declared were in arrears. Series III Class B Stock is redeemable after three years from the date of issuance at the option of the Company at a price of $15.00 per share, plus all unpaid dividends. Each share of Series III Class B Stock may, at the option of the stockholder, be converted to one share of Common Stock after three years from the date of issuance or in the event the Company files an initial registration statement under the Securities Act of 1933. Pursuant to these terms, 1,000 shares of Series III Class B Stock were converted into Common Stock in 2015. No shares were converted in 2014. In the event of voluntary or involuntary dissolution, liquidation, or winding up of the Company, holders of Series III Class B Stock then outstanding are entitled to $12.50 per share, plus all unpaid dividends, after distribution obligations to Series I Class B Stock and Series II Class B Stock have been satisfied and prior to any distributions to holders of Series IV Class B Stock, Series V Class B Stock, or Common Stock. Series IV Class B Stock There were 342,500 and 542,500 shares of $1 par value Series IV Class B Stock outstanding at December 31, 2015 and 2014. Holders of Series IV Class B Stock are entitled to receive a cumulative annual dividend of $1.00 per share, payable quarterly, if declared by the Board of Directors. At December 31, 2015, approximately $5,456,000 of dividends which have not been declared were in arrears. Series IV Class B Stock is redeemable after three years from the date of issuance at the option of the Company at a price of $11.00 per share plus all unpaid dividends. Each share of Series IV Class B Stock may, at the option of the stockholder any time subsequent to three years from date of issuance, be converted into one share of Common Stock, or in the event the Company files an initial registration statement under the Securities Act of 1933. Pursuant to these terms, no shares of Series IV Class B Stock were converted into Common Stock in 2015 or 2014. However, the Company did enter into an agreement which had the effect of cancelling 200,000 shares in 2015. See Note 20. In the event of voluntary or involuntary liquidation, dissolution, or winding up of the Company, holders of Series IV Class B Stock then outstanding are entitled to receive liquidating distributions of $11.00 per share, unpaid dividends after distribution obligations to Series I Class B Stock, Series II Class B Stock, and Series III Class B Stock have been satisfied and prior to any distribution to holders of Series V Class B Stock or Common Stock. Series V Class B Stock There were 40,000 shares of $1 par value Series V Class B Stock outstanding at December 31, 2015 and 2014. Holders of Series V Class B Stock are entitled to receive a cumulative annual dividend of $0.32 per share, payable quarterly, if declared by the Board of Directors. At December 31, 2015, approximately $970,000 of dividends which have not been declared were in arrears. Series V Class B Stock is redeemable after two years from the date of issuance at the option of the Company at a price of $4.40 per share plus all unpaid dividends. Each share of Series V Class B Stock may, at the option of the stockholder any time subsequent to the date of issuance, be converted into Common Stock. Pursuant to these terms, no shares of Series V Class B Stock were converted into Common Stock in 2015 or 2014. In the event of voluntary or involuntary liquidation, dissolution, or winding up of the Company, holders of Series V Class B Stock then outstanding are entitled to receive liquidating distributions of $4.40 per share, plus unpaid dividends after distribution obligations to Series I Class B Stock, Series II Class B Stock, Series III Class B Stock, and Series IV Class B Stock have been satisfied and prior to any distribution to the holders of the Common Stock. Common stock The Company is authorized to issue 100,000,000 shares of no par value Common Stock, of which 28,619,874 and 27,613,397 shares were outstanding at December 31, 2015 and 2014, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2015
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	15. RELATED PARTY TRANSACTIONS The Company has a license agreement with the Chief Executive Officer of the Company. See Note 5. During the years ended December 31, 2014 and 2013, the Company paid $38,693 and $93,939, respectively, to a family member of its Chief Executive Officer as an employee and/or consultant.

STOCK OPTIONS

STOCK OPTIONS	12 Months Ended
STOCK OPTIONS	Dec. 31, 2015
STOCK OPTIONS
STOCK OPTIONS	16. STOCK OPTIONS Stock options The Company has approved stock option plans for the granting of stock options to employees, Directors, and consultants. Options for the purchase of 2,899,108 shares of Common Stock have been issued under the 2008 Stock Option Plan, which, pursuant to a 2014 amendment, authorizes a total of 6,000,000 shares of Common Stock upon the exercise of stock options. Options for the purchase of 2,182,569 shares under the 2008 Stock Option Plan were outstanding as of December 31, 2015. Options for the purchase of 1,000,000 shares of Common Stock remain outstanding under an option granted to Mr. Thomas J. Shaw. The Compensation and Benefits Committee administers all plans and determines and/or recommends to the Board exercise prices at which options are granted. All executive compensation, including the granting of stock options, is determined by the Compensation and Benefits Committee. Shares issued upon exercise of options come from the Company’s authorized but unissued Common Stock. The options vested over periods up to three years from the date of grant and generally expire ten years after the date of grant. Unvested options issued under the 2008 Stock Option Plan expire immediately after termination of employment. Employee options A summary of Director, officer, and employee options granted and outstanding under the Plans is presented below: Years Ended December 31, 2015 2014 2013 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding at beginning of period $ $ $ Granted — $ — — $ — $ Exercised ) $ ) ) $ ) ) $ ) Forfeited ) $ ) ) $ ) ) $ ) Outstanding at end of period $ $ $ Exercisable at end of period $ $ $ No employee options were issued in 2015 or 2014. The fair value of the 2013 grant is $1.06 per share of underlying Common Stock and is estimated on the date of the grant using the Black Scholes pricing model with the following assumptions: expected volatility of 67.53%, risk free interest rate of 3.35%, and an expected life of 8.61 years. This option was issued under the 2008 Stock Option Plan. The following table summarizes information about Director, officer, and employee options outstanding under the aforementioned plans at December 31, 2015: Exercise Prices Shares Outstanding Weighted Average Remaining Contractual Life Shares Exercisable $ $ $ Non-employee options A summary of options outstanding during the years ended December 31 and held by non-employees is as follows: Years Ended December 31, 2015 2014 2013 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding at beginning of period $ $ $ Granted — — — — — — Exercised ) ) — — — — Forfeited — $ — — — — $ — Outstanding at end of period $ $ $ Exercisable at end of period $ $ $ No non-employee options were issued in 2015, 2014, or 2013. The following table summarizes information about non-employee options outstanding under the aforementioned plans at December 31, 2015: Exercise Price Shares Outstanding Weighted Average Remaining Contractual Life Shares Exercisable $ The Company recorded no stock-based compensation expense in 2015 or 2014. The Company recorded $52,775 of stock-based compensation expense in 2013. The total intrinsic value of options exercised was $856,269; $1,157,615; and $1,210,135 in 2015, 2014, and 2013, respectively. The aggregate intrinsic value of options outstanding and exercisable with exercise prices lower than market price at December 31, 2015 was approximately $4,722,854. There is no compensation cost related to non-vested stock options to be recognized in the future. Options Pricing Models — Assumptions The expected life and forfeiture rate assumptions are based on the vesting period for each option grant and expected exercise behavior. The assumptions for expected volatility and dividend yield are based on recent historical experience. Risk-free interest rates are set using grant-date U.S. Treasury yield curves for the same periods as the expected term.

