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<SEC-DOCUMENT>0001104659-10-059750.txt : 20110224
<SEC-HEADER>0001104659-10-059750.hdr.sgml : 20110224
<ACCEPTANCE-DATETIME>20101123160415
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001104659-10-059750
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20101123

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			RETRACTABLE TECHNOLOGIES INC
		CENTRAL INDEX KEY:			0000946563
		STANDARD INDUSTRIAL CLASSIFICATION:	SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
		IRS NUMBER:				752599762
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		511 LOBO LANE
		CITY:			LITTLE ELM
		STATE:			TX
		ZIP:			75068-0009
		BUSINESS PHONE:		9722941010

	MAIL ADDRESS:	
		STREET 1:		511 LOBO LANE
		CITY:			LITTLE ELM
		STATE:			TX
		ZIP:			75068-0009
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>

<html>

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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">[RETRACTABLE TECHNOLOGIES,&nbsp;INC. LETTERHEAD]</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November&nbsp;23, 2010</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">VIA
EDGAR</font></u></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;Kevin
L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accounting
Branch Chief, Division of Corporate Finance</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">United
States Securities and Exchange Commission</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">100
F Street, NE</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Washington,
DC 20549</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Re:</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Retractable Technologies,&nbsp;Inc.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amendment&nbsp;1&nbsp;to&nbsp;Form&nbsp;10-K&nbsp;for&nbsp;the&nbsp;Year&nbsp;Ended&nbsp;December&nbsp;31,&nbsp;2009</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Filed April&nbsp;7, 2010
[Form&nbsp;10-K filed March&nbsp;31, 2010]</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form&nbsp;10-Q for the
Quarter Ended June&nbsp;30, 2010</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-indent:-.5in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">File No.&nbsp;001-16465&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear
Mr.&nbsp;Vaughn:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The purpose of this letter is to respond, on behalf
of Retractable Technologies,&nbsp;Inc. (the &#147;Company&#148;), to the Staff&#146;s comments
contained in your letter of October&nbsp;27, 2010.&#160; Your comments are shown in boldface type
below and the Company&#146;s responses follow.&#160;
The Company would be pleased to provide further clarification if
necessary.&#160; However, please note that the
undersigned will not be available during the week following the submission of
this letter (November&nbsp;29 - December&nbsp;3).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Amendment
1 to Form&nbsp;10-K for the Year Ended December&nbsp;31, 2009</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Cover
Page</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Please
tell us why the cover pages&nbsp;of your Exchange Act filings reflect a file
number of 000-30885 since these filings appear on EDGAR under the file number
001-16465.</font></b></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Going forward, the Company will identify its file
number as 001-16465 and did so in its Form&nbsp;10-Q for the quarterly period
ended September&nbsp;30, 2010 (the &#147;Recent Form&nbsp;10-Q&#148;).&#160; Historically, the Company has identified its
file number as 000-30885 because such file number was given to the Company by
the United States Securities and Exchange Commission (&#147;SEC&#148;) on June&nbsp;23,
2000 as a result of its filing a registration statement on Form&nbsp;10-SB.&#160; The Company notes that it was given file
number 001-16465 as a result of its filing an amendment of such registration
statement on May&nbsp;2, 2001.&#160; In the
interim, between these registration statements, the Company filed, and the SEC
accepted, a quarterly report and an annual report filed in EDGAR using the file
number 000-30885.&#160; Until your letter, the
Company was not aware that it must identify its reports using a different file
number after May&nbsp;2, 2001.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item
7.&#160; Management&#146;s Discussion and Analysis
of Financial Condition and Results of Operations, page&nbsp;1</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">-Results
of Operations, page&nbsp;5</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">We note
on page&nbsp;6 that you disclose &#147;net loss applicable to common shareholders
excluding litigation charges, stock option expenses, and an impairment of
assets&#148; and &#147;net loss excluding litigation charges, stock option expenses, and
impairment of assets.&#148;&#160; We note similar
disclosures on page&nbsp;11 of your June&nbsp;30, 2010 Form&nbsp;10-Q and
within your Form&nbsp;8-K filed on May&nbsp;25, 2010.&#160;&#160; Please revise your future filings to label
these as non-GAAP measures and to provide the disclosures required by Item </font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;Kevin L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November&nbsp;23, 2010</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page 2 of 9<a name="PB_2_105052_7056"></a></font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">10(e)&nbsp;of Regulation S-K and Regulation G, as applicable.&#160; Provide us with a sample of the revised
disclosure to be included in future filings.</font></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company will not include such disclosures in
