International Isotopes in the first nine months of 2016 suffered a net loss of $1.36 million, “net of non-controlling interest and net cash used in operating activities of $269,647,” according to the company’s 10-Q submitted Monday to the U.S. Securities and Exchange Commission. That is up from a net loss of $1.26 million for the same period ending Sept. 30 of 2015, the document says.
International Isotopes had $3.34 million in total current assets as of Sept. 30, up from $3.14 million at the end of 2015. However, its total current liabilities had spiked from $2.49 million on Dec. 31, 2015, to $6.77 million by Sept. 30.
“The Company expects that cash from operations, cash raised via equity financing and its current cash balance will be sufficient to fund operations for the next twelve months,” according to the 10-Q. “Future liquidity and capital funding requirements will depend on numerous factors, including, contract manufacturing agreements, commercial relationships, technological developments, market factors, available credit, and voluntary warrant redemption by shareholders. There is no assurance that additional capital and financing will be available on acceptable terms to the Company or at all.”
When asked in an interview this week where the company will stand a year from now if it continues to incur losses, President and CEO Steve Laflin said: “We’re cash-flow positive right now with things, so until the radiochemical product is approved by the FDA, I anticipate the profit-loss statements to look better but still probably running at a loss in 2017, as well.”
Laflin was referring to International Isotopes’ iodine-131 radiochemical product, which is used for imaging and treatment of thyroid cancer and other abnormalities of this gland. The Idaho-based company is a provider of nuclear medicine calibration and reference standards, along with cobalt-60 products and radioisotopes and radiochemicals for medical, industrial, and other uses. It has experienced “substantial losses” since its inception in 1995, the 10-Q says.
Laflin said in the interview that for 2017 he’s most optimistic about the company’s radiochemical segment, which is the most critical unit for the International Isotopes business.
“(Canada’s National Research Universal) reactor stopped producing iodine-131. They just made that announcement this past fall, and we’re just now starting to pick up that increased business,” Laflin said. “Even though (the radiochemical product) is not FDA approved yet, they know what quality programs it’s manufactured under so some pharmacies are on the fence as to whether they wanted an FDA approved product or a radiochemical, and we’re seeing a lot of them coming back to purchasing the radiochemical.”
The company’s quarterly loss actually improved on a year-over-year basis, from a net loss of $644,488 in third-quarter 2015 to a loss of $539,357 this year.
“For the most part, the Company’s financial performance this year is meeting our expectations,” Laflin said in a statement. “While there have been challenges to the revenue and earnings in some of our business segments, those issues were anticipated and we believe measures are in place to improve performance.”
In the nine- and three-month periods through the end of September, International Isotopes focused particularly on new potential new business in its core business areas, including radiochemical and cobalt products, nuclear medicine standards, and radiological services, the 10-Q says.
