Retractable (RVP) 10-K 30 Mar 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2019	Mar. 13, 2020	Jun. 28, 2019
Cover
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Entity Registrant Name	RETRACTABLE TECHNOLOGIES INC
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 9,772,415
Entity Common Stock, Shares Outstanding		32,682,454
Entity Central Index Key	0000946563
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 5,934,749	$ 9,647,292
Accounts receivable, net of allowance for doubtful accounts of $146,832 and $149,665, respectively	6,564,371	4,912,356
Investments in debt and equity securities, at fair value	7,771,660	2,986,156
Inventories, net	7,450,592	7,545,094
Income taxes receivable	50,392	100,887
Other current assets	635,201	644,803
Total current assets	28,406,965	25,836,588
Property, plant, and equipment, net	10,632,057	10,851,747
Income taxes receivable	50,393	100,835
Other assets	88,315	165,856
Total assets	39,177,730	36,955,026
Current liabilities:
Accounts payable	5,007,604	5,369,677
Current portion of long-term debt	260,939	406,361
Accrued compensation	607,339	540,852
Dividends payable	54,800	55,113
Accrued royalties to shareholder	921,445	769,324
Other accrued liabilities	1,387,149	1,467,935
Income taxes payable	17,944	10,025
Total current liabilities	8,257,220	8,619,287
Other long-term liabilities		82,359
Long-term debt, net of current maturities	2,378,055	2,639,647
Total liabilities	10,635,275	11,341,293
Commitments and contingencies - See Note 9
Preferred stock, $1 par value:
Common Stock, no par value; authorized: 100,000,000 shares; outstanding: 32,674,954
Additional paid-in capital	61,660,744	61,871,756
Accumulated deficit	(33,891,234)	(37,039,468)
Total stockholders' equity	28,542,455	25,613,733
Total liabilities and stockholders' equity	39,177,730	36,955,026
Series I, Class B
Preferred stock, $1 par value:
Preferred stock	96,000	98,500
Series II, Class B
Preferred stock, $1 par value:
Preferred stock	171,200	171,200
Series III, Class B
Preferred stock, $1 par value:
Preferred stock	129,245	129,245
Series IV, Class B
Preferred stock, $1 par value:
Preferred stock	342,500	342,500
Series V, Class B
Preferred stock, $1 par value:
Preferred stock	$ 34,000	$ 40,000

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Accounts receivable, allowance for doubtful accounts (in dollars)	$ 146,832	$ 149,665
Common stock, par value (in dollars per share)	$ 0	$ 0
Common Stock, authorized shares	100,000,000	100,000,000
Common Stock, outstanding shares	32,674,954	32,666,454
Preferred Class B
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Series I, Class B
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred Stock, outstanding shares	96,000	98,500
Preferred Stock, liquidation preference (in dollars)	$ 600,000
Common Stock, outstanding shares		98,500
Series II, Class B
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred Stock, outstanding shares	171,200	171,200
Preferred Stock, liquidation preference (in dollars)	$ 2,140,000
Series III, Class B
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred Stock, outstanding shares	129,245	129,245
Preferred Stock, liquidation preference (in dollars)	$ 1,615,563
Series IV, Class B
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred Stock, outstanding shares	342,500	342,500
Preferred Stock, liquidation preference (in dollars)	$ 3,767,500
Series V, Class B
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred Stock, outstanding shares	34,000	40,000
Preferred Stock, liquidation preference (in dollars)	$ 149,600

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Sales, net	$ 41,797,179	$ 33,274,702	$ 34,493,838
Cost of sales
Cost of sales	27,659,223	23,052,900	24,522,250
Gross profit	14,137,956	10,221,802	9,971,588
Operating expenses:
Sales and marketing	4,217,863	4,404,441	4,658,548
Research and development	516,095	621,365	740,567
General and administrative	6,432,158	6,786,041	8,351,053
Total operating expenses	11,166,116	11,811,847	13,750,168
Income from insurance proceeds		260,514
Income (loss) from operations	2,971,840	(1,329,531)	(3,778,580)
Interest and other income	351,166	153,460	65,695
Interest expense	(166,897)	(177,190)	(210,761)
Income (loss) before income taxes	3,156,109	(1,353,261)	(3,923,646)
Provision (benefit) for income taxes	7,875	(13,318)	(187,608)
Net income (loss)	3,148,234	(1,339,943)	(3,736,038)
Preferred stock dividend requirements	(702,618)	(704,996)	(704,996)
Income (loss) applicable to common shareholders	$ 2,445,616	$ (2,044,939)	$ (4,441,034)
Basic earnings (loss) per share	$ 0.07	$ (0.06)	$ (0.14)
Diluted earnings (loss) per share	$ 0.07	$ (0.06)	$ (0.14)
Weighted average common shares outstanding:
Basic (in shares)	32,672,475	32,666,454	31,958,121
Diluted (in shares)	32,672,475	32,666,454	31,958,121
Costs of manufactured product
Cost of sales
Cost of sales	$ 24,209,401	$ 20,108,798	$ 21,658,062
Royalty expense to shareholder
Cost of sales
Cost of sales	$ 3,449,822	$ 2,944,102	$ 2,864,188

STATEMENTS OF CHANGES IN STOCKH

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Common Stock	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	Additional Paid-in Capital	Accumulated Deficit	Series I, Class B	Series V, Class B	Total
Balance at Dec. 31, 2016		$ 98,500	$ 171,200	$ 129,245	$ 342,500	$ 40,000	$ 59,290,333	$ (31,963,487)			$ 28,108,291
Balance (in shares) at Dec. 31, 2016	29,666,454	98,500	171,200	129,245	342,500	40,000
Increase (Decrease) in Stockholders' Equity
Issuance of new Common Stock							2,350,100				2,350,100
Issuance of new Common Stock (in shares)	3,000,000
Dividends							(220,450)				(220,450)
Stock option compensation							672,223				672,223
Net income (loss)								(3,736,038)			(3,736,038)
Balance at Dec. 31, 2017		$ 98,500	$ 171,200	$ 129,245	$ 342,500	$ 40,000	62,092,206	(35,699,525)			27,174,126
Balance (in shares) at Dec. 31, 2017	32,666,454	98,500	171,200	129,245	342,500	40,000
Increase (Decrease) in Stockholders' Equity
Dividends							(220,450)				(220,450)
Net income (loss)								(1,339,943)			(1,339,943)
Balance at Dec. 31, 2018		$ 98,500	$ 171,200	$ 129,245	$ 342,500	$ 40,000	61,871,756	(37,039,468)			25,613,733
Balance (in shares) at Dec. 31, 2018	32,666,454	98,500	171,200	129,245	342,500	40,000
Increase (Decrease) in Stockholders' Equity
Conversion of Preferred Stock into Common Stock		$ (2,500)				$ (6,000)	8,500
Conversion of Preferred Stock into Common Stock (in Shares)	8,500	(2,500)				(6,000)			2,500	6,000
Dividends							(219,512)				(219,512)
Net income (loss)								3,148,234			3,148,234
Balance at Dec. 31, 2019		$ 96,000	$ 171,200	$ 129,245	$ 342,500	$ 34,000	$ 61,660,744	$ (33,891,234)			$ 28,542,455
Balance (in shares) at Dec. 31, 2019	32,674,954	96,000	171,200	129,245	342,500	34,000

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities
Net income (loss)	$ 3,148,234	$ (1,339,943)	$ (3,736,038)
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:
Depreciation and amortization	852,080	886,814	834,951
Realized gains on investments	(7,925)
Net unrealized gains on investments	(129,315)
Share-based Compensation			672,223
Inventories reserve		(297,731)
Provision for doubtful accounts		47,793	24,272
(Increase) decrease in assets:
Accounts receivable	(1,652,015)	145,407	(1,861,990)
Inventories	94,502	(1,041,202)	811,063
Other current assets	9,602	(226,649)	(225,606)
Income taxes receivable	100,937	(13,266)	(188,456)
Other assets	77,541
Increase (decrease) in liabilities:
Accounts payable	(362,072)	411,927	485,994
Other accrued liabilities	55,150	699,030	(205,342)
Insurance proceeds		(466,293)	466,293
Income taxes payable	7,919	(1,382)
Net cash provided (used) by operating activities	2,194,638	(1,195,495)	(2,922,636)
Cash flows from investing activities:
Purchase of property, plant, and equipment	(632,078)	(382,156)	(91,878)
Purchase of debt and equity securities	(7,360,398)	(2,986,156)
Proceeds from the sales of debt and equity securities	2,712,134
Net cash used by investing activities	(5,280,342)	(3,368,312)	(91,878)
Cash flows from financing activities
Repayments of long-term debt	(407,014)	(446,350)	(436,280)
Proceeds from sale of common stock			2,350,100
Payment of preferred stock dividends	(219,825)	(220,450)	(220,450)
Net cash used by financing activities	(626,839)	(666,800)	1,693,370
Net decrease in cash and cash equivalents	(3,712,543)	(5,230,607)	(1,321,144)
Cash and cash equivalents at:
Beginning of period	9,647,292	14,877,899	16,199,043
End of period	5,934,749	9,647,292	14,877,899
Supplemental schedule of cash flow information:
Interest paid	166,897	177,190	210,761
Income taxes paid		1,173	1,031
Supplemental schedule of noncash investing and financing activities:
Preferred dividends declared, not paid	54,800	$ 55,113	$ 55,113
Conversion of preferred stock to common stock	$ 8,500