future filings.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Further
to the above, we note that you describe the items that you are excluding from
your GAAP measures as &#147;nonrecurring or that are not typical for a manufacturing
company.&#148;&#160; However, it appears that these
items are recurring and/or are typical for a manufacturing company and have
occurred during each reporting period presented.&#160; Non-GAAP measures should not eliminate or
smooth items identified as non-recurring, infrequent or unusual, when the
nature of the charge or gain is such that it is reasonably likely to recur
within two years or there was a similar charge or gain within the prior two
years.&#160; Please demonstrate to us how the
non-GAAP measures presented here comply with Item 10(e)&nbsp;of Regulation
S-K.&#160; Refer specifically to the guidance
in Item 10(e)(1)(i)(c)&nbsp;and 10(e)(1)(ii)(b)&nbsp;of Regulation S-K and the
Compliance and Disclosure Interpretation, which is available on our website at <u>http://www.sec.gov/divisions/corpfin/guidance/nongaapinterp.htm</u>.&#160; Clearly describe which items you consider to
be &#145;nonrecurring&#146; and which items you consider &#145;not typical for a manufacturing
company&#146; and provide additional details to support your description of these
items.&#160; Please note this comment also applies
to your Forms 10-Q as of March&nbsp;31 and June&nbsp;30, 2010.</font></b></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With respect to Item 10(e)(1)(ii)(b), the Company
believes that these items are not smooth or recurring based upon the following:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Stock option expenses were not included in Operating
expenses for the quarter ended September&nbsp;30, 2010 (the &#147;Recent Quarter&#148;)
because all stock option expense was fully recognized at June&nbsp;30,
2010.&#160; Stock option expenses were
amortized over a vesting period of one year, and are therefore
nonrecurring.&#160; For the six months ended June&nbsp;30,
2010, the stock option expenses were $1.34 million, an unusually large number,
whereas for the six months ended June&nbsp;30, 2009, they were approximately
$268,000.&#160; The stock option expenses
recorded in recent periods were unusual because stock options are generally
infrequently granted to employees, and in 2009 an unusually large number of
stock options were granted at one time.&#160;
Stock options issued in 2008 were attributable to a stock option
exchange program whereby employees could exchange their outstanding stock
options for new options on a two-for-one basis.&#160;
The new option had a new 10-year maturity and an exercise price closer
to but higher than market value at the time.&#160;
Stock options issued in 2009 had an exercise price at the then-current
market price and a 10-year maturity.&#160; The
options issued in 2009 used almost all the options available under the 2008
Stock Option Plan.&#160; The Company has no
current plans for any stock option grants and does not have a new plan for
granting any such options.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Impairment of assets was not included in Operating
expenses for the Recent Quarter.&#160;
Impairment of assets is an infrequent type of charge and likely
nonrecurring.&#160; Prior to 2009, the Company
had never incurred impairment charges.&#160;
The impairment charge recorded in 2009 was the first and was driven by a
strategic decision to shift catheter production overseas.&#160; Catheters make up less than one percent of
the Company&#146;s revenues.&#160; Please refer to
the Recent Form&nbsp;10-Q, page&nbsp;5, Note 2 under &#147;Long-lived assets&#148;.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Although litigation expenses were included in
Operating expenses for the Recent Quarter, such expenses were greatly reduced
from previous quarters.&#160; For instance,
litigation expenses were 25.7% of revenues and 53.3% of General and
administrative expenses for the year ended December&nbsp;31, 2009.&#160; This level of litigation expenses is
unusually high.&#160; However, going forward,
Management expects that litigation expenses will comprise a smaller percentage
of revenues and General and administrative expenses as a result of an agreement
with counsel to cap certain litigation expenditures.&#160; For instance, in the Recent Quarter, they
only represented 3.8% of revenues and 17.2% of General and administrative
expenses compared to 26.1% of revenues 53.4% of General and administrative
expenses for the same period last year.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;Kevin L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November&nbsp;23, 2010</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page 3 of 9<a name="PB_3_105119_5335"></a></font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company also disclosed the effect of another
nonrecurring item, namely, the credit occasioned by a change in tax law.&#160; All of the factors mentioned, other than the
litigation costs, are readily available as separate line items on the
Statements of Operations or the Statements of Cash Flows.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">At the time the disclosures were made, the Company
knew that: 1) stock option expense would be zero in the Recent Quarter; 2)
impairment of assets charges would not likely recur; and 3) litigation expenses
would be significantly lower going forward.&#160;
For this reason, Management believed the investors would find a
description of the Results of Operations without these items useful.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Additionally, the Company knew that the change in
