Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 11, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-22923 | |
Entity Registrant Name | INTERNATIONAL ISOTOPES INC | |
Entity Central Index Key | 0001038277 | |
Entity Incorporation, State or Country Code | TX | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 424,344,298 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 898,215 | $ 575,422 |
Accounts receivable | 1,184,105 | 875,914 |
Inventories | 1,238,034 | 3,423,420 |
Prepaids and other current assets | 1,045,949 | 1,444,593 |
Total current assets | 4,366,303 | 6,319,349 |
Long-term assets | ||
Restricted cash | 638,639 | 635,498 |
Property, plant and equipment, net | 1,911,668 | 2,003,887 |
Financing lease right-of-use asset | 26,144 | 13,302 |
Operating lease right-of-use asset | 2,567,532 | 709,883 |
Goodwill | 1,384,255 | 1,384,255 |
Patents and other intangibles, net | 4,067,317 | 4,190,621 |
Total long-term assets | 10,595,555 | 8,937,446 |
Total assets | 14,961,858 | 15,256,795 |
Current liabilities | ||
Accounts payable | 2,271,349 | 4,229,128 |
Accrued liabilities | 1,195,773 | 1,096,090 |
Unearned revenue | 1,198,910 | 1,240,205 |
Current portion of operating lease right-of-use liability | 83,862 | 100,777 |
Current portion of financing lease liability | 7,608 | 2,367 |
Current installments of notes payable | 471,809 | 1,519,496 |
Total current liabilities | 5,229,311 | 8,188,063 |
Long-term liabilities | ||
Obligation for lease disposal costs | 577,434 | 546,570 |
Related party notes payable, net of debt discount | 1,026,640 | 1,216,874 |
Notes payable, net of current portion | 5,506 | 12,276 |
Financing lease liability, net of current portion | 18,902 | 10,970 |
Operating lease right-of-use liability, net of current portion | 2,506,531 | 609,106 |
Mandatorily redeemable convertible preferred stock, net of discount | 4,881,337 | 4,785,086 |
Total long-term liabilities | 9,016,350 | 7,180,882 |
Total liabilities | 14,245,661 | 15,368,945 |
Commitments and contingencies | ||
Stockholders' (Deficit) Equity | ||
Common stock | 4,242,727 | 4,198,423 |
Additional paid-in capital | 122,181,532 | 121,680,163 |
Accumulated deficit | (127,950,501) | (128,064,385) |
Deficit attributable to International Isotopes Inc. stockholders | (1,526,242) | (2,185,799) |
Equity attributable to noncontrolling interest | 2,242,439 | 2,073,649 |
Total equity (deficit) | 716,197 | (112,150) |
Total liabilities and stockholders' equity (deficit) | $ 14,961,858 | $ 15,256,795 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
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 | 424,272,658 | 419,842,256 |
Common stock, shares outstanding | 424,272,658 | 419,842,256 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Sale of product | $ 2,864,288 | $ 2,337,488 | $ 7,359,633 | $ 7,001,179 |
Cost of product | 974,882 | 1,224,805 | 2,847,316 | 3,284,617 |
Gross profit | 1,889,406 | 1,112,683 | 4,512,317 | 3,716,562 |
Operating costs and expenses: | ||||
Salaries and contract labor | 662,821 | 650,363 | 2,140,565 | 1,870,107 |
General, administrative and consulting | 679,520 | 577,540 | 2,041,705 | 1,804,983 |
Research and development | 57,051 | 65,995 | 145,444 | 162,653 |
Total operating expenses | 1,399,392 | 1,293,898 | 4,327,714 | 3,837,743 |
Net operating income (loss) | 490,014 | (181,215) | 184,603 | (121,181) |
Other income (expense): | ||||
Other income (expense) | 95,503 | 693,639 | 679,216 | (149,389) |
Interest income | 81 | 3,322 | 3,164 | 10,355 |
Interest expense | (193,085) | (146,620) | (584,309) | (397,539) |
Total other income (expense) | (97,501) | 550,341 | 98,071 | (536,573) |
Net (loss) income | 392,513 | 369,126 | 282,674 | (657,754) |
Less income attributable to non-controlling interest | 85,463 | 132,664 | 168,790 | 314,935 |