BUSINESS OF THE COMPANY AND BAS

BUSINESS OF THE COMPANY AND BASIS OF PRESENTATION	12 Months Ended
	Dec. 31, 2019
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 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; the VanishPoint ® Blood Collection Set; and the EasyPoint ® needle. The Company also sells VanishPoint ® autodisable syringes in the international market in addition to the Company’s other products.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2019
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 cash, money market accounts, and investments with original maturities of three months or less. Accounts receivable The Company records trade receivables when revenue is recognized. No product has been consigned to customers. The Company’s allowance for doubtful accounts is primarily determined by review of specific trade receivables. Those accounts that are doubtful of collection are included in the allowance. This provision is reviewed to determine the adequacy of the allowance for doubtful accounts. Trade receivables are charged off when there is certainty as to their being uncollectible. Trade receivables are considered delinquent when payment has not been made within contract terms. The Company requires certain customers to make a prepayment prior to beginning production or shipment of their order. Customers may apply such prepayments to their outstanding invoices or pay the invoice and continue to carry forward the deposit for future orders. Such amounts are included in Other accrued liabilities on the Balance Sheets and are shown in Note 7, Other Accrued Liabilities. The Company records an allowance for estimated returns as a reduction to Accounts receivable and Gross sales. Historically, returns have been insignificant. Inventories Inventories are valued at the lower of cost or net realizable value, with cost being determined using actual average cost. The Company compares the average cost to the net realizable value and records the lower value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. 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. Investments in Debt and Equity Securities The Company holds high-grade exchange-traded and closed-end funds (ETFs), mutual funds, and debt securities as investments. These assets are readily marketable and are carried at fair value as of the date of the Balance Sheets. Net unrealized and realized gains or losses on investments in debt and equity securities are reflected as a component of interest and other income. Realized gains or losses on investments in debt and equity securities are recognized using the specific identification method. 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 disposals are included in operations. The Company's property, plant, and equipment primarily consist of buildings, land, assembly equipment, molding machines, molds, office equipment, furniture, and fixtures. 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 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 or appraised values of the underlying assets. Fair Value Measurements For assets and liabilities that are measured using quoted prices in active markets, total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs are valued by reference to similar assets or liabilities, adjusted for contract restrictions and other terms specific to that asset or liability. For these items, a significant portion of fair value is derived by reference to quoted prices of similar assets or liabilities in active markets. For all remaining assets and liabilities, fair value is derived using a fair value model, such as a discounted cash flow model or Black-Scholes model. Financial instruments The Company estimates the fair 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 fair 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. Investments in equity securities consist primarily of exchange-traded and closed-end funds and mutual funds and are reported at their fair value based upon quoted prices in active markets. Investments in U.S. Treasury Notes are reported at their fair value based upon quoted prices in active markets. Investments in certificates of deposit (CD) with original maturities of greater than three months are reported at their estimated fair value based upon the duration of the CD and the interest rate earned on the CD versus current interest rates of similar duration CDs. 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, certificates of deposit, U.S. Treasury Notes, exchange-traded and closed-end funds, mutual funds, 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 that are well-established entities. The Company assesses market risk in debt and equity securities through consultation with its outside investment advisors. Management is responsible for directing investment activity based on current economic conditions. As a consequence, Management considers any exposure from concentrations of credit risks to be limited. The following table reflects our significant customers in 2019, 2018, and 2017: Years Ended December 31, 2019 2018 2017 Number of significant customers 3 2 Aggregate dollar amount of net sales to significant customers $ 19.0 million $ 13.1 million $ 14.0 million Percentage of net sales to significant customers 45.6 % 39.2 % 40.5 % The Company decreased its allowance for doubtful accounts by approximately $3 thousand in 2019. The Company manufactures some of its products in Little Elm, Texas, as well as utilizing manufacturers in China. The Company obtained roughly 82.6% of its products in 2019 from its Chinese manufacturers. Purchases from Chinese manufacturers aggregated 85.3% and 82.9% of products in 2018 and 2017, respectively. In the event that the Company becomes unable to purchase products from its Chinese manufacturers, the Company would need to find an alternate manufacturer for its blood collection set, IV catheter, Patient Safe ® syringe, 0.5mL insulin syringe, 0.5mL autodisable syringe, and 2mL, 5mL, and 10mL syringes and would increase domestic production for the 1mL and 3mL syringes and EasyPoint ® needles. Revenue recognition The Company recognizes revenue when it has satisfied all performance obligations to the customer, generally when title and risk of loss pass to the customer. Payments from customers with approved credit terms are typically due 30 days from the invoice date. 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. Distributors receive a rebate for the difference between the Wholesale Acquisition Cost and the appropriate contract price as reflected on a tracking report provided by the distributor to the Company. If product is sold by a distributor to an entity that has no contract, there is a standard rebate (lower than a contracted rebate) given to the distributor. One of the purposes of the rebate is to encourage distributors to submit tracking reports to the Company. The provision for contractual pricing allowances is recognized in the period the related sales are recognized and 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 $3,586,726 and $3,896,341 as of December 31, 2019 and 2018, 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. End-users do not receive any contractual allowances on their purchases. Any product shipped or distributed for evaluation purposes is expensed. The Company provides product warranties that: i) the products are fit for medical use as generally defined within the boundaries of United States FDA approval; ii) the products are not defective; and iii) the products will conform to the descriptions set forth in their respective labeling, provided that they are used in accordance with such labeling and the Company’s written directions for use. The Company has historically not incurred significant warranty claims. The Company’s domestic return 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’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. The Company requires certain customers to pay in advance of product shipment. Such prepayments from customers are recorded in Other accrued liabilities and are generally recognized as revenue within 30 to 60 days of receipt at the time product is shipped. The Company recognizes revenue from licensing agreements when collection of such amounts from third parties is reasonably assured. If the Company licenses its products for sale, the Company is obligated to pay Thomas J. Shaw, the owner of certain patented technology, a certain percentage of such revenue pursuant to the terms of the Technology License Agreement between the Company and Mr. Shaw. Disaggregated information of revenue recognized from contracts with customers and licensing fees recognized are as follows: For the year ended December 31, 2019: Blood Collection EasyPoint (R) Other Total Product Geographic Segment Syringes Products Needles Products Sales U.S. sales $ 26,722,414 $ 2,130,767 $ 2,970,374 $ 74,369 $ 31,897,924 North and South America sales (excluding U.S.) 7,863,796 6,313 7,996 370,885 8,248,990 Other international sales 1,052,217 578,617 635 18,796 1,650,265 Total $ 35,638,427 $ 2,715,697 $ 2,979,005 $ 464,050 $ 41,797,179 For the year ended December 31, 2018: Blood Collection EasyPoint (R) Other Total Product Geographic Segment Syringes Products Needles Products Sales U.S. sales $ 23,803,483 $ 1,365,936 $ 3,401,389 $ 75,766 $ 28,646,574 North and South America sales (excluding U.S.) 3,521,823 8,805 252 66,564 3,597,444 Other international sales 940,740 48,101 11,768 30,075 1,030,684 Total $ 28,266,046 $ 1,422,842 $ 3,413,409 $ 172,405 $ 33,274,702 For the year ended December 31, 2017: Blood Collection EasyPoint (R) Other Total Product Geographic Segment Syringes Products Needles Products Sales U.S. sales $ 23,794,258 $ 1,098,667 $ 2,065,777 $ 57,010 $ 27,015,712 North and South America sales (excluding U.S.) 6,182,952 3,859 — 193,934 6,380,745 Other international sales 1,032,508 43,473 — 21,400 1,097,381 Total $ 31,009,718 $ 1,145,999 $ 2,065,777 $ 272,344 $ 34,493,838 Income taxes The Tax Cuts and Job Act ("the Act") was enacted on December 22, 2017, and the U.S. federal corporate tax rate was reduced from 35% to 21%. U.S. generally accepted accounting principles require companies to account for the effects of changes in income tax rates and laws in the period the change is enacted. Financial results, including provisional amounts, have been calculated for the income tax effects of the change. The U.S. Securities and Exchange Commission issued Staff Accounting Bulletin 118 (SAB 118) allowing companies to use provisional estimates to record the effects of the Act. SAB 118, as codified by Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2018-05 “Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update),” allows companies to complete accounting for these effects no later than one year from the enactment date of the Act. During 2018, the Company completed its analysis of the provisional estimates made to record the effects of the Act. On January 14, 2019, the IRS issued a statement saying that alternative minimum tax (“AMT”) refunds for taxable years beginning after December 31, 2017 will not be subject to sequestration. Prior to this statement from the IRS, refundable AMT credits under Section 53(e) were subject to sequestration, as required by the Balanced Budget and Emergency Deficit Control Act of 1985, as amended. The previously recorded AMT receivable was reduced in anticipation of sequestration. Based upon this development, the Company recorded an additional tax benefit of approximately $13 thousand for the year ended December 31, 2018 to reflect the full amount of refundable AMT credits. The Company evaluates tax positions taken or expected to be taken in a tax return for recognition in the financial statements based on whether it is “more-likely-than-not” that a tax position will be sustained based upon the technical merits of the position. Measurement of the tax position is based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company provides for deferred income taxes through utilizing an asset and liability approach for financial accounting and reporting based on the tax effects of differences between the financial statement and tax bases of assets and liabilities, based on enacted rates expected to be in effect when such differences reverse in future periods. Deferred tax assets are periodically reviewed for realizability. The Company has established a valuation allowance for its net deferred tax asset as future taxable income cannot be reasonably assured. Penalties and interest related to income taxes 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 or loss 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. At December 31, 2019, the calculation of diluted EPS excluded 639,000 shares of common stock underlying issued and outstanding stock options, as the exercise price of the stock options were greater than the average stock prices for the periods. The calculation of diluted EPS excluded 1,357,803 and 79,441 shares of Common Stock underlying issued and outstanding stock options at December 31, 2018 and 2017, as their effect was antidilutive. The calculation of diluted EPS also excludes the impact of the conversion of convertible preferred stock, as the impact was antidilutive for all periods presented. The potential dilution, if any, is shown on the following schedule: Years Ended December 31, 2019 2018 2017 Net income (loss) $ 3,148,234 $ (1,339,943) $ (3,736,038) Preferred dividend requirements (702,618) (704,996) (704,996) Income (loss) applicable to common shareholders $ 2,445,616 $ (2,044,939) $ (4,441,034) Weighted average common shares outstanding 32,672,475 32,666,454 31,958,121 Weighted average common and common equivalent shares outstanding - assuming dilution 32,672,475 32,666,454 31,958,121 Basic earnings (loss) per share $ 0.07 $ (0.06) $ (0.14) Diluted earnings (loss) per share $ 0.07 $ (0.06) $ (0.14) Shipping and handling costs The Company classifies shipping and handling costs as part of Cost of sales in the Statements of Operations. Self-insured employee benefit costs Beginning in 2019, the Company self-insures certain health insurance benefits for its employees under certain policy limits. The company has additional coverage provided by an insurance company for any individual with claims in excess of $60,000 and/or total plan claims in excess of $601,716 for the plan year. A receivable of $445 thousand was recorded as of December 31, 2019 due to claims paid the Company in 2019 but not yet recouped. 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 Black-Scholes fair value method. The Company records share-based compensation expense on a straight-line basis over the requisite service period. The Company incurred the following share-based compensation costs: Years Ended December 31, 2019 2018 2017 Cost of sales $ — $ — $ 272,811 Sales and marketing — — 143,255 Research and development — — 45,174 General and administrative — — 210,983 $ — $ — $ 672,223 Options awarded to employees in 2016 were amortized over twelve months. The Company amortized four months’ expense for options granted in September 2016 and amortized the remainder in 2017. Insurance Proceeds Receipts from insurance up to the amount of any loss recognized by the Company are considered recoveries. Any such recoveries are recorded when they are received. Insurance proceeds are not recognized as a component of income (loss) from operations until all repairs are made. Recently Adopted Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”, as well as several subsequently issued clarifying amendments. Under the ASU, as amended, 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 guidance, lessor accounting is largely unchanged. The lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases”. This amendment clarifies Topic 842 and corrected unintended application of guidance and is effective concurrent with Topic 842 or upon issuance if Topic 842 was early adopted. In August 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements”. This amendment provides additional transition options allowing entities to recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption rather than the earliest period presented and provides a practical expedient to lessors to elect, by class of underlying assets, to account for non-lease and lease components as a single arrangement. The Company adopted the provisions of ASU 2018-11 through a cumulative effect adjustment. Topic 842, and its subsequent amendments, was effective for the Company’s quarter ended March 31, 2019. The Company has completed evaluating the various accounting policy elections associated with this ASU, as amended, including transition methods and practical expedients, identifying contracts for evaluation, and reviewing contracts to determine if they contain leases. The Company completed evaluating the timing and impact of adopting ASU 2016-02, as amended, and recorded lease assets and liabilities of $163,007 on its Balance Sheets with no impact to its accumulated deficit. The following table summarizes the impact of the adoption of ASU 2016-02 to previously reported results: Balance Sheet as of December 31, 2018 As Previously Reported New Lease Adjustment As Restated Other assets $ 2,849 $ $ 165,856 Other current liabilities $ $ 80,648 $ 1,467,935 Other long term-liabilities $ - $ 82,359 $ 82,359 Recently Issued Pronouncements In June 2016, the FASB issued Accounting Standards Update 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ,” as well as subsequent clarifying amendments. Among other things, these amendments require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. This ASU is effective for the Company’s quarter ending March 31, 2020 with early application permitted. The Company has considered the potential impact from adoption of ASU 2016-13, as well as the Targeted Transition Relief as provided by ASU 2019-05, "Financial Instruments - Credit Losses (Topic 326) - Targeted Transition Relief." The Company expects that the adoption of ASU 2016-13, along with the provisions of ASU 2019-05, will not have a material impact on the Company's financial statements , but may require expanded disclosure. In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (a Consensus of the FASB Emerging Issues Task Force)”. This amendment requires that implemented costs incurred in a hosting arrangement that is a service contract should be accounted for in accordance with ASC 350-40 – Internal use software. Accordingly, costs incurred during the preliminary project and post-implementation stages are expensed and costs associated with the application development phase are capitalized. The amendment also requires that capitalized costs be amortized over the term of the hosting arrangement and that capitalized costs should be evaluated for impairment. The amendment is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. The Company has completed its assessment of the standard and does not anticipate a material impact on its financial statements or disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes. The new standard intended to simplify the accounting for income taxes by eliminating certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard is effective for annual periods beginning after December 15, 2020 and interim periods within the annual period, with early adoption permitted. Adoption of the standard requires certain changes to primarily be made prospectively, with some changes to be made retrospectively. The Company is currently evaluating the impact adoption of ASU 2019-12 will have on its financial statements.

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2019
INVENTORIES
INVENTORIES	3. INVENTORIES Inventories consist of the following: December 31, 2019 2018 Raw materials $ 1,254,313 $ 1,399,543 Finished goods 6,493,487 6,442,759 7,747,800 7,842,302 Inventory reserve (297,208) (297,208) $ 7,450,592 $ 7,545,094

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2019
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	4. FAIR VALUE OF FINANCIAL INSTRUMENTS ASC 820, “Fair Value Measurements”, defines fair value, establishes a framework for measuring fair value and requires additional disclosures regarding certain fair value measurements. ASC 820 establishes a three-tier hierarchy for measuring fair value, as follows: · Level 1 – quoted market prices in active markets for identical assets and liabilities · Level 2 – inputs other than quoted prices that are directly or indirectly observable · Level 3 - unobservable inputs where there is little or no market activity The following tables summarize the values of assets designated as Investments in debt and equity securities: December 31, 2019 Level 1 Level 2 Level 3 Total Mutual funds and exchange traded funds $ 6,708,746 $ — $ — $ 6,708,746 Certificates of deposit — 1,062,914 — 1,062,914 $ 6,708,746 $ 1,062,914 $ — $ 7,771,660 December 31, 2018 Level 1 Level 2 Level 3 Total US Treasury Notes $ — $ 1,411,156 $ — $ 1,411,156 Certificates of deposit — 1,575,000 — 1,575,000 $ — $ 2,986,156 $ — $ 2,986,156 The Company holds high-grade exchange-traded and closed-end funds (ETFs), mutual funds, and debt securities as investments. These assets are readily marketable and are carried at fair value as of the date of the Balance Sheets. The Company intends to hold these assets for possible future operating requirements. The following table summarizes gross unrealized gains and losses from Investments in debt and equity securities: December 31, 2019 Gross Unrealized Aggregate Cost Gains Losses Fair Value Mutual funds and exchange traded funds $ 6,592,345 $ 116,401 $ — $ 6,708,746 Certificates of deposit 1,050,000 12,914 — 1,062,914 $ 7,642,345 $ 129,315 — $ 7,771,660 December 31, 2018 Gross Unrealized Aggregate Cost Gains Losses Fair Value US Treasury Notes $ 1,411,156 $ — $ — $ 1,411,156 Certificates of deposit 1,575,000 — — 1,575,000 $ 2,986,156 $ — — $ 2,986,156

PROPERTY, PLANT, AND EQUIPMENT

PROPERTY, PLANT, AND EQUIPMENT	12 Months Ended
	Dec. 31, 2019
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT	5. PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment consist of the following: December 31, 2019 2018 Land $ 261,893 $ 261,893 Buildings and building improvements 11,566,115 11,566,115 Production equipment 19,903,236 19,948,303 Office furniture and equipment 3,527,577 3,540,846 Construction in progress 765,176 202,109 36,023,997 35,519,266 Accumulated depreciation (25,391,940) (24,667,519) $ 10,632,057 $ 10,851,747 Depreciation expense for the years ended December 31, 2019, 2018, and 2017 was $851,673; $883,610; and $830,715, respectively.