these line items over prior periods was significant.&#160; The magnitude of the stock option expense and
the litigation expense was both higher and more significant in 2009 than in
2008.&#160; The impairment charge taken in the
first quarter of 2010 was fairly insignificant as compared to the 2009
charge.&#160; For this reason also, Management
believed the investors would find a description of the Results of Operations
without these items useful.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In light of the Staff&#146;s comments #2 and #3, the
Company will not include such disclosures in future filings.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">-Significant Accounting Policies, page&nbsp;7</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">-Inventories, page&nbsp;8</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">We note
that you value your inventories at the lower of cost or market.&#160; Please revise future filings to explain in
more detail how you determine the lower of cost or market.&#160; Also describe how you estimate excess or
obsolete inventories.</font></b></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Please refer to the Recent Form&nbsp;10-Q, page&nbsp;5,
Note 2 under &#147;Inventories&#148;.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company defines market price as the average net
selling price of product sold to Distributors.&#160;
As shown in the Schedule of Valuation and Qualifying Accounts for the
years ended December&nbsp;31, 2009, 2008, and 2007 included in the Company&#146;s
most recent Form&nbsp;10-K, the Company has not experienced significant
additions or deductions to the Provision for Inventories during the last three
years.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 8.&#160; Financial Statements and
Supplementary Data, page&nbsp;F-1</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Notes to Financial Statements, page&nbsp;F-9</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">We note
that you have recorded $1,832,042, $745,460, and $949,770 of other accrued
liabilities within your balance sheets as of June&nbsp;30, 2010, December&nbsp;31,
2009, and December&nbsp;31, 2008, respectively.&#160;
With a view towards enhanced disclosure, please revise your future
filings to explain the nature of these other accrued liabilities.&#160; Provide us with a sample of your proposed
disclosure.</font></b></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Please refer to the Recent Form&nbsp;10-Q, page&nbsp;9,
Note 5.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Moreover, as discussed on page&nbsp;7 of the Recent Form&nbsp;10-Q,
&#147;[t]he Company requires certain distributors to make a prepayment prior to
beginning production or shipment of their order.&nbsp; Distributors may apply
such prepayments to their outstanding invoices or pay the invoice and continue to
carryforward the deposit for future orders.&nbsp; Such amounts are included in
Other accrued liabilities on the Condensed Balance Sheets and are shown in Note
5, Other Accrued Liabilities.&#148;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;Kevin L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November&nbsp;23, 2010</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page 4 of 9<a name="PB_4_105157_5796"></a></font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Note 2.&#160; Summary of Significant
Accounting Policies, page&nbsp;F-9</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Long-lived Assets, page&nbsp;F-10</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">We note
that you recognized a $2.6 million impairment charge related to your catheter
production equipment during the fourth quarter of fiscal 2009 since you have
outsourced the majority of your production overseas and you expect to generate
minimal cash flows from this equipment.&#160;
We further note from page&nbsp;F-14 that you have capitalized $14.4
million of production equipment as of December&nbsp;31, 2009.&#160; We further note from your June&nbsp;30, 2010 Form&nbsp;10-Q
that you recognized approximately $163,000 of impairment charges for equipment
during the six months ended June&nbsp;30, 2010 designed in connection with
research and development activities since you are outsourcing to overseas
manufacturers.&#160; Considering these factors
and your reported net losses for each reporting periods presented, please
explain to us in more detail the nature of the remaining production equipment
that you have capitalized as of December&nbsp;31, 2009 and June&nbsp;30, 2010
and how you have determined that these assets were not impaired as of December&nbsp;31,
2009 and June&nbsp;30, 2010.</font></b></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The disclosure above which mentions minimal cash
flows relates only to the catheter production equipment.&#160; This impairment encompasses the entirety of
the Company&#146;s catheter production equipment. &#160;Catheter sales comprise less than one percent
of the Company&#146;s revenues.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As stated in the Recent Form&nbsp;10-Q, page&nbsp;5,
Note 2 under &#147;Long-lived assets&#148;, the Company&#146;s remaining property, plant, and
equipment primarily consist of buildings, land, assembly equipment for
syringes, molding machines, molds, office equipment, furniture, and
fixtures.&nbsp; There has been no impairment charge against the remaining assembly
equipment since the Company continues to manufacture a significant portion of
1cc and 3cc syringes at the Company&#146;s Little Elm facility which results in
sufficient future cash flows to recoup the net book value of all property,
plant, and equipment.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">-Revenue Recognition, page&nbsp;F-11</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">We note