401(k) PLAN

401(k) PLAN	12 Months Ended
401(k) PLAN	Dec. 31, 2015
401(k) PLAN
401(k) PLAN	17. 401(k) PLAN The Company implemented an employee savings and retirement plan (the “401(k) Plan”) in 2005 that is intended to be a tax-qualified plan covering substantially all employees. Under the terms of the 401(k) Plan, employees may elect to contribute up to 88% of their compensation, or the statutory prescribed limit, if less. The Company may, at its discretion, match employee contributions. In the third quarter of 2009, the Company discontinued its matching contributions until further notice.

BUSINESS SEGMENTS

BUSINESS SEGMENTS	12 Months Ended
BUSINESS SEGMENTS	Dec. 31, 2015
BUSINESS SEGMENTS
BUSINESS SEGMENTS	18. BUSINESS SEGMENTS 2015 2014 2013 U.S. sales $ $ $ North and South America sales (excluding U.S.) Other international sales Total sales $ $ $ Long-lived assets U.S. $ $ $ International $ $ $ 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.

TREASURY SHARES

TREASURY SHARES	12 Months Ended
TREASURY SHARES	Dec. 31, 2015
TREASURY SHARES
TREASURY SHARES	19. TREASURY SHARES The Board of Directors of the Company cancelled all treasury shares effective August 11, 2015.

PREFERRED STOCK TRANSACTION

PREFERRED STOCK TRANSACTION	12 Months Ended
PREFERRED STOCK TRANSACTION	Dec. 31, 2015
PREFERRED STOCK TRANSACTION
PREFERRED STOCK TRANSACTION	20. PREFERRED STOCK TRANSACTION The Company exchanged 728,000 shares of Common Stock for 200,000 shares of our Series IV Class B Convertible Preferred Stock as of November 30, 2015 pursuant to an agreement with a shareholder. Such shareholder agreed to waive all unpaid dividends in arrears associated with the tendered preferred stock, equaling $3,094,795. The fair value of the common stock issued ($2,606,240) over the carrying value of the preferred stock extinguished ($2,000,000) was $606,240. The excess of the dividend arrearage waived less the excess value of common stock issued, less the preferred dividend requirements for 2015 through the extinguishment date ($182,877) resulted in a deemed capital contribution of $2,305,678 for purposes of computing net income available to common shareholders. Future dividend requirements of $200,000 per year are avoided as a result of this transaction.

Schedule II-Schedule of Valuati

Schedule II-Schedule of Valuation and Qualifying Accounts	12 Months Ended
Schedule II-Schedule of Valuation and Qualifying Accounts	Dec. 31, 2015
Schedule II - Schedule of Valuation and Qualifying Accounts
Schedule II - Schedule of Valuation and Qualifying Accounts	Schedule II-Schedule of Valuation and Qualifying Accounts for the years ended December 31, 2015, 2014, and 2013 Balance at beginning of period Additions Deductions Balance at end of period Provision for Inventories Fiscal year ended 2013 $ $ $ $ Fiscal year ended 2014 $ $ — $ — $ Fiscal year ended 2015 $ $ — $ — $ Provision for Accounts Receivable Fiscal year ended 2013 $ $ $ $ Fiscal year ended 2014 $ $ $ — $ Fiscal year ended 2015 $ $ $ $ Deferred Tax Valuation Fiscal year ended 2013 $ $ $ — $ Fiscal year ended 2014 $ $ $ — $ Fiscal year ended 2015 $ $ — $ $ Provision for Rebates (A) (B) (C) Fiscal year ended 2013 $ $ $ $ Fiscal year ended 2014 $ $ $ $ Fiscal year ended 2015 $ $ $ $ (A) Represents estimated rebates deducted from gross revenues (B) Represents rebates credited to the distributor and charge offs against the allowance (C) Includes $3,733,199; $4,160,099; and $3,611,962 in Accounts payable for 2015, 2014, and 2013, respectively. The remainder includes a contra-account for credits taken by the distributor for which a credit memorandum has not been issued by the Company

