Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 28, 2017 | Jun. 30, 2016 | |
Document And Entity Information | |||
Entity Registrant Name | INTERNATIONAL ISOTOPES INC | ||
Entity Central Index Key | 1,038,277 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 13,600,000 | ||
Entity Common Stock, Shares Outstanding | 406,955,724 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 314,520 | $ 397,955 |
Accounts receivable | 774,275 | 1,084,940 |
Inventories | 1,476,240 | 1,111,570 |
Prepaids and other current assets | 736,447 | 543,093 |
Total current assets | 3,301,482 | 3,137,558 |
Long-term assets | ||
Restricted money market account | 450,631 | 450,630 |
Property, plant and equipment, net | 1,948,076 | 1,932,263 |
Investment | 1,492,781 | 1,434,928 |
Patents and other intangibles, net | 4,186,295 | 4,287,848 |
Total long-term assets | 8,077,783 | 8,105,669 |
Total assets | 11,379,265 | 11,243,227 |
Current liabilities | ||
Accounts payable | 941,659 | 1,043,989 |
Accrued liabilities | 568,714 | 488,657 |
Current portion of unearned revenue | 2,608,328 | 907,680 |
Convertible debt, net of debt discount | 3,025,165 | 0 |
Current installments of notes payable, net of debt discount | 366,953 | 45,871 |
Total current liabilities | 7,510,819 | 2,486,197 |
Long-term liabilities | ||
Convertible debt, net of debt discount | 0 | 2,946,683 |
Notes payable, net of current portion | 428,891 | 275,670 |
Unearned revenue net of current portion | 364,440 | 642,060 |
Obligation for lease disposal costs | 468,974 | 459,711 |
Mandatorily redeemable convertible preferred stock | 850,000 | 850,000 |
Total long-term liabilities | 2,112,305 | 5,174,124 |
Total liabilities | 9,623,124 | 7,660,321 |
Stockholders' Equity | ||
Common stock | 4,049,998 | 4,022,430 |
Additional paid-in capital | 119,598,106 | 119,554,325 |
Accumulated deficit | (121,942,132) | (120,060,449) |
Equity attributable to International Isotopes Inc. stockholders | 1,705,972 | 3,516,306 |
Equity attributable to non-controlling interest | 50,169 | 66,600 |
Total equity | 1,756,141 | 3,582,906 |
Total liabilities and stockholders' equity | $ 11,379,265 | $ 11,243,227 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value in dollars | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 750,000,000 | 750,000,000 |
Common stock, shares issued | 404,999,758 | 402,242,994 |
Common stock, shares outstanding | 404,999,758 | 402,242,994 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||
Sale of product | $ 6,552,149 | $ 7,062,196 |
Cost of product | 3,707,558 | 4,359,234 |
Gross profit | 2,844,591 | 2,702,962 |
Operating costs and expenses: | ||
Salaries and contract labor | 1,782,774 | 1,675,020 |
General, administrative and consulting | 2,053,518 | 1,648,147 |
Research and development | 511,283 | 821,453 |
Total operating expenses | 4,347,575 | 4,144,620 |
Operating loss | (1,502,984) | (1,441,658) |
Other income (expense): | ||
Other income | 6,605 | 23,955 |
Equity in net income of affiliate | 73,957 | 89,279 |
Interest income | 938 | 438 |
Interest expense | (474,059) | (497,994) |
Total other (expense) | (392,559) | (384,322) |
Net loss | (1,895,543) | (1,825,980) |
Loss attributable to noncontrolling interest | (16,431) | (7,755) |
Net loss attributable to International Isotopes Inc. | $ (1,879,112) | $ (1,818,225) |
Net loss per common share - basic and diluted | $ 0 | $ 0 |
Weighted average common shares outstanding - basic and diluted | 403,302,425 | 398,055,278 |
Consolidated of Stockholders' E
Consolidated of Stockholders' Equity - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Equity Attributable to Internat'l Isotopes Shareholders | Equity Attributable to Noncontrolling Interest | Total |
Beginning balance, value at Dec. 31, 2014 | $ 3,698,950 | $ 118,444,070 | $ (118,242,224) | $ 3,900,796 | $ 74,355 | $ 3,975,151 |
Beginning balance, shares at Dec. 31, 2014 | 369,895,032 | |||||
Shares issued under employee stock purchase plan, value | $ 1,151 | 2,592 | 3,743 | 3,743 | ||
Shares issued under employee stock purchase plan, shares | 115,102 | |||||
Conversion of convertible debentures, value | $ 320,650 | 961,950 | 1,282,600 | 1,282,600 | ||
Conversion of convertible debentures, shares | 32,065,000 | |||||
Stock grant, value | $ 1,679 | (1,679) | 0 | |||
Stock grant, shares | 167,860 | |||||
Stock based compensation | 147,392 | 147,392 | 147,392 | |||
Net loss | (1,818,225) | (1,818,225) | (7,755) | (1,825,980) | ||
Ending balance, value at Dec. 31, 2015 | $ 4,022,430 | 119,554,325 | (120,060,449) | 3,516,306 | 66,600 | 3,582,906 |
Ending balance, shares at Dec. 31, 2015 | 402,242,994 | |||||
Shares issued under employee stock purchase plan, value | $ 577 | 3,416 | 3,993 | 3,993 | ||
Shares issued under employee stock purchase plan, shares | 57,654 | |||||
Shares issued for exercise of employee stock options, value | $ 25,312 | (25,312) | 0 | |||
Shares issued for exercise of employee stock options, shares | 2,531,250 | |||||
Stock grant, value | $ 1,679 | (1,679) | 0 | |||
Stock grant, shares | 167,860 | |||||
Stock based compensation | 64,785 | 64,785 | 64,785 | |||
Net loss | (1,879,112) | (1,879,112) | (16,431) | (1,895,543) | ||
Ending balance, value at Dec. 31, 2016 | $ 4,049,998 | $ 119,595,535 | $ (121,939,561) | $ 1,705,972 | $ 50,169 | $ 1,756,141 |
Ending balance, shares at Dec. 31, 2016 | 404,999,758 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (1,895,543) | $ (1,825,980) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Net income in equity method investment | (73,957) | (89,279) |
Depreciation and amortization | 226,856 | 211,174 |
Gain on disposal of property, plant and equipment | (4,500) | 20,575 |
Inventory impairment | 0 | 102,857 |
Accretion of obligation for lease disposal costs | 9,263 | 9,081 |
Accretion of beneficial conversion feature and debt discount | 9,657 | 15,066 |
Equity based compensation | 64,785 | 147,392 |
Noncash interest expense | 185,867 | 185,866 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 310,665 | (301,003) |
Prepaids and other current assets | (193,354) | 62,927 |
Inventories | (364,670) | (165,321) |
Unearned revenues | 1,423,028 | 1,549,740 |
Accounts payable and accrued liabilities | (22,273) | 416,509 |
Net cash (used in) provided by operating activities | (324,176) | 339,604 |
Cash flows from investing activities: | ||
Restricted certificate of deposit | (1) | (225,315) |
Proceeds from sale of property, plant and equipment | 4,500 | 0 |
Dividends received from equity method investment | 16,104 | 22,536 |
Purchase of property, plant and equipment and intangibles | (93,603) | (92,827) |
Net cash used in investing activities | (73,000) | (295,606) |
Cash flows from financing activities: | ||
Proceeds from sale of stock | 3,993 | 3,743 |
Proceeds from issuance of debt | 360,000 | 0 |
Principal payments on notes payable | (50,252) | (208,327) |
Net cash provided by (used in) financing activities | 313,741 | (204,584) |
Net change in cash and cash equivalents | (83,435) | (160,586) |
Cash and cash equivalents at beginning of year | 397,955 | 558,541 |
Cash and cash equivalents at end of year | 314,520 | 397,955 |
Supplemental disclosure of cash flow activities: | ||
Cash paid for interest | 242,721 | 260,405 |
Supplemental disclosure of noncash financing and investing transactions: | ||
Dealer financing for the purchase of a new vehicle | 47,513 | 0 |
Increase in equity and decrease in debt for conversion of debentures | 0 | 1,060,000 |
Increase in equity and decrease in accrued interest for conversion of debentures | 0 | 222,600 |
Increase in other assets and decrease in property, plant and equipment for cancellation of purchase contract | $ 0 | $ 255,000 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Significant Accounting Policies | NOTE 1 – DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Description of Business Nature of Operations With the exception of certain unique products, the Company’s normal operating cycle is considered to be one year. Due to the time required to produce some cobalt products, the Company’s operating cycle for those products is considered to be two to three years. Accordingly, preliminary payments received on cobalt contracts, where shipment will not take place for greater than the operating cycle, have been recorded as unearned revenue and classified under current or long-term liabilities, depending upon estimated ship dates, on the Company’s consolidated balance sheets. These unearned revenues will be recognized as revenue in the future period during which the cobalt shipments begin. All assets expected to be realized in cash or sold during the normal operating cycle of the business are classified as current assets. Principles of Consolidation Significant Accounting Policies a) Financial instruments and cash equivalents The carrying value of notes payable approximates fair value because they bear interest at rates which approximate market rates. Cash and cash equivalents, totaling $314,520 and $397,955 at December 31, 2016 and 2015, respectively, consist of operating accounts and money market accounts. For purposes of the consolidated statements of cash flows, the Company considers all highly-liquid financial instruments with original maturities of three months or less at date of purchase to be cash equivalents. At December 31, 2016, the Company had pledged cash on deposit in a money market account valued at $450,631 as security for a surety bond. At December 31, 2015, the Company had pledged certificates of deposit valued at $450,630 as security on letters of credit. The surety bond and letters of credit are required as part of the operating license agreement with the Nuclear Regulatory Commission (“NRC”). The Company maintains its cash accounts in various deposit accounts, the balances of which are periodically in excess of federally insured limits. b) Accounts receivable The Company sells products mainly to recurring customers, wherein the customer’s ability to pay has previously been evaluated. The Company generally does not require collateral. The Company periodically reviews accounts receivable for amounts considered uncollectible and allowances are provided for uncollectible accounts when deemed necessary. At December 31, 2016 and 2015, the Company recorded no allowance for uncollectible accounts. c) Inventories Inventories are carried at the lower of cost or market. Cost is determined using the first in, first out method. Work in progress inventory contains product that is undergoing irradiation. This irradiation process can take up to three years to reach high specific activity (HSA) levels. When indicators of inventory impairment exist, the Company measures the carrying value of the inventory against its market value, and if the carrying value exceeds the market value, the inventory value is adjusted down accordingly. For the year ended December 31, 2016, no cobalt inventory impairment was recorded. As discussed in Note 4, during the year ended December 31, 2015, it was determined that several cobalt targets held in inventory had fallen below market value and $102,857 was recorded as impairment expense at that time. During 2016, approximately $47,000 of raw material inventory was determined to have no future value to the Company, and was recorded as expense. d) Property, plant and equipment Depreciation on property, plant and equipment is computed using the straight-line method over the estimated useful life of the asset. Leasehold improvements are amortized over the shorter of the life of the lease or the service life of the improvements. Maintenance, repairs, and renewals that neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Gains or losses on dispositions of property and equipment are included in the results of operations. e) Patents and other intangibles Patents and other intangibles are amortized using the straight-line method over their estimated useful lives and are evaluated for impairment at least annually or when events or circumstances arise that indicate the existence of impairment. The Company evaluates the recoverability of identifiable intangible assets whenever events or changes in circumstances indicate that an intangible asset’s carrying amount may not be recoverable. Such circumstances could include, but are not limited to: (1) a significant decrease in the market value of an asset, (2) a significant adverse change in the extent or manner in which an asset is used, or (3) an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset. When indicators of impairment exist, the Company measures the carrying amount of the asset against the estimated undiscounted future cash flows associated with it. Should the sum of the expected future cash flows be less than the carrying value of the asset being evaluated, an impairment loss would be recognized. The impairment loss would be calculated as the amount by which the carrying value of the asset exceeds its fair value. The evaluation of asset impairment requires the Company to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. During the years ended December 31, 2016 and 2015, the Company had no impairment losses related to intangible assets. f) Impairment of long-lived assets Long-lived assets are reviewed for impairment annually, or when events or circumstances arise that indicate the existence of impairment, using the same evaluation process as described above for patents and other intangibles. There was no impairment recorded during the years ended December 31, 2016 and 2015. g) Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. h) Use of estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements in conformity with GAAP. Actual results could differ from those estimates. i) Revenue recognition Revenue is recognized when products are shipped. No warranty coverage or right of return provisions are provided to customers. Amounts received as prepayment on future products or services are recorded as unearned revenues and recognized as income when the product is shipped or service performed. During the fiscal year ending December 31, 2016 and 2015, the Company had sales to one entity of approximately 31% and 27%, respectively, of its revenues. At December 31, 2016 and 2015, 36% and 29%, respectively, of accounts receivable were from one customer due to their additional role as a distributor for the Company’s nuclear medicine products. The loss of this customer may result in lower revenues and limit the cash available to grow the business and achieve profitability. j) Research and development costs Research