Net income (loss) attributable to International Isotopes Inc. | $ 307,050 | $ 236,462 | $ 113,884 | $ (972,689) |
Net income (loss) per common share - basic | ||||
Net income (loss) per common share - diluted | ||||
Weighted average common shares outstanding - basic | 424,054,007 | 419,800,218 | 422,832,562 | 417,645,817 |
Weighted average common shares outstanding - diluted | 433,442,413 | 429,600,218 | 432,220,968 | 417,645,817 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 282,674 | $ (657,754) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 225,949 | 197,054 |
Accretion of obligation for lease disposal costs | 30,864 | 28,684 |
Accretion of beneficial conversion feature and discount | 291,435 | 116,368 |
Equity based compensation | 80,203 | 113,093 |
Gain on sale of property, plant and equipment | (8,500) | (1,700) |
Forgiveness of Paycheck Protection Program Loan | (546,100) | |
Right-of-use asset amortization | 22,861 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (308,191) | 20,634 |
Inventories | 1,053,376 | (664,332) |
Prepaids and other current assets | 398,644 | (928,342) |
Accounts payable and accrued liabilities | (521,606) | 2,003,136 |
Unearned revenues | (41,295) | (18,837) |
Net cash provided by operating activities | 960,314 | 208,004 |
Cash flows from investing activities: | ||
Proceeds from sale of property, plant and equipment | 8,500 | 1,700 |
Purchase of property, plant and equipment | (6,744) | (77,959) |
Net cash provided by (used in) investing activities | 1,756 | (76,259) |
Cash flows from financing activities: | ||
Proceeds from sale of stock and exercise of options | 13,430 | 89,036 |
Payments on financing lease | (3,351) | |
Distributions to non-controlling interest | (6,200) | |
Proceeds from issuance of notes payable | 871,100 | |
Principal payments on notes payable | (1,517,315) | (526,883) |
Net cash used in financing activities | (636,136) | (444,047) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 325,934 | (312,302) |
Cash, cash equivalents, and restricted cash at beginning of period | 1,210,920 | 1,450,467 |
Cash, cash equivalents, and restricted cash at end of period | 1,536,854 | 1,138,165 |
Supplemental disclosure of cash flow activities: | ||
Cash paid for interest | 67,575 | 115,718 |
Supplemental disclosure of noncash financing and investing transactions: | ||
Decrease in accrued interest and increase in equity for conversion of dividends to stock | 204,480 | 205,980 |
Increase in operating lease right-of-use asset and right-of-use liability for new lease | 2,649,070 | |
Decrease in operating lease right-of-use asset and right-of-use liability for disposal of old lease | 697,009 | |
Increase in financing lease right-of-use asset and right-of-use liability for new lease | 16,524 | |
Decrease in inventory and decrease in accounts payable for cancellation of DOE contract | 1,132,010 | |
Decrease in related party notes payable and increase in equity for amounts allocated to warrants and beneficial conversion feature | 247,560 | |
Decrease in unearned revenue and increase in notes payable for repayment plan | 2,182,142 | |
Reconciliation of cash, cash equivalents, and restricted cash as shown in the condensed consolidated statements of cash flows is presented in the table below: | ||
Cash and cash equivalents | 898,215 | 505,400 |
Restricted cash included in long-term assets | 638,639 | 632,765 |
Total cash, cash equivalents and restricted cash shown in statement of cash flows | $ 1,536,854 | $ 1,138,165 |
Reconciliation of Stockholders'
Reconciliation of Stockholders' (Deficit) Equity (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Deficit Attributable to Internat'l Isotopes Shareholders | Equity Attributable to Noncontrolling Interest | Total |