SUMMARY OF SIGNIFICANT ACCOUN28

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting estimates	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	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.
Restricted cash	Restricted cash Amounts pledged as collateral for an underlying letter of credit for equipment is classified as restricted cash. Changes in restricted cash have been presented as investing activities in the Statements of Cash Flows.
Accounts receivable	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 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 immaterial.
Inventories	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 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	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 consist of buildings, land, assembly equipment for syringes, molding machines, molds, office equipment, furniture, and fixtures.
Intangible assets	Intangible assets Intangible assets are stated at cost and consist primarily of intellectual property which is amortized using the straight-line method over 17 years.
Financial instruments	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	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 2015, 2014, and 2013: Years Ended December 31, 2015 2014 2013 Number of significant customers Aggregate dollar amount of net sales to significant customers $ 13.5 million $ 16.5 million $ 9.3 million Percentage of net sales to significant customers % % % Considering the current economic climate, the Company increased its allowance for doubtful accounts by approximately $70,000 this year. 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 77.7% of its VanishPoint ® finished products in 2015 from its primary Chinese manufacturer. Purchases from this Chinese manufacturer aggregated 73.1% and 72.9% of VanishPoint ® finished products in 2014 and 2013, respectively. In the event that the Company becomes unable to purchase products from its primary Chinese manufacturer, the Company would need to find an alternate manufacturer for its 0.5mL insulin syringe, its 2mL, 5mL, and 10mL syringes and its autodisable syringe and increase domestic production for 1mL and 3mL syringes.
Revenue recognition	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 for which the Company has not received tracking reports. Rebates are recorded when issued and are applied against the customer’s receivable balance. D istributor s 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 in the Balance Sheets and deducted from revenues in the Statements of Operations. Accounts payable included estimated contractual allowances for $3,733,199 and $4,160,099 for 2015 and 2014, 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. 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 for 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 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.
Litigation proceeds	Litigation proceeds Proceeds from litigation are recognized when realizable. Generally, realization is not reasonably assured and expected until proceeds are collected. On September 30, 2013, the Company received payment of $7,724,826 (the “Judgment Amount”) 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. The Judgment Amount was included as income in the second quarter of 2015 due to the conclusion of the case and related appeals. Prior to the second quarter of 2015, the Judgment Amount had been shown as a liability on the balance sheet since the Company was paid the Judgment Amount and the litigation did not come to a final conclusion until the second quarter of 2015.
Income taxes	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 utilized some of its net operating loss carry forwards in 2013 and paid Alternative Minimum Tax on its taxable income. 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 Statements of Operations.
Earnings per share	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. The calculation of diluted EPS excluded 1,774,520 and 1,305,847 shares of Common Stock underlying issued and outstanding stock options at December 31, 2014 and 2013, respectively, as their effect was antidilutive. The potential dilution, if any, is shown on the following schedule: Years Ended December 31, 2015 2014 2013 Net income (loss) $ $ ) $ ) Preferred dividend requirements ) ) ) Deemed capital contribution on extinguishment of preferred stock — — Income (loss) applicable to common shareholders after assumed conversions $ $ ) $ ) Average common shares outstanding Average common and common equivalent shares outstanding - assuming dilution Basic earnings (loss) per share $ $ ) $ ) Diluted earnings (loss) per share $ $ ) $ ) The Financial Accounting Standards Board Accounting Standards 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 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 transaction described in note 20. From a legal standpoint, the transaction was neither a redemption nor conversion pursuant of the terms of the Certificate of Designation, Preferences, Rights and Limitations of the Series IV Class B Convertible Preferred Stock.
Shipping and handling costs	Shipping and handling costs The Company classifies shipping and handling costs as part of Cost of sales in the Statements of Operations.
Research and development costs	Research and development costs Research and development costs are expensed as incurred.
Share-based compensation	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. The Company incurred $52,775 in General and administrative cost related to share-based compensation in 2013. No share-based compensation costs were incurred in 2015 or 2014. All stock options are fully vested; therefore, all stock option expense has been fully recognized.
Recent Pronouncements	Recent Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (topic 842). Under the new ASU, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance lessor accounting is largely unchanged. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. This ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the impact of this standard. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. This ASU amends Topic 740, Income Taxes, requiring deferred tax assets and liabilities to be classified as non-current in the statement of financial position. As required by ASU No. 2015-17, all deferred tax assets and liabilities will be classified as non-current in the Company’s consolidated balance sheets. Effective for public business entities for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The amendments may be applied prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company is currently evaluating the impact of this standard. In July 2015, the FASB issued ASU No. 2015-11, “Inventory (Topic 330) Simplifying the Measurement of Inventory,” which is part of the FASB’s Simplification Initiative. Inventory, including inventory measured at average cost, would be valued at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. ASU 2015-11 is effective for the Company’s annual periods and interim periods within those annual periods beginning January 1, 2017. Amendments in this ASU should be applied prospectively with earlier application permitted at the beginning of an interim or annual reporting period. The Company is currently assessing the potential impact of this ASU on its financial statements. In May 2014, FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, which provides guidance for revenue recognition. This ASU’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU No. 2014-09 allows for either full retrospective or modified retrospective adoption. In July 2015, the FASB voted to delay the effective date of this ASU by one year. The ASU will now be effective commencing with the Company’s quarter ending March 31, 2018. Early adoption of this ASU is allowed no sooner than the original effective date. The Company is currently assessing the potential impact of this ASU on its financial statements. In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements Going Concern (Subtopic 205-40) — Disclosure of Uncertainties about and Entity’s Ability to Continue as a Going Concern”. Currently there is no guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern. This ASU requires management to assess the entity’s ability to continue as a going concern. This guidance is effective for the Company’s annual reporting period ending December 31, 2016 and for subsequent interim periods. Early adoption is permitted. The Company expects to adopt this guidance when effective, and upon adoption, will evaluate going concern based on this guidance. In April 2015, the FASB issued ASU 2015-03, “Interest—Imputation of Interest”. To simplify presentation of debt issuance costs, the amendments in this ASU would require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected by the amendments in this ASU. This ASU is the final version of Proposed Accounting Standards Update 2014-250—“Interest—Imputation of Interest” (Subtopic 835-30), which has been deleted. The amendments in this ASU are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company has no unamortized debt issuance costs.

SUMMARY OF SIGNIFICANT ACCOUN29

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	Dec. 31, 2015
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	Years Ended December 31, 2015 2014 2013 Number of significant customers Aggregate dollar amount of net sales to significant customers $ 13.5 million $ 16.5 million $ 9.3 million Percentage of net sales to significant customers % % %
Schedule of earnings per share	Years Ended December 31, 2015 2014 2013 Net income (loss) $ $ ) $ ) Preferred dividend requirements ) ) ) Deemed capital contribution on extinguishment of preferred stock — — Income (loss) applicable to common shareholders after assumed conversions $ $ ) $ ) Average common shares outstanding Average common and common equivalent shares outstanding - assuming dilution Basic earnings (loss) per share $ $ ) $ ) Diluted earnings (loss) per share $ $ ) $ )

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
INVENTORIES (Tables)	Dec. 31, 2015
INVENTORIES
Schedule of inventories	Year Ended December 31, 2015 2014 Raw materials $ $ Finished goods Inventory reserve ) ) $ $

PROPERTY, PLANT, AND EQUIPMENT

PROPERTY, PLANT, AND EQUIPMENT (Tables)	12 Months Ended
PROPERTY, PLANT, AND EQUIPMENT (Tables)	Dec. 31, 2015
PROPERTY, PLANT, AND EQUIPMENT
Schedule of property, plant, and equipment	December 31, 2015 2014 Land $ $ Buildings and building improvements Production equipment Office furniture and equipment Construction in progress Automobiles Accumulated depreciation ) ) $ $

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
INTANGIBLE ASSETS (Tables)	Dec. 31, 2015
INTANGIBLE ASSETS
Schedule of intangible assets	December 31, 2015 2014 Intellectual property $ $ Accumulated amortization ) ) $ $

