International Isotopes on Aug. 14 reported a net loss of nearly $1.2 million for the second quarter of 2019, primarily due to expenses for ongoing remediation of a May radioactive contamination incident in Seattle.
The $1.16 million net loss was close to four times the $332,279 loss reported in the same period of 2018, the Idaho Falls, Idaho, nuclear medicine provider said in its latest 10-Q filing with the U.S. Securities and Exchange Commission.
“This is an increase in loss of $824,915 and is a result of net expenses of $887,686 related to the cleanup of the contamination event that occurred at an offsite location in the state of Washington. These expenses are included in an ongoing insurance claim.”
International Isotopes employees on May 3 breached a cesium-137 source while removing an irradiator from a medical research building at the University of Washington under contract to the U.S. Energy Department’s National Nuclear Security Administration (NNSA). The company, a specialist in radioactive source removal, is now supporting remediation of the building.
Costs related to the incident exceeded $1.5 million for the six months ended June 30, the 10-Q says. As of July, International Isotopes had received $634,919 in reimbursements from its insurance provider and expects to reclaim most expenses from the cleanup project, according to the document.
“While no Company wishes to ever be faced with this type of event, I can say I am extremely proud with the manner and discipline that the employees of INIS demonstrated in dealing with, and recovering from, this event in a professional manner,” International Isotopes President and CEO Steve Laflin said in an Aug. 15 press release on the company’s latest earnings. “The Company will support the ongoing investigation into the cause of this event and will work to ensure that appropriate measures are put in place to prevent a similar event from occurring in the future.”
A company spokesperson this week referred questions on the matter to Laflin, who was out of the office and not immediately available for comment. The NNSA this week did not provide an update on the ongoing cleanup program at the University of Washington.
International Isotopes reported over $2.1 million in revenue for the quarter, down from just shy of $2.4 million on a year-over-year basis. Six-month revenue fell from about $5.2 million in 2018 to $4.7 million this year, the company said in the Aug. 15 earnings announcement.