and development costs are expensed as incurred and totaled $511,283 and $821,453 for the years ended December 31, 2016 and 2015, respectively. These research and development costs pertained to continued costs incurred to maintain our planned de-conversion facility licenses and to costs incurred in our radiochemical products segment. k) Share-based compensation The Company accounts for issuances of share-based compensation to employees in accordance with GAAP which requires the recognition of the cost of employee services received in exchange for an award of equity instruments in the financial statements and is measured based on the grant date fair value of the award. Compensation expense is recognized over the period during which an employee is required to provide service in exchange for the award (the vesting period). For the years ended December 31, 2016 and 2015, the Company recognized share-based compensation expense of $64,785 and $147,392, respectively, related to stock options, warrants and stock grants. This expense is included as part of salaries and contract labor in the accompanying statements of operations. l) Net loss per common share – basic and diluted Basic loss per share is computed on the basis of the weighted-average number of common shares outstanding during the year. Diluted loss per share is computed on the basis of the weighted-average number of common shares plus all potentially dilutive issuable common shares outstanding during the year. At December 31, 2016 and 2015, the Company had the following common stock equivalents outstanding that were not included in the computation of diluted net loss per common share as their effect would have been anti-dilutive, thereby decreasing the net loss per common share: December 31, 2016 2015 Stock options 23,316,667 27,950,000 Warrants 27,419,172 42,257,951 850 Shares of Series B redeemable convertible preferred stock 425,000 425,000 51,160,839 70,632,951 m) Business segments and related information GAAP establishes standards for the way public business enterprises are to report information about operating segments in annual financial statements and requires enterprises to report selected information about operating segments in interim financial reports issued to shareholders. It also establishes standards for related disclosure about products and services, geographic areas and major customers. The Company currently operates in six business segments. n) Recent accounting standards In August 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-15, “Presentation of Financial Statements-Going Concern”. The guidance requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date financial statements are issued. ASU 2014-15 is effective for the annual period ending after December 31, 2017, and for annual periods and interim periods thereafter, with early application permitted. We have implemented the new standard, and have determined that is has no impact on the accompanying financial statements. In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes all existing revenue recognition requirements, including most industry specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB has subsequently issued the following amendments to ASU 2014-09 which have the same effective date and transition date of January 1, 2018: In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delayed the effective date of the new standard from January 1, 2017 to January 1, 2018. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies certain aspects of identifying performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients related to disclosures of remaining performance obligations, as well as other amendments to guidance on collectability, non-cash consideration and the presentation of sales and other similar taxes collected from customers. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which amends certain narrow aspects of the guidance issued in ASU 2014-09 including guidance related to the disclosure of remaining performance obligations and prior-period performance obligations, as well as other amendments to the guidance on loan guarantee fees, contract costs, refund liabilities, advertising costs and the clarification of certain examples. We are evaluating this guidance, but do not at this time expect this guidance to have a material impact on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory” which requires entities to measure inventory at the lower of cost and net realizable value with net realizable value being the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016 including interim periods within those fiscal years. We will implement this standard but do not expect it to have an impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases” which was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in ASU 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are in the process of completing our assessment and anticipate that ASU 2016-02 will have a material impact on our consolidated Balance Sheets, as we will record significant asset and liability balances in connection with our leased property. We are still evaluating the impact to our Consolidated Statements of Operations. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows” which was issued to improve uniformity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in ASU 2016-15 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact the new standard will have on its consolidated financial statements. |
Business Condition and Liquidit
Business Condition and Liquidity | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Condition and Liquidity | NOTE 2 – BUSINESS CONDITION AND LIQUIDITY The Company has a history of recurring losses with an accumulated deficit of $121,939,561 at December 31, 2016, and a net loss of $1,879,112 for the year then ended. The Company’s working capital, which includes inventory that will not be sold for up to three years, has decreased by $4,193,078 from the prior year. The Company has used cash flows from operations of $324,176. During 2016, the Company sought to improve future cash flows from operating activities through execution of new sales agreements, improving operating cost control measures, making improvements in current manufacturing processes, pursuing new service contracts, and developing new products. The Company’s net loss was $1,879,112 in 2016, compared to a net loss of $1,818,225 in 2015. This is an increase in net loss of $60,887. During the year ended December 31, 2016, the Company continued to focus on its long-standing core business segments, which consist of its radiochemical products, cobalt products, nuclear medicine standards, and radiological services segments. Of particular note is the Company’s pursuit of new business opportunities within the radiochemical segment, specifically the filing of an abbreviated new drug application (“aNDA”) for sodium iodide. In October 2014, the Company secured a ten-year cobalt production agreement with the United States Department of Energy (“DOE”). The agreement provides the Company with access to the currently available cobalt production positions in the DOE’s Advanced Test Reactor (“ATR”) located at the Idaho National Laboratory in Idaho Falls, Idaho. The ATR is the only DOE reactor in the United States (“U.S.”) capable of producing large quantities of high specific activity cobalt. In addition to the cobalt production agreement with the DOE, the Company entered into supply agreements in 2015 with several customers for the purchase of cobalt-60. Because it takes approximately two to three years to irradiate cobalt targets to the desired level of activity, the shipment of cobalt-60 product to these customers is anticipated to begin in mid to late 2018. Pursuant to these cobalt-60 supply agreements, the Company will not only supply cobalt-60 to the customers but, in some instances, will also provide on-going services with respect to manufacturing and selling cobalt sources. Each contract requires quarterly progress payments to be paid by most customers to the Company. Due to changes in the nuclear industry over the past few years, the Company’s plans for the design and construction of a large-scale uranium de-conversion and fluorine extraction facility were placed on hold. The Company expects that further activity on this project will remain on hold until the market and industry conditions change to justify resuming design and construction of the facility. The Company will continue to incur some costs associated with the maintenance of licenses and other necessary project investments for the proposed facility, and the Company expects to continue to keep certain agreements in place to support resumption of project activities at the appropriate time. In July 2015, the Company announced that it executed an amendment to its Project Participation Agreement (PPA) with the Lea County, New Mexico Board of Commissioners. The PPA granted to the Company direct and indirect assistance for locating its proposed depleted UF6 de-conversion facility in Hobbs, New Mexico. The principal component of assistance was the conveyance of approximately 640 acres of land for construction and operation of the proposed facility. The conveyance of the land was contingent upon the Company commencing construction on Phase 1 of the facility by December 31, 2014 and hiring a certain number of employees by December 31, 2015. Under the amendment to the PPA, the Lea County, New Mexico Board of Commissioners agreed to extend those dates to December 31, 2016 and December 31, 2017, respectively. The Company did not meet the deadlines set forth in the amended PPA, but is in discussions with the Lea County, New Mexico Board of Commissioners to further extend the milestone dates. If the Company does not succeed in extending the commitment dates or in reaching performance dates set forth in a modified agreement, then we may, at our sole option, either purchase or re-convey the property to Lea County, New Mexico. The purchase price of the property would be $776,078, plus interest at the annual rate of 5.25% from the date of the closing to the date of payment. The Company holds a Nuclear Regulatory Commission (“NRC”) construction and operating license for the depleted uranium facility as well as the property agreement with Lea County, New Mexico, where the plant is intended to be constructed. The NRC license for the de-conversion facility is a forty (40) year operating license and is the first commercial license of this type issued in the United States. There are no other companies with a similar license application under review by the NRC. Therefore, the NRC license represents a significant competitive barrier and the Company believes that it provides it with a very valuable asset. During the year ended December 31, 2016, the Company incurred costs of approximately $379,000 to maintain licenses and other necessary project investments. During the same period in 2015, the Company incurred costs of approximately $357,000 for planning and development activities on the project. In February 2017, the Company completed a private placement transaction with certain investors, including two of its directors, for the sale of an aggregate of 3,433 shares of Series C Convertible Redeemable Preferred Stock (the “Series C Preferred Stock”) and Class M warrants to purchase an aggregate of 17,165,000 shares of the Company’s common stock, for gross proceeds of approximately $3.4 million. See Note 15 below for additional information on the private placement. The Company expects that cash from operations and its current cash balance will be sufficient to fund operations for the next twelve months. 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. |
Purchased Asset and Investments
Purchased Asset and Investments | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Purchased Asset and Investments | NOTE 3 – PURCHASED ASSET AND INVESTMENTS Interest in RadQual, LLC The Company owns a 24.5% interest in RadQual, LLC (“RadQual”), with which the Company has an exclusive manufacturing agreement for nuclear medicine products. The 24.5% ownership of RadQual has a balance of $1,492,781 and is reported as an asset at December 31, 2016. For the year ended December 31, 2016, member distributions from RadQual totaled $16,104 and were recorded as a reduction of the investment, and for the same period in 2015, member distributions totaled $22,536. For the years ended December 31, 2016 and 2015, earnings allocated to the Company from RadQual totaled $73,957 and $89,279, respectively. These allocated earnings were recorded as equity in net income of affiliate on the Company’s consolidated statements of operations. At December 31, 2016 and 2015, the Company had receivables from RadQual in the amount of $282,470 and $317,400, respectively, which are recorded as part of accounts receivable on the Company’s consolidated balance sheets. For the years ended December 31, 2016 and 2015, the Company had revenues from RadQual in the amount of $2,028,944 and $1,932,992, respectively, which are recorded as sale of product on the Company’s consolidated statements of operations. Sales to RadQual in 2016 and 2015 were solely for nuclear medicine products. At December 31, 2016 and 2015, TI Services had payables to RadQual in the amount of $87,000 and $113,000, respectively. Summarized financial information for RadQual as of the years ended December 31 was as follows: 2016 2015 Current assets $ 501,000 $ 510,000 Noncurrent assets 12,000 14,000 Current liabilities 293,000 345,000 Noncurrent liabilities - - Revenue 3,116,000 3,033,000 Gross profit 856,000 858,000 Net income $ 318,000 $ 342,000 Acquisition of interest in TI Services, LLC In December 2010, the Company together with RadQual, formed a 50% owned joint venture, TI Services, LLC (“TI Services”). TI Services is engaged in the distribution and selling of products related to the nuclear medicine industry. Because the Company controls more than a 50% direct and indirect ownership interest in TI Services, the assets and liabilities of TI Services are consolidated with those of the Company, and RadQual’s non-controlling interest in TI Services is included in the Company’s financial statements as a non-controlling interest. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 4 – INVENTORIES Inventories consisted of the following for the years ended December 31: 2016 2015 Raw materials $ 44,455 $ 91,555 Work in process 1,425,056 943,234 Finished goods 6,729 14,317 $ 1,476,240 $ 1,049,106 Included in raw material inventory are the various pellet holders and housings involved in target fabrication, raw cobalt, strontium and other raw elements, completed flood sources, irradiated cobalt and nuclear medicine-related materials and products. Raw material inventory is regularly reviewed for obsolescence, and as part of the Company’s year-end procedures, it was determined that some older material used in product fabrication was no longer of value to the Company. At that time, the Company wrote-off approximately $47,000 of raw material inventory. Work in process includes cobalt-60 targets that are located in the ATR located outside of Idaho Falls, Idaho. These targets are owned by the Company and contain cobalt-60 material at various stages of irradiation. The carrying value of the targets is based on accumulated irradiation and handling costs which have been allocated to each target based on the length of time the targets have been held and processed at the reactor. In 2015, it was determined that some of the older, lower activity level targets no longer held commercial value. The carrying value of these targets was expensed at that time and $102,857 was charged to cost of goods sold and the value of the cobalt target inventory was decreased accordingly. During the Company’s year-end procedures at December 31, 2016, an analysis of this inventory was performed and it was determined that future market value of the target inventory exceeded its carrying value; therefore, no inventory write-down was made. At December 31, 2016, the remaining cobalt target inventory had a carrying value of $442,759, and at December 31, 2015, the inventory was valued at $458,852. Work in process also includes costs to irradiate cobalt-60 material under a contract with the DOE. This material has been placed in the reactor exclusively for purchase by the Company, and at December 31, 2016, the amount of accumulated irradiation charges reported as inventory was $766,080. The Company has contracted with several customers for the purchase of this cobalt-60 material and has collected advance payments for project management, up-front handling and irradiation charges. These payments have been recorded as unearned revenue. The revenue and the costs associated with irradiation will be recognized as the targets are completed and shipped to the customer, which is expected to be in 2018. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | NOTE 5 – PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are summarized as follows at December 31, 2016 and 2015: 2016 2015 Estimated Useful Lives Furniture and fixtures $ 126,650 $ 126,194 3 - 5 years Transportation equipment 122,874 117,726 5 - 10 years Plant and improvements 463,754 463,754 5 years Production equipment 3,497,112 3,417,695 5 - 10 years 4,210,390 4,125,369 Accumulated depreciation (2,262,314) (2,193,106) $ 1,948,076 $ 1,932,263 Included in fixed assets are assets purchased during the planning phase for the construction of a de-conversion facility in Hobbs, New Mexico. Although construction of the facility is currently on hold, the Company has determined that these assets continue to have future economic value based on what it considers a strong likelihood that construction of the facility will occur in the future. Depreciation expense was $114,134 and $97,680 for the years ended December 31, 2016 and 2015, respectively. |
Patents and Other Intangible As
Patents and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Patents and Other Intangible Assets | NOTE 6 – PATENTS AND OTHER INTANGIBLE ASSETS The Company owns certain patents and patents pending related to a fluorine extraction process and patents for various uses of some fluoride gases as fluorinating agents. These patents were developed in an effort to expand the possible markets for the high purity fluoride gases the Company will produce with its fluorine extraction process. In 2010, the Company was granted an additional process patent on the FEP process and during 2011 the Company started the process to file for international protections of this patent in South Africa, Japan, Russia, China, Canada, and the European Union. During 2012, the Company was granted additional process patents for the FEP process in the United States. In 2013, the FEP process patent was granted in Russia and in 2014 the FEP process patent was granted in South Africa. In 2015, the FEP process patents in China and Japan were abandoned. The applications in the other countries are still in process. At the present time, the final value of this patent technology or the feasibility of expanding the fluoride gas markets through the use of this newly patented technology is uncertain. In September 2015, the Company obtained approval from the U.S. Patent and Trademark office for the trademark registration of I 3 TM 3 TM In October 2012, the NRC issued the Company a 40-year construction and operating license for the de-conversion facility. Capitalized costs associated with the licensing and planning process for this license are being amortized over the 40-year life of the license. The following table summarizes the patent and intangible activity for the years ended December 31, 2016 and 2015: 2016 2015 Beginning $ 4,897,850 $ 4,901,698 Additions 11,169 22,734 Disposals - (26,582) Ending 4,909,019 4,897,850 Accumulated amortization (722,724) (610,002) $ 4,186,295 $ 4,287,848 During the year ended December 31, 2016 the Company recognized $112,722 of amortization expense, and during the year ended December 31, 2015, the Company recognized $107,487 of amortization expense, net of accumulated amortization of $6,007, previously recorded for the abandoned patent process mentioned above. Patent and other intangible asset amortization is based on the remaining life of the asset and estimated amortization expense is as follows: Years ending December 31, 2017 $ 112,016 2018 112,016 2019 112,016 2020 112,016 2021 112,016 Thereafter 3,626,215 $ 4,186,295 |
Convertible Debentures and Note
Convertible Debentures and Notes Payable | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Convertible Debentures and Notes Payable | NOTE 7 – CONVERTIBLE DEBENTURES AND NOTES PAYABLE Convertible debentures In July 2012, the Company entered into a securities purchase agreement with certain institutional and private investors pursuant to which it sold convertible debentures for an aggregate of $3,069,900. The debentures bear interest at 8% per annum payable semi-annually, mature July 2017 and are unsecured. These debentures are convertible at any time into shares of the Company's common stock at an initial conversion price of $0.225 per share, subject to adjustment under certain conditions. Each investor also received a common stock purchase warrant to purchase common stock equal to twenty-five percent (25%) of the shares issuable upon conversion of the debentures. The warrants are immediately exercisable at a price of $0.30 per share and have a term of five years. In accordance with FASC 470-20, Accounting for Convertible Debt Instruments that may be settled in cash upon conversion, the Company allocated the proceeds to the debentures and warrants based on their relative fair value, which resulted in $2,703,144 being allocated to the debentures and $366,756 being allocated to the warrants. Subsequent to the allocation, the Company calculated a beneficial conversion feature of $25,656. The allocated warrant value and the beneficial conversion feature were recorded as debt discount and will be accreted to interest expense over the five-year life of the debentures. During the periods ended December 31, 2016 and 2015, $73,352 of the allocated fair value of the warrants was accreted to interest expense and $5,131 of the beneficial conversion feature was accreted to interest expense. In connection with this offering, the Company paid a fee and issued to the placement agent a warrant to purchase 1,091,520 shares of the Company’s common stock. The placement warrant had a fair value of $133,285. The value of the placement warrant and the fees are recorded as offering costs and are being amortized to expense over the life of the debentures. As discussed in Note 15 below, in February 2017, pursuant to a private placement transaction with certain investors, the Company issued 3,433 shares of Series C Preferred Stock and warrants. In connection with the private placement, two investors holding convertible debentures exchanged aggregate principal totaling $205,000 of the convertible debentures for shares of the Series C Preferred Stock and warrants. In February 2013, the Company entered into a securities purchase agreement with certain private investors pursuant to which it sold convertible debentures for an aggregate of $1,060,000. The debentures accrued interest at a rate of 10% per annum, compounded annually and matured February 2015. On February 20, 2015, according to the terms of the note, principal totaling $1,060,000, plus accrued interest of $222,600, was converted into shares of the Company’s common stock. The conversion terms of the note stipulated that the number of shares issued would be based on the lessor of the stated conversion price of $0.14 per share or the average trading price of the Company’s stock for the preceding 120 days prior to conversion. The average trading price for the preceding 120 days was $0.04 per share, and therefore 32,065,000 shares were issued to holders of the convertible debentures upon conversion on February 20, 2015. The fair market value of the Company’s common stock was $0.15 per share on the date of the agreement. Consequently, the difference between the anticipated conversion price of $0.14 and the closing price of $0.15, multiplied by the number of issuable common shares upon conversion, was recorded as a beneficial conversion feature with an increase to equity and a debt discount in the amount of $75,715. This amount was accreted to interest expense through February 2015. During the year ended December 31, 2015, $5,408 of the beneficial conversion feature was amortized to interest expense. Notes payable During April 2013, the Company negotiated with the NRC to convert amounts owing as a trade payable into a long-term note. The Company converted a total of $596,816 to the note payable which is payable in monthly installments of $17,500 and accrues interest at a rate of 1% annually. The note matured February 15, 2016 and was paid in full at that time. In December 2013, the Company borrowed $500,000 from the Company’s Chairman of the Board of Directors (the “Board”) and one of the Company’s major shareholders. The $500,000 note bears interest at 6% and was originally due June 30, 2014. According to the terms of the note, at any time, the lenders may settle any or all of the principal and accrued interest with shares of the Company’s common stock. In connection with the note, each of the two lenders was issued 5,000,000 warrants to purchase shares of the Company’s common stock. In June 2014, the Company renegotiated the terms of this promissory note. Pursuant to the modification, the maturity date was extended to December 31, 2017, and each Lender was granted an additional 7,500,000 warrants to purchase shares of the Company’s common stock at $0.06 per share. The warrants were immediately exercisable. The fair value of these warrants was $384,428 and was recorded as a debt discount and will be amortized to interest expense over the new life of the promissory note. The Company calculated a beneficial conversion feature of $15,464 which will be accreted to interest expense over the new life of the note. As a result, the Company recorded non-cash interest expense for both 2016 and 2015, in the amount of $117,042. In February 2017, the due date of the note was extended to December 31, 2020, with all other terms of the note remaining unchanged. In September 2016, the Company borrowed an aggregate of $360,000 f rom the Company’s Chairman of the Board of Directors and one of the Company’s Directors. The $360,000 note bears interest at 6%, which is payable upon maturity of the note on March 31, 2017. Per the terms of the note, at any time, the lenders may settle any or all principal and accrued interest with shares of the Company’s common stock or other securities of the Company based on the average closing price of the Company’s common stock over a 20-day period. The note is secured by all unencumbered assets. In February 2017, in connection with the offering of series C Preferred Stock and warrants descried in Note 15 below, all outstanding principal and accrued interest was converted by the holders into share of the Series C Preferred Stock and warrants. Notes payable as of December 31, 2016 and 2015 consist of the following: 2016 2015 Note payable to related parties bearing interest at 6% all principal and interest due on March 31, 2017, secured $ 360,000 $ - Note payable to a financial institution bearing interest at Monthly installments of $805, secured 43,132 - Note payable to the NRC bearing interest at 1% Monthly installments of $17,500, unsecured 45,871 Convertible notes payable, net of unamortized debt discount and debt issuance costs of $44,735 and $123,217 at December 31, 2016 and 2015, respectively, bearing interest at 8%, due July 27, 2017 3,025,165 2,946,683 Note payable to related parties net of unamortized debt discount of $107,288 and $224,330 at December 31, 2016 and 2015, respectively, bearing interest at 6% all principal and interest due on December 31, 2020, secured 392,712 275,670 Total notes payable 3,821,009 3,268,224 Less: current maturities (3,392,118) (45,871) Notes payable, net of current installments and debt discount $ 428,891 $ 3,222,353 Maturities of convertible debt and notes payable, excluding debt discount and debt issuance costs, at December 31, 2016, are as follows: Years ending December 31, 2017 $ 3,436,853 2018 7,236 2019 7,236 2020 507,236 2021 7,236 Thereafter 7,234 $ 3,973,031 |
Lease Obligations
Lease Obligations | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Lease Obligations | NOTE 8 – LEASE OBLIGATIONS Operating leases The Company currently leases office space under a ten-year operating lease that expires in 2021. Rental expense under the leases for the years ended December 31, 2016 and 2015 was $136,313 each year. The following is a schedule by years of the currently held operating lease as of December 31, 2016: Years ending December 31, 2017 $ 136,313 2018 136,313 2019 136,313 2020 136,313 2021 45,318 Thereafter - $ 590,570 |
Shareholders' Equity, Mandatori