LICENSE AGREEMENT

LICENSE AGREEMENT	12 Months Ended
	Dec. 31, 2019
LICENSE AGREEMENT
LICENSE AGREEMENT	6. LICENSE AGREEMENT In 1995, the Company entered into a license agreement with the Chief Executive Officer of the Company, Thomas J. Shaw, 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 Mr. Shaw. 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. Additionally, if the Company sublicenses the technology and the sublicensee’s customers are not known to the Company, then Mr. Shaw shall be entitled to receive from the Company fifty percent (50%) of the royalties actually paid to the Company by such sublicensee. The royalty fee expense is recognized in the period in which it is earned. Royalty fees of $3,449,822; $2,944,102; and $2,864,188 are included in Cost of sales for the years ended December 31, 2019, 2018, and 2017, respectively. Royalties payable under this agreement aggregated $921,445 and $769,324 at December 31, 2019, and 2018, respectively. Gross sales upon which royalties are based were $67,529,783; $58,882,042; and $57,283,780 for 2019, 2018, and 2017, respectively.

OTHER ACCRUED LIABILITIES

OTHER ACCRUED LIABILITIES	12 Months Ended
	Dec. 31, 2019
OTHER ACCRUED LIABILITIES
OTHER ACCRUED LIABILITIES	7. OTHER ACCRUED LIABILITIES Other accrued liabilities consist of the following: December 31, 2019 2018 Prepayments from customers $ 998,601 $ 860,926 Accrued property taxes — 170,568 Accrued professional fees 263,757 294,903 Other accrued expenses 124,791 141,538 Total $ 1,387,149 $ 1,467,935

LONG-TERM DEBT

LONG-TERM DEBT	12 Months Ended
	Dec. 31, 2019
LONG-TERM DEBT
LONG-TERM DEBT	8. LONG-TERM DEBT Long-term debt consists of the following: December 31, 2019 2018 Loan from American First National Bank. Maturity date is April 10, 2028. The loan, in the original amount of $4,209,608, 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 equal to prime rate plus 0.25%. The interest rate was 0.00% at December 31, 2019. $ 2,638,994 $ 2,878,980 Note payable to Deutsche Leasing USA, Inc. The interest rate is 4.25%. The original amount of the note was $525,017 with a 36 month maturity ending in November 2019. Beginning December 2016, the loan became payable in equal installments of principal and interest of approximately $15,500. Collateralized by molding machines and ancillary equipment. — 167,028 2,638,994 3,046,008 Less: current portion (260,939) (406,361) $ 2,378,055 $ 2,639,647 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, 2019, are as follows: 2020 260,939 2021 274,858 2022 289,120 2023 304,122 2024 319,688 Thereafter 1,190,267 $ 2,638,994

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2019
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES On November 7, 2019, the Company filed a lawsuit in the 44 th District Court of Dallas County, Texas (No. DC-19-17946) against Locke Lord, LLP and Roy Hardin in connection with their legal representation of the Company in its previous litigation against Becton, Dickinson and Company (“BD”). The Company alleges that the defendants breached their fiduciary duties, committed malpractice, and were negligent in their representation of the Company. The Company seeks actual and exemplary damages, disgorgement, costs, and interest. The defendants have filed a motion to dismiss and the Court has scheduled a hearing on such motion on April 24, 2020. Trial is currently scheduled for May 24, 2021.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2019
INCOME TAXES
INCOME TAXES	10. INCOME TAXES The provision (benefit) for income taxes consists of the following: For the Years Ended December 31, 2019 2018 2017 Current tax provision (benefit) Federal $ — (13,318) $ — State 7,875 — 848 Total current provision (benefit) 7,875 (13,318) 848 Deferred tax provision (benefit) Federal — — (188,456) State — — — Total deferred tax provision (benefit) — — (188,456) Total income tax provision (benefit) $ 7,875 (13,318) $ (187,608) The Company has $23.3 million in tax benefits attributable to net operating losses for federal tax purposes. $21.5 million net operating losses were generated before January 1, 2018 and begin to expire in 2028 for federal tax purposes. $1.8 million of net operating losses were generated after January 1, 2018 and have an indefinite carryover period. The Company has state net operating losses of $24.8 million which will begin to expire in January 2021. The Company also has credits for alternative minimum taxes (“AMT”) paid of $100 thousand as of December 31, 2019. The alternative minimum tax was repealed with the enactment of the Act. AMT credits carried over may be used to offset regular tax liability for any tax year. Any unused credits are 50% refundable for tax years 2018-2020, and 100% refundable for tax years beginning 2021. The Company has recorded the AMT credit as a tax receivable on its financial statements rather than as a deferred tax asset, as this amount is a refundable credit. 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, 2019 2018 Deferred tax assets Net operating loss carry forwards $ $ 6,668,238 Accrued expenses and reserves 436,627 Employee stock option expense 76,150 Nonemployee stock option expense 8,268 Inventory 132,114 Impairment — Unrealized Gain/Loss 112,000 Deferred tax assets 7,433,397 Deferred tax liabilities Property and equipment (1,281,999) Deferred tax liabilities (1,281,999) Net deferred assets 6,151,398 Valuation allowance (6,151,398) Net deferred tax assets $ - $ — Utilization of the net operating loss carry forwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. Deferred income tax calculations reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases, as well as from net operating loss carry forwards, and are stated at the U.S. tax rate of 21% beginning in 2018. Net operating losses incurred after December 31, 2017 can only offset 80% of taxable income. However, these net operating losses may be carried forward indefinitely instead of limited to twenty years under previous tax law. Carrybacks of these losses are no longer permitted. Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. The Company has fully reserved these future tax deductions. The valuation allowance decreased by $1,121,560 for 2019 and increased by and $325,444 for 2019 and 2018 respectively. A reconciliation of income taxes based on the federal statutory rate and the effective income tax rate is summarized as follows: December 31, 2019 2018 2017 Income tax at the federal statutory rate 21.0 % 21.0 % 35.0 % State tax, net of federal tax 3.5 2.9 Change in valuation allowance (24.3) 85.9 Permanent differences — (0.3) 5.7 Return-to-provision and other — (37.6) Tax Reform and Jobs Act tax rate change — 0.1 (81.1) Incentive stock options — — (6.0) 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, 2016, 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.

DIVIDENDS

DIVIDENDS	12 Months Ended
	Dec. 31, 2019
DIVIDENDS
DIVIDENDS	11. DIVIDENDS The Board declared and the Company paid dividends to Series I and Series II Class B Preferred Shareholders in the following amounts: $12,313 and $42,800, respectively, on January 6, 2017, April 24, 2017, July 20, 2017, October 20, 2017, January 19, 2018, April 24, 2018, July 20, 2018, October 23, 2018, January 18, 2019 , and April 22, 2019. The Board declared and the Company paid dividends to Series I and Series II Class B Preferred Shareholders in the following amounts: $12,000 and $42,800, respectively, on July 19, 2019, October 21, 2019, and January 22, 2020.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2019
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	12. 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 96,000; 171,200; 129,245; 342,500; and 34,000 shares, respectively as of December 31, 2019. The remaining 4,227,055 authorized shares had not been assigned a series. Please see “Subsequent Events” for recent information regarding the Preferred Stock. Series I Class B Stock There were 96,000 and 98,500 shares of $1 par value Series I Class B Stock outstanding at December 31, 2019 and 2018 , respectively. 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 $48,312 in 2019 and $49,250 in 2018 and 2017. At December 31, 2019, no dividends were in arrears. Series I Class B Stock is redeemable 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. 2,500 shares of Series I Class B Stock were converted into Common Stock in 2019. No shares of Series I Class B Stock were converted into Common Stock in 2018. 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 shares of $1 par value Series II Class B Stock outstanding at December 31, 2019 and 2018. 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 $171,200 in each of 2019, 2018, and 2017. At December 31, 2019, 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. No shares were converted in 2019 or 2018. 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 shares of $1 par value Series III Class B Stock outstanding at December 31, 2019 and 2018. 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, 2019, approximately $4,404,000 of dividends which have not been declared were in arrears. Please see “Subsequent Events” for recent information regarding Series III Class B Stock. Series III Class B Stock is redeemable 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. No shares were converted in 2019 or 2018. 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 shares of $1 par value Series IV Class B Stock outstanding at December 31, 2019 and 2018. 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, 2019, approximately $6,826,000 of dividends which have not been declared were in arrears. Please see “Subsequent Events” for recent information regarding Series IV Class B Stock. Series IV Class B Stock is redeemable 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, be converted into one share of Common Stock. No shares of Series IV Class B Stock were converted into Common Stock in 2019 or 2018. 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, plus all 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 34,000 and 40,000 shares of $1 par value Series V Class B Stock outstanding at December 31, 2019 and 2018, respectively 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, 2019, approximately $1,020,000 of dividends which have not been declared were in arrears. Series V Class B Stock is redeemable 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, be converted into Common Stock. 6,000 shares of Series V Class B Stock were converted into Common Stock in 2019. No shares of Series V Class B Stock were converted into Common Stock in 2018. 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 all 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 32,674,954 and 32,666,454 shares were outstanding at December 31, 2019 and 2018 , respectively. Additionally, as of December 31, 2019, a total of 1,412,245 shares of Common Stock were issuable upon the conversion of Preferred Stock and the exercise of stock options.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2019
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	13. RELATED PARTY TRANSACTIONS The Company has a license agreement with the Chief Executive Officer of the Company. See Note 6.

STOCK OPTIONS

STOCK OPTIONS	12 Months Ended
	Dec. 31, 2019
STOCK OPTIONS
STOCK OPTIONS	14. STOCK OPTIONS Stock options Options for the purchase of 3,649,508 shares of Common Stock have been issued under the 2008 Stock Option Plan. Options for the purchase of 639,300 shares under the 2008 Stock Option Plan were outstanding as of December 31, 2019. No shares are available for future issuance under the 2008 Stock Option Plan which expired July 25, 2018. The Compensation and Benefits Committee administered the Company’s stock option plan prior to its termination. Director, officer and employee options A summary of Director, officer, and employee options granted and outstanding under the 2008 Stock Option Plan is presented below: Years Ended December 31, 2019 2018 2017 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding at beginning of period 1,300,303 $ 1.57 1,805,519 $ 1.51 1,817,919 $ 1.52 Granted — $ — — $ — — $ — Exercised — $ — — $ — — $ — Forfeited (661,003) $ (1.05) (505,216) $ (1.36) (12,400) $ (2.75) Outstanding at end of period 639,300 $ 2.12 1,300,303 $ 1.57 1,805,519 $ 1.51 Exercisable at end of period 639,300 $ 2.12 1,300,303 $ 1.57 1,803,119 $ 1.51 No options were issued in 2019, 2018 or 2017 to employees or non-employee directors. The following table summarizes information about Director, officer, and employee options outstanding under the stock option plan at December 31, 2019: Weighted Average Exercise Prices Shares Outstanding Remaining Contractual Life Shares Exercisable $ 1.46 50,000 50,000 $ 1.05 200,000 200,000 $ 2.75 389,300 6.70 389,300 Non-employee options A summary of options outstanding and held by non-employees is as follows: Years Ended December 31, 2019 2018 2017 Weighted Weighted Weighted Average Average Average Shares Exercise Price Shares Exercise Price Shares Exercise Price Outstanding at beginning of period 57,500 $ 0.81 57,500 $ 0.81 57,500 $ 0.81 Granted - $ - — $ — — $ — Exercised - $ - — $ — — $ — Forfeited (57,500) $ (0.81) — $ — — $ — Outstanding at end of period - $ - 57,500 $ 0.81 57,500 $ 0.81 Exercisable at end of period - $ - 57,500 $ 0.81 57,500 $ 0.81 In 2017, the Company recognized stock-based compensation expense of $672 thousand. The Company recorded no stock-based compensation expense in 2018 or 2019. At December 31, 2019, there were 250,000 stock options with exercise prices lower than the closing market. The intrinsic value of these options at December 31, 2019 was $92,000. Options Pricing Models – Assumptions The expected life is based on the Company’s historical experience with option exercise trends. The assumptions for expected volatility are based on a calculation of volatility over the five-years preceding the grant date. Risk-free interest rates are set using grant-date U.S. Treasury yield curves. In its calculations, the Company assumed no dividends. The Company elected a policy to account for forfeitures as they occur, rather than on an estimated basis.

401(k) PLAN

401(k) PLAN	12 Months Ended
	Dec. 31, 2019
401(k) PLAN
401(k) PLAN	15. 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. The 401(k) Plan is available to all employees on the first day of the month after 90 days of service. 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. For 2017, 2018, and 2019, the Company matched each participant’s elective deferrals up to 2% of the participant’s compensation for the pay period. The total match was $145,474, $145,146, and $117,917 in 2017, 2018, and 2019, respectively.

BUSINESS SEGMENT

BUSINESS SEGMENT	12 Months Ended
	Dec. 31, 2019
BUSINESS SEGMENT
BUSINESS SEGMENT	16. BUSINESS SEGMENT The following is a summary of the Company’s sales and long-lived assets by geography: 2019 2018 2017 U.S. sales $ 31,897,924 $ 28,646,574 $ 27,015,712 North and South America sales (excluding U.S.) 8,248,990 3,597,444 6,380,745 Other international sales 1,650,265 1,030,684 1,097,381 Total sales $ 41,797,179 $ 33,274,702 $ 34,493,838 Long-lived assets U.S. $ 10,542,688 $ 10,738,253 - International $ 89,369 $ 113,494 - 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.