from page&nbsp;1 and throughout the filing that you were awarded a contract by
the Department of Health and Human Services (&#147;DHHS&#148;) during fiscal 2009 to
supply a portion of the safety engineered syringes to be used in the US to
vaccinate the U.S. population against the Swine Flu.&#160; We further note that your revenue recognition
primarily addresses how you recognize sales related to your distributors.&#160; As appropriate, revise future filings to
describe how you recognize revenues on any other sales arrangements, including
the contract with DHHS.</font></b></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Please refer to the Recent Form&nbsp;10-Q, page&nbsp;6,
Note 2 under &#147;Revenue recognition&#148;.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company has revised its revenue recognition
disclosures in its Recent Form&nbsp;10-Q to include all customers.&#160; The Company no longer has a sales arrangement
with DHHS.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Note 12.&#160; Stock Options, page&nbsp;F-21</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">8.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">We note
that you utilize the Binomial Option Pricing Model and the Black-Scholes
pricing model in the determination of the fair value of your stock options granted
during each reporting period presented.&#160;
Please revise your future filings to explain how you determined the
underlying assumptions within these models such as expected volatility,
risk-free rate, expected life,&nbsp;etc.</font></b></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company proposes the following addition to Note
12 to the financial statements of the Form&nbsp;10-K for future filings:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;The expected life and forfeiture rate assumptions
are based on the vesting period for each option grant and expected exercise
behavior.&#160; The assumptions for expected
volatility and dividend yield are based on recent</font></p>

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<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;Kevin L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November&nbsp;23, 2010</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page 5 of 9<a name="PB_5_111704_7056"></a></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">historical
experience.&#160; Risk-free interest rates are
set using grant-date U.S. Treasury yield curves for the same periods as the
expected term.&#148;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 10. &#160;Directors, Executive
Officers and Corporate Governance, page&nbsp;26</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.</font></b><b><font size="1" style="font-size:3.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">We note
that your disclosure in this section does not reflect a discussion of the
specific experience, qualifications, attributes or skills for each director or
person nominated or chosen to become a director that led to the conclusion that
each such person should serve as director, in light of your business and
structure.&#160; Please expand your disclosure
in future filings to address the requirements of Regulation S-K Item 401(e)(1).</font></b></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The disclosure present in the Form&nbsp;10-K filed March&nbsp;31,
2010 listed experience, qualifications, attributes or skills for each director
and also separately highlighted those qualities which the Company felt most
important to forming its conclusion that such person should continue serving as
director.&#160; For your convenience, below
are excerpts of the existing disclosures:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">We believe it
is appropriate for Mr.&nbsp;Shaw to continue to serve as a Director and as the
Chairman of the Board because of his deep knowledge of the strengths and
weaknesses of our products (as their primary inventor) and of the Company (as
its Founder).&nbsp; Further, his strategic knowledge of the Company and its
competitive environment arising from his ongoing services as its CEO is vital
to the successful supervision of the Company by the Board of Directors.&nbsp;
Finally, Mr.&nbsp;Shaw&#146;s educational background in both Engineering and
Accounting is helpful to Board deliberations...</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">We believe it is appropriate
that Mr.&nbsp;Cowan continue to serve as a Director due to his level of
involvement in the financial state of the Company (as its CFO) as well as his
lead role in supervising all internal control and disclosure control procedures
and statements.&nbsp; He also serves as the primary contact for investors which
enables him to bring their concerns to the Board on appropriate topics as they
arise.&nbsp; His expertise as a CPA and experience as the Company&#146;s CFO allow
him to guide the Board, upon request, with regard to financial matters...</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">We believe it is appropriate
that Mr.&nbsp;Wisner continue to serve as a Director due to his extensive
experience in operational management and his comprehensive overview of all of
the Company&#146;s operations.&nbsp; His role in overseeing all engineering,
production, and foreign sales allows him to provide timely and insightful
guidance regarding the effect of Board decisions on the Company&#146;s abilities to
meet its goals...</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">We believe it is appropriate
that Mr.&nbsp;Laterza continue to serve as a Director because of his skills as
a CPA in active practice as well as his decades of experience in advising