Shareholders' Equity, Mandatorily Redeemable Convertible Preferred Stock, Options and Warrants | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Shareholders' Equity, Mandatorily Redeemable Convertible Preferred Stock, Options and Warrants | NOTE 9 – SHAREHOLDERS’ EQUITY, REDEEMABLE CONVERTIBLE PREFERRED STOCK, OPTIONS AND WARRANTS Warrants As disclosed in Note 7, on July 27, 2012, the Company entered into a securities purchase agreement with certain institutional and private investors. Each investor received a common stock purchase warrant to purchase such number of shares of the Company’s common stock equal to twenty-five percent (25%) of the number of shares of common stock that the note purchased by such investor may be convertible into on the closing date. The total possible number of shares of common stock to be issued under the warrants is 4,502,520. The warrants are immediately exercisable at a price of $0.30 per share and have a term of five years. In December 2013, we entered into a promissory note agreement with our chairman of the Board and one of our major shareholders pursuant to which we borrowed $500,000. The $500,000 note bears interest at 6% and was originally due June 30, 2014. At any time, the lenders may settle any or all of the principal and accrued interest with shares of the Company’s common stock. In connection with the note, each of the two lenders was issued 5,000,000 warrants to purchase shares of the Company’s common stock at a purchase price of $0.06 per share. In June 2014, we renegotiated the terms of this promissory note. Pursuant to the modification, the maturity date was extended to December 31, 2017, and each Lender was granted an additional 7,500,000 warrants to purchase shares of the Company’s common stock at $0.06 per share. The warrants were immediately exercisable. The following table summarizes warrant activity for the years ended December 31, 2016 and 2015: Warrants Outstanding Shares Weighted Average Exercise Price Outstanding at December 31, 2014 42,257,951 $ 0.18 Granted - - Exercised - - Forfeited - - Outstanding at December 31, 2015 42,257,951 0.18 Granted - - Exercised - - Forfeited (14,838,779) 0.38 Outstanding at December 31, 2016 27,419,172 $ 0.08 In July 2015, the Board determined that it was in the best interests of the Company to extend the expiration dates of all outstanding Class H and Class I Warrants to January 31, 2016. Therefore, 1,913,892 Class H warrants, which previously carried an expiration date of August 24, 2015, and 12,924,887 Class I warrants, which previously carried an expiration date of October 24, 2015, were amended to extend the expiration date to January 31, 2016. The Company recorded approximately $884 of additional stock-based compensation expense with respect to this extension. As of January 31, 2016, none of the Class H or Class I Warrants had been exercised and therefore expired. Mandatorily Redeemable Convertible Preferred Stock The Company is authorized to issue up to 5,000,000 shares of preferred stock, par value $0.01 per share. The Board is authorized to set the distinguishing characteristics of each series prior to issuance, including the granting of limited or full voting rights, rights to the payment of dividends and amounts payable in event of liquidation, dissolution or winding up of the Company. At December 31, 2016, there were 850 shares of the Series B Convertible Redeemable Preferred Stock (the “Series B Preferred Stock”) outstanding with a mandatory redemption date of May 2022 at $1,000 per share, or $850,000 in aggregate redemption value. The Series B Preferred Stock is convertible into common stock at a conversion price of $2.00 per share. These preferred shares carry no dividend preferences. Due to the mandatory redemption provision, the Series B Preferred Stock has been classified as a liability in the accompanying consolidated balance sheets. As described in further detail in Note 15 below, on February 17, 2017, the Company issued 3,433 shares of Series C Preferred Stock. The Series C Preferred Stock has a mandatory redemption date of February 17, 2022 at $1,000 per share of Series C Preferred Stock. The Series C Preferred Stock is convertible into common stock at a conversion price of $0.10 per share. The Series C Preferred Stock pay dividends annually at a rate of 6%. Employee Stock Purchase Plan In September 2004, the Company’s Board approved an employee stock purchase plan for an aggregate of up to 2,000,000 shares of the Company’s common stock. The plan allows employees to deduct up to 15% of their salary or wages each pay period to be used for the purchase of common stock at a discounted rate. The common shares will be purchased at the end of each three-month offering period or other period as determined by the Board. The plan is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. During 2016 and 2015, the Company issued 57,654 and 115,102 shares of common stock to employees for proceeds of $3,993 and $3,743, respectively, in accordance with the employee stock purchase plan. 2015 Incentive Plan In April 2015, the Board approved the International Isotopes Inc. 2015 Incentive Plan (the “2015 Plan”,) which was subsequently approved by the Company’s shareholders in July 2015. The 2015 Plan provides for the grant of incentive and non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and units, and other stock or cash-based awards. The 2015 Plan amends and restates the Company’s Amended and Restated 2006 Equity Incentive Plan (the “2006 Plan”). The 2015 Plan authorizes the issuance of up to 60,000,000 shares of common stock, plus 11,089,967 shares authorized, but not issued under the 2006 Plan. Unless earlier terminated, the 2015 Plan will terminate on July 13, 2025. At December 31, 2016, there were 23,552,680 shares available for issuance under the 2015 Plan. Non-Vested Stock Grants Pursuant to an employment agreement with the Company’s Chief Executive Officer, the Company issued 280,000 in fully vested shares of common stock in February 2016. The number of shares awarded was based on a $28,000 stock award using a price of $0.10 per share. The agreement states that the number of shares issued was based on the average closing price of common stock for the 20 trading days prior to the issue date but not less than $0.10 per share. Compensation expense recorded pursuant to this stock grant was $25,200, which was determined by multiplying the number of shares awarded by the closing price of common stock on February 29, 2016, which was $0.09 per share. The Company withheld 112,140 shares to satisfy the employee’s payroll tax liabilities in connection with this issuance. The net shares issued on February 29, 2016 totaled 167,860 shares. Pursuant to the employment agreement noted above, the Company issued 280,000 in fully vested shares of common stock in February 2015. The number of shares issued was based on a price of $0.10 per share. The Company withheld 112,140 shares to satisfy payroll tax liabilities in connection with this issuance. The net shares issued on February 27, 2015 totaled 167,860 shares. Stock Options A summary of the stock options issued under the Company’s equity plans is as follows: Options Outstanding Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Intrinsic Value Outstanding at December 31, 2014 27,950,000 $ 0.04 Granted - - Exercised - - Forfeited - - Outstanding at December 31, 2015 27,950,000 0.04 Granted - - Exercised (4,500,000) 0.04 $ Forfeited (133,333) -0.04 Outstanding at December 31, 2016 23,316,667 $ 0.06 5.4 $ 1,883,667 Exercisable at December 31, 2016 23,129,167 $ 0.05 5.4 $ 1,874,292 The total intrinsic value of stock options outstanding at December 31, 2016 was $1,883,667. The intrinsic value for stock options outstanding is calculated as the amount by which the quoted price of $0.12 of our common stock as of the end of 2016 exceeds the exercise price of the options. The Company recognized $49,677 and $138,115 of compensation expense related to these options for the years ended December 31, 2016 and 2015, respectively. At December 31, 2016, the remaining compensation expense was $33 and will be recognized over .049 years. In June 2016, 500,000 qualified stock options, with an intrinsic value of $22,500, were exercised under a cashless exercise. The Company withheld 218,750 shares to satisfy the exercise price and issued 281,250 shares of common stock. In August 2016, 4,000,000 non-qualified stock options, with an intrinsic value of $180.000, were exercised under a cashless exercise. The Company withheld 1,750,000 shares to satisfy the exercise price and issued 2,250,000 shares of common stock. All options exercised were issued under a qualified plan and accordingly, there is no income tax effect in the accompanying financial statements. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10 – INCOME TAXES The Company paid no federal or state income taxes during 2016 and 2015. Income tax benefit on losses differed from the amounts computed by applying the U.S. federal income tax rate of 34% to pretax losses as a result of the following: 2016 2015 Income tax benefit $ (618,284) $ (618,196) Nondeductible expenses 4,827 93,914 State taxes net of federal benefit (83,650) (83,638) Change in valuation allowance 697,107 607,920 $ - $ - The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets (liabilities) as of December 31, 2016 and 2015 are presented below: 2016 2015 Deferred income tax asset $ - $ - Net operating loss carryforward 12,961,241 12,335,934 Valuation allowance (12,224,047) (12,134,860) Total deferred income tax asset 737,194 201,074 Deferred income tax liability - depreciation (737,194) (201,074) Deferred tax asset (liability) $ - $ - At December 31, 2016, the Company had net operating losses of approximately $33,064,000 that will begin to expire in 2023. The valuation allowances for 2016 and 2015 have been applied to offset the deferred tax assets in recognition of the uncertainty that such benefits will be realized. In accordance with GAAP, the Company has analyzed its filing positions in all jurisdictions where it is required to file income tax returns for the open tax years in such jurisdictions. The Company currently believes that all significant filing positions are highly certain and that all of its significant income tax filing positions and deductions would be sustained upon audit. Therefore, the Company has no significant reserves for uncertain tax positions, and no adjustment to such reserves was required by GAAP. No interest or penalties have been levied against the Company and none are anticipated, therefore no interest or penalty has been included in the provision for income taxes in the consolidated statements of operations. The Internal Revenue Code contains provisions which reduce or limit the availability and utilization of net operating loss carry forwards in the event of a more than 50% change in ownership. If such an ownership change occurs with the Company, the use of these net operating losses could be limited. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 11 – COMMITMENTS AND CONTINGENCIES Dependence on Third Parties The production of HSA Cobalt is dependent upon the DOE, and its prime operating contractor, which controls the reactor and laboratory operations at the ATR located outside of Idaho Falls, Idaho. On October 2, 2014, the Company signed a ten-year contract with the DOE for the irradiation of cobalt targets for the production of cobalt-60. The Company will be able to purchase cobalt targets for a fixed price per target and with an annual 5% escalation in price. The contract term is October 1, 2014, through September 30, 2024. However, the DOE may end the contract if it determines termination is necessary for the national defense, security or environmental safety of the U.S. If this were to occur, all payments made by the Company would be refunded. Nuclear Medicine Reference and Calibration Standard manufacturing is conducted under an exclusive contract with RadQual, which in turn has an agreement in place with several companies for distributing the product. The majority of the radiochemical product sold by the Company is provided through a supply agreement with a single entity. A loss of any of these customers or suppliers could adversely affect operating results by causing a delay in production or a possible loss of sales. Contingencies Because all the Company’s business segments involve the handling or use of radioactive material, the Company is required to have an operating license from the NRC and specially trained staff to handle these materials. The Company has amended this operating license numerous times to increase the amount of material permitted within the Company’s facility. Although this license does not currently restrict the volume of business operation performed or projected to be performed in the upcoming year, additional processing capabilities and license amendments could be implemented that would permit processing of other reactor-produced radioisotopes by the Company. The financial assurance required by the NRC to support this license has been provided for with a surety bond and a restricted money market account, in the amount of $450,631, held with North American Specialty Insurance Company and Merrill Lynch, respectively. In August 2011, we received land from Lea County, New Mexico, pursuant to a PPA, whereby the land was deeded to us for no monetary consideration. In return, we committed to construct a uranium de-conversion and FEP facility on the land. In order to retain title to the property, we were to begin construction of the de-conversion facility no later than December 31, 2014, and complete Phase I of the project and have hired at least 75 persons to operate the facility no later than December 31, 2015, although commercial operations need not have begun by that date. In 2015 the Company negotiated a modification to the PPA agreement that extended the start of construction date to December 31, 2015, and the hiring milestone to December 31, 2016. Those dates were not met and the Company is currently in the process of renegotiating a second modification to the agreement to further extend those dates. If we do not succeed in reaching an amendment to extent the performance dates in the agreement then we may, at our sole option, either purchase or re-convey the property to Lea County, New Mexico. The purchase price of the property would be $776,078, plus interest at the annual rate of 5.25% from the date of the closing to the date of payment. We have not recorded the value of this property as an asset and will not do so until such time that sufficient progress on the project has been made to meet our obligations under the agreements for permanent transfer of the title. Defined Contribution Pension Plan The Company has a 401(k) defined-contribution pension plan (the “401(k) Plan”). Employees are eligible to participate in the Plan after completing six months of full-time service. Participants, under provision of Internal Revenue Code § 401(k), may elect to contribute up to $18,000 of their compensation to the 401(k) Plan which includes both before-tax and Roth after-tax contribution options. Although the Company reserves the right to make discretionary matching contributions to participant accounts, there were no employer matching contributions made for either 2016 or 2015. All amounts withheld for employee contributions for 2016 were paid into the 401(k) Plan. The employer reserves the right to terminate the 401(k) Plan at any time. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | NOTE 12 – ASSET RETIREMENT OBLIGATION As part of the Company’s NRC operating license and as part of the Company’s facility lease agreements, the Company is responsible for decommissioning any facilities upon termination or relocation of operations. The Company has developed a decommissioning funding plan using guidelines provided by the NRC and has estimated the cost of decommissioning the facility in Idaho Falls. The decommissioning cost estimate is reviewed at least annually to validate the assumptions and is revised as necessary when changes in the facility processes or radiological characteristics would affect the cost of decommissioning. In accordance with GAAP, the Company has recognized future estimated decommissioning costs as an asset retirement obligation and a related capitalized lease disposal cost. The Company has recognized period-to-period changes in the liability (accretion) in the statement of operations as amortization expense. Changes resulting from revisions to the original estimate are recorded as an increase or decrease to the capitalized lease disposal cost. Capitalized lease disposal cost is amortized on a straight-line basis over the remaining life of the facility operating lease agreement. The following summarizes the activity of the asset retirement obligation for the years ended December 31, 2016 and 2015: Obligation for Lease Disposal Cost Balance at December 31, 2014 $ 450,630 Increase in lease disposal costs - Accretion expense / amortization expense 9,081 Balance at December 31, 2015 459,711 Increase in lease disposal costs - Accretion expense / amortization expense 9,263 Balance at December 31, 2016 $ 468,974 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 13 – FAIR VALUE MEASUREMENTS At December 31, 2016 and 2015, the Company had no assets carried at fair value. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 14 – SEGMENT INFORMATION The Nuclear Medicine Standards segment consists of the manufacture of sources and standards associated with Single Photon Emission Computed Tomography imaging, patient positioning, and calibration or operational testing of dose measuring equipment for the nuclear pharmacy industry and includes consolidated reporting of TI Services, the Company’s 50/50 joint venture with RadQual. The Cobalt Products segment includes management of a cobalt irradiation contract, fabrication of cobalt capsules for teletherapy or irradiation devices, and recycling of expended cobalt sources. The Radiochemical Products segment includes production and distribution of various isotopically pure radiochemicals for medical, industrial, or research applications. These products are either directly produced by the Company or are purchased in bulk from other producers and distributed by the Company in customized packages and chemical forms tailored to customer and market demands. Iodine-131 is the predominant radiochemical sold in this segment and an abbreviated new Drug Application (aNDA) has been submitted to the U.S. Food and Drug Administration to market this as a generic drug product upon approval. The Fluorine Products segment historically involved the production of small scale qualification samples of high purity fluoride gas for various industrial applications, as well as development of laboratory and analytical processes required to support the planned uranium de-conversion and fluorine extraction facility. During 2013, these testing activities were completed and the pilot plant facility was closed. The Company has developed or acquired all patent rights to these processes. Future work in this segment will involve license support and, as financing permits, further work related to the de-conversion facility. The Radiological Services segment concerns a wide array of miscellaneous services that consists of gemstone processing and field services that include source installation, removal, and radiation device decommissioning. The Transportation segment provides transportation services for the Company’s products and offers “for hire” transportation services of hazardous and non-hazardous cargo materials. The following presents certain segment information as of and for the years ended December 31, 2016 and 2015: Sale of product 2016 2015 Radiochemical products $ 1,708,120 $ 1,698,475 Cobalt products 859,034 929,970 Nuclear medicine standards 3,093,295 3,135,094 Radiological services 769,702 1,181,957 Fluorine products - - Transportation 121,998 116,700 Total segments 6,552,149 7,062,196 Corporate revenue - - Total consolidated $ 6,552,149 $ 7,062,196 Depreciation and amortization 2016 2015 Radiochemical products $ 6,995 $ 6,913 Cobalt products 43,802 41,617 Nuclear medicine standards 12,888 15,818 Radiological services 34,019 25,588 Fluorine products 112,053 110,692 Transportation 10,429 4,442 Total segments 220,186 205,070 Corporate depreciation and amortization 6,670 6,104 Total consolidated $ 226,856 $ 211,174 Segment income (loss) 2016 2015 Radiochemical products $ 355,448 $ 336,662 Cobalt products 472,890 344,073 Nuclear medicine standards 680,004 483,169 Radiological services 371,228 568,192 Fluorine products (378,705) (356,492) Transportation (34,374) (26,773) Total segments 1,466,491 1,348,831 Corporate loss (3,345,603) (3,167,056) Total consolidated $ (1,879,112) $ (1,818,225) Expenditures for segment assets 2016 2015 Radiochemical products $ - $ 2,331 Cobalt products - 4,578 Nuclear medicine standards 12,682 26,817 Radiological services 56,677 24,642 Fluorine products 11,170 20,403 Transportation 53,631 - Total segments 134,160 78,771 Corporate purchases 6,956 14,056 Total consolidated $ 141,116 $ 92,827 Segment assets 2016 2015 Radiochemical products $ 267,920 $ 212,988 Cobalt products 1,414,240 934,781 Nuclear medicine standards 502,361 626,615 Radiological services 171,354 502,445 Fluorine products 5,801,627 5,904,150 Transportation 49,706 1,642 Total segments 8,207,208 8,182,621 Corporate assets 3,172,057 3,060,606 Total consolidated $ 11,379,265 $ 11,243,227 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 15 – SUBSEQUENT EVENTS On February 17, 2017, the Company issued 3,433 shares of Series C Preferred Stock in a private placement transaction. The Series C Preferred Stock pays dividends at a rate of 6% per annum, payable annually on February 17 of each year, commencing on February 17, 2018. The Series C Preferred Stock are convertible at the option of the holders at any time into shares of the Company's common stock at an initial conversion price equal to $0.10 per share, subject to certain adjustments. At any time after February 17, 2019, if the volume-weighted average closing price of the Company’s common stock over a period of 90 consecutive trading days is greater than $0.25 per share, the Company may redeem all or any portion of the outstanding Series C Preferred Stock at the original purchase price per share plus any accrued and unpaid dividends, payable in shares of common stock. All outstanding shares of Series C Preferred Stock will be redeemed by the Company on February 17, 2022 at the original purchase price per share, payable in cash or shares of common stock, at the option of the holder. Holders of the Series C Preferred Stock do not have any voting rights, except as required by law and in connection with certain events. Due to the mandatory redemption provision, the Series C Preferred Stock will be classified as a liability in the Company’s balance sheets. In connection with the issuance of the Series C Preferred Stock, each investor also received 5,000 common stock purchase warrants for every share of Series C Preferred Stock received in the private placement. A total of 17,165,000 Class M Warrants were issued and are immediately exercisable at a price of $0.12 per share and have a term of 5 years. In accordance with FASC 470-20, Debt with Conversion and Other Options Pursuant to an employment agreement with the Company’s Chief Executive Officer, the Company issued 350,000 shares of fully-vested Company stock in February 2017. The number of shares awarded was based on a $28,000 stock award using a price of $0.08 per share. The original agreement stated that the number of shares issued would be based on the average closing price of common stock for the 20 trading days prior to issue date but not less than $0.10 per share. In October 2016, the employment agreement was modified to state that the number of shares issued will be based on the average closing price of common stock for the 20 trading days prior to issue date but not less than $0.05 per share. Compensation expense recorded pursuant to this transaction was $28,000, which was determined by multiplying the number of shares awarded by the average closing price of the stock for the preceding 20 trading days, which was $0.08 per share. The Company withheld 140,175 shares to satisfy the employee’s payroll tax liabilities in connection with this issuance. The net shares issued on February 28, 2017 totaled 209,825 shares. On March 24, 2017, the Company entered into an Amendment to 8% Convertible Notes (the “Amendment”) with Euro Pacific Capital, Inc., pursuant to which the 8% Convertible Notes issued by the Company in July 2012 (the “Notes”) were amended to give noteholders certain additional rights. Pursuant to the Amendment, the Notes were modified to provide each holder the right, at the holder’s option and exercisable prior to May 12, 2017, to convert all or any portion of the principal amount of the Notes, plus accrued but unpaid interest, into shares of the Company’s Series C Convertible Redeemable Preferred Stock (the “Series C Preferred Stock”) at a conversion price of $1,000 per share of Series C Preferred Stock. Holders that elect to convert their Notes into Series C Preferred Stock will also receive a warrant to purchase up to 3,750 shares of the Company’s common stock for each share of Series C Preferred Stock received upon conversion of the Notes, with each warrant having a 5-year term, a cashless exercise feature, and an exercise price of $0.10 per share of common stock. In addition, the Notes were amended to give each holder of the Notes the right, at the holder’s option, to have the Company redeem part or all of the outstanding Notes for cash in an amount equal to 100% of the principal amount of the Notes redeemed and all accrued but unpaid interest as of the redemption date. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Financial Instrument and Cash Equivalents | Financial instruments and cash equivalents The carrying value of notes payable approximates fair value because they bear interest at rates which approximate market rates. Cash and cash equivalents, totaling $314,520 and $397,955 at December 31, 2016 and 2015, respectively, consist of operating accounts and money market accounts. For purposes of the consolidated statements of cash flows, the Company considers all highly-liquid financial instruments with original maturities of three months or less at date of purchase to be cash equivalents. At December 31, 2016, the Company had pledged cash on deposit in a money market account valued at $450,631 as security for a surety bond. At December 31, 2015, the Company had pledged certificates of deposit valued at $450,630 as security on letters of credit. The surety bond and letters of credit are required as part of the operating license agreement with the Nuclear Regulatory Commission (“NRC”). The Company maintains its cash accounts in various deposit accounts, the balances of which are periodically in excess of federally insured limits. |
Accounts Receivable | Accounts receivable The Company sells products mainly to recurring customers, wherein the customer’s ability to pay has previously been evaluated. The Company generally does not require collateral. The Company periodically reviews accounts receivable for amounts considered uncollectible and allowances are provided for uncollectible accounts when deemed necessary. At December 31, 2016 and 2015, the Company recorded no allowance for uncollectible accounts. |
Inventory | Inventories Inventories are carried at the lower of cost or market. Cost is determined using the first in, first out method. Work in progress inventory contains product that is undergoing irradiation. This irradiation process can take up to three years to reach high specific activity (HSA) levels. When indicators of inventory impairment exist, the Company measures the carrying value of the inventory against its market value, and if the carrying value exceeds the market value, the inventory value is adjusted down accordingly. For the year ended December 31, 2016, no cobalt inventory impairment was recorded. As discussed in Note 4, during the year ended December 31, 2015, it was determined that several cobalt targets held in inventory had fallen below market value and $102,857 was recorded as impairment expense at that time. During 2016, approximately $47,000 of raw material inventory was determined to have no future value to the Company, and was recorded as expense. |
Property, Plant and Equipment | Property, plant and equipment Depreciation on property, plant and equipment is computed using the straight-line method over the estimated useful life of the asset. Leasehold improvements are amortized over the shorter of the life of the lease or the service life of the improvements. Maintenance, repairs, and renewals that neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Gains or losses on dispositions of property and equipment are included in the results of operations. |
