International Isotopes grew its sales by nearly $1 million in the first quarter of 2018, driving the company to positive net income after a decade of losses, according to the company’s May 18 10-Q filing with the U.S. Securities and Exchange Commission.
Net income for the Idaho Falls, Idaho, nuclear medicine provider came in at $34,404 for the three months ended March 31, a significant turnaround from a $786,266 loss in the corresponding quarter of 2017. That was due to increased sales in several business lines, along with lower operating and production costs, the company said in a Monday press release.
The revenue upswing should continue, though it won’t necessarily be continual growth, President and CEO Steve Laflin told RadWaste Monitor on Thursday.
“Generally yes. However, pending approval of our drug product, sales are largely dependent upon the other business segments and the timing of large sales within the cobalt and rad services segments,” he said by email. “That will cause variance in profit/loss results for the periods.”
Company-wide revenue in the quarter climbed by 53 percent, or $966,818, on a year-over year basis: from $1.83 million to $2.801 million. Sales increased in three businesses: 24 percent in nuclear medicine standard, 49 percent in cobalt products, and 360 percent in radiological services businesses – thanks to increased radiological source recovery contracts for the Department of Energy and International Atomic Energy Agency.
Revenue fell just 5 percent in the radiochemical products line., primarily due to a supply issue after a key isotope supplier was forced temporarily to cease operations.
The fifth business segment, fluorine products, continued to bring in no sales – the company would sell gases produced at a planned, but yet-unbuilt depleted uranium deconversion facility in Lea County, N.M.
“Further development activity within this segment will be deferred until market and industry conditions change to justify resuming design and construction of the facility,” the 10-Q says. “In the meantime, the Company expects to continue to incur some costs associated with the maintenance of licenses and other necessary project investments, and to continue to keep certain agreements in place that will support resumption of project activities at the appropriate time.”
International Isotopes lost $3.76 million in 2017, and the 10-Q acknowledged the company’s “substantial” losses” since it was established in 1995. The accumulated deficit line item in the SEC document shows $125.7 million for the latest quarter, slimmed by just over $34,000 from the same period of 2017.
But the latest figures also appear to bear out the company’s statement in its year-end earnings results that new business opportunities and the end of some expenses could produce a turnaround.
International Isotopes anticipates by the end of this year to again begin receiving cobalt in bulk from the Energy Department’s Advanced Test Reactor in Idaho, Laflin said. A years-long interruption in supply dented the company’s sales in this field, but quarterly revenue rebounded thanks to an alternate supplier.
Additional source recovery contracts are anticipated, but International Isotopes cautioned that the random pattern of contract awards could cause revenue fluctuations from quarter to quarter. Laflin said there were no immediate projects to discuss.
The company is finalizing a response to a request for additional information from the Food and Drug Administration as it weighs a license application for International Isotopes’ generic sodium iodide radiopharmaceutical product, Laflin said. Management expects FDA approval before the end of 2019, after which the product could be sold for use in diagnosing and treating thyroid diseases and medical trials for breast, lung, and other cancers.
The 10-Q also cites future potential generic product opportunities. Details will be made public upon FDA approval, according to Laflin.
International Isotopes spent nearly $800,000 on legal fees last year while it was in arbitration to recoup costs on a shipping container that was ordered but never delivered. As of the latest quarter, the company is involved in no legal proceedings that could injure the business, the 10-Q says.