individuals and entities with regard to corporate planning and financial
issues.&nbsp; Such skills and experience provide a valuable contribution in his
role as the designated financial expert on the Audit Committee as well as
provide valuable independent accounting advice to the Board...</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">We believe it is appropriate
that Ms.&nbsp;Mack continue as a Board member due both to her over ten years of
experience as a nurse (the primary retail user of our products) as well as her
experience in running her own company.&nbsp; Further, she contributes to the
diversity of experience on our Board...</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">We believe it is appropriate
that Mr.&nbsp;Saker continue to serve as a Director due to over a decade of
experience in international business as well as his specific expertise in
issues relating to international distribution.&nbsp; Mr.&nbsp;Saker&#146;s
experience as a business owner competing internationally provides additional
necessary insight to our Board...</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;Kevin L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November&nbsp;23, 2010</font></p>

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<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">We believe it is appropriate for Mr.&nbsp;Zierhut to
continue to serve as a Director primarily due to his lifetime of experience in
conception and development of innovative products as well as his experience in
adapting such products to address mass production issues.&nbsp; Finally, Mr.&nbsp;Zierhut
has valuable experience and insight arising out of the successful running of
his own small company...</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-align:justify;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 11. Executive Compensation, page&nbsp;31</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Summary Compensation Table, page&nbsp;38</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">10.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Please tell us how your
disclosure in footnote (1)&nbsp;to your summary compensation table complies
with Regulation S-K Item 402(n)(2)(vi), as revised by Release No.&nbsp;33-9089
(Dec.&nbsp;16, 2009), or revise your future filings accordingly.&#160; Please also apply this comment to your
disclosure under &#147;Grants of Plan-Based Awards&#148; on page&nbsp;39 with respect to
your stock and option awards.</font></b></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Footnote 1 gives the assumptions used in the
valuation of the stock options&#146; aggregate grant date fair value, computed in
accordance with FASB ASC Topic 718, as required by Instruction 1 to Item 402(n)(2)(vi).&#160; No repricing has occurred.&#160; All stock options which were not vested as of
the end of the 2009 fiscal year vested on July&nbsp;15, 2010.&#160; The disclosure on Form&nbsp;10-K, filed on March&nbsp;31,
2010, assumed in accordance with Instruction
3 to Item 402(n)(2)(v)&nbsp;and (vi), that the employees with stock
options would remain employed until the vesting date (the only &#147;performance
condition&#148;) based on historical turnover rates.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Signatures, page&nbsp;51</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">11.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">It appears that you have not
included the signature from the individual who is acting as your controller or
principal accounting officer.&#160; If not,
please amend your Form&nbsp;10-K to include that signature.&#160; Otherwise, please tell us how you have
complied with General Instruction D(2)(a)&nbsp;of Form&nbsp;10-K.</font></b></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In accordance with the above-mentioned Instruction,
the Company&#146;s report is signed by &#147;the registrant, and on behalf of the
registrant by its principal executive officer or officers, its principal
financial officer or officers, its controller or principal accounting officer,
and by at least the majority of the board of directors or persons performing
similar functions.&#148;&#160; At the time of the
filings, the Company had not granted the title of &#147;controller&#148; or &#147;principal
accounting officer&#148; to any person, so the Company has complied with the
Instruction by either: 1) providing the required signatures where such
positions actually existed; or, alternatively 2) providing the signature of the
Chief Financial Officer who provides the same or similar functions as a
controller or principal accounting officer.&#160;
Mr.&nbsp;Cowan&#146;s biography in Item 10 of the Form&nbsp;10-K states that
he &#147;is responsible for our financial, accounting, risk management, and
forecasting functions.&#148;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company noted this comment in its Recent Form&nbsp;10-Q
by including &#147;Chief Accounting Officer&#148; in the signature block in accordance
with similar instructions given for the Form&nbsp;10-Q.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibits 31.1 and 31.2</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">12.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">We refer to paragraph 1 in
exhibits 31.1 and 31.2 and note that you have replaced the word &#147;report&#148; with &#147;annual
report.&#148;&#160; In future filings, please
revise to include certifications that conform to the exact wording required by
Regulation S-K Item 601(b)(31) of Regulation S-K.</font></b></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company conformed the language in exhibits 31.1