Patents and Other Intangibles | Patents and other intangibles Patents and other intangibles are amortized using the straight-line method over their estimated useful lives and are evaluated for impairment at least annually or when events or circumstances arise that indicate the existence of impairment. The Company evaluates the recoverability of identifiable intangible assets whenever events or changes in circumstances indicate that an intangible asset’s carrying amount may not be recoverable. Such circumstances could include, but are not limited to: (1) a significant decrease in the market value of an asset, (2) a significant adverse change in the extent or manner in which an asset is used, or (3) an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset. When indicators of impairment exist, the Company measures the carrying amount of the asset against the estimated undiscounted future cash flows associated with it. Should the sum of the expected future cash flows be less than the carrying value of the asset being evaluated, an impairment loss would be recognized. The impairment loss would be calculated as the amount by which the carrying value of the asset exceeds its fair value. The evaluation of asset impairment requires the Company to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. During the years ended December 31, 2016 and 2015, the Company had no impairment losses related to intangible assets. |
Impairment of Long-Lived Assets | Impairment of long-lived assets Long-lived assets are reviewed for impairment annually, or when events or circumstances arise that indicate the existence of impairment, using the same evaluation process as described above for patents and other intangibles. There was no impairment recorded during the years ended December 31, 2016 and 2015. |
Income Tax | Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. |
Use of Estimates | Use of estimates Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements in conformity with GAAP. Actual results could differ from those estimates. |
Revenue Recognition | Revenue recognition Revenue is recognized when products are shipped. No warranty coverage or right of return provisions are provided to customers. Amounts received as prepayment on future products or services are recorded as unearned revenues and recognized as income when the product is shipped or service performed. During the fiscal year ending December 31, 2016 and 2015, the Company had sales to one entity of approximately 31% and 27%, respectively, of its revenues. At December 31, 2016 and 2015, 36% and 29%, respectively, of accounts receivable were from one customer due to their additional role as a distributor for the Company’s nuclear medicine products. The loss of this customer may result in lower revenues and limit the cash available to grow the business and achieve profitability. |
Research and Development Costs | Research and development costs Research and development costs are expensed as incurred and totaled $511,283 and $821,453 for the years ended December 31, 2016 and 2015, respectively. These research and development costs pertained to continued costs incurred to maintain our planned de-conversion facility licenses and to costs incurred in our radiochemical products segment. |
Share-Based Compensation | Share-based compensation The Company accounts for issuances of share-based compensation to employees in accordance with GAAP which requires the recognition of the cost of employee services received in exchange for an award of equity instruments in the financial statements and is measured based on the grant date fair value of the award. Compensation expense is recognized over the period during which an employee is required to provide service in exchange for the award (the vesting period). |
Net Loss Per Common Share - Basic and Diluted | Net loss per common share – basic and diluted Basic loss per share is computed on the basis of the weighted-average number of common shares outstanding during the year. Diluted loss per share is computed on the basis of the weighted-average number of common shares plus all potentially dilutive issuable common shares outstanding during the year. |
Business Segments and Related Information | Business segments and related information GAAP establishes standards for the way public business enterprises are to report information about operating segments in annual financial statements and requires enterprises to report selected information about operating segments in interim financial reports issued to shareholders. It also establishes standards for related disclosure about products and services, geographic areas and major customers. The Company currently operates in six business segments. |
Description of Business and S23
Description of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | December 31, 2016 2015 Stock options 23,316,667 27,950,000 Warrants 27,419,172 42,257,951 850 Shares of Series B redeemable convertible preferred stock 425,000 425,000 51,160,839 70,632,951 |
Purchased Asset and Investmen24
Purchased Asset and Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Interest in RadQual, LLC | 2016 2015 Current assets $ 501,000 $ 510,000 Noncurrent assets 12,000 14,000 Current liabilities 293,000 345,000 Noncurrent liabilities - - Revenue 3,116,000 3,033,000 Gross profit 856,000 858,000 Net income $ 318,000 $ 342,000 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | 2016 2015 Raw materials $ 44,455 $ 91,555 Work in process 1,425,056 943,234 Finished goods 6,729 14,317 $ 1,476,240 $ 1,049,106 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 2016 2015 Estimated Useful Lives Furniture and fixtures $ 126,650 $ 126,194 3 - 5 years Transportation equipment 122,874 117,726 5 - 10 years Plant and improvements 463,754 463,754 5 years Production equipment 3,497,112 3,417,695 5 - 10 years 4,210,390 4,125,369 Accumulated depreciation (2,262,314) (2,193,106) $ 1,948,076 $ 1,932,263 |
Patents and Other Intangible 27
Patents and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | 2016 2015 Beginning $ 4,897,850 $ 4,901,698 Additions 11,169 22,734 Disposals - (26,582) Ending 4,909,019 4,897,850 Accumulated amortization (722,724) (610,002) $ 4,186,295 $ 4,287,848 |
Schedule of Future Amortization Expense | Years ending December 31, 2017 $ 112,016 2018 112,016 2019 112,016 2020 112,016 2021 112,016 Thereafter 3,626,215 $ 4,186,295 |
Convertible Debentures and No28
Convertible Debentures and Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | 2016 2015 Note payable to related parties bearing interest at 6% all principal and interest due on March 31, 2017, secured $ 360,000 $ - Note payable to a financial institution bearing interest at Monthly installments of $805, secured 43,132 - Note payable to the NRC bearing interest at 1% Monthly installments of $17,500, unsecured 45,871 Convertible notes payable, net of unamortized debt discount and debt issuance costs of $44,735 and $123,217 at December 31, 2016 and 2015, respectively, bearing interest at 8%, due July 27, 2017 3,025,165 2,946,683 Note payable to related parties net of unamortized debt discount of $107,288 and $224,330 at December 31, 2016 and 2015, respectively, bearing interest at 6% all principal and interest due on December 31, 2020, secured 392,712 275,670 Total notes payable 3,821,009 3,268,224 Less: current maturities (3,392,118) (45,871) Notes payable, net of current installments and debt discount $ 428,891 $ 3,222,353 |
Schedule of Maturities of Long Term Debt | Years ending December 31, 2017 $ 3,436,853 2018 7,236 2019 7,236 2020 507,236 2021 7,236 Thereafter 7,234 $ 3,973,031 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Schedule of Future Minimum Payments for Operating Leases | Years ending December 31, 2017 $ 136,313 2018 136,313 2019 136,313 2020 136,313 2021 45,318 Thereafter - $ 590,570 |
Shareholders' Equity, Mandato30
Shareholders' Equity, Mandatorily Redeemable Convertible Preferred Stock, Options and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Warrants or Rights | Warrants Outstanding Shares Weighted Average Exercise Price Outstanding at December 31, 2014 42,257,951 $ 0.18 Granted - - Exercised - - Forfeited - - Outstanding at December 31, 2015 42,257,951 0.18 Granted - - Exercised - - Forfeited (14,838,779) 0.38 Outstanding at December 31, 2016 27,419,172 $ 0.08 |
Schedule of Stock Option Activity | Options Outstanding Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Intrinsic Value Outstanding at December 31, 2014 27,950,000 $ 0.04 Granted - - Exercised - - Forfeited - - Outstanding at December 31, 2015 27,950,000 0.04 Granted - - Exercised (4,500,000) 0.04 $ 202,500 Forfeited (133,333) -0.04 Outstanding at December 31, 2016 23,316,667 $ 0.06 5.4 $ 1,883,667 Exercisable at December 31, 2016 23,129,167 $ 0.05 5.4 $ 1,874,292 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | 2016 2015 Income tax benefit $ (618,284) $ (618,196) Nondeductible expenses 4,827 93,914 State taxes net of federal benefit (83,650) (83,638) Change in valuation allowance 697,107 607,920 $ - $ - |
Schedule of Deferred Tax Assets and Liabilities | 2016 2015 Deferred income tax asset $ - $ - Net operating loss carryforward 12,961,241 12,335,934 Valuation allowance (12,224,047) (12,134,860) Total deferred income tax asset 737,194 201,074 Deferred income tax liability - depreciation (737,194) (201,074) Deferred tax asset (liability) $ - $ - |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations | Obligation for Lease Disposal Cost Balance at December 31, 2014 $ 450,630 Increase in lease disposal costs - Accretion expense / amortization expense 9,081 Balance at December 31, 2015 459,711 Increase in lease disposal costs - Accretion expense / amortization expense 9,263 Balance at December 31, 2016 $ 468,974 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Sale of product 2016 2015 Radiochemical products $ 1,708,120 $ 1,698,475 Cobalt products 859,034 929,970 Nuclear medicine standards 3,093,295 3,135,094 Radiological services 769,702 1,181,957 Fluorine products - - Transportation 121,998 116,700 Total segments 6,552,149 7,062,196 Corporate revenue - - Total consolidated $ 6,552,149 $ 7,062,196 Depreciation and amortization 2016 2015 Radiochemical products $ 6,995 $ 6,913 Cobalt products 43,802 41,617 Nuclear medicine standards 12,888 15,818 Radiological services 34,019 25,588 Fluorine products 112,053 110,692 Transportation 10,429 4,442 Total segments 220,186 205,070 Corporate depreciation and amortization 6,670 6,104 Total consolidated $ 226,856 $ 211,174 Segment income (loss) 2016 2015 Radiochemical products $ 355,448 $ 336,662 Cobalt products 472,890 344,073 Nuclear medicine standards 680,004 483,169 Radiological services 371,228 568,192 Fluorine products (378,705) (356,492) Transportation (34,374) (26,773) Total segments 1,466,491 1,348,831 Corporate loss (3,345,603) (3,167,056) Total consolidated $ (1,879,112) $ (1,818,225) Expenditures for segment assets 2016 2015 Radiochemical products $ - $ 2,331 Cobalt products - 4,578 Nuclear medicine standards 12,682 26,817 Radiological services 56,677 24,642 Fluorine products 11,170 20,403 Transportation 53,631 - Total segments 134,160 78,771 Corporate purchases 6,956 14,056 Total consolidated $ 141,116 $ 92,827 Segment assets 2016 2015 Radiochemical products $ 267,920 $ 212,988 Cobalt products 1,414,240 934,781 Nuclear medicine standards 502,361 626,615 Radiological services 171,354 502,445 Fluorine products 5,801,627 5,904,150 Transportation 49,706 1,642 Total segments 8,207,208 8,182,621 Corporate assets 3,172,057 3,060,606 Total consolidated $ 11,379,265 $ 11,243,227 |
Description of Business and S34
Description of Business and Significant Accounting Policies - Schedule of Antidilutive Securities (Details) - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock equivalents excluded from the computation of diluted net loss per common share | 51,160,839 | 70,632,951 |
Series B Redeemable Convertible Preferred Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock equivalents excluded from the computation of diluted net loss per common share | 425,000 | 425,000 |
Series B preferred stock outstanding | 850 | |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock equivalents excluded from the computation of diluted net loss per common share | 23,316,667 | 27,950,000 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock equivalents excluded from the computation of diluted net loss per common share | 27,419,172 | 42,257,951 |
Description of Business and S35
Description of Business and Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash and Cash Equivalents | |||
Cash and cash equivalents | $ 314,520 | $ 397,955 | $ 558,541 |
Restricted money market account | 450,631 | 450,630 | |
Inventory | |||
Work in process, impairment expense | 0 | 102,857 | |
Inventory write-down expense | 47,000 | ||
Research and Development | |||
Research and development | 511,283 | 821,453 | |
Share-Based Compensation | |||
Equity based compensation | $ 64,785 | $ 147,392 | |
Accounts Receivable | |||
Revenue Recognition | |||
Entity representing more than 10% of revenues and accounts receivable | 36.00% | 29.00% | |
Sales Revenue | |||
Revenue Recognition | |||
Entity representing more than 10% of revenues and accounts receivable | 31.00% | 27.00% |
Business Condition and Liquid36
Business Condition and Liquidity (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated deficit | $ (121,942,132) | $ (120,060,449) | |
Net loss | (1,879,112) | (1,818,225) | |
Increase in net loss | 60,887 | ||
Decrease in working capital | (4,193,078) | ||
Net cash used in operating activities | $ (324,176) | 339,604 | |
Commitment, description | In October 2014, the Company secured a ten-year cobalt production agreement with the United States Department of Energy ("DOE"). The agreement provides the Company with access to the currently available cobalt production positions in the DOE's Advanced Test Reactor ("ATR") located at the Idaho National Laboratory in Idaho Falls, Idaho. The ATR is the only DOE reactor in the United States ("U.S.") capable of producing large quantities of high specific activity cobalt. The Company holds a Nuclear Regulatory Commission ("NRC") construction and operating license for the depleted uranium facility as well as the property agreement with Lea County, New Mexico, where the plant is intended to be constructed. The NRC license for the de-conversion facility is a forty (40) year operating license and is the first commercial license of this type issued in the United States. | ||
