International Isotopes said Monday its net loss more than doubled in the first quarter on the back of a spike in operating expenses.
The Idaho-based medical isotopes manufacturer and radiological services provider reported a quarterly net loss of $786,266 in its latest 10-Q form with the U.S. Securities and Exchange Commission. That was up by 110 percent year over year from a $374,518 net loss in the same period of 2016.
The culprit, according to the 10-Q, was a 43 percent increase in operating expenses, from just over $1 million in first-quarter 2016 to $1.5 million this year. The additional expenses were specifically related to general, administrative, and consulting expenses, notably legal costs and facility licensing fees.
Meanwhile, quarterly salaries and contract labor costs rose by 13 percent, from $447,135 in 2016 to $493,881 in 2017. “This increase in salaries and contract labor costs is the result of normal payroll cost increases and employee performance awards,” the 10-Q says.
Management acknowledged International Isotopes’ significant losses since its inception; the company was incorporated in Texas in 1995. While a comprehensive figure was not immefdiately available, the firm lost $1.82 million in 2015 and $1.88 million in 2016.
“During the three months ended March 31, 2017, the Company continued its focus on its long-standing core business segments which consist of its radiochemical products, cobalt products, nuclear medicine standards, radiological services and transportation segments, and in particular, the pursuit of new business opportunities within those segments,” International Isotopes said.
Cash from operations, cash raised from equity financing, and cash already on hand should be enough to fund the company’s operatoins over the next year, the 10-Q says: “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.”