OTHER ACCRUED LIABILITIES (Tabl

OTHER ACCRUED LIABILITIES (Tables)	12 Months Ended
OTHER ACCRUED LIABILITIES (Tables)	Dec. 31, 2015
OTHER ACCRUED LIABILITIES
Schedule of other accrued liabilities	December 31, 2015 2014 Prepayments from customers $ $ Accrued property taxes — Accrued professional fees Other accrued expenses $ $

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	12 Months Ended
LONG-TERM DEBT (Tables)	Dec. 31, 2015
LONG-TERM DEBT
Schedule of long-term debt	December 31, 2015 2014 Loan from American First National Bank. It has a 20 year amortization and 10 year maturity from December 10, 2009. The loan provided funding for the expansion of the warehouse, additional office space, and a new Controlled Environment. The loan is secured by the Company’s land and buildings. The interest rate is 5.968%. $ $ Note payable to Deutsche Leasing USA, Inc. The interest rate is 3.69%. The original amount of the note was $276,495 with a 36 month maturity ending in July 2018. Beginning August 2015, the loan became payable in equal installments of principal and interest of approximately $8,100. Collateralized by molding machines and ancillary equipment. — Less: current portion ) ) $ $
Schedule of aggregate maturities of long-term debt	The aggregate maturities of long-term debt as of December 31, 2015, are as follows: 2016 $ 2017 2018 2019 Thereafter — $

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES
Schedule of future annual minimum rental payments under non-cancellable operating lease	Future annual minimum rental payments as of December 31, 2015 are presented below: 2016 $ 2017 2018 2019 2020 Total $

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
INCOME TAXES (Tables)	Dec. 31, 2015
INCOME TAXES
Schedule of provision for income taxes	For the Years Ended December 31, 2015 2014 2013 Current tax provision Federal $ — $ — $ State Total current provision Deferred tax provision Federal — — — State — — — Total deferred tax provision — — — Total income tax provision $ $ $
Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities	December 31, 2015 2014 Deferred tax assets Net operating loss carry forwards $ $ Credit for alternative minimum tax paid Accrued expenses and reserves Employee stock option expense Nonemployee stock option expense Inventory Litigation proceeds subject to stipulation — Deferred tax assets Deferred tax liabilities Property and equipment ) ) Deferred tax liabilities ) ) Net deferred assets Valuation allowance ) ) Net deferred tax assets $ — $ —
Schedule of reconciliation of income taxes based on the federal statutory rate and the effective income tax rate	December 31, 2015 2014 2013 Income tax at the federal statutory rate % % % State tax, net of federal tax Change in valuation allowance ) ) ) Permanent differences ) ) Alternative minimum tax — — ) Other ) ) Effective tax rate % )% )%

STOCK OPTIONS (Tables)

STOCK OPTIONS (Tables)	12 Months Ended
STOCK OPTIONS (Tables)	Dec. 31, 2015
Employees
STOCK OPTION EXERCISES
Summary of options outstanding	Years Ended December 31, 2015 2014 2013 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding at beginning of period $ $ $ Granted — $ — — $ — $ Exercised ) $ ) ) $ ) ) $ ) Forfeited ) $ ) ) $ ) ) $ ) Outstanding at end of period $ $ $ Exercisable at end of period $ $ $
Schedule of information about stock options by range of exercise prices	The following table summarizes information about Director, officer, and employee options outstanding under the aforementioned plans at December 31, 2015: Exercise Prices Shares Outstanding Weighted Average Remaining Contractual Life Shares Exercisable $ $ $
Non Employees
STOCK OPTION EXERCISES
Summary of options outstanding	Years Ended December 31, 2015 2014 2013 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding at beginning of period $ $ $ Granted — — — — — — Exercised ) ) — — — — Forfeited — $ — — — — $ — Outstanding at end of period $ $ $ Exercisable at end of period $ $ $
Schedule of information about stock options by range of exercise prices	The following table summarizes information about non-employee options outstanding under the aforementioned plans at December 31, 2015: Exercise Price Shares Outstanding Weighted Average Remaining Contractual Life Shares Exercisable $

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	12 Months Ended
BUSINESS SEGMENTS (Tables)	Dec. 31, 2015
BUSINESS SEGMENTS
Schedule of sales and long-lived assets by geographical areas	2015 2014 2013 U.S. sales $ $ $ North and South America sales (excluding U.S.) Other international sales Total sales $ $ $ Long-lived assets U.S. $ $ $ International $ $ $

SUMMARY OF SIGNIFICANT ACCOUN39

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Dec. 31, 2015item
Accounts receivable
Number of products consigned to customers	0
Intangible assets
Useful lives of intellectual property	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
Building
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 ACCOUN40

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2)	Sep. 30, 2013USD ($)	Dec. 31, 2015USD ($)item	Dec. 31, 2014USD ($)item	Dec. 31, 2013USD ($)item
Concentration risks
Number of significant customers \| item		2	3	2
Aggregate dollar amount of net sales to significant customers		$ 29,552,200	$ 34,520,630	$ 30,785,127
Increase in allowance for doubtful accounts.		116,395	27,300	50,000
Revenue recognition
Estimated contractual allowance		3,733,199	4,160,099
Change to reserve regarding non-contractual rebates		$ 0
Period for return of incorrect shipments		10 days
Number of times overstocking returns are limited \| item		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%
Becton Dickinson and Company Case
Litigation proceeds
Judgment amount received pursuant to stipulation	$ 7,724,826
Customer Concentration Risk
Concentration risks
Increase in allowance for doubtful accounts.		$ 70,000
Sales \| Customer Concentration Risk
Concentration risks
Aggregate dollar amount of net sales to significant customers		$ 13,500,000	$ 16,500,000	$ 9,300,000
Percentage of net sales to significant customers (as a percent)		45.70%	47.90%	30.20%
Product components \| Supplier Concentration Risk
Concentration risks
Percentage of net sales to significant customers (as a percent)		77.70%	73.10%	72.90%