STORM DAMAGE AND INSURANCE PROC

STORM DAMAGE AND INSURANCE PROCEEDS	12 Months Ended
	Dec. 31, 2019
STORM DAMAGE AND INSURANCE PROCEEDS
STORM DAMAGE AND INSURANCE PROCEEDS	17. STORM DAMAGE AND INSURANCE PROCEEDS On March 26, 2017, a hail storm passed through Little Elm, Texas, resulting in damage to the Company’s two buildings. During April 2017, the Company performed an inspection of its facilities and determined that possible roof damage had been sustained. In late April 2017, the Company’s insurance carrier inspected the two buildings and confirmed that damage occurred from the hail storm. This damage was principally to the roofs of the buildings but also many of the HVAC units and a wall alongside one of the buildings were also damaged. The Company’s insurance carrier assessed damages of $1,009,960 and the Company’s deductible is $5,000. The Company received these funds from its carrier in the second quarter of 2017. Repairs commenced during the third quarter of 2017. All repairs were completed in the fourth quarter of 2018. During 2017, the Company incurred and recognized $538,667 in repairs due to the storm damage. Repair expense during 2018 was $203,289. This repair expense was offset by the insurance proceeds, resulting in no impact to the Statements of Operations. The remaining insurance proceeds of $261 thousand were recognized as income in the fourth quarter of 2018.

LEASES

LEASES	12 Months Ended
	Dec. 31, 2019
LEASES
LEASES	18. LEASES The Company has operating leases for a corporate office and equipment. The leases have a remaining lease term of one year. The Company currently has no finance leases. The right-of-use (“ROU”) asset is determined based on the lease liability adjusted for lease incentives received. Lease expense is recognized on a straight-line basis over the lease term. The leases may include various expenses incidental to the use of the property, such as common area maintenance, property taxes and insurance. These costs are separate from the minimum rent payment and are not considered in the determination of the lease liability and ROU asset. The Company has not noted any material instances in its leases where these costs were combined with the minimum rent payment and has therefore elected the policy to not separate lease from non-lease components if they are combined with the minimum rent payment. The option periods are not included in the determination of the lease liability and right-of-use asset as the Company is not reasonably certain if it will extend at the time of lease commencement. The operating lease cost component of the lease expense was $80,648 and $79,331 for the years ended December 31, 2019 and 2018, respectively. The cash paid for amounts included in the measurement of lease liabilities as a component of cash flows related to leases was $80,648 and $79,331 for the years ended December 31, 2019 and 2018, respectively. Assets and liabilities associated with these leases included in the Balance Sheets are as follows: December 31, 2019 2018 OPERATING LEASES Other assets $ 82,359 $ 163,007 Other accrued liabilities $ 82,359 $ 80,648 Other long-term liabilities - 82,359 Total operating lease liabilities $ 82,359 $ 163,007 The weighted average remaining lease term is 1.0 year and the weighted average discount rate is 4.0% at December 31, 2019. Future minimum payments under non-cancelable operating leases and financing leases consist of the following at December 31, 2019: Year ending December 31, Remainder of 2020 84,155 Less imputed interest (1,796) Total $ 82,359

HELD-TO-MATURITY SECURITIES - C

HELD-TO-MATURITY SECURITIES - CORRECTION OF ERRORS	12 Months Ended
	Dec. 31, 2019
HELD-TO-MATURITY SECURITIES - CORRECTION OF ERRORS
HELD-TO-MATURITY SECURITIES - CORRECTION OF ERRORS	19. HELD-TO-MATURITY SECURITIES – CORRECTION OF ERRORS The Balance Sheet as of December 31, 2018 has been revised to reflect a correction of an error to the classification of investments previously recorded as Held-to-Maturity. During the quarter ended June 30, 2019, the Company determined that, during 2018, it had incorrectly classified certain investments as Held-to-Maturity that should have been classified as Available-for-Sale. The Company views the correction of the classification error to be immaterial to previously filed financial statements. Nonetheless, the Company has revised the presentation of the d Balance Sheet at December 31, 2018 to reflect the reclassification of all previously recorded Held-to-Maturity investments as Available-for-Sale. The effect on the Balance Sheet as of December 31, 2018 is to reclassify $2,986,156 from Held-to-Maturity securities to Investments in debt and equity securities, at fair value. In addition, Total current assets at December 31, 2018 were increased by $1,989,923 as a result of this reclassification. There was no impact to the Statement of Operations for 2018 as a result. The Company will continue to revise its previously-issued financial statements on a prospective basis for this classification error as well as the related disclosures of the fair value of financial instruments.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2019
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	20. SUBSEQUENT EVENTS Effective January 13, 2020, the Company agreed with two preferred stockholders to purchase outstanding Class B Convertible Preferred Stock (the “Preferred Stock”) for cash and Common Stock. Such preferred stockholders tendered to the Company a total of 2,500 shares of Series III Preferred Stock and 5,000 shares of Series IV Preferred Stock. A total of $75,000 and 7,500 shares of Common Stock were issued as consideration therefor. In accordance with the terms of the agreements, the preferred stockholders agreed to waive all unpaid dividends in arrears associated with their Preferred Stock, which resulted in a waiver of a total of $149,795 in unpaid dividends in arrears. Subsequent to December 31, 2019, the World Health Organization (WHO) declared the novel coronavirus outbreak a public health emergency. On March 11 th , 2020, the WHO Director-General declared that COVID-19 be characterized as a pandemic. Since that time, the situation surrounding the pandemic and the effects on the world economy, public health across the globe and U.S. businesses has been, and continues to be, a fluid situation. The Company is continuing to monitor the situation, including our outsourcing of products from China, the availability of materials and other resources used in production in the United States, the availability of necessary transportation of products from our vendors and to our customers, available labor force needed to continue operations, and the ability to meet the demand requirements of our existing customers. These factors, and numerous other factors which are not yet known, present challenges and uncertainties which the Company cannot quantify at this time. It is possible that these factors may have a materially adverse impact to the Company.

SELECTED QUARTERLY FINANCIAL DA

SELECTED QUARTERLY FINANCIAL DATA	12 Months Ended
	Dec. 31, 2019
SELECTED QUARTERLY FINANCIAL DATA
Selected Quarterly Financial Data	21. SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED The selected quarterly financial data for the periods ended December 31, 2019, and 2018, have been derived from the Company's unaudited financial statements and include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods. Certain quarterly amounts may differ from full year totals due to rounding. (In thousands, except for per share and outstanding stock amounts) 2019 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales, net $ 7,932 $ 9,596 $ 11,640 $ 12,629 Cost of sales 5,442 6,665 7,872 7,680 Gross profit 2,490 2,931 3,768 4,949 Total operating expenses 2,665 2,602 2,789 3,110 Income (loss) from continuing operations (175) 329 979 1,839 Interest and other income 91 110 91 59 Interest expense (46) (44) (41) (36) Provision (benefit) for income taxes - 3 4 1 Net income (loss) (129) 392 1,025 1,861 Preferred stock dividend requirements (176) (175) (175) (177) Income (loss) applicable to common shareholders $ (306) $ 217 $ 850 $ 1,684 Basic income (loss) per share $ (0.01) $ 0.01 $ 0.03 $ 0.05 Diluted income (loss) per share $ (0.01) $ 0.01 $ 0.03 $ 0.05 Income (loss) per share from continuing operations $ (0.01) $ 0.01 $ 0.03 $ 0.05 Weighted average common shares outstanding - basic Weighted average common shares outstanding - diluted Gross profit margin 31.4 % 30.5 % 32.4 % 39.2 % (In thousands, except for per share and outstanding stock amounts) 2018 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales, net $ 7,673 $ 7,475 $ 9,863 $ 8,264 Cost of sales 4,813 5,407 7,067 5,766 Gross profit 2,860 2,068 2,796 2,498 Total operating expenses 3,017 3,007 2,856 2,923 Income from insurance proceeds — — — 261 Loss from continuing operations (157) (939) (60) (164) Interest and other income 28 35 39 42 Interest expense (50) (44) (42) (41) Provision (benefit) for income taxes — — — (13) Net loss (179) (948) (63) (150) Preferred stock dividend requirements (176) (176) (176) (177) Loss applicable to common shareholders $ (355) $ (1,124) $ (239) $ (327) Basic loss per share $ (0.01) $ (0.03) $ (0.01) $ (0.01) Diluted loss per share $ (0.01) $ (0.03) $ (0.01) $ (0.01) Loss per share from continuing operations $ (0.01) $ (0.03) $ (0.01) $ (0.01) Weighted average common shares outstanding - basic 32,666,454 32,666,454 32,666,454 32,666,454 Weighted average common shares outstanding - diluted 32,666,454 32,666,454 32,666,454 32,666,454 Gross profit margin 37.3 % 27.7 % 28.3 % 30.2 %