Amendment to Project Participation Agreement, description | In July 2015, the Company announced that it executed an amendment to its Project Participation Agreement (PPA) with the Lea County, New Mexico Board of Commissioners. The PPA granted to the Company direct and indirect assistance for locating its proposed depleted UF6 de-conversion facility in Hobbs, New Mexico. The principal component of assistance was the conveyance of approximately 640 acres of land for construction and operation of the proposed facility. The conveyance of the land was contingent upon the Company commencing construction on Phase 1 of the facility by December 31, 2014 and hiring a certain number of employees by December 31, 2015. Under the amendment to the PPA, the Lea County, New Mexico Board of Commissioners agreed to extend those dates to December 31, 2016 and December 31, 2017, respectively. The Company did not meet the deadlines set forth in the amended PPA, but is in discussions with the Lea County, New Mexico Board of Commissioners to further extend the milestone dates. If the Company does not succeed in extending the commitment dates or in reaching performance dates set forth in a modified agreement, then we may, at our sole option, either purchase or re-convey the property to Lea County, New Mexico. The purchase price of the property would be $776,078, plus interest at the annual rate of 5.25% from the date of the closing to the date of payment. | ||
Licensing, expense | $ 379,000 | ||
Planning and development activities, expense | $ 357,000 | ||
Warrants, granted | 0 | 0 | |
Subsequent Event | Private Placement | Class M Warrants | |||
Warrants, granted | 17,165,000 | ||
Subsequent Event | Private Placement | Series C Convertible Redeemable Preferred Stock | |||
Convertible preferred stock, shares issued | 3,433 | ||
Proceeds from issuance of convertible preferred stock | $ 3,400,000 |
Purchased Asset and Investmen37
Purchased Asset and Investments - Schedule of Interest in RadQual, LLC (Details) - RadQual, LLC - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Current assets | $ 501,000 | $ 510,000 |
Noncurrent assets | 12,000 | 14,000 |
Current liabilities | 293,000 | 345,000 |
Noncurrent liabilities | 0 | 0 |
Revenue | 3,116,000 | 3,033,000 |
Gross profit | 856,000 | 858,000 |
Net income | $ 318,000 | $ 342,000 |
Purchased Asset and Investmen38
Purchased Asset and Investments (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2010 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment | $ 1,492,781 | $ 1,434,928 | |
Dividends received from equity method investment | 16,104 | 22,536 | |
Equity in net income of affiliate | $ 73,957 | $ 89,279 | |
Acquisition of interest in TI Services, LLC | The Company together with RadQual, formed a 50% owned joint venture called TI Services, LLC. TI Services, LLC is engaged in the distribution and selling of products related to the nuclear medicine industry. Because the Company controls more than a 50% direct and indirect ownership interest in TI Services, LLC, the assets and liabilities of TI Services, LLC are consolidated with those of the Company, and RadQual's non-controlling interest in TI Services, LLC is included in the Company's financial statements as a non-controlling interest. | ||
RadQual, LLC | |||
Ownership interest | 24.50% | 24.50% | |
Investment | $ 1,492,781 | $ 1,434,928 | |
Dividends received from equity method investment | 16,104 | 22,536 | |
Equity in net income of affiliate | 73,957 | 89,279 | |
Receivables from RadQual | 282,470 | 317,400 | |
Revenues from RadQual | 2,028,944 | 1,932,992 | |
TI Services LLC payables to RadQual | $ 87,000 | $ 113,000 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory, Current (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory, Net, Items Net of Reserve | ||
Raw materials | $ 44,455 | $ 91,555 |
Work in process | 1,425,056 | 1,011,330 |
Finished goods | 6,729 | 8,685 |
Total inventory | $ 1,476,240 | $ 1,111,570 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Inventory, Work in Process and Raw Materials | ||
Inventory, cobalt-60 isotopes, carrying value | $ 442,759 | $ 458,852 |
Work in process, impairment expense | 0 | $ 102,857 |
Inventory write-down expense | 47,000 | |
Work in process, accumulated cobalt irradiation charges | $ 766,080 |
Property, Plant and Equipment -
Property, Plant and Equipment - Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 4,210,390 | $ 4,125,369 |
Accumulated depreciation | (2,262,314) | (2,193,106) |
Property, plant and equipment, net | 1,948,076 | 1,932,263 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 126,650 | $ 126,194 |
Estimated useful lives | 3-5 years | 3-5 years |
Transportation Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 122,874 | $ 117,726 |
Estimated useful lives | 5-10 years | 5-10 years |
Plant and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 463,754 | $ 463,754 |
Estimated useful lives | 5 years | 5 years |
Production Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 3,497,112 | $ 3,417,695 |
Estimated useful lives | 5-10 years | 5-10 years |
Property, Plant and Equipment42
Property, Plant and Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 114,134 | $ 97,680 |
Patents and Other Intangible 43
Patents and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Patents and other intangible assets, beginning balance | $ 4,897,850 | $ 4,901,698 |
Patents and other intangible assets, additions | 11,169 | 22,734 |
Patents and other intangible assets, disposals | 0 | (26,582) |
Patents and other intangible assets, ending balance | 4,909,019 | 4,897,850 |
Accumulated amortization | (722,724) | (610,002) |
Patents and other intangible assets, net | $ 4,186,295 | $ 4,287,848 |
Patents and Other Intangible 44
Patents and Other Intangible Assets - Schedule of Future Amortization Expense (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets, Net, Amortization Expense | ||
2,017 | $ 112,016 | |
2,018 | 112,016 | |
2,019 | 112,016 | |
2,020 | 112,016 | |
2,021 | 112,016 | |
Thereafter | 3,626,215 | |
Patents and other intangibles, net | $ 4,186,295 | $ 4,287,848 |
Patents and Other Intangible 45
Patents and Other Intangible Assets (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible assets amorization expense | $ 112,722 | $ 107,487 | |
Accumulated amortization on an abandoned patent process | $ 6,007 | ||
Nuclear Regulatory Commission operating license, description | In October 2012, the Nuclear Regulatory Commission issued the Company a 40 year construction and operating license. The license will be amortized over its 40 year life. |
Convertible Debentures and No46
Convertible Debentures and Notes Payable - Schedule of Debt (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Notes payable | $ 3,821,009 | $ 3,268,224 | |
Unamortized debt discount and debt issuance costs | (347,547) | ||
Current maturities | (3,392,118) | (45,871) | |
Notes payable, net of current installments and debt discount | 428,891 | 3,222,353 | |
Notes Payable | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 43,132 | ||
Notes payable, payment terms | Monthly installments of $805, secured | ||
Notes Payable | Nuclear Regulatory Commission | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 45,871 | ||
Notes payable, interest rate | 1.00% | ||
Notes payable, payment terms | Monthly installments of $17,500, unsecured | ||
Notes Payable | Related Parties | |||
Debt Instrument [Line Items] | |||
Note payable, related party | $ 360,000 | $ 500,000 | |
Note payable, related party, interest rate | 6.00% | 6.00% | |
Note payable, related party, maturity date | Mar. 31, 2017 | Dec. 31, 2017 | |
Notes Payable | Related Parties #2 | |||
Debt Instrument [Line Items] | |||
Note payable, related party | $ 392,712 | $ 275,670 | |
Note payable, related party, interest rate | 6.00% | 6.00% | |
Note payable, related party, maturity date | Dec. 31, 2020 | Dec. 31, 2020 | |
Unamortized debt discount | $ 107,288 | $ 224,330 | |
Convertible Notes | Convertible Notes Payable #1 | |||
Debt Instrument [Line Items] | |||
Convertible notes payable | $ 3,025,165 | $ 2,946,683 | |
Convertible notes payable, maturity date | Jul. 27, 2017 | Jul. 27, 2017 | |
Notes payable, interest rate | 8.00% | 8.00% | |
Unamortized debt discount and debt issuance costs | $ 44,735 | $ 123,217 |
Convertible Debentures and No47
Convertible Debentures and Notes Payable - Schedule of Maturities of Long Term Debt (Details) | Dec. 31, 2016USD ($) |
Long-term Debt, Rolling Maturity | |
2,017 | $ 3,436,853 |
2,018 | 7,236 |
2,019 | 7,236 |
2,020 | 507,236 |
2,021 | 7,236 |
Thereafter | 7,234 |
Total maturities of notes payable obligations | $ 3,973,031 |
Convertible Debentures and No48
Convertible Debentures and Notes Payable (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Mar. 24, 2017 | Feb. 28, 2017 | Apr. 30, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Proceeds from convertible debt, aggregate value | $ 360,000 | $ 0 | ||||||
Accretion of beneficial conversion features | 9,657 | 15,066 | ||||||
Notes payable | 3,392,118 | 45,871 | ||||||
Notes payable, noncurrent | 428,891 | 275,670 | ||||||
Interest paid | 242,721 | 260,405 | ||||||
Subsequent Event | Private Placement | Series C Convertible Redeemable Preferred Stock | ||||||||
Convertible preferred stock, shares issued | 3,433 | |||||||
Conversion of debt for shares of series C preferred stock and warrants, value | $ 205,000 | |||||||
Convertible Notes | ||||||||
Proceeds from convertible debt, aggregate value | $ 1,060,000 | $ 3,069,900 | ||||||
Interest rate | 10.00% | 8.00% | ||||||
Maturity date | Jul. 31, 2017 | |||||||
Conversion price | $ 0.14 | $ 0.225 | ||||||
Class of warrant or right, description | Each investor received a common stock purchase warrant to purchase common stock equal to twenty five percent (25%) of the shares issuable upon conversion of the debentures. | |||||||
Warrant exercise price | $ 0.30 | |||||||
Warrant expiration term | Term of 5 years | |||||||
Fair value | $ 2,703,144 | |||||||
Fair value, warrants | 366,756 | |||||||
Beneficial conversion feature | 75,715 | $ 25,656 | ||||||
Warrants issued | 1,091,520 | |||||||
Warrant issued, fair value | $ 133,285 | |||||||
Accretion of beneficial conversion features | 73,352 | 5,131 | ||||||
Amortization of interest expense | 5,408 | |||||||
Stock issued upon conversion of debt and accrued interest | $ 1,282,600 | |||||||
Stock issued upon conversion of debt and accrued interest, shares | 32,065,000 | |||||||
Convertible Notes | Subsequent Event | ||||||||
Redemption terms, description | The Notes were amended to give each holder of the Notes the right, at the holder's option, to have the Company redeem part or all of the outstanding Notes for cash in an amount equal to 100% of the principal amount of the Notes redeemed and all accrued but unpaid interest as of the redemption date. | |||||||
Notes Payable | ||||||||
Interest rate | 1.00% | |||||||
Maturity date | Feb. 15, 2016 | Dec. 31, 2017 | ||||||
Warrant exercise price | $ 0.06 | |||||||
Beneficial conversion feature | $ 15,464 | |||||||
Warrants issued | 15,000,000 | |||||||
Warrant issued, fair value | $ 384,428 | |||||||
Risk free interest rate | 1.62% | |||||||
Expected volatility | 69.47% | |||||||
Expected life | 4 years 6 months | |||||||
Notes payable, noncurrent | $ 596,816 | |||||||
Notes payable, monthly payments | $ 17,500 | |||||||
Notes payable terms | The Company negotiated with the NRC to convert amounts owing as a trade payable to a long-term note. The Company converted a total of $596,816 to the note payable. | |||||||
Notes Payable | Related Parties | ||||||||
Interest rate | 6.00% | |||||||
Warrant exercise price | $ 0.06 | |||||||
Warrants issued | 10,000,000 | |||||||
Notes payable, noncurrent | $ 500,000 | |||||||
Note payable, related party | $ 360,000 | $ 500,000 | ||||||
Note payable, related party, interest rate | 6.00% | 6.00% | ||||||
Note payable, related party, maturity date | Mar. 31, 2017 | Dec. 31, 2017 | ||||||
Non-cash interest expense | $ 117,042 | $ 117,042 |
Lease Obligations - Schedule of
Lease Obligations - Schedule of Future Minimum Payments for Operating Leases (Details) | Dec. 31, 2016USD ($) |
Operating Leases, Future Minimum Payments Due | |
Year ending December 31, 2017 | $ 136,313 |
Year ending December 31, 2018 | 136,313 |
Year ending December 31, 2019 | 136,313 |
Year ending December 31, 2020 | 136,313 |
Year ending December 31, 2021 | 45,318 |
Thereafter | 0 |
Total operating leases | $ 590,570 |
Lease Obligations (Details Narr
Lease Obligations (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Leases [Abstract] | ||
Rental expense | $ 136,313 | $ 136,313 |
Rental expiration date | Dec. 31, 2021 | Dec. 31, 2021 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Warrant Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Warrants outstanding, beginning of period | 42,257,951 | 42,257,951 |
Warrants, granted | 0 | 0 |
Warrants, exercised | 0 | 0 |
Warrants, forfeited | (14,838,779) | 0 |
Warrants outstanding, end of period | 27,419,172 | 42,257,951 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ||
Weighted average exercise price of warrants outstanding, beginning of period | $ 0.18 | $ 0.18 |
Weighted average exercise price, granted | 0 | 0 |
Weighted average exercise price, exercised | 0 | 0 |
Weighted average exercise price, forfeited | 0.38 | 0.38 |
Weighted average exercise price of warrants outstanding, end of period | $ 0.08 | $ 0.18 |
Shareholders' Equity - Schedu52
Shareholders' Equity - Schedule of Stock Option Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-Based Compensation Arrangement By Share-Based Payment Award Options Outstanding | ||
Stock options outstanding, beginning of period | 27,950,000 | 27,950,000 |
Stock options, granted | 0 | 0 |
Stock options, exercised | (4,500,000) | 0 |
Stock options, forfeited | (133,333) | 0 |
Stock options outstanding, end of period | 23,316,667 | 27,950,000 |
Stock options exercisable, end of period | 23,129,167 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | ||
Weighted average exercise price outstanding, beginning of period | $ 0.04 | $ 0.04 |
Weighted average exercise price, granted | 0 | 0 |
Weighted average exercise price, exercised | 0.04 | 0 |
Weighted average exercise priced, forfeited | 0.04 | 0 |
Weighted average exercise price outstanding, end of period | 0.06 | $ 0.04 |
Weighted average exercise price exercisable, end of period | $ 0.05 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures | ||