SUMMARY OF SIGNIFICANT ACCOUN41

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Earnings per share
Stock options excluded from calculation of diluted EPS		1,774,520	1,305,847
Net income (loss)	$ 4,314,318	$ (2,354,605)	$ (6,213,852)
Preferred dividend requirements	(709,351)	(915,225)	(916,065)
Deemed capital contribution on extinguishment of preferred stock	2,305,678
Income (loss) applicable to common shareholders	$ 5,910,645	$ (3,269,830)	$ (7,129,917)
Average common shares outstanding	27,822,593	27,375,450	26,999,698
Average common and common equivalent shares outstanding - assuming dilution	29,481,294	27,375,450	26,999,698
Basic earnings (loss) per share (in dollars per share)	$ 0.21	$ (0.12)	$ (0.26)
Diluted earnings (loss) per share (in dollars per share)	$ 0.20	$ (0.12)	$ (0.26)

SUMMARY OF SIGNIFICANT ACCOUN42

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based compensation costs:
Share-based compensation expense	$ 0	$ 0	$ 52,775
Unamortized debt issuance costs	$ 0
General and Administrative Expense.
Share-based compensation costs:
Share-based compensation expense			$ 52,775

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
INVENTORIES
Raw materials	$ 1,664,241	$ 1,510,225
Finished goods	5,313,778	3,834,717
Inventory, gross	6,978,019	5,344,942
Inventory reserve	(681,394)	(681,394)
Inventory, net	$ 6,296,625	$ 4,663,548

PROPERTY, PLANT, AND EQUIPMEN44

PROPERTY, PLANT, AND EQUIPMENT (Details) - USD ($)	12 Months Ended
PROPERTY, PLANT, AND EQUIPMENT (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, plant, and equipment
Property, plant and equipment, gross	$ 33,554,176	$ 32,089,164
Accumulated depreciation	(22,086,115)	(21,236,311)
Property, plant and equipment, net	11,468,061	10,852,853
Depreciation expense	849,804	1,065,248	$ 1,272,770
Land
Property, plant, and equipment
Property, plant and equipment, gross	261,893	261,893
Buildings and building improvements
Property, plant, and equipment
Property, plant and equipment, gross	11,485,797	11,414,961
Production equipment
Property, plant, and equipment
Property, plant and equipment, gross	15,648,515	15,609,824
Office furniture and equipment
Property, plant, and equipment
Property, plant and equipment, gross	3,316,390	3,147,786
Construction in Progress
Property, plant, and equipment
Property, plant and equipment, gross	2,739,260	1,552,379
Automobiles
Property, plant, and equipment
Property, plant and equipment, gross	$ 102,321	$ 102,321

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	12 Months Ended
INTANGIBLE ASSETS (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Intangible assets
Accumulated amortization	$ (237,218)	$ (228,631)
Intangible assets net	$ 257,181	265,768
Amortization period of license fee	17 years
Royalty fees	$ 2,477,583	2,728,701	$ 2,474,762
Amortization expense	8,587	9,272	11,479
Licensing Agreements
Intangible assets
Initial licensing fee	$ 500,000
Amortization period of license fee	17 years
Quarterly payments as a percentage of royalty fee on gross sales	5.00%
Royalty fees	$ 2,477,583	2,728,701	2,474,762
Royalty payable under the license agreement	631,145	787,434
Gross sales upon which royalties are based	49,551,660	54,574,020	$ 49,495,232
Intellectual Property
Intangible assets
Intangible assets gross	$ 494,399	$ 494,399

OTHER ACCRUED LIABILITIES (Deta

OTHER ACCRUED LIABILITIES (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
OTHER ACCRUED LIABILITIES
Prepayments from customers	$ 395,396	$ 435,821
Accrued property taxes		7,554
Accrued professional fees	274,252	201,866
Other accrued expenses	20,887	137,081
Other accrued liabilities	$ 690,535	$ 782,322

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - USD ($)	1 Months Ended		12 Months Ended
LONG-TERM DEBT (Details) - USD ($)	Aug. 31, 2015	Jul. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Long-term debt
Long term debt total			$ 3,666,820	$ 3,574,772
Less: current portion			(249,349)	(149,744)
Long term debt, excluding current maturities			3,417,471	3,425,028
Loan from American First National Bank
Long-term debt
Long term debt total			$ 3,426,926	$ 3,574,772
Amortization period			20 years	20 years
Maturity period of debt instrument			10 years	10 years
Interest rate (as a percent)			5.968%	5.968%
Lease from Deutsche Leasing USA, Inc.
Long-term debt
Long term debt total			$ 239,894
Maturity period of debt instrument		36 months
Interest rate (as a percent)			3.90%
Original amount of note		$ 276,495
Principal and interest repayment	$ 8,100

LONG-TERM DEBT (Details 2)

LONG-TERM DEBT (Details 2) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Aggregate maturities of long-term debt
2,016	$ 249,349
2,017	262,758
2,018	236,048
2,019	2,918,665
Long term debt total	$ 3,666,820	$ 3,574,772

COMMITMENTS AND CONTINGENCIES49

COMMITMENTS AND CONTINGENCIES (Details)	Jan. 15, 2015USD ($)	Sep. 19, 2013USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Sep. 30, 2007item
Operating Leases
Rent expense under operating lease			$ 64,683	$ 62,813	$ 61,607
Future annual minimum rental payments
2,016			74,772
2,017			77,015
2,018			79,331
2,019			81,694
2,020			84,155
Total			$ 396,967
Becton Dickinson and Company Case
COMMITMENTS AND CONTINGENCIES
Value of damages awarded	$ 340,524,042	$ 113,508,014
Length of time required to post corrected product information on its website			3 years
Length of time required to modify its advertising messages			3 years
Attorney fees	11,722,823
Litigation costs receivable	$ 295,000
BD and MDC Investment Holdings Inc Case
COMMITMENTS AND CONTINGENCIES
Number of U.S. patents infringed upon \| item						2