Schedule II-Schedule of Valuati

Schedule II-Schedule of Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2019
Schedule II - Schedule of Valuation and Qualifying Accounts
Schedule II - Schedule of Valuation and Qualifying Accounts	Item 15. Exhibits, Financial Statement Schedules. (a) (1) All financial statements: See Retractable Technologies, Inc. Index to Financial Statements on Page F-2. (2) Those financial statement schedules required to be filed by Item 8 of this form, and Balance at beginning Balance at of period Additions Deductions end of period Provision for Inventories Fiscal year ended 2017 $ 595,523 $ — $ $ Fiscal year ended 2018 $ 594,939 $ — $ 297,731 $ 297,208 Fiscal year ended 2019 $ 297,208 — — 297,208 Provision for Accounts Receivable Fiscal year ended 2017 $ 1,731,985 $ $ $ Fiscal year ended 2018 $ 101,872 $ 47,793 $ — $ 149,665 Fiscal year ended 2019 $ 149,665 — 3,283 146,382 Deferred Tax Valuation Fiscal year ended 2017 $ 9,197,333 $ — $ 3,371,379 $ Fiscal year ended 2018 $ 5,825,954 $ 325,444 $ — $ 6,151,398 Fiscal year ended 2019 $ 6,151,398 $ — $ 1,121,560 $ 5,029,838 Provision for Rebates (A) (B) (C) Fiscal year ended 2017 $ 38,983,285 $ $ $ Fiscal year ended 2018 $ 4,794,193 $ 24,372,111 $ 24,579,457 $ 4,586,847 Fiscal year ended 2019 $ 4,586,847 $ 24,212,830 $ 24,526,108 $ 4,273,569 (A) Represents estimated rebates deducted from gross revenues (B) Represents rebates credited to the distributor and charge offs against the allowance (C) Includes $3,586,726; $3,896,341; and $4,115,628 in Accounts payable for 2019, 2018, and 2017, respectively.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2019
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 cash, money market accounts, and investments with original maturities of three months or less.
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 7, Other Accrued Liabilities. The Company records an allowance for estimated returns as a reduction to Accounts receivable and Gross sales. Historically, returns have been insignificant.
Inventories	Inventories Inventories are valued at the lower of cost or net realizable value, with cost being determined using actual average cost. The Company compares the average cost to the net realizable value and records the lower value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. 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.
Investments in Debt and Equity Securities	Investments in Debt and Equity Securities The Company holds high-grade exchange-traded and closed-end funds (ETFs), mutual funds, and debt securities as investments. These assets are readily marketable and are carried at fair value as of the date of the Balance Sheets. Net unrealized and realized gains or losses on investments in debt and equity securities are reflected as a component of interest and other income. Realized gains or losses on investments in debt and equity securities are recognized using the specific identification method.
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 disposals are included in operations. The Company's property, plant, and equipment primarily consist of buildings, land, assembly equipment, molding machines, molds, office equipment, furniture, and fixtures. 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
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 or appraised values of the underlying assets.
Fair Value Measurements	Fair Value Measurements For assets and liabilities that are measured using quoted prices in active markets, total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs are valued by reference to similar assets or liabilities, adjusted for contract restrictions and other terms specific to that asset or liability. For these items, a significant portion of fair value is derived by reference to quoted prices of similar assets or liabilities in active markets. For all remaining assets and liabilities, fair value is derived using a fair value model, such as a discounted cash flow model or Black-Scholes model.
Financial instruments	Financial instruments The Company estimates the fair 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 fair 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. Investments in equity securities consist primarily of exchange-traded and closed-end funds and mutual funds and are reported at their fair value based upon quoted prices in active markets. Investments in U.S. Treasury Notes are reported at their fair value based upon quoted prices in active markets. Investments in certificates of deposit (CD) with original maturities of greater than three months are reported at their estimated fair value based upon the duration of the CD and the interest rate earned on the CD versus current interest rates of similar duration CDs. 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, certificates of deposit, U.S. Treasury Notes, exchange-traded and closed-end funds, mutual funds, 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 that are well-established entities. The Company assesses market risk in debt and equity securities through consultation with its outside investment advisors. Management is responsible for directing investment activity based on current economic conditions. As a consequence, Management considers any exposure from concentrations of credit risks to be limited. The following table reflects our significant customers in 2019, 2018, and 2017: Years Ended December 31, 2019 2018 2017 Number of significant customers 3 2 Aggregate dollar amount of net sales to significant customers $ 19.0 million $ 13.1 million $ 14.0 million Percentage of net sales to significant customers 45.6 % 39.2 % 40.5 % The Company decreased its allowance for doubtful accounts by approximately $3 thousand in 2019. The Company manufactures some of its products in Little Elm, Texas, as well as utilizing manufacturers in China. The Company obtained roughly 82.6% of its products in 2019 from its Chinese manufacturers. Purchases from Chinese manufacturers aggregated 85.3% and 82.9% of products in 2018 and 2017, respectively. In the event that the Company becomes unable to purchase products from its Chinese manufacturers, the Company would need to find an alternate manufacturer for its blood collection set, IV catheter, Patient Safe ® syringe, 0.5mL insulin syringe, 0.5mL autodisable syringe, and 2mL, 5mL, and 10mL syringes and would increase domestic production for the 1mL and 3mL syringes and EasyPoint ® needles.
Revenue recognition	Revenue recognition The Company recognizes revenue when it has satisfied all performance obligations to the customer, generally when title and risk of loss pass to the customer. Payments from customers with approved credit terms are typically due 30 days from the invoice date. 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. Distributors receive a rebate for the difference between the Wholesale Acquisition Cost and the appropriate contract price as reflected on a tracking report provided by the distributor to the Company. If product is sold by a distributor to an entity that has no contract, there is a standard rebate (lower than a contracted rebate) given to the distributor. One of the purposes of the rebate is to encourage distributors to submit tracking reports to the Company. The provision for contractual pricing allowances is recognized in the period the related sales are recognized and 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 $3,586,726 and $3,896,341 as of December 31, 2019 and 2018, 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. End-users do not receive any contractual allowances on their purchases. Any product shipped or distributed for evaluation purposes is expensed. The Company provides product warranties that: i) the products are fit for medical use as generally defined within the boundaries of United States FDA approval; ii) the products are not defective; and iii) the products will conform to the descriptions set forth in their respective labeling, provided that they are used in accordance with such labeling and the Company’s written directions for use. The Company has historically not incurred significant warranty claims. The Company’s domestic return 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’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. The Company requires certain customers to pay in advance of product shipment. Such prepayments from customers are recorded in Other accrued liabilities and are generally recognized as revenue within 30 to 60 days of receipt at the time product is shipped. The Company recognizes revenue from licensing agreements when collection of such amounts from third parties is reasonably assured. If the Company licenses its products for sale, the Company is obligated to pay Thomas J. Shaw, the owner of certain patented technology, a certain percentage of such revenue pursuant to the terms of the Technology License Agreement between the Company and Mr. Shaw. Disaggregated information of revenue recognized from contracts with customers and licensing fees recognized are as follows: For the year ended December 31, 2019: Blood Collection EasyPoint (R) Other Total Product Geographic Segment Syringes Products Needles Products Sales U.S. sales $ 26,722,414 $ 2,130,767 $ 2,970,374 $ 74,369 $ 31,897,924 North and South America sales (excluding U.S.) 7,863,796 6,313 7,996 370,885 8,248,990 Other international sales 1,052,217 578,617 635 18,796 1,650,265 Total $ 35,638,427 $ 2,715,697 $ 2,979,005 $ 464,050 $ 41,797,179 For the year ended December 31, 2018: Blood Collection EasyPoint (R) Other Total Product Geographic Segment Syringes Products Needles Products Sales U.S. sales $ 23,803,483 $ 1,365,936 $ 3,401,389 $ 75,766 $ 28,646,574 North and South America sales (excluding U.S.) 3,521,823 8,805 252 66,564 3,597,444 Other international sales 940,740 48,101 11,768 30,075 1,030,684 Total $ 28,266,046 $ 1,422,842 $ 3,413,409 $ 172,405 $ 33,274,702 For the year ended December 31, 2017: Blood Collection EasyPoint (R) Other Total Product Geographic Segment Syringes Products Needles Products Sales U.S. sales $ 23,794,258 $ 1,098,667 $ 2,065,777 $ 57,010 $ 27,015,712 North and South America sales (excluding U.S.) 6,182,952 3,859 — 193,934 6,380,745 Other international sales 1,032,508 43,473 — 21,400 1,097,381 Total $ 31,009,718 $ 1,145,999 $ 2,065,777 $ 272,344 $ 34,493,838
Income taxes	Income taxes The Tax Cuts and Job Act ("the Act") was enacted on December 22, 2017, and the U.S. federal corporate tax rate was reduced from 35% to 21%. U.S. generally accepted accounting principles require companies to account for the effects of changes in income tax rates and laws in the period the change is enacted. Financial results, including provisional amounts, have been calculated for the income tax effects of the change. The U.S. Securities and Exchange Commission issued Staff Accounting Bulletin 118 (SAB 118) allowing companies to use provisional estimates to record the effects of the Act. SAB 118, as codified by Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2018-05 “Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SEC Update),” allows companies to complete accounting for these effects no later than one year from the enactment date of the Act. During 2018, the Company completed its analysis of the provisional estimates made to record the effects of the Act. On January 14, 2019, the IRS issued a statement saying that alternative minimum tax (“AMT”) refunds for taxable years beginning after December 31, 2017 will not be subject to sequestration. Prior to this statement from the IRS, refundable AMT credits under Section 53(e) were subject to sequestration, as required by the Balanced Budget and Emergency Deficit Control Act of 1985, as amended. The previously recorded AMT receivable was reduced in anticipation of sequestration. Based upon this development, the Company recorded an additional tax benefit of approximately $13 thousand for the year ended December 31, 2018 to reflect the full amount of refundable AMT credits. The Company evaluates tax positions taken or expected to be taken in a tax return for recognition in the financial statements based on whether it is “more-likely-than-not” that a tax position will be sustained based upon the technical merits of the position. Measurement of the tax position is based upon the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company provides for deferred income taxes through utilizing an asset and liability approach for financial accounting and reporting based on the tax effects of differences between the financial statement and tax bases of assets and liabilities, based on enacted rates expected to be in effect when such differences reverse in future periods. Deferred tax assets are periodically reviewed for realizability. The Company has established a valuation allowance for its net deferred tax asset as future taxable income cannot be reasonably assured. Penalties and interest related to income taxes 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 or loss 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. At December 31, 2019, the calculation of diluted EPS excluded 639,000 shares of common stock underlying issued and outstanding stock options, as the exercise price of the stock options were greater than the average stock prices for the periods. The calculation of diluted EPS excluded 1,357,803 and 79,441 shares of Common Stock underlying issued and outstanding stock options at December 31, 2018 and 2017, as their effect was antidilutive. The calculation of diluted EPS also excludes the impact of the conversion of convertible preferred stock, as the impact was antidilutive for all periods presented. The potential dilution, if any, is shown on the following schedule: Years Ended December 31, 2019 2018 2017 Net income (loss) $ 3,148,234 $ (1,339,943) $ (3,736,038) Preferred dividend requirements (702,618) (704,996) (704,996) Income (loss) applicable to common shareholders $ 2,445,616 $ (2,044,939) $ (4,441,034) Weighted average common shares outstanding 32,672,475 32,666,454 31,958,121 Weighted average common and common equivalent shares outstanding - assuming dilution 32,672,475 32,666,454 31,958,121 Basic earnings (loss) per share $ 0.07 $ (0.06) $ (0.14) Diluted earnings (loss) per share $ 0.07 $ (0.06) $ (0.14)
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.
Self-insured employee benefit costs	Self-insured employee benefit costs Beginning in 2019, the Company self-insures certain health insurance benefits for its employees under certain policy limits. The company has additional coverage provided by an insurance company for any individual with claims in excess of $60,000 and/or total plan claims in excess of $601,716 for the plan year. A receivable of $445 thousand was recorded as of December 31, 2019 due to claims paid the Company in 2019 but not yet recouped.
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 Black-Scholes fair value method. The Company records share-based compensation expense on a straight-line basis over the requisite service period. The Company incurred the following share-based compensation costs: Years Ended December 31, 2019 2018 2017 Cost of sales $ — $ — $ 272,811 Sales and marketing — — 143,255 Research and development — — 45,174 General and administrative — — 210,983 $ — $ — $ 672,223 Options awarded to employees in 2016 were amortized over twelve months. The Company amortized four months’ expense for options granted in September 2016 and amortized the remainder in 2017.
Insurance Proceeds	Insurance Proceeds Receipts from insurance up to the amount of any loss recognized by the Company are considered recoveries. Any such recoveries are recorded when they are received. Insurance proceeds are not recognized as a component of income (loss) from operations until all repairs are made.
Recently Adopted Pronouncements and Recently Issued Pronouncements	Recently Adopted Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”, as well as several subsequently issued clarifying amendments. Under the ASU, as amended, 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 guidance, lessor accounting is largely unchanged. The lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases”. This amendment clarifies Topic 842 and corrected unintended application of guidance and is effective concurrent with Topic 842 or upon issuance if Topic 842 was early adopted. In August 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements”. This amendment provides additional transition options allowing entities to recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption rather than the earliest period presented and provides a practical expedient to lessors to elect, by class of underlying assets, to account for non-lease and lease components as a single arrangement. The Company adopted the provisions of ASU 2018-11 through a cumulative effect adjustment. Topic 842, and its subsequent amendments, was effective for the Company’s quarter ended March 31, 2019. The Company has completed evaluating the various accounting policy elections associated with this ASU, as amended, including transition methods and practical expedients, identifying contracts for evaluation, and reviewing contracts to determine if they contain leases. The Company completed evaluating the timing and impact of adopting ASU 2016-02, as amended, and recorded lease assets and liabilities of $163,007 on its Balance Sheets with no impact to its accumulated deficit. The following table summarizes the impact of the adoption of ASU 2016-02 to previously reported results: Balance Sheet as of December 31, 2018 As Previously Reported New Lease Adjustment As Restated Other assets $ 2,849 $ $ 165,856 Other current liabilities $ $ 80,648 $ 1,467,935 Other long term-liabilities $ - $ 82,359 $ 82,359 Recently Issued Pronouncements In June 2016, the FASB issued Accounting Standards Update 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ,” as well as subsequent clarifying amendments. Among other things, these amendments require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. This ASU is effective for the Company’s quarter ending March 31, 2020 with early application permitted. The Company has considered the potential impact from adoption of ASU 2016-13, as well as the Targeted Transition Relief as provided by ASU 2019-05, "Financial Instruments - Credit Losses (Topic 326) - Targeted Transition Relief." The Company expects that the adoption of ASU 2016-13, along with the provisions of ASU 2019-05, will not have a material impact on the Company's financial statements , but may require expanded disclosure. In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (a Consensus of the FASB Emerging Issues Task Force)”. This amendment requires that implemented costs incurred in a hosting arrangement that is a service contract should be accounted for in accordance with ASC 350-40 – Internal use software. Accordingly, costs incurred during the preliminary project and post-implementation stages are expensed and costs associated with the application development phase are capitalized. The amendment also requires that capitalized costs be amortized over the term of the hosting arrangement and that capitalized costs should be evaluated for impairment. The amendment is effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. The Company has completed its assessment of the standard and does not anticipate a material impact on its financial statements or disclosures. In December 2019, the FASB issued ASU 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes. The new standard intended to simplify the accounting for income taxes by eliminating certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The standard is effective for annual periods beginning after December 15, 2020 and interim periods within the annual period, with early adoption permitted. Adoption of the standard requires certain changes to primarily be made prospectively, with some changes to be made retrospectively. The Company is currently evaluating the impact adoption of ASU 2019-12 will have on its financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2019
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
Schedule of significant customers	Years Ended December 31, 2019 2018 2017 Number of significant customers 3 2 Aggregate dollar amount of net sales to significant customers $ 19.0 million $ 13.1 million $ 14.0 million Percentage of net sales to significant customers 45.6 % 39.2 % 40.5 %
Schedule of disaggregated information of revenue recognized from contracts with customers and licensing fees	For the year ended December 31, 2019: Blood Collection EasyPoint (R) Other Total Product Geographic Segment Syringes Products Needles Products Sales U.S. sales $ 26,722,414 $ 2,130,767 $ 2,970,374 $ 74,369 $ 31,897,924 North and South America sales (excluding U.S.) 7,863,796 6,313 7,996 370,885 8,248,990 Other international sales 1,052,217 578,617 635 18,796 1,650,265 Total $ 35,638,427 $ 2,715,697 $ 2,979,005 $ 464,050 $ 41,797,179 For the year ended December 31, 2018: Blood Collection EasyPoint (R) Other Total Product Geographic Segment Syringes Products Needles Products Sales U.S. sales $ 23,803,483 $ 1,365,936 $ 3,401,389 $ 75,766 $ 28,646,574 North and South America sales (excluding U.S.) 3,521,823 8,805 252 66,564 3,597,444 Other international sales 940,740 48,101 11,768 30,075 1,030,684 Total $ 28,266,046 $ 1,422,842 $ 3,413,409 $ 172,405 $ 33,274,702 For the year ended December 31, 2017: Blood Collection EasyPoint (R) Other Total Product Geographic Segment Syringes Products Needles Products Sales U.S. sales $ 23,794,258 $ 1,098,667 $ 2,065,777 $ 57,010 $ 27,015,712 North and South America sales (excluding U.S.) 6,182,952 3,859 — 193,934 6,380,745 Other international sales 1,032,508 43,473 — 21,400 1,097,381 Total $ 31,009,718 $ 1,145,999 $ 2,065,777 $ 272,344 $ 34,493,838
Schedule of earnings per share	Years Ended December 31, 2019 2018 2017 Net income (loss) $ 3,148,234 $ (1,339,943) $ (3,736,038) Preferred dividend requirements (702,618) (704,996) (704,996) Income (loss) applicable to common shareholders $ 2,445,616 $ (2,044,939) $ (4,441,034) Weighted average common shares outstanding 32,672,475 32,666,454 31,958,121 Weighted average common and common equivalent shares outstanding - assuming dilution 32,672,475 32,666,454 31,958,121 Basic earnings (loss) per share $ 0.07 $ (0.06) $ (0.14) Diluted earnings (loss) per share $ 0.07 $ (0.06) $ (0.14)
Schedule of share-based compensation costs	Years Ended December 31, 2019 2018 2017 Cost of sales $ — $ — $ 272,811 Sales and marketing — — 143,255 Research and development — — 45,174 General and administrative — — 210,983 $ — $ — $ 672,223
Schedule of ASU 2016-02 lease adjustment	Balance Sheet as of December 31, 2018 As Previously Reported New Lease Adjustment As Restated Other assets $ 2,849 $ $ 165,856 Other current liabilities $ $ 80,648 $ 1,467,935 Other long term-liabilities $ - $ 82,359 $ 82,359

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2019
INVENTORIES
Schedule of inventories	December 31, 2019 2018 Raw materials $ 1,254,313 $ 1,399,543 Finished goods 6,493,487 6,442,759 7,747,800 7,842,302 Inventory reserve (297,208) (297,208) $ 7,450,592 $ 7,545,094