Beginning balance, value at Dec. 31, 2018 | $ 4,131,683 | $ 120,805,997 | $ (126,541,421) | $ (1,603,741) | $ 1,757,875 | $ 154,134 |
Beginning balance, shares at Dec. 31, 2018 | 413,168,301 | |||||
Shares issued under employee stock purchase plan, value | $ 993 | 4,043 | 5,036 | 5,036 | ||
Shares issued under employee stock purchase plan, shares | 99,372 | |||||
Stock grant, value | $ 2,798 | (2,798) | ||||
Stock grant, shares | 279,767 | |||||
Stock in lieu of dividends on convertible preferred C shares, value | $ 34,330 | 171,650 | 205,980 | 205,980 | ||
Stock in lieu of dividends on convertible preferred C shares, shares | 3,433,000 | |||||
Shares issued for exercise of employee stock options, value | $ 28,250 | 55,750 | 84,000 | 84,000 | ||
Shares issued for exercise of employee stock options, shares | 2,825,000 | |||||
Distribution to non-controlling interest | (6,200) | (6,200) | ||||
Stock based compensation | 113,093 | 113,093 | 113,093 | |||
Net (loss) income | (972,689) | (972,689) | 314,935 | (657,754) | ||
Ending balance, value at Sep. 30, 2019 | $ 4,198,054 | 121,147,735 | (127,514,110) | (2,168,321) | 2,066,610 | (101,711) |
Ending balance, shares at Sep. 30, 2019 | 419,805,440 | |||||
Beginning balance, value at Jun. 30, 2019 | $ 4,197,741 | 121,125,897 | (127,750,572) | (2,426,934) | 1,933,946 | (492,988) |
Beginning balance, shares at Jun. 30, 2019 | 419,774,105 | |||||
Shares issued under employee stock purchase plan, value | $ 313 | 1,285 | 1,598 | 1,598 | ||
Shares issued under employee stock purchase plan, shares | 31,335 | |||||
Stock based compensation | 20,553 | 20,553 | 20,553 | |||
Net (loss) income | 236,462 | 236,462 | 132,664 | 369,126 | ||
Ending balance, value at Sep. 30, 2019 | $ 4,198,054 | 121,147,735 | (127,514,110) | (2,168,321) | 2,066,610 | (101,711) |
Ending balance, shares at Sep. 30, 2019 | 419,805,440 | |||||
Beginning balance, value at Dec. 31, 2019 | $ 4,198,423 | 121,680,163 | (128,064,385) | (2,185,799) | 2,073,649 | (112,150) |
Beginning balance, shares at Dec. 31, 2019 | 419,842,256 | |||||
Shares issued under employee stock purchase plan, value | $ 3,036 | 10,394 | 13,430 | 13,430 | ||
Shares issued under employee stock purchase plan, shares | 303,610 | |||||
Stock grant, value | $ 3,021 | (3,021) | ||||
Stock grant, shares | 302,125 | |||||
Stock in lieu of dividends on convertible preferred C shares, value | $ 34,080 | 170,400 | 204,480 | 204,480 | ||
Stock in lieu of dividends on convertible preferred C shares, shares | 3,408,000 | |||||
Convertible debenture beneficial conversion feature | 102,584 | 102,584 | 102,584 | |||
Warrants issued with convertible debentures | 144,976 | 144,976 | $ 144,976 | |||
Shares issued for exercise of employee stock options, value | $ 4,167 | (4,167) | ||||
Shares issued for exercise of employee stock options, shares | 416,667 | 1,000,000 | ||||
Stock based compensation | 80,203 | 80,203 | $ 80,203 | |||
Net (loss) income | 113,884 | 113,884 | 168,790 | 282,674 | ||
Ending balance, value at Sep. 30, 2020 | $ 4,242,727 | 122,181,532 | (127,950,501) | (1,526,242) | 2,242,439 | 716,197 |
Ending balance, shares at Sep. 30, 2020 | 424,272,658 | |||||
Beginning balance, value at Jun. 30, 2020 | $ 4,237,941 | 122,171,489 | (128,257,551) | (1,848,121) | 2,156,976 | 308,855 |
Beginning balance, shares at Jun. 30, 2020 | 423,794,088 | |||||
Shares issued under employee stock purchase plan, value | $ 619 | 2,538 | 3,157 | 3,157 | ||
Shares issued under employee stock purchase plan, shares | 61,903 | |||||
Shares issued for exercise of employee stock options, value | $ 4,167 | (4,167) | ||||
Shares issued for exercise of employee stock options, shares | 416,667 | |||||
Stock based compensation | 11,672 | 11,672 | 11,672 | |||
