Retractable Technologies, Inc. (NYSE MKT: RVP) reported an overall unit sales increase of 54.7% for the third quarter of 2012, compared to the third quarter of 2011. Comparison of Three Months Ended September 30, 2012 and September 30, 2011 Domestic sales accounted for 75.8% and 96.2% of the revenues for the three months ended September 30, 2012 and 2011, respectively. Domestic revenues decreased 10.0% principally due to lower average selling prices mitigated by higher sales volumes. Domestic unit sales increased 5.9%. Domestic unit sales were 64.8% of total unit sales for the three months ended September 30, 2012. International revenues increased from $314 thousand in 2011 to $2.3 million in 2012, primarily due to increased sales volume. As mentioned above, overall unit sales increased 54.7%. Gross profit decreased 1.1% primarily due to lower average sales prices mitigated by lower average unit cost of manufacture. The cost of manufactured product increased by 26.4% due to higher volume mitigated by lower unit cost. Gross profit as a percentage of net sales was 35.5% in the three months ended September 30, 2012 as compared to 41.0% in 2011 due to lower average selling prices. Profit margins can fluctuate depending upon, among other things, the cost of manufactured product and the capitalized cost of product recorded in inventory, as well as product sales mix. Royalty expense increased 14.9% due to higher gross sales. Operating expenses increased 4.4%. The decrease in General and administrative expense was due primarily to lower legal costs. The increase of $97 thousand in Sales and marketing expense was due to the addition of sales personnel and sales bonuses. The increase was mitigated by lower fees and consulting costs. Research and development costs increased $75 thousand due principally to increased labor costs and testing costs. Our operating loss was $211 thousand compared to an operating loss for the same period last year of $26 thousand due primarily to slightly lower gross profit and marginally higher operating expenses.