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Dec. 31, 2019
FAIR VALUE OF FINANCIAL INSTRUMENTS
Summary of value of assets designated as investments in debt and equity securities	December 31, 2019 Level 1 Level 2 Level 3 Total Mutual funds and exchange traded funds $ 6,708,746 $ — $ — $ 6,708,746 Certificates of deposit — 1,062,914 — 1,062,914 $ 6,708,746 $ 1,062,914 $ — $ 7,771,660 December 31, 2018 Level 1 Level 2 Level 3 Total US Treasury Notes $ — $ 1,411,156 $ — $ 1,411,156 Certificates of deposit — 1,575,000 — 1,575,000 $ — $ 2,986,156 $ — $ 2,986,156
Schedule of unrealized gains (losses) on investments in equity securities	December 31, 2019 Gross Unrealized Aggregate Cost Gains Losses Fair Value Mutual funds and exchange traded funds $ 6,592,345 $ 116,401 $ — $ 6,708,746 Certificates of deposit 1,050,000 12,914 — 1,062,914 $ 7,642,345 $ 129,315 — $ 7,771,660 December 31, 2018 Gross Unrealized Aggregate Cost Gains Losses Fair Value US Treasury Notes $ 1,411,156 $ — $ — $ 1,411,156 Certificates of deposit 1,575,000 — — 1,575,000 $ 2,986,156 $ — — $ 2,986,156

PROPERTY, PLANT, AND EQUIPMENT

PROPERTY, PLANT, AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2019
PROPERTY, PLANT, AND EQUIPMENT
Schedule of property, plant, and equipment	December 31, 2019 2018 Land $ 261,893 $ 261,893 Buildings and building improvements 11,566,115 11,566,115 Production equipment 19,903,236 19,948,303 Office furniture and equipment 3,527,577 3,540,846 Construction in progress 765,176 202,109 36,023,997 35,519,266 Accumulated depreciation (25,391,940) (24,667,519) $ 10,632,057 $ 10,851,747

OTHER ACCRUED LIABILITIES (Tabl

OTHER ACCRUED LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2019
OTHER ACCRUED LIABILITIES
Schedule of other accrued liabilities	December 31, 2019 2018 Prepayments from customers $ 998,601 $ 860,926 Accrued property taxes — 170,568 Accrued professional fees 263,757 294,903 Other accrued expenses 124,791 141,538 Total $ 1,387,149 $ 1,467,935

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	12 Months Ended
	Dec. 31, 2019
LONG-TERM DEBT
Schedule of long-term debt	December 31, 2019 2018 Loan from American First National Bank. Maturity date is April 10, 2028. The loan, in the original amount of $4,209,608, 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 equal to prime rate plus 0.25%. The interest rate was 0.00% at December 31, 2019. $ 2,638,994 $ 2,878,980 Note payable to Deutsche Leasing USA, Inc. The interest rate is 4.25%. The original amount of the note was $525,017 with a 36 month maturity ending in November 2019. Beginning December 2016, the loan became payable in equal installments of principal and interest of approximately $15,500. Collateralized by molding machines and ancillary equipment. — 167,028 2,638,994 3,046,008 Less: current portion (260,939) (406,361) $ 2,378,055 $ 2,639,647
Schedule of future payments of long-term debt	The aggregate maturities of long-term debt as of December 31, 2019, are as follows: 2020 260,939 2021 274,858 2022 289,120 2023 304,122 2024 319,688 Thereafter 1,190,267 $ 2,638,994

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2019
INCOME TAXES
Schedule of provision (benefit) for income taxes	For the Years Ended December 31, 2019 2018 2017 Current tax provision (benefit) Federal $ — (13,318) $ — State 7,875 — 848 Total current provision (benefit) 7,875 (13,318) 848 Deferred tax provision (benefit) Federal — — (188,456) State — — — Total deferred tax provision (benefit) — — (188,456) Total income tax provision (benefit) $ 7,875 (13,318) $ (187,608)
Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities	December 31, 2019 2018 Deferred tax assets Net operating loss carry forwards $ $ 6,668,238 Accrued expenses and reserves 436,627 Employee stock option expense 76,150 Nonemployee stock option expense 8,268 Inventory 132,114 Impairment — Unrealized Gain/Loss 112,000 Deferred tax assets 7,433,397 Deferred tax liabilities Property and equipment (1,281,999) Deferred tax liabilities (1,281,999) Net deferred assets 6,151,398 Valuation allowance (6,151,398) Net deferred tax assets $ - $ —
Schedule of reconciliation of income taxes based on the federal statutory rate and the effective income tax rate	December 31, 2019 2018 2017 Income tax at the federal statutory rate 21.0 % 21.0 % 35.0 % State tax, net of federal tax 3.5 2.9 Change in valuation allowance (24.3) 85.9 Permanent differences — (0.3) 5.7 Return-to-provision and other — (37.6) Tax Reform and Jobs Act tax rate change — 0.1 (81.1) Incentive stock options — — (6.0) Effective tax rate % — % %

STOCK OPTIONS (Tables)

STOCK OPTIONS (Tables)	12 Months Ended
	Dec. 31, 2019
Director, officer, and employee
STOCK OPTIONS
Summary of options outstanding	Years Ended December 31, 2019 2018 2017 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding at beginning of period 1,300,303 $ 1.57 1,805,519 $ 1.51 1,817,919 $ 1.52 Granted — $ — — $ — — $ — Exercised — $ — — $ — — $ — Forfeited (661,003) $ (1.05) (505,216) $ (1.36) (12,400) $ (2.75) Outstanding at end of period 639,300 $ 2.12 1,300,303 $ 1.57 1,805,519 $ 1.51 Exercisable at end of period 639,300 $ 2.12 1,300,303 $ 1.57 1,803,119 $ 1.51
Schedule of information about stock options by range of exercise prices	Weighted Average Exercise Prices Shares Outstanding Remaining Contractual Life Shares Exercisable $ 1.46 50,000 50,000 $ 1.05 200,000 200,000 $ 2.75 389,300 6.70 389,300
Non Employees
STOCK OPTIONS
Summary of options outstanding	Years Ended December 31, 2019 2018 2017 Weighted Weighted Weighted Average Average Average Shares Exercise Price Shares Exercise Price Shares Exercise Price Outstanding at beginning of period 57,500 $ 0.81 57,500 $ 0.81 57,500 $ 0.81 Granted - $ - — $ — — $ — Exercised - $ - — $ — — $ — Forfeited (57,500) $ (0.81) — $ — — $ — Outstanding at end of period - $ - 57,500 $ 0.81 57,500 $ 0.81 Exercisable at end of period - $ - 57,500 $ 0.81 57,500 $ 0.81

BUSINESS SEGMENT (Tables)

BUSINESS SEGMENT (Tables)	12 Months Ended
	Dec. 31, 2019
BUSINESS SEGMENT
Schedule of company's sales and long-lived assets by geography	2019 2018 2017 U.S. sales $ 31,897,924 $ 28,646,574 $ 27,015,712 North and South America sales (excluding U.S.) 8,248,990 3,597,444 6,380,745 Other international sales 1,650,265 1,030,684 1,097,381 Total sales $ 41,797,179 $ 33,274,702 $ 34,493,838 Long-lived assets U.S. $ 10,542,688 $ 10,738,253 - International $ 89,369 $ 113,494 -

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2019
LEASES
Schedule of assets and liabilities relating to leases included in the Balance Sheets	Assets and liabilities associated with these leases included in the Balance Sheets are as follows: December 31, 2019 2018 OPERATING LEASES Other assets $ 82,359 $ 163,007 Other accrued liabilities $ 82,359 $ 80,648 Other long-term liabilities - 82,359 Total operating lease liabilities $ 82,359 $ 163,007
Schedule of future minimum payments under non-cancelable operating leases and financing leases	Future minimum payments under non-cancelable operating leases and financing leases consist of the following at December 31, 2019: Year ending December 31, Remainder of 2020 84,155 Less imputed interest (1,796) Total $ 82,359

SELECTED QUARTERLY FINANCIAL _2

SELECTED QUARTERLY FINANCIAL DATA (Tables)	12 Months Ended
	Dec. 31, 2019
SELECTED QUARTERLY FINANCIAL DATA
Schedule of Selected Quarterly Financial Data:	21. SELECTED QUARTERLY FINANCIAL DATA - UNAUDITED The selected quarterly financial data for the periods ended December 31, 2019, and 2018, have been derived from the Company's unaudited financial statements and include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods. Certain quarterly amounts may differ from full year totals due to rounding. (In thousands, except for per share and outstanding stock amounts) 2019 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales, net $ 7,932 $ 9,596 $ 11,640 $ 12,629 Cost of sales 5,442 6,665 7,872 7,680 Gross profit 2,490 2,931 3,768 4,949 Total operating expenses 2,665 2,602 2,789 3,110 Income (loss) from continuing operations (175) 329 979 1,839 Interest and other income 91 110 91 59 Interest expense (46) (44) (41) (36) Provision (benefit) for income taxes - 3 4 1 Net income (loss) (129) 392 1,025 1,861 Preferred stock dividend requirements (176) (175) (175) (177) Income (loss) applicable to common shareholders $ (306) $ 217 $ 850 $ 1,684 Basic income (loss) per share $ (0.01) $ 0.01 $ 0.03 $ 0.05 Diluted income (loss) per share $ (0.01) $ 0.01 $ 0.03 $ 0.05 Income (loss) per share from continuing operations $ (0.01) $ 0.01 $ 0.03 $ 0.05 Weighted average common shares outstanding - basic Weighted average common shares outstanding - diluted Gross profit margin 31.4 % 30.5 % 32.4 % 39.2 % (In thousands, except for per share and outstanding stock amounts) 2018 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales, net $ 7,673 $ 7,475 $ 9,863 $ 8,264 Cost of sales 4,813 5,407 7,067 5,766 Gross profit 2,860 2,068 2,796 2,498 Total operating expenses 3,017 3,007 2,856 2,923 Income from insurance proceeds — — — 261 Loss from continuing operations (157) (939) (60) (164) Interest and other income 28 35 39 42 Interest expense (50) (44) (42) (41) Provision (benefit) for income taxes — — — (13) Net loss (179) (948) (63) (150) Preferred stock dividend requirements (176) (176) (176) (177) Loss applicable to common shareholders $ (355) $ (1,124) $ (239) $ (327) Basic loss per share $ (0.01) $ (0.03) $ (0.01) $ (0.01) Diluted loss per share $ (0.01) $ (0.03) $ (0.01) $ (0.01) Loss per share from continuing operations $ (0.01) $ (0.03) $ (0.01) $ (0.01) Weighted average common shares outstanding - basic 32,666,454 32,666,454 32,666,454 32,666,454 Weighted average common shares outstanding - diluted 32,666,454 32,666,454 32,666,454 32,666,454 Gross profit margin 37.3 % 27.7 % 28.3 % 30.2 %

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts receivable (Details)	12 Months Ended
	Dec. 31, 2019customer
Accounts receivable
Number of products consigned to customers	0

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, plant and equipment (Details)	12 Months Ended
	Dec. 31, 2019
Production equipment | Minimum
Property, plant, and equipment
Useful lives (in years)	3 years
Production equipment | Maximum
Property, plant, and equipment
Useful lives (in years)	13 years
Office furniture and equipment | Minimum
Property, plant, and equipment
Useful lives (in years)	3 years
Office furniture and equipment | Maximum
Property, plant, and equipment
Useful lives (in years)	10 years
Buildings
Property, plant, and equipment
Useful lives (in years)	39 years
Building Improvements
Property, plant, and equipment
Useful lives (in years)	15 years

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration risks (Details)	3 Months Ended								12 Months Ended
	Dec. 31, 2019USD ($)	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2019USD ($)customer	Dec. 31, 2018USD ($)customer	Dec. 31, 2017USD ($)customer
Concentration risks
Sales, net	$ 12,629,000	$ 11,640,000	$ 9,596,000	$ 7,932,000	$ 8,264,000	$ 9,863,000	$ 7,475,000	$ 7,673,000	$ 41,797,179	$ 33,274,702	$ 34,493,838
Allowance for doubtful accounts									$ (3,000)
Customer Concentration Risk
Concentration risks
Number of significant customers | customer									3	2	2
Sales, net									$ 19,000,000	$ 13,100,000	$ 14,000,000
Concentration risk (as a percent)									45.60%	39.20%	40.50%
Supplier Concentration Risk
Concentration risks
Concentration risk (as a percent)									82.60%	85.30%	82.90%