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
INCOME TAXES (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current tax provision
Federal			$ 83,470
State	$ 7,877	$ 8,177	7,502
Total current provision	7,877	8,177	90,972
Deferred tax provision
Total income tax provision	7,877	8,177	$ 90,972
Tax benefits attributable to carryback losses for federal tax purposes	15,800,000
Deferred tax assets
Net operating loss carryforwards	5,979,717	4,704,612
Credit for alternative minimum tax paid	201,773	201,773
Accrued expenses and reserves	1,383,461	1,424,969
Employee stock option expense	303,465	315,711
Non-employee stock option expense	12,770	15,546
Inventory	356,170	287,190
Litigation proceeds subject to stipulation		2,929,640
Deferred tax assets	8,237,356	9,879,441
Deferred tax liabilities
Property and equipment	(485,384)	(493,985)
Deferred tax liabilities	(485,384)	(493,985)
Net deferred assets	7,751,972	9,385,456
Valuation allowance	(7,751,972)	(9,385,456)
Increase (decrease) in valuation allowance	$ (1,633,485)	$ 807,790
Reconciliation of income taxes based on the federal statutory rate and the effective income tax rate
Income tax at the federal statutory rate (as a percent)	35.00%	35.00%	35.00%
State tax, net of federal tax (as a percent)	2.90%	2.90%	2.90%
Change in valuation allowance (as a percent)	(37.80%)	(34.30%)	(39.30%)
Permanent differences (as a percent)	0.70%	(0.70%)	(0.30%)
Alternative minimum tax (as a percent)			(1.40%)
Other (as a percent)	(0.60%)	(3.20%)	1.60%
Effective tax rate (as a percent)	0.20%	(0.30%)	(1.50%)
Minimum
Income tax examination
State and local income tax returns, period subject to examination	3 years
Maximum
Income tax examination
State and local income tax returns, period subject to examination	5 years

STOCK REPURCHASE PROGRAM (Detai

STOCK REPURCHASE PROGRAM (Details) - USD ($)	Oct. 22, 2015	Jul. 20, 2015	Apr. 30, 2015	Jul. 22, 2013	Apr. 22, 2013	Jan. 21, 2013	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stock repurchase program
Stock repurchased under the Common Stock repurchase plan (in shares)													655,818
Preferred stock dividends paid											$ 283,543	$ 172,838	$ 230,449
Series I, Class B
Stock repurchase program
Preferred stock dividends paid	$ 12,313	$ 12,313	$ 37,891	$ 12,938	$ 12,938	$ 12,938	$ 12,938	$ 12,938	$ 12,938	$ 12,938	62,516	38,814	38,814
Series II, Class B
Stock repurchase program
Preferred stock dividends paid	$ 44,050	$ 44,050	$ 132,926	$ 44,675	$ 44,675	$ 44,675	$ 44,675	$ 44,675	$ 44,675	$ 44,675	$ 221,026	$ 134,025	$ 134,025

STOCK OPTION GRANT (Details)

STOCK OPTION GRANT (Details) - USD ($)	May. 14, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
STOCK OPTION EXERCISES
Share-based compensation expense		$ 0	$ 0	$ 52,775
Non-qualified stock option \| Stock Option Plan 2008
STOCK OPTION EXERCISES
Granted (in shares)		2,899,108
Non-qualified stock option \| Stock Option Plan 2008 \| Walter O Bigby Jr
STOCK OPTION EXERCISES
Granted (in shares)	50,000
Share-based compensation expense	$ 52,775

DIVIDENDS (Details)

DIVIDENDS (Details) - USD ($)	Feb. 01, 2016	Oct. 22, 2015	Jul. 20, 2015	Apr. 30, 2015	Jul. 22, 2013	Apr. 22, 2013	Jan. 21, 2013	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Dividends
Preferred stock dividends paid												$ 283,543	$ 172,838	$ 230,449
Series I, Class B
Dividends
Preferred stock dividends paid		$ 12,313	$ 12,313	$ 37,891	$ 12,938	$ 12,938	$ 12,938	$ 12,938	$ 12,938	$ 12,938	$ 12,938	62,516	38,814	38,814
Series I, Class B \| Subsequent events
Dividends
Preferred stock dividends paid	$ 12,313
Series II, Class B
Dividends
Preferred stock dividends paid		$ 44,050	$ 44,050	$ 132,926	$ 44,675	$ 44,675	$ 44,675	$ 44,675	$ 44,675	$ 44,675	$ 44,675	$ 221,026	$ 134,025	$ 134,025
Series II, Class B \| Subsequent events
Dividends
Preferred stock dividends paid	$ 43,101

STOCK OPTION EXERCISES (Details

STOCK OPTION EXERCISES (Details) - USD ($)	12 Months Ended
STOCK OPTION EXERCISES (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2009	Dec. 31, 2008
STOCK OPTION EXERCISES
Aggregate consideration from issue of common stock	$ 283,933	$ 398,328	$ 536,925
Non-qualified stock option
STOCK OPTION EXERCISES
Number of common stock issued on exercise of stock options (in shares)	272,477	418,195	584,450
Aggregate consideration from issue of common stock	$ 283,933	$ 398,328	$ 536,925
Granted (in dollars per share)				$ 1.30	$ 0.81
Employees \| Non-qualified stock option
STOCK OPTION EXERCISES
Number of common stock issued on exercise of stock options (in shares)	259,977	418,195	584,450
Granted (in dollars per share)			$ 1.46

