International Isotopes on Tuesday reported its revenue grew by nearly $500,000 in the third quarter of 2017, but that its net loss also rose by over $1 million.
Product sales totaled $1.9 million for the quarter ended Sept. 30, up from just over $1.4 million in the same period of 2016, according to the Idaho Falls-based nuclear medicine manufacturer’s latest 10-Q filing with the U.S. Securities and Exchange Commission. Its operating loss rose from $449,573 to $542,573 on a year-over-year basis, while net loss spiked from $541,577 to slightly under $1.59 million.
The net loss figure was largely due to a write down for the company’s purchase in August of the 75 percent of member units it did not already own in RadQual, a New Hampshire company that manufactures quality control products for the nuclear medicine and imaging industries.
For the first nine months of 2017, sales stood at $5.5 million, up from $4.8 million for the first three quarters of 2016; net loss at over $2.9 million, up from just shy of $1.4 million; and operating loss at $1.7 million, up from $1.1 million.
The RadQual acquisition contributed to the year-to-date net loss, along with higher interest expenses and an ongoing contract arbitration management hopes to wrap up this year.
International Isotopes in March 2016 demanded arbitration to recoup a cash deposit and lost revenue from a shipping container from Alpha Omega Services that was never delivered. The company initially sought $918,000 plus legal fees, and later added an $863,806 demand, raising the total to nearly $1.7 million. Alpha Omega counterfiled for $2 million plus legal fees. American Arbitration Association proceedings are due to conclude this month, with a ruling expected before January.
The legal expenses for the arbitration have ratcheted up International Isotopes’ general, administrative, and consulting costs: from $409,937 in third-quarter 2016 to $763,606 this year, and from $1.4 million for the first three months of last year to $2.2 million in 2017.