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition (Details)	3 Months Ended								12 Months Ended
	Dec. 31, 2019USD ($)	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2019USD ($)item	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Revenue recognition
Estimated contractual allowance									$ 3,586,726	$ 3,896,341
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%
Sales, net	$ 12,629,000	$ 11,640,000	$ 9,596,000	$ 7,932,000	$ 8,264,000	$ 9,863,000	$ 7,475,000	$ 7,673,000	$ 41,797,179	$ 33,274,702	$ 34,493,838
Income tax at the federal statutory rate (as a percent)									21.00%	21.00%	35.00%
Provision (benefit) for income taxes	$ 1,000	$ 4,000	$ 3,000		$ (13,000)				$ 7,875	$ (13,318)	$ (187,608)
Minimum
Revenue recognition
Period of revenue recognition									30 days
Maximum
Revenue recognition
Period of revenue recognition									60 days
Syringes
Revenue recognition
Sales, net									$ 35,638,427	28,266,046	31,009,718
Blood Collection Products
Revenue recognition
Sales, net									2,715,697	1,422,842	1,145,999
Easy Point Needles
Revenue recognition
Sales, net									2,979,005	3,413,409	2,065,777
Other Products
Revenue recognition
Sales, net									464,050	172,405	272,344
U.S.
Revenue recognition
Sales, net									31,897,924	28,646,574	27,015,712
U.S. | Syringes
Revenue recognition
Sales, net									26,722,414	23,803,483	23,794,258
U.S. | Blood Collection Products
Revenue recognition
Sales, net									2,130,767	1,365,936	1,098,667
U.S. | Easy Point Needles
Revenue recognition
Sales, net									2,970,374	3,401,389	2,065,777
U.S. | Other Products
Revenue recognition
Sales, net									74,369	75,766	57,010
North and South America sales (excluding U.S.)
Revenue recognition
Sales, net									8,248,990	3,597,444	6,380,745
North and South America sales (excluding U.S.) | Syringes
Revenue recognition
Sales, net									7,863,796	3,521,823	6,182,952
North and South America sales (excluding U.S.) | Blood Collection Products
Revenue recognition
Sales, net									6,313	8,805	3,859
North and South America sales (excluding U.S.) | Easy Point Needles
Revenue recognition
Sales, net									7,996	252
North and South America sales (excluding U.S.) | Other Products
Revenue recognition
Sales, net									370,885	66,564	193,934
Other international sales
Revenue recognition
Sales, net									1,650,265	1,030,684	1,097,381
Other international sales | Syringes
Revenue recognition
Sales, net									1,052,217	940,740	1,032,508
Other international sales | Blood Collection Products
Revenue recognition
Sales, net									578,617	48,101	43,473
Other international sales | Easy Point Needles
Revenue recognition
Sales, net									635	11,768
Other international sales | Other Products
Revenue recognition
Sales, net									$ 18,796	$ 30,075	$ 21,400

SUMMARY OF SIGNIFICANT ACCOUN_8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings per share (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings per share
Stock options excluded from calculation of diluted EPS									639,000	1,357,803	79,441
Net income (loss)	$ 1,861,000	$ 1,025,000	$ 392,000	$ (129,000)	$ (150,000)	$ (63,000)	$ (948,000)	$ (179,000)	$ 3,148,234	$ (1,339,943)	$ (3,736,038)
Preferred dividend requirements	(177,000)	(175,000)	(175,000)	(176,000)	(177,000)	(176,000)	(176,000)	(176,000)	(702,618)	(704,996)	(704,996)
Income (loss) applicable to common shareholders	$ 1,684,000	$ 850,000	$ 217,000	$ (306,000)	$ (327,000)	$ (239,000)	$ (1,124,000)	$ (355,000)	$ 2,445,616	$ (2,044,939)	$ (4,441,034)
Weighted average common shares outstanding	32,674,954	32,674,954	32,674,954	32,666,454	32,666,454	32,666,454	32,666,454	32,666,454	32,672,475	32,666,454	31,958,121
Weighted average common and common equivalent shares outstanding - assuming dilution	32,710,248	32,674,954	32,674,954	32,666,454	32,666,454	32,666,454	32,666,454	32,666,454	32,672,475	32,666,454	31,958,121
Basic earnings (loss) per share	$ 0.05	$ 0.03	$ 0.01	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.03)	$ (0.01)	$ 0.07	$ (0.06)	$ (0.14)
Diluted earnings (loss) per share	$ 0.05	$ 0.03	$ 0.01	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.03)	$ (0.01)	$ 0.07	$ (0.06)	$ (0.14)

SUMMARY OF SIGNIFICANT ACCOUN_9

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Self-insured employee benefit costs (Details)	12 Months Ended
	Dec. 31, 2019USD ($)
Carrying amount self insured receivable	$ 445,000
Minimum
Additional insurance coverage	60,000
Maximum
Additional insurance coverage	$ 601,716

SUMMARY OF SIGNIFICANT ACCOU_10

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share-based compensation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based compensation expense	$ 0	$ 0	$ 672,223
Cost of sales
Share-based compensation expense			272,811
Sales and marketing
Share-based compensation expense			143,255
Research and development
Share-based compensation expense			45,174
General and administrative
Share-based compensation expense			$ 210,983
Stock options
Options amortization period				12 months
Amortized period for options granted			4 months

SUMMARY OF SIGNIFICANT ACCOU_11

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Pronouncements (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Recently Adopted Pronouncements
Other Assets	$ 88,315	$ 165,856
Other current liabilities	$ 1,387,149	1,467,935
Other long-term liabilities		82,359
As Previously Reported
Recently Adopted Pronouncements
Other Assets		2,849
Other current liabilities		1,387,287
New Lease Standard Adjustment
Recently Adopted Pronouncements
Other Assets		165,856
Other current liabilities		1,467,935
Other long-term liabilities		82,359
ASU 2016-02
Recently Adopted Pronouncements
Other Assets		163,007
Other current liabilities		80,648
Other long-term liabilities		$ 82,359

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
INVENTORIES
Raw materials	$ 1,254,313	$ 1,399,543
Finished goods	6,493,487	6,442,759
Inventory, gross	7,747,800	7,842,302
Inventory reserve	(297,208)	(297,208)
Inventory, net	$ 7,450,592	$ 7,545,094

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Investments in equity securities
Investments in debt and equity securities, at fair value	$ 7,771,660	$ 2,986,156
Gross Unrealized
Cost	7,642,345	2,986,156
Gains	129,315
Level 1
Investments in equity securities
Investments in debt and equity securities, at fair value	6,708,746
Level 2
Investments in equity securities
Investments in debt and equity securities, at fair value	1,062,914	2,986,156
Mutual funds and exchange traded funds
Investments in equity securities
Investments in debt and equity securities, at fair value	6,708,746
Gross Unrealized
Cost	6,592,345
Gains	116,401
Mutual funds and exchange traded funds | Level 1
Investments in equity securities
Investments in debt and equity securities, at fair value	6,708,746
Certificates of deposit
Investments in equity securities
Investments in debt and equity securities, at fair value	1,062,914	1,575,000
Gross Unrealized
Cost	1,050,000	1,575,000
Gains	12,914
Certificates of deposit | Level 2
Investments in equity securities
Investments in debt and equity securities, at fair value	$ 1,062,914	1,575,000
US Treasury Notes
Investments in equity securities
Investments in debt and equity securities, at fair value		1,411,156
Gross Unrealized
Cost		1,411,156
US Treasury Notes | Level 2
Investments in equity securities
Investments in debt and equity securities, at fair value		$ 1,411,156

PROPERTY, PLANT, AND EQUIPMEN_2

PROPERTY, PLANT, AND EQUIPMENT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, plant, and equipment
Property, plant and equipment, gross	$ 36,023,997	$ 35,519,266
Accumulated depreciation	(25,391,940)	(24,667,519)
Property, plant and equipment, net	10,632,057	10,851,747
Depreciation expense	851,673	883,610	$ 830,715
Land
Property, plant, and equipment
Property, plant and equipment, gross	261,893	261,893
Building and building Improvements
Property, plant, and equipment
Property, plant and equipment, gross	11,566,115	11,566,115
Production equipment
Property, plant, and equipment
Property, plant and equipment, gross	19,903,236	19,948,303
Office furniture and equipment
Property, plant, and equipment
Property, plant and equipment, gross	3,527,577	3,540,846
Construction in Progress
Property, plant, and equipment
Property, plant and equipment, gross	$ 765,176	$ 202,109

LICENSE AGREEMENT (Details)

LICENSE AGREEMENT (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
LICENSE AGREEMENT
Fees	$ 7,680,000	$ 7,872,000	$ 6,665,000	$ 5,442,000	$ 5,766,000	$ 7,067,000	$ 5,407,000	$ 4,813,000	$ 27,659,223	$ 23,052,900	$ 24,522,250
Royalty expense to shareholder
LICENSE AGREEMENT
Fees									$ 3,449,822	2,944,102	2,864,188
Licensing Agreements
LICENSE AGREEMENT
Royalty percentage on sales									5.00%
Royalty percentage on sales of sublicense									50.00%
Royalty payable under the license agreement	$ 921,445				$ 769,324				$ 921,445	769,324
Gross sales upon which royalties are based									67,529,783	$ 58,882,042	$ 57,283,780
Licensing Agreements | License
LICENSE AGREEMENT
Fees									$ 500,000
Amortization period of license fee									17 years

OTHER ACCRUED LIABILITIES (Deta

OTHER ACCRUED LIABILITIES (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
OTHER ACCRUED LIABILITIES
Prepayments from customers	$ 998,601	$ 860,926
Accrued property taxes		170,568
Accrued professional fees	263,757	294,903
Other accrued expenses	124,791	141,538
Total	$ 1,387,149	$ 1,467,935

LONG-TERM DEBT (Details)

LONG-TERM DEBT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Long-term debt
Long-term debt	$ 2,638,994	$ 3,046,008
Current portion of long-term debt	260,939	406,361
Long-term debt, net of current maturities	2,378,055	2,639,647
American First National Bank
Long-term debt
Original principal amount	$ 4,209,608	$ 4,209,608
Prime rate (as a percent)	0.25%	0.25%
Interest rate (as a percent)	0.00%
Long-term debt	$ 2,638,994	$ 2,878,980
Deutsche Leasing USA, Inc
Long-term debt
Renewal term		36 months
Original principal amount		$ 525,017
Interest rate (as a percent)		4.25%
Long-term debt		$ 167,028
Principal and interest repayment		$ 15,500

LONG-TERM DEBT - Future payment

LONG-TERM DEBT - Future payments (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Future payments of long-term debt
2020	$ 260,939
2021	274,858
2022	289,120
2023	304,122
2024	319,688
Thereafter	1,190,267
Long term debt total	$ 2,638,994	$ 3,046,008

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended				12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current tax provision (benefit)
Federal						$ (13,318)
State					$ 7,875		$ 848
Total current provision (benefit)					7,875	(13,318)	848
Deferred tax provision (benefit)
Federal							(188,456)
Total deferred tax provision (benefit)							(188,456)
Total income tax provision (benefit)	$ 1,000	$ 4,000	$ 3,000	$ (13,000)	7,875	(13,318)	(187,608)
Tax benefits attributable to net operating losses for federal tax purposes					23,300,000	1,800,000	$ 21,500,000
Deferred tax assets
Net operating loss carry forwards	5,748,724			6,668,238	5,748,724	6,668,238
Accrued expenses and reserves	573,382			436,627	573,382	436,627
Employee stock option expense	75,591			76,150	75,591	76,150
Nonemployee stock option expense	8,207			8,268	8,207	8,268
Inventory	110,455			132,114	110,455	132,114
Impairment	111,178				111,178
Unrealized Gain/Loss	30,434			112,000	30,434	112,000
Deferred tax assets	6,657,971			7,433,397	6,657,971	7,433,397
Deferred tax liabilities
Property and equipment	(1,628,133)			(1,281,999)	(1,628,133)	(1,281,999)
Deferred tax liabilities	(1,628,133)			(1,281,999)	(1,628,133)	(1,281,999)
Net deferred assets	5,029,838			6,151,398	5,029,838	6,151,398
Valuation allowance	$ (5,029,838)			$ (6,151,398)	(5,029,838)	(6,151,398)
Increase (decrease) in valuation allowance					$ (1,121,560)	$ 325,444
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)					21.00%	21.00%	35.00%
State tax, net of federal tax (as a percent)					2.00%	3.50%	2.90%
Change in valuation allowance (as a percent)					(35.60%)	(24.30%)	85.90%
Permanent differences (as a percent)						(0.30%)	5.70%
Return-to-provision and other (as a percent)					12.90%		(37.60%)
Tax Reform and Jobs Act tax rate change						0.10%	(81.10%)
Incentive stock options (as a percent)							(6.00%)
Effective tax rate (as a percent)					0.30%		4.80%
Minimum
Reconciliation of income taxes based on the federal statutory rate and the effective income tax rate
State and local income tax returns, period subject to examination					3 years
Maximum
Reconciliation of income taxes based on the federal statutory rate and the effective income tax rate
State and local income tax returns, period subject to examination					5 years

DIVIDENDS (Details)

DIVIDENDS (Details) - USD ($)	Jan. 22, 2020	Oct. 21, 2019	Jul. 19, 2019	Apr. 22, 2019	Jan. 18, 2019	Oct. 23, 2018	Jul. 20, 2018	Apr. 24, 2018	Jan. 19, 2018	Oct. 20, 2017	Jul. 20, 2017	Apr. 24, 2017	Jan. 06, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Dividends
Preferred dividends declared														$ 54,800	$ 55,113	$ 55,113
Series I, Class B
Dividends
Preferred dividends declared	$ 12,000	$ 12,000	$ 12,000	$ 12,313	$ 12,313	$ 12,313	$ 12,313	$ 12,313	$ 12,313	$ 12,313	$ 12,313	$ 12,313	$ 12,313
Series II, Class B
Dividends
Preferred dividends declared	$ 42,800	$ 42,800	$ 42,800	$ 42,800	$ 42,800	$ 42,800	$ 42,800	$ 42,800	$ 42,800	$ 42,800	$ 42,800	$ 42,800	$ 42,800