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details)	Nov. 30, 2015USD ($)	Oct. 22, 2015USD ($)	Jul. 20, 2015USD ($)	Apr. 30, 2015USD ($)	Jul. 22, 2013USD ($)	Apr. 22, 2013USD ($)	Jan. 21, 2013USD ($)	Dec. 31, 2013USD ($)	Sep. 30, 2013USD ($)	Jun. 30, 2013USD ($)	Mar. 31, 2013USD ($)	Dec. 31, 2015USD ($)item$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2013USD ($)
Stock repurchase program
Number of classes of preferred stock outstanding \| item												1
Dividend paid \| $												$ 283,543	$ 172,838	$ 230,449
Common stock authorized (in shares) \| shares												100,000,000	100,000,000
Common stock outstanding (in shares) \| shares												28,619,874	27,613,397
Preferred Class A
Stock repurchase program
Preferred stock authorized (in shares) \| shares												5,000,000
Preferred stock par value (in dollars per share)												$ 1
Class B
Stock repurchase program
Preferred stock authorized (in shares) \| shares												5,000,000	5,000,000
Preferred stock par value (in dollars per share)												$ 1	$ 1
Number of series of preferred stock class B \| item												5
Preferred stock, remaining authorized shares to which series have Not been assigned \| shares												4,218,555
Series I, Class B
Stock repurchase program
Preferred stock par value (in dollars per share)												$ 1	$ 1
Preferred stock outstanding (in shares) \| shares												98,500	98,500
Cumulative annual dividend payable quarterly (in dollars per share)												$ 0.50
Dividend paid \| $		$ 12,313	$ 12,313	$ 37,891	$ 12,938	$ 12,938	$ 12,938	$ 12,938	$ 12,938	$ 12,938	$ 12,938	$ 62,516	$ 38,814	38,814
Preferred stock dividend in arrears \| $												$ 0
Period after which stock is redeemable at the option of the entity												3 years
Preferred stock redemption price (in dollars per share)												$ 7.50
Preferred stock conversion ratio												1
Period after which stock can be converted at the option of the stockholders												3 years
Number of shares of preferred stock converted into common stock \| shares												0	5,000
Amount per share the holders of the preferred stock entitled to in voluntary or involuntary dissolution, liquidation or winding up of the Company (in dollars per share)												$ 6.25
Series II, Class B
Stock repurchase program
Preferred stock par value (in dollars per share)												$ 1	$ 1
Preferred stock outstanding (in shares) \| shares												171,200	176,200
Cumulative annual dividend payable quarterly (in dollars per share)												$ 1
Dividend paid \| $		$ 44,050	$ 44,050	$ 132,926	$ 44,675	$ 44,675	$ 44,675	$ 44,675	$ 44,675	$ 44,675	$ 44,675	$ 221,026	$ 134,025	$ 134,025
Preferred stock dividend in arrears \| $												$ 0
Period after which stock is redeemable at the option of the entity												3 years
Preferred stock redemption price (in dollars per share)												$ 15
Preferred stock conversion ratio												1
Period after which stock can be converted at the option of the stockholders												3 years
Number of shares of preferred stock converted into common stock \| shares												5,000	2,500
Amount per share the holders of the preferred stock entitled to in voluntary or involuntary dissolution, liquidation or winding up of the Company (in dollars per share)												$ 12.50
Number of consecutive quarters in which preferred stockholders have no voting right until dividends are in arrears \| item												12
Right of preferred stock holders to elect a specified proportion of board of directors												0.33
Series III, Class B
Stock repurchase program
Preferred stock par value (in dollars per share)												$ 1	$ 1
Preferred stock outstanding (in shares) \| shares												129,245	130,245
Cumulative annual dividend payable quarterly (in dollars per share)												$ 1
Preferred stock dividend in arrears \| $												$ 3,887,000
Period after which stock is redeemable at the option of the entity												3 years
Preferred stock redemption price (in dollars per share)												$ 15
Preferred stock conversion ratio												1
Period after which stock can be converted at the option of the stockholders												3 years
Number of shares of preferred stock converted into common stock \| shares												1,000	0
Amount per share the holders of the preferred stock entitled to in voluntary or involuntary dissolution, liquidation or winding up of the Company (in dollars per share)												$ 12.50
Series IV, Class B
Stock repurchase program
Preferred stock par value (in dollars per share)												$ 1	$ 1
Preferred stock outstanding (in shares) \| shares												342,500	542,500
Cumulative annual dividend payable quarterly (in dollars per share)												$ 1
Preferred stock dividend in arrears \| $	$ 3,094,795											$ 5,456,000
Period after which stock is redeemable at the option of the entity												3 years
Preferred stock redemption price (in dollars per share)												$ 11
Preferred stock conversion ratio												1
Period after which stock can be converted at the option of the stockholders												3 years
Number of shares of preferred stock converted into common stock \| shares												0	0
Amount per share the holders of the preferred stock entitled to in voluntary or involuntary dissolution, liquidation or winding up of the Company (in dollars per share)												$ 11
Number of shares cancelled as a result of the agreement entered in to by the company \| shares												200,000
Series V, Class B
Stock repurchase program
Preferred stock par value (in dollars per share)												$ 1	$ 1
Preferred stock outstanding (in shares) \| shares												40,000	40,000
Cumulative annual dividend payable quarterly (in dollars per share)												$ 0.32
Preferred stock dividend in arrears \| $												$ 970,000
Period after which stock is redeemable at the option of the entity												2 years
Preferred stock redemption price (in dollars per share)												$ 4.40
Number of shares of preferred stock converted into common stock \| shares												0	0
Amount per share the holders of the preferred stock entitled to in voluntary or involuntary dissolution, liquidation or winding up of the Company (in dollars per share)												$ 4.40
Preferred Class C
Stock repurchase program
Preferred stock authorized (in shares) \| shares												5,000,000
Preferred stock par value (in dollars per share)												$ 1
Common Stock
Stock repurchase program
Common stock authorized (in shares) \| shares												100,000,000	100,000,000
Common stock no par value (in dollars per share)												$ 0	$ 0
Common stock outstanding (in shares) \| shares												28,619,874	27,613,397

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	12 Months Ended
RELATED PARTY TRANSACTIONS (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Family members of Chief Executive Officer
RELATED PARTY TRANSACTIONS
Payment for various consulting services and participating in clinical trials	$ 38,693	$ 93,939

STOCK OPTIONS (Details)

STOCK OPTIONS (Details) - Non-qualified stock option - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
STOCK OPTION EXERCISES
Expiry term	10 years
Number of options
Exercised (in shares)	(272,477)	(418,195)	(584,450)
Weighted-Average Exercise Price
Granted (in dollars per share)				$ 1.30	$ 0.81
Maximum
STOCK OPTION EXERCISES
Vesting period	3 years
Chief Executive Officer
STOCK OPTION EXERCISES
Option outstanding (in shares)	1,000,000					1,000,000
Number of options
Outstanding at end of period (in shares)	1,000,000
Employees
STOCK OPTION EXERCISES
Options issued (in shares)	0	0	50,000
Option outstanding (in shares)	2,386,736	2,820,631	3,367,081			2,125,069	2,386,736	2,820,631
Number of options
Outstanding at beginning of period (in shares)	2,386,736	2,820,631	3,367,081
Granted (in shares)	0	0	50,000
Exercised (in shares)	(259,977)	(418,195)	(584,450)
Forfeited (in shares)	(1,690)	(15,700)	(12,000)
Outstanding at end of period (in shares)	2,125,069	2,386,736	2,820,631
Exercisable at end of period (in shares)						2,125,069	2,386,736	2,820,631
Weighted-Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 0.95	$ 0.95	$ 0.95
Granted (in dollars per share)			1.46
Exercised (in dollars per share)	(1.05)	(0.95)	(0.92)
Forfeited (in dollars per share)	(1.30)	(1.37)	(2.38)
Outstanding at end of period (in dollars per share)	$ 0.94	$ 0.95	0.95
Exercisable at end of period (in dollars per share)						$ 0.94	$ 0.95	$ 0.95
Weighted average fair value of options granted during period (in dollars per share)			$ 1.06
Non Employees
STOCK OPTION EXERCISES
Options issued (in shares)	0	0	0
Option outstanding (in shares)	70,000	70,000	70,000			57,500	70,000	70,000
Number of options
Outstanding at beginning of period (in shares)	70,000	70,000	70,000
Granted (in shares)	0	0	0
Exercised (in shares)	(12,500)
Outstanding at end of period (in shares)	57,500	70,000	70,000
Exercisable at end of period (in shares)						57,500	70,000	70,000
Weighted-Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 0.81	$ 0.81	$ 0.81
Exercised (in dollars per share)	(0.81)
Outstanding at end of period (in dollars per share)	$ 0.81	$ 0.81	$ 0.81
Exercisable at end of period (in dollars per share)						$ 0.81	$ 0.81	$ 0.81
Stock Option Plan 2008
STOCK OPTION EXERCISES
Options issued (in shares)	2,899,108
Option outstanding (in shares)	2,182,569					2,182,569
Shares of common stock authorized for exercise of options						6,000,000
Number of options
Granted (in shares)	2,899,108
Outstanding at end of period (in shares)	2,182,569

