March 17, 2014

INIS REPORTS DOWN Q2, BUT CONSTRUCTION APPROVAL TO COME SOON

By ExchangeMonitor

Despite promising news in recent months on its proposed depleted uranium deconversion and fluorine extraction facility, International Isotopes Inc did not fare well in the second quarter of 2012, and has experienced a down year to date, the company wrote in a filing with the Securities and Exchange Commission. Overall revenue during the second quarter was $2 million, down 22 percent from the $2.6 million INIS earned in the same quarter of 2011, and gross profit decreased by 34 percent to $656,000 for the second quarter of 2012 compared to the same quarter last year. Revenue for the first six months of 2012 was $3.9 million, as opposed to $5 million during the same period of 2011. Though the company’s spending on research and development for the deconversion facility, which has been an anchor on its finances for the last several years, was alleviated during the second quarter, INIS’ radiochemical products and nuclear medicine business segments suffered. "I am disappointed with our financial results in the first six months of the year, and the company is examining every way to make improvements," Steve Laflin, president and CEO of INIS, said in a statement. "Our revenue has continued to be impacted by the challenging world and U.S. economic conditions, a decline in nuclear medicine clinics, and the adverse impact of government contracting on our cobalt production activities. While we expect these pressures to remain for the rest of 2012, the good news is we do not expect a further decline in revenue this year."

In May INIS received final approval from the Nuclear Regulatory Commission on the Safety Evaluation Report for its deconversion facility, one of two key approvals from the agency that the company requires to move forward with construction. The second approval, the construction and operating license, is expected to be issued in October, INIS reported. Including the second quarter of 2012, INIS estimates it has spent $18 million thus far getting the deconversion facility approved, but the promising regulatory action allowed the company to secure a $3 million private placement in July to put toward completing the approval process. "Possession of the NRC 40-year license, our exclusive ownership of the fluorine extraction process patents, and the opportunity for significant revenue generation through the sale of products and services from the new facility, puts the company and our shareholders in an excellent position to capitalize on this green technology and unique business opportunity for the long term," Laflin said.

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