Weighted average remaining contractual life outstanding, end of period | 5 years 3 months | |
Weighted average remaining contractual life exercisable, end of period | 5 years 3 months | |
Intrinsic value of options, exercised | $ 202,500 | |
Intrinsic value outstanding, end of period | 1,883,667 | |
Intrinsic value, exercisable, end of period | $ 1,874,292 |
Shareholders' Equity - Warrants
Shareholders' Equity - Warrants (Details Narrative) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |
Warrants, outstanding | 27,419,172 | 42,257,951 | 42,257,951 | ||
Warrants, granted | 0 | 0 | |||
Warrants, forfeited | (14,838,779) | 0 | |||
Notes Payable | |||||
Exercise price of warrants | $ 0.06 | ||||
Notes Payable | Related Parties | |||||
Exercise price of warrants | $ 0.06 | ||||
Note payable, related party | $ 360,000 | $ 500,000 | |||
Note payable, related party, interest rate | 6.00% | 6.00% | |||
Warrants, granted | 25,000,000 | ||||
Note payable, related party, maturity date | Mar. 31, 2017 | Dec. 31, 2017 | |||
Warrants | |||||
Potential number of shares to be issued | 4,502,520 | ||||
Exercise price of warrants | $ 0.30 | ||||
Additional stock-based compensation expense | $ 884 | ||||
Warrants, forfeited | (14,838,779) | ||||
Warrants | Class I | |||||
Warrants, outstanding | 12,924,887 | ||||
Warrants | Class H | |||||
Warrants, outstanding | 1,913,892 |
Shareholders' Equity - Mandator
Shareholders' Equity - Mandatorily Redeemable Convertible Preferred Stock (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Preferred stock, shares authorized | 5,000,000 | ||
Preferred stock, par value | $ 0.01 | ||
Mandatorily redeemable convertible preferred stock | $ 850,000 | $ 850,000 | |
Series B Convertible Redeemable Preferred Stock | |||
Preferred stock outstanding | 850 | ||
Redemption date | May 31, 2022 | ||
Redemption price per share | $ 1,000 | ||
Mandatorily redeemable convertible preferred stock | $ 850,000 | ||
Preferred stock conversion price per share, description | Conversion price of $2.00 per share | ||
Series C Convertible Redeemable Preferred Stock | Subsequent Event | Private Placement | |||
Redemption date | Feb. 17, 2022 | ||
Redemption price per share | $ 1,000 | ||
Preferred stock conversion price per share, description | Conversion price of $0.10 per share | ||
Convertible preferred stock, shares issued | 3,433 | ||
Preferred stock dividend rate | 6.00% |
Shareholders' Equity - Employee
Shareholders' Equity - Employee Stock Purchase Plan (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Proceeds from employee stock purchase plan | $ 3,993 | $ 3,743 | |
Employee Stock Purchase Plan | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Employee stock purchase plan, number of allocated shares | 2,000,000 | ||
Employee stock purchase plan, plan description | The plan allows employees to deduct up to 15% of their payroll each pay period to be used for the purchase of common stock at a discounted rate. The common shares will be purchased at the end of each three-month offering period or other period as determined by the Board. The Plan is intended to qualify as an employee stock purchase plan under Section 423 of the Internal Revenue Code. | ||
Stock issued during period, shares, employee stock purchase plan | 57,654 | 115,102 | |
Proceeds from employee stock purchase plan | $ 3,993 | $ 3,743 |
Shareholders' Equity - Equity I
Shareholders' Equity - Equity Incentive Plans (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Exercise price | $ 0 | $ 0 |
Intrinsic value of qualified stock options exercised | $ 202,500 | |
Qualified stock options exercised | 4,500,000 | 0 |
Stock Options | ||
Exercise price | $ 0.12 | |
Intrinsic value of stock awards vested | $ 1,883,667 | |
Intrinsic value of qualified stock options exercised | 22,500 | |
Intrinsic value of non-qualified stock options exercised | 180,000 | |
Recognized compensation expense | 49,677 | $ 138,115 |
Unrecognized compensation expense | $ 33 | |
Period to be recognized | 6 months | |
Net shares issued | 281,250 | |
Net shares issued, non-qualified options | 2,250,000 | |
Shares forfeited to satisfy the exercise price | 218,750 | |
Shares forfeited to satisfy the exercise price, non-qualified stock options | 1,750,000 | |
Qualified stock options exercised | 500,000 | |
Non-qualified stock options exercised | 4,000,000 | |
2015 Incentive Plan | ||
Number of shares authorized | 60,000,000 | |
Shares issued | 280,000 | 280,000 |
Shares issued, value | $ 28,000 | |
Maturity date | Jul. 13, 2025 | |
Shares available for issuance | 23,552,680 | |
Net shares issued | 167,860 | 167,860 |
Shares issued, price per share | $ 0.10 | $ 0.10 |
Shares withheld to satisfy payroll tax liabilities | 112,140 | 112,140 |
Compensation expense | $ 25,200 | |
2006 Equity Incentive Plan | ||
Number of shares authorized | 11,089,967 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Expense (Benefit), Continuing Operations | ||
Income tax benefit | $ (618,284) | $ (618,196) |
Nondeductible expenses | 4,827 | 93,914 |
State taxes net of federal benefit | (83,650) | (83,638) |
Change in valuation allowance | 697,107 | 607,920 |
Total income tax expense | $ 0 | $ 0 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred income tax asset | ||
Net operating loss carryforward | $ 12,961,241 | $ 12,335,934 |
Valuation allowance | (12,224,047) | (12,134,860) |
Total deferred income tax asset | 737,194 | 201,074 |
Deferred income tax liability - depreciation | (737,194) | (201,074) |
Deferred tax asset (liability) | $ 0 | $ 0 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Income Tax Disclosure [Abstract] | |
Federal income tax rate | 34.00% |
Approximate net operating losses | $ 33,064,000 |
Operating loss carryforwards, expiration date | Dec. 31, 2023 |
Commitments and Contingencies (
Commitments and Contingencies (Detail Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Restricted money market account | $ 450,631 | $ 450,630 |
Other commitments, description | In August 2011, we received land from Lea County, New Mexico, pursuant to a PPA, whereby the land was deeded to us for no monetary consideration. In return, we committed to construct a uranium de-conversion and FEP facility on the land. In order to retain title to the property, we were to begin construction of the de-conversion facility no later than December 31, 2014, and complete Phase I of the project and have hired at least 75 persons to operate the facility no later than December 31, 2015, although commercial operations need not have begun by that date. In 2015 the Company negotiated a modification to the PPA agreement that extended the start of construction date to December 31, 2015, and the hiring milestone to December 31, 2016. Those dates were not met and the Company is currently in the process of renegotiating a second modification to the agreement to further extend those dates. If we do not succeed in reaching an amendment to extent the performance dates in the agreement then we may, at our sole option, either purchase or re-convey the property to Lea County, New Mexico. The purchase price of the property would be $776,078, plus interest at the annual rate of 5.25% from the date of the closing to the date of payment. We have not recorded the value of this property as an asset and will not do so until such time that sufficient progress on the project has been made to meet our obligations under the agreements for permanent transfer of the title. | |
Description of defined contribution pension plan | The Company has a 401(k) defined-contribution pension plan (the "401(k) Plan"). Employees are eligible to participate in the Plan after completing six months of full-time service. Participants, under provision of Internal Revenue Code § 401(k), may elect to contribute up to $18,000 of their compensation to the 401(k) Plan which includes both before-tax and Roth after-tax contribution options. Although the Company reserves the right to make discretionary matching contributions to participant accounts, there were no employer matching contributions made for either 2016 or 2015. All amounts withheld for employee contributions for 2016 were paid into the 401(k) Plan. The employer reserves the right to terminate the 401(k) Plan at any time. |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Asset Retirement Obligation [Roll Forward] | ||
Obligation for lease disposal cost, balance at beginning of period | $ 459,711 | $ 450,630 |
Obligation for lease disposal cost, increase in lease disposal costs | 0 | 0 |
Obligation for lease disposal cost, accretion expense / amortization expense | 9,263 | 9,081 |
Obligation for lease disposal cost, balance at end of period | $ 468,974 | $ 459,711 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Sale of Product | $ 6,552,149 | $ 7,062,196 |
Depreciation and Amortization | 226,856 | 211,174 |
Segment Income (Loss) | (1,879,112) | (1,818,225) |
Expenditures for Segment Assets | 141,116 | 92,827 |
Segment Assets | 11,379,265 | 11,243,227 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Sale of Product | 6,552,149 | 7,062,196 |
Depreciation and Amortization | 220,186 | 205,070 |
Segment Income (Loss) | 1,466,491 | 1,348,831 |
Expenditures for Segment Assets | 134,160 | 78,771 |
Segment Assets | 8,207,208 | 8,182,621 |
Operating Segments | Radiochemical Products | ||
Segment Reporting Information [Line Items] | ||
Sale of Product | 1,708,120 | 1,698,475 |
Depreciation and Amortization | 6,995 | 6,913 |
Segment Income (Loss) | 355,448 | 336,662 |
Expenditures for Segment Assets | 0 | 2,331 |
Segment Assets | 267,920 | 212,988 |
Operating Segments | Cobalt Products | ||
Segment Reporting Information [Line Items] | ||
Sale of Product | 859,034 | 929,970 |
Depreciation and Amortization | 43,802 | 41,617 |
Segment Income (Loss) | 472,890 | 344,073 |
Expenditures for Segment Assets | 0 | 4,578 |
Segment Assets | 1,414,240 | 934,781 |
Operating Segments | Nuclear Medicine Standards | ||
Segment Reporting Information [Line Items] | ||
Sale of Product | 3,093,295 | 3,135,094 |
Depreciation and Amortization | 12,888 | 15,818 |
Segment Income (Loss) | 680,004 | 483,169 |
Expenditures for Segment Assets | 12,682 | 26,817 |
Segment Assets | 502,361 | 626,615 |
Operating Segments | Radiological Services | ||
Segment Reporting Information [Line Items] | ||
Sale of Product | 769,702 | 1,181,957 |
Depreciation and Amortization | 34,019 | 25,588 |
Segment Income (Loss) | 371,228 | 568,192 |
Expenditures for Segment Assets | 56,677 | 24,642 |
Segment Assets | 171,354 | 502,445 |
Operating Segments | Fluorine Products | ||
Segment Reporting Information [Line Items] | ||
Sale of Product | 0 | 0 |
Depreciation and Amortization | 112,053 | 110,692 |
Segment Income (Loss) | (378,705) | (356,492) |
Expenditures for Segment Assets | 11,170 | 20,403 |
Segment Assets | 5,801,627 | 5,904,150 |
Operating Segments | Transportation | ||
Segment Reporting Information [Line Items] | ||
Sale of Product | 121,998 | 116,700 |
Depreciation and Amortization | 10,429 | 4,442 |
Segment Income (Loss) | (34,374) | (26,773) |
Expenditures for Segment Assets | 53,631 | 0 |
Segment Assets | 49,706 | 1,642 |
Corporate Allocation | ||
Segment Reporting Information [Line Items] | ||
Sale of Product | 0 | 0 |
Depreciation and Amortization | 6,670 | 6,104 |
Segment Income (Loss) | (3,345,603) | (3,167,056) |
Expenditures for Segment Assets | 6,956 | 14,056 |
Segment Assets | $ 3,172,057 | $ 3,060,606 |
Segment Information (Details Na
Segment Information (Details Narrative) | 12 Months Ended |
Dec. 31, 2016Number | |
Segment Reporting [Abstract] | |
Number of reportable segments | 6 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Mar. 24, 2017 | Feb. 28, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | |
Subsequent Event [Line Items] | |||||
Warrants, granted | 0 | 0 | |||
Convertible Notes | |||||
Subsequent Event [Line Items] | |||||
Exercise price of warrants | $ 0.30 | ||||
Subsequent Event | Convertible Notes | |||||
Subsequent Event [Line Items] | |||||
Type of equity security into which conversion will be made, descripton | The Company entered into an Amendment to 8% Convertible Notes (the "Amendment") with Euro Pacific Capital, Inc., pursuant to which the 8% Convertible Notes issued by the Company in July 2012 (the "Notes") were amended to give noteholders certain additional rights. Pursuant to the Amendment, the Notes were modified to provide each holder the right, at the holder's option and exercisable prior to May 12, 2017, to convert all or any portion of the principal amount of the Notes, plus accrued but unpaid interest, into shares of the Company's Series C Convertible Redeemable Preferred Stock (the "Series C Preferred Stock") at a conversion price of $1,000 per share of Series C Preferred Stock. | ||||
Terms of conversion, description | Holders that elect to convert their Notes into Series C Preferred Stock will also receive a warrant to purchase up to 3,750 shares of the Company's common stock for each share of Series C Preferred Stock received upon conversion of the Notes, with each warrant having a 5-year term, a cashless exercise feature, and an exercise price of $0.10 per share of common stock. | ||||
Redemption terms, description | The Notes were amended to give each holder of the Notes the right, at the holder's option, to have the Company redeem part or all of the outstanding Notes for cash in an amount equal to 100% of the principal amount of the Notes redeemed and all accrued but unpaid interest as of the redemption date. | ||||
Subsequent Event | Stock Compensation | |||||
Subsequent Event [Line Items] | |||||
Stock issued, shares | 350,000 | ||||
Stock issued, value | $ 28,000 | ||||
Stock issued, price per share | $ 0.08 | ||||
Share-based compensation expense | $ 28,000 | ||||
Shares withheld to satisfy payroll tax liabilities | 140,175 | ||||
Stock issued, net, shares | 209,825 | ||||
Subsequent Event | Private Placement | Class M Warrants | |||||
Subsequent Event [Line Items] | |||||
Warrants, granted | 17,165,000 | ||||
Exercise price of warrants | $ 0.12 | ||||
Term of warrants | 5 years | ||||
Fair value of warrants issued | $ 464,423 | ||||
Subsequent Event | Private Placement | Series C Convertible Redeemable Preferred Stock | |||||
Subsequent Event [Line Items] | |||||
Convertible preferred stock, shares issued | 3,433 | ||||
Preferred stock dividend rate | 6.00% | ||||
Preferred stock conversion price per share, description | Conversion price of $0.10 per share | ||||
Fair value of stock issued | $ 2,968,577 |