and 31.2 to the exact language given in Regulation S-K Item 601(b)(31).</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;Kevin L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November&nbsp;23, 2010</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page 7 of 9<a name="PB_7_112501_5796"></a></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As published November&nbsp;15, 2010, the Electronic
Code of Federal Regulations, available at http://ecfr.gpoaccess.gov, states that
paragraph 1 should read:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;1.&#160; I have
reviewed this [specify report] of [identify registrant];&#148;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By typing &#147;annual report&#148; in place of &#147;[specify
report]&#148;, the Company complied with the rule.&#160;
The Company would appreciate further guidance with respect to this
matter, if necessary.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Form&nbsp;10-Q for the Quarter Ended June&nbsp;30, 2010</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Notes to Condensed Financial Statements, page&nbsp;4</font></u></b></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">13.</font></b><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">We note from page&nbsp;3 that you
recorded $850,000 for a provision for rebates.&#160;
We further note from your disclosure on page&nbsp;11 that the provision
for rebates is reflected in your operating expenses for the period.&#160; Please address the following:</font></b></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-align:justify;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Explain to us in more detail the
nature of this rebate including the facts and circumstances that led you to
incur the additional rebate.</font></b></p>

<p style="margin:0in 0in .0001pt .75in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-align:justify;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Explain how you are accounting
for these rebates.</font></b></p>

<p style="margin:0in 0in .0001pt .75in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-align:justify;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><b><font size="1" style="font-size:8.5pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160; </font></b><b><font size="2" style="font-size:10.0pt;font-weight:bold;">Clarify where the related costs
are recorded in the statement of operations.&#160;
To the extent the costs are classified as operating expenses as the
disclosure on page&nbsp;11 suggests, tell us how this classification complies
with paragraphs 605-50-25-7 through 9 and 605-50-45-2 of the FASB Accounting
Standards Codification.&#160; Also discuss how
this accounting is consistent with the accounting policy disclosed in Note 2 to
your December&nbsp;31, 2009 audited financial statements, which states that
revenue is recorded net of contractual pricing allowances.</font></b></p>

<p style="margin:0in 0in .0001pt .75in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The $850,000 provision for rebates has been recorded
as a component of general and administrative expense in the June&nbsp;30, 2010
statement of operations.&#160; Management
believes that paragraphs 605-50-25-7 through 9 and 605-50-45-2 of the FASB
Accounting Standards Codification (ASC) do not apply based upon the following
factors:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Paragraph
605-50-25-7 states that &#147;(t)he vendor shall recognize the rebate or refund
obligation as a reduction of revenue based on a systematic and rational
allocation of the cost of honoring rebates or refunds earned <u>and</u> claimed
to each of the underlying revenue transactions that result in progress by the
customer toward earning the rebate or refund (underline added)&#148;.&#160; Management believes that certain Distributors
have claimed rebates that they have not earned.&#160;
These Distributors have taken the rebates as a credit to amounts due to
the Company.&#160; The Company requires its
Distributors to provide the tracking reports which show, among other things,
the facility that purchased the products prior to granting a rebate.&#160; Until the Distributor provides such tracking
reports, amounts deducted from an invoice remain as an outstanding
receivable.&#160; In addition, the Company
estimates a rebate allowance for products sold to Distributors for which the
Company has not received tracking reports.&#160;
Some Distributors have provided tracking reports to the Company in which
rebates claimed by these Distributors exceed the maximum amount that could be
earned on product sold by the Company to these Distributors.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Paragraph
605-50-25-8 does not apply to the Company, as rebates available to be earned by
Distributors are not increased by increases in volumes.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="margin:0in 0in .0001pt;text-align:justify;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;Kevin L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November&nbsp;23, 2010</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Page 8 of 9<a name="PB_8_112654_2897"></a></font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Paragraph
605-50-25-9 states that &#147;(c)hanges in the estimated amount of rebates or
refunds and retroactive changes by a vendor to a previous offer (an increase or
a decrease in the rebate amount that is applied retroactively) shall be
recognized using a cumulative catch-up adjustment. That is, the vendor would
adjust the balance of its rebate obligation to the revised estimate
immediately. The vendor would then reduce revenue on future sales based on the
revised refund obligation rate as computed.&#148;&#160;
The $850,000 provision for rebates does not relate to changes in the
