Sharps Technology (STSS) investor relations material

Executive summary

• Commenced commercial revenues in Q2 2025, reporting $222,722 in net sales, primarily from a new supply agreement with Stericare Solutions for Sologard syringes.

• Achieved net income of $5.49M for the six months ended June 30, 2025, driven by a $11.09M FMV gain on warrant liabilities; excluding this, operations remain unprofitable.

• Negative gross margin of $(1.03)M due to high manufacturing costs and a $730K inventory reserve related to global tariff impacts.

• Raised $20M in January 2025 equity offering, using $4.2M to repay debt, leaving the company debt-free and with $8.3M in cash at period end.

• Substantial doubt exists about ability to continue as a going concern due to insufficient working capital for the next 12 months.

Financial highlights

• Net revenue: $222,722 for Q2 2025 (first commercial sales).

• Net income: $5,488,141 for six months ended June 30, 2025, compared to a net loss of $(3,084,713) in the prior year.

• Gross margin: $(1,032,027) for Q2 2025, reflecting negative margin on initial sales.

• Operating expenses: $1.97M in Q2 2025, up 3% year-over-year, mainly from higher G&A and professional fees.

• Cash balance: $8.32M at June 30, 2025, up from $864K at December 31, 2024.

Outlook and guidance

• Focused on scaling production capacity in Hungary to fulfill Stericare and other orders.

• Plans to drive revenue growth from Securegard and Sologard projects and expand manufacturing for next-generation syringes.

• Ongoing need to raise additional capital to fund operations and growth until cash flow from operations is sufficient.