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details)	12 Months Ended
	Dec. 31, 2019USD ($)item$ / sharesshares	Dec. 31, 2018USD ($)$ / sharesshares	Dec. 31, 2017USD ($)
Stock repurchase program
Number of classes of preferred stock outstanding | item	1
Dividend paid | $	$ 219,825	$ 220,450	$ 220,450
Common stock authorized (in shares) | shares	100,000,000	100,000,000
Common stock outstanding (in shares) | shares	32,674,954	32,666,454
Preferred Class A
Stock repurchase program
Preferred stock authorized (in shares) | shares	5,000,000
Preferred stock par value (in dollars per share)	$ 1
Preferred 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	4,227,055
Series I, Class B
Stock repurchase program
Preferred stock par value (in dollars per share)	$ 1	$ 1
Preferred stock outstanding (in shares) | shares	96,000	98,500
Cumulative annual dividend payable quarterly (in dollars per share)	$ 0.50
Dividend paid | $	$ 48,312	$ 49,250	$ 49,250
Preferred stock dividend in arrears | $	$ 0
Preferred stock redemption price (in dollars per share)	$ 7.50
Preferred stock conversion ratio	1
Number of shares of preferred stock converted into common stock | shares	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)	$ 6.25
Common stock outstanding (in shares) | shares		98,500
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	171,200
Cumulative annual dividend payable quarterly (in dollars per share)	$ 1
Dividend paid | $	$ 171,200	$ 171,200
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
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	129,245
Cumulative annual dividend payable quarterly (in dollars per share)	$ 1
Preferred stock dividend in arrears | $	$ 4,404,000
Preferred stock redemption price (in dollars per share)	$ 15
Preferred stock conversion ratio	1
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	342,500
Cumulative annual dividend payable quarterly (in dollars per share)	$ 1
Preferred stock dividend in arrears | $	$ 6,826,000
Preferred stock redemption price (in dollars per share)	$ 11
Preferred stock conversion ratio	1
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
Series V, Class B
Stock repurchase program
Preferred stock par value (in dollars per share)	$ 1	$ 1
Preferred stock outstanding (in shares) | shares	34,000	40,000
Cumulative annual dividend payable quarterly (in dollars per share)	$ 0.32
Preferred stock dividend in arrears | $	$ 1,020,000
Preferred stock redemption price (in dollars per share)	$ 4.40
Number of shares of preferred stock converted into common stock | shares	6,000
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)	$ 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	32,674,954	32,666,454
Number of shares issued for convertible preferred stock | shares	1,412,245

STOCK OPTIONS - Share based com

STOCK OPTIONS - Share based compensation (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Stock Option Plan 2008
STOCK OPTIONS
Shares available for future issuance	0
Stock Option | Director, officer, and employee
STOCK OPTIONS
Shares expired	661,003	505,216	12,400
Exercisable (in shares)	639,300	1,300,303	1,803,119
Exercisable (in dollars per share)	$ 2.12	$ 1.57	$ 1.51
Number of options
Outstanding at beginning of period (in shares)	1,300,303	1,805,519	1,817,919
Forfeited (in shares)	(661,003)	(505,216)	(12,400)
Outstanding at end of period (in shares)	639,300	1,300,303	1,805,519
Weighted-Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 1.57	$ 1.51	$ 1.52
Forfeited (in dollars per share)	(1.05)	(1.36)	(2.75)
Outstanding at end of period (in dollars per share)	$ 2.12	$ 1.57	$ 1.51
Stock Option | Employees
STOCK OPTIONS
Options issued (in shares)	0	0
Stock Option | Non Employees
STOCK OPTIONS
Options issued (in shares)	0	0
Shares expired	57,500
Exercisable (in shares)		57,500	57,500
Exercisable (in dollars per share)		$ 0.81	$ 0.81
Number of options
Outstanding at beginning of period (in shares)	57,500	57,500	57,500
Forfeited (in shares)	(57,500)
Outstanding at end of period (in shares)		57,500	57,500
Weighted-Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 0.81	$ 0.81	$ 0.81
Forfeited (in dollars per share)	$ (0.81)
Outstanding at end of period (in dollars per share)		$ 0.81	$ 0.81
Stock Option | Stock Option Plan 2008
Number of options
Granted (in shares)	3,649,508
Outstanding at end of period (in shares)	639,300

STOCK OPTIONS - Outstanding (De

STOCK OPTIONS - Outstanding (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Share-based compensation expense	$ 0	$ 0	$ 672,223
Assumed dividends	$ 0
Lower than market
Stock Options Outstanding
Shares Outstanding	250,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Total intrinsic value of options exercised	$ 92,000
Director, officer, and employee | Stock Option
Stock Options Outstanding
Shares terminated	661,003	505,216	12,400
Exercise price (in dollars per share)	$ 2.12	$ 1.57	$ 1.51	$ 1.52
Director, officer, and employee | Stock Option | Exercise Price Dollars 1.46
Stock Options Outstanding
Exercise price (in dollars per share)	$ 1.46
Shares Outstanding	50,000
Weighted Average Remaining Contractual Life	3 years 4 months 13 days
Shares Exercisable	50,000
Director, officer, and employee | Stock Option | Exercise Price Dollars 1.05
Stock Options Outstanding
Exercise price (in dollars per share)	$ 1.05
Shares Outstanding	200,000
Weighted Average Remaining Contractual Life	6 years 11 months 27 days
Shares Exercisable	200,000
Director, officer, and employee | Stock Option | Exercise Price Dollars 2.75
Stock Options Outstanding
Exercise price (in dollars per share)	$ 2.75
Shares Outstanding	389,300
Weighted Average Remaining Contractual Life	6 years 8 months 12 days
Shares Exercisable	389,300
Employees | Stock Option
Stock Options Outstanding
Options issued (in shares)	0	0
Non Employees | Stock Option
Stock Options Outstanding
Options issued (in shares)	0	0
Shares terminated	57,500
Exercise price (in dollars per share)		$ 0.81	$ 0.81	$ 0.81

401(k) PLAN (Details)

401(k) PLAN (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Contribution Plan Disclosure [Line Items]
Employee service period	90 days
401(k) PLAN
Defined Contribution Plan Disclosure [Line Items]
Maximum percentage of compensation that employees may elect to contribute	88.00%
Employer Discretionary Contribution Amount	$ 117,917	$ 145,146	$ 145,474
401(k) PLAN | Maximum
Defined Contribution Plan Disclosure [Line Items]
Employer Matching Contribution, Percent of Match	2.00%	2.00%	2.00%

BUSINESS SEGMENT (Details)

BUSINESS SEGMENT (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Sales by geography
Aggregate dollar amount of net sales to significant customers	$ 12,629,000	$ 11,640,000	$ 9,596,000	$ 7,932,000	$ 8,264,000	$ 9,863,000	$ 7,475,000	$ 7,673,000	$ 41,797,179	$ 33,274,702	$ 34,493,838
U.S.
Sales by geography
Aggregate dollar amount of net sales to significant customers									31,897,924	28,646,574	27,015,712
Long-lived assets
Long-lived assets	10,542,688				10,738,253				10,542,688	10,738,253
North and South America sales (excluding U.S.)
Sales by geography
Aggregate dollar amount of net sales to significant customers									8,248,990	3,597,444	6,380,745
Other international sales
Sales by geography
Aggregate dollar amount of net sales to significant customers									1,650,265	1,030,684	$ 1,097,381
International
Long-lived assets
Long-lived assets	$ 89,369				$ 113,494				$ 89,369	$ 113,494

STORM DAMAGE AND INSURANCE PR_2

STORM DAMAGE AND INSURANCE PROCEEDS (Details)	Mar. 26, 2017USD ($)building	Dec. 31, 2018USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
STORM DAMAGE AND INSURANCE PROCEEDS
Number of buildings damaged due to storm | building	2
Insurance proceeds for assessed damages	$ 1,009,960
Deduction of insurance proceeds for assessed damages	$ 5,000
Repair expenses due to the storm damage			$ 203,289	$ 538,667
Remaining insurance proceeds		$ 261,000

LEASES (Details)

LEASES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
LEASES
Remaining lease term	1 year
Operating lease cost	$ 80,648	$ 79,331
Cash outflows related to leases	80,648	79,331
Assets and liabilities associated with these leases in Balance Sheets
Other assets	$ 82,359	$ 163,007
Other assets [Extensible List]	us-gaap:OtherAssets	us-gaap:OtherAssets
Other accrued liabilities	$ 82,359	$ 80,648
Other accrued liabilities [Extensible List]	us-gaap:OtherAccruedLiabilitiesCurrent	us-gaap:OtherAccruedLiabilitiesCurrent
Other long-term liabilities		$ 82,359
Other long-term liabilities [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent	us-gaap:OtherLiabilitiesNoncurrent
Total operating lease liabilities	$ 82,359	$ 163,007
Weighted average remaining lease term	1 year
Weighted average discount rate	4.00%

LEASES - Future minimum payment

LEASES - Future minimum payments (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Future minimum payments under non-cancelable operating leases and financing leases
Remainder of 2020	$ 84,155
Less imputed interest	(1,796)
Total	$ 82,359	$ 163,007

HELD-TO-MATURITY SECURITIES -_2

HELD-TO-MATURITY SECURITIES - CORRECTION OF ERRORS (Details)	Dec. 31, 2018USD ($)
HELD-TO-MATURITY SECURITIES - CORRECTION OF ERRORS
Reclassification from held to maturity to equity securities	$ 2,986,156
Increase in current assets due to reclassification	$ 1,989,923

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent Events	Jan. 13, 2020USD ($)shares
SUBSEQUENT EVENTS
Number of shareholders agreed to purchase outstanding | $	2
Cash consideration | $	$ 75,000
Unpaid dividends in arrears waived | $	$ 149,795
Common Stock
SUBSEQUENT EVENTS
Common Stock were issued as consideration | shares	7,500
Series III, Class B
SUBSEQUENT EVENTS
Total shares of preferred stockholders | shares	2,500
Series IV, Class B
SUBSEQUENT EVENTS
Total shares of preferred stockholders | shares	5,000

Selected Quarterly Financial _3

Selected Quarterly Financial Data (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
SELECTED QUARTERLY FINANCIAL DATA
Sales, net	$ 12,629,000	$ 11,640,000	$ 9,596,000	$ 7,932,000	$ 8,264,000	$ 9,863,000	$ 7,475,000	$ 7,673,000	$ 41,797,179	$ 33,274,702	$ 34,493,838
Cost of sales	7,680,000	7,872,000	6,665,000	5,442,000	5,766,000	7,067,000	5,407,000	4,813,000	27,659,223	23,052,900	24,522,250
Gross Profit	4,949,000	3,768,000	2,931,000	2,490,000	2,498,000	2,796,000	2,068,000	2,860,000	14,137,956	10,221,802	9,971,588
Operating expenses	3,110,000	2,789,000	2,602,000	2,665,000	2,923,000	2,856,000	3,007,000	3,017,000
Operating expenses									11,166,116	11,811,847	13,750,168
Income from insurance proceeds					261,000
Income (loss) from operations	1,839,000	979,000	329,000	(175,000)	(164,000)	(60,000)	(939,000)	(157,000)
Income (loss) from operations									2,971,840	(1,329,531)	(3,778,580)
Interest and other income									351,166	153,460	65,695
Interest (expense) and other income	59,000	91,000	110,000	91,000	42,000	39,000	35,000	28,000
Interest expense	(36,000)	(41,000)	(44,000)	(46,000)	(41,000)	(42,000)	(44,000)	(50,000)	(166,897)	(177,190)	(210,761)
Provision (benefit) for income taxes	1,000	4,000	3,000		(13,000)				7,875	(13,318)	(187,608)
Net loss	1,861,000	1,025,000	392,000	(129,000)	(150,000)	(63,000)	(948,000)	(179,000)	3,148,234	(1,339,943)	(3,736,038)
Preferred dividend requirements	(177,000)	(175,000)	(175,000)	(176,000)	(177,000)	(176,000)	(176,000)	(176,000)	(702,618)	(704,996)	(704,996)
Loss applicable to common shareholders	$ 1,684,000	$ 850,000	$ 217,000	$ (306,000)	$ (327,000)	$ (239,000)	$ (1,124,000)	$ (355,000)	$ 2,445,616	$ (2,044,939)	$ (4,441,034)
Basic earnings (loss) per share	$ 0.05	$ 0.03	$ 0.01	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.03)	$ (0.01)	$ 0.07	$ (0.06)	$ (0.14)
Diluted earnings (loss) per share	0.05	0.03	0.01	(0.01)	(0.01)	(0.01)	(0.03)	(0.01)	$ 0.07	$ (0.06)	$ (0.14)
Loss per share from continuing operations	$ 0.05	$ 0.03	$ 0.01	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.03)	$ (0.01)
Basic (in shares)	32,674,954	32,674,954	32,674,954	32,666,454	32,666,454	32,666,454	32,666,454	32,666,454	32,672,475	32,666,454	31,958,121
Diluted (in shares)	32,710,248	32,674,954	32,674,954	32,666,454	32,666,454	32,666,454	32,666,454	32,666,454	32,672,475	32,666,454	31,958,121
Gross margin (as a percent)	39.20%	32.40%	30.50%	31.40%	30.20%	28.30%	27.70%	37.30%

Schedule II-Schedule of Valua_2

Schedule II-Schedule of Valuation and Qualifying Accounts (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Provision for Inventories
Movement in schedule of valuation and qualifying accounts
Balance at beginning of period	$ 297,208	$ 594,939	$ 595,523
Deductions		297,731	584
Balance at end of period	297,208	297,208	594,939
Provision for Accounts Receivables
Movement in schedule of valuation and qualifying accounts
Balance at beginning of period	149,665	101,872	1,731,985
Additions		47,793	24,272
Deductions	3,283		1,654,385
Balance at end of period	146,382	149,665	101,872
Deferred Tax Valuation
Movement in schedule of valuation and qualifying accounts
Balance at beginning of period	6,151,398	5,825,954	9,197,333
Additions		325,444
Deductions	1,121,560		3,371,379
Balance at end of period	5,029,838	6,151,398	5,825,954
Provision for Rebates
Movement in schedule of valuation and qualifying accounts
Balance at beginning of period	4,586,847	4,794,193	38,983,285
Additions	24,212,830	24,372,111	21,738,072
Deductions	24,526,108	24,579,457	55,927,164
Balance at end of period	4,273,569	4,586,847	4,794,193
Accounts payable
Movement in schedule of valuation and qualifying accounts
Balance at beginning of period	$ 3,586,726	3,896,341	4,115,628
Balance at end of period		$ 3,586,726	$ 3,896,341