STOCK OPTIONS (Details 2)

STOCK OPTIONS (Details 2) - USD ($)	12 Months Ended
STOCK OPTIONS (Details 2) - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Fair value assumptions
Share-based compensation expense	$ 0	$ 0	$ 52,775
Total intrinsic value of options exercised	856,269	$ 1,157,615	$ 1,210,135
Aggregate intrinsic value of options outstanding and exercisable	4,722,854
Unrecognized compensation cost related to non-vested stock options	$ 0
Employees \| Non-qualified stock option
Stock Options Outstanding
Exercise Prices (in dollars per share)	$ 0.94	$ 0.95	$ 0.95	$ 0.95
Fair value assumptions
Expected volatility rate (as a percent)	67.53%
Risk free interest rate (as a percent)	3.35%
Expected life	8 years 7 months 10 days
Employees \| Non-qualified stock option \| Exercise Price Dollars 1.30
Stock Options Outstanding
Exercise Prices (in dollars per share)	$ 1.30
Shares Outstanding	495,366
Weighted Average Remaining Contractual Life	2 years 10 months 17 days
Shares Exercisable	495,366
Employees \| Non-qualified stock option \| Exercise Price Dollars 1.46
Stock Options Outstanding
Exercise Prices (in dollars per share)	$ 1.46
Shares Outstanding	50,000
Weighted Average Remaining Contractual Life	7 years 4 months 13 days
Shares Exercisable	50,000
Employees \| Non-qualified stock option \| Exercise Price Dollars 0.81
Stock Options Outstanding
Exercise Prices (in dollars per share)	$ 0.81
Shares Outstanding	1,579,703
Weighted Average Remaining Contractual Life	3 years 6 months 15 days
Shares Exercisable	1,579,703
Non Employees \| Non-qualified stock option
Stock Options Outstanding
Exercise Prices (in dollars per share)	$ 0.81	$ 0.81	$ 0.81	$ 0.81
Non Employees \| Non-qualified stock option \| Exercise Price Dollars 0.81
Stock Options Outstanding
Exercise Prices (in dollars per share)	$ 0.81
Shares Outstanding	57,500
Weighted Average Remaining Contractual Life	3 years 6 months 15 days
Shares Exercisable	57,500

401(k) PLAN (Details)

401(k) PLAN (Details)	12 Months Ended
401(k) PLAN (Details)	Dec. 31, 2015
401(k) PLAN
Maximum percentage of compensation that employees may elect to contribute	88.00%

BUSINESS SEGMENTS (Details)

BUSINESS SEGMENTS (Details) - USD ($)	12 Months Ended
BUSINESS SEGMENTS (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Sales by geographical areas
Total sales	$ 29,552,200	$ 34,520,630	$ 30,785,127
U.S.
Sales by geographical areas
Total sales	23,029,976	27,649,974	24,843,200
Long-lived assets
Long-Lived assets	11,282,192	10,642,859	10,676,053
North and South America sales (excluding U.S.)
Sales by geographical areas
Total sales	5,668,785	5,651,426	4,453,151
Other international sales
Sales by geographical areas
Total sales	853,439	1,219,230	1,488,776
International
Long-lived assets
Long-Lived assets	$ 185,869	$ 209,994	$ 234,119

PREFERRED STOCK TRANSACTION (De

PREFERRED STOCK TRANSACTION (Details) - USD ($)	Nov. 30, 2015	Dec. 31, 2015
Common stock fair value in excess carrying value		$ 606,240
Excess Dividend arrerage waived		182,877
Deemed capital contribution on extinguishment of preferred stock		2,305,678
Series IV, Class B
Number of common stock exchanged for convertible preferred stock	728,000
Number of shares converted	$ 200,000
Preferred stock dividend in arrears	$ 3,094,795	5,456,000
Future dividend requirements avoided as a result of Conversion of shares		200,000
Common Stock \| Fair Value
Shareholders equity fair value disclosure		2,206,240
Preferred Stock \| Carrying Value
Shareholders equity fair value disclosure		$ 2,000,000

Schedule II-Schedule of Valua62

Schedule II-Schedule of Valuation and Qualifying Accounts (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Provision for Inventories
Movement in schedule of valuation and qualifying accounts
Balance at beginning of period	$ 681,395	$ 681,395	$ 239,752
Additions			530,000
Deductions			88,357
Balance at end of period	681,395	681,395	681,395
Provision for Accounts Receivables
Movement in schedule of valuation and qualifying accounts
Balance at beginning of period	1,725,806	1,698,506	2,186,190
Additions	116,395	27,300	50,000
Deductions	46,720		537,684
Balance at end of period	1,795,481	1,725,806	1,698,506
Deferred Tax Valuation
Movement in schedule of valuation and qualifying accounts
Balance at beginning of period	9,385,456	8,577,666	6,160,648
Additions		807,790	2,417,018
Deductions	1,633,484
Balance at end of period	7,751,972	9,385,456	8,577,666
Provision for Rebates
Movement in schedule of valuation and qualifying accounts
Balance at beginning of period	33,838,780	26,793,666	21,993,267
Additions	19,488,956	19,115,643	17,912,447
Deductions	12,155,856	12,070,529	13,112,048
Balance at end of period	41,171,880	33,838,780	26,793,666
Accounts payable
Movement in schedule of valuation and qualifying accounts
Balance at beginning of period	4,160,099	3,611,962
Balance at end of period	$ 3,733,199	$ 4,160,099	$ 3,611,962