terms to the Company&#146;s rebate arrangements with its Distributors.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-autospace:none;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Paragraph
605-50-45-2 states that &#147;(c)ash consideration (including a sales incentive)
given by a vendor to a customer is presumed to be a reduction of the selling
prices of the vendor&#146;s products or services and, therefore, shall be
characterized as a reduction of revenue when recognized in the vendor&#146;s income
statement.&#148;&#160; As explained above,
Management believes that certain Distributors have claimed rebates that they
have not earned.&#160; Cash consideration is
not given to Distributors.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Management
has followed the guidance of FASB ASC paragraphs 310-10-35-7 to 9 &#147;Losses from
Uncollectible Receivables&#148; to account for anticipated losses associated with
certain Distributor receivables.&#160; In this
circumstance, Management determined that it was probable that certain
Distributor receivables were impaired as of the date of the financial
statements and that the loss could be estimated.&#160; Although the collectability issue arose as a
result of certain Distributors taking rebates to which they were not entitled,
Management believes that classification on the Condensed Statement of Operations
is analogous to that of bad debt expense.&#160;
As a result, the Company has reflected the amount as a component of
General and administrative expense, rather than as a reduction to revenue as
prescribed by FASB ASC 605-50-25-7 to 9 and 605-50-45-2.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Management
believes that this accounting treatment is consistent with Note 2 to the December&nbsp;31,
2009 audited financial statements which states that revenue is recorded net of
contractual pricing allowances.&#160; As these
are non-contractual deductions taken by certain Distributors, Management
believes that their accounting treatment is adequately disclosed in the Company&#146;s
accounts receivable policy within Note 2.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
light of the Staff&#146;s comments, the Company added the following disclosure to page&nbsp;6
of the Recent Form&nbsp;10-Q, &#147;[c]ertain distributors have taken rebates to
which they are not entitled, such as utilizing a rebate for products not
purchased directly from the Company. &nbsp;The Company has established a
reserve for the collectibility of these amounts. &nbsp;The expense for the
reserve is recorded in Operating expense, General and administrative. &nbsp;The
reserve for such non-contractual deductions is a reduction of accounts
receivable.&#148;&#160; In addition, the Company
revised the caption to the Condensed Statement of Cash Flows of the Recent Form&nbsp;10-Q,
to correspond with the above disclosure.</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="margin:0in 0in .0001pt;text-align:justify;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;Kevin L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">November&nbsp;23, 2010</font></p>

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<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">ACKNOWLEDGEMENT</font></u></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In connection with its response to a comment letter
dated October&nbsp;27, 2010 from the United States Securities and Exchange
Commission (the &#147;Commission&#148;) relating to its Form&nbsp;10-K for the year ended
December&nbsp;31, 2009 and its Form&nbsp;10-Q for the Quarter Ended June&nbsp;30,
2010, Retractable Technologies,&nbsp;Inc. (the &#147;Company&#148;) hereby acknowledges
that:</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The Company is responsible
for the adequacy and accuracy of the disclosure in the filing;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Staff comments
or changes to disclosure in response to staff comments do not foreclose the
Commission from taking any action with respect to the filing; and</font></p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">the Company may
not assert staff comments as a defense in any proceeding initiated by the
Commission or any person under the federal securities laws of the United States.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-align:justify;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Retractable Technologies,&nbsp;Inc.</font></p>
  </td>
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  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
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  <p style="margin:0in 0in .0001pt;text-align:justify;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Douglas W. Cowan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
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  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Douglas W. Cowan</font></p>
  </td>
 </tr>
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  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vice President, Chief Financial Officer, and</font></p>
  </td>
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  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.0%;">
  <p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Principal Accounting Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 3.5in;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">CC:
Mr.&nbsp;Kevin L. Vaughn</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">via facsimile and first class mail</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with Recent Form&nbsp;10-Q attached</font></p>

<p style="margin:0in 0in .0001pt;text-align:justify;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

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