Net (loss) income | 307,050 | 307,050 | 85,463 | 392,513 | ||
Ending balance, value at Sep. 30, 2020 | $ 4,242,727 | $ 122,181,532 | $ (127,950,501) | $ (1,526,242) | $ 2,242,439 | $ 716,197 |
Ending balance, shares at Sep. 30, 2020 | 424,272,658 |
The Company and Basis of Presen
The Company and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and Basis of Presentation | (1) The Company and Basis of Presentation International Isotopes Inc. (INIS) was incorporated in Texas in November 1995. The accompanying unaudited condensed consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (GAAP) and include all operations and balances of INIS and its wholly owned subsidiaries. The unaudited condensed consolidated financial statements also include the accounts of INIS’s 50% owned joint venture, TI Services, LLC (TI Services), and the accounts of INIS’s 24.5% interest in RadQual, LLC (RadQual). TI Services is headquartered in Youngstown, Ohio and was formed with RadQual in December 2010 to distribute products and services for nuclear medicine, nuclear cardiology and Positron Emission Tomography (PET) imaging. RadQual is a global supplier of molecular imaging quality control and calibration devices, and is headquartered in Idaho Falls, Idaho. In August 2017, affiliates of INIS purchased 75.5% of RadQual and at the time INIS was named as one of the two managing members of RadQual. As a result of this ownership change, INIS has significant influence in management decisions with regard to RadQual’s business operations. INIS, its wholly owned subsidiaries, TI Services, and RadQual are collectively referred to herein as the “Company,” “we,” “our” or “us.” 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 one year, have been recorded as unearned revenue and, depending upon estimated ship dates, classified under either current or long-term liabilities on the Company’s condensed consolidated balance sheets. Principles of Consolidation Interim Financial Information Recent Accounting Pronouncements – |
Current Developments and Liquid
Current Developments and Liquidity | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Current Developments and Liquidity | (2) Current Developments and Liquidity Business Condition During the nine months ended September 30, 2020, the Company continued its focus on its strongest long-standing core business segments which consist of its radiochemical products, cobalt products, and nuclear medicine standards, and in particular, the pursuit of new business opportunities within those segments. Additionally, the Company holds a Nuclear Regulatory Commission (NRC) construction and operating license for the depleted uranium facility in, 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 considers it a valuable asset. The Company expects that cash from operations, equity or debt financing, 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. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share - Basic and Diluted | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share - Basic and Diluted | (3) Net Income (Loss) Per Common Share - Basic and Diluted For the nine months ended September 30, 2020, the Company had 13,875,000 stock options outstanding, 20,090,000 warrants outstanding, 4,213 outstanding shares of Series C redeemable convertible preferred stock (Series C Preferred Stock), and 850 outstanding shares of Series B redeemable convertible preferred stock (Series B Preferred Stock), each of which were not included in the computation of diluted income (loss) per common share because they would be anti-dilutive. The Company used the treasury stock method in calculating weighted average common shares diluted. For the three months ended September 30, 2020, the Company had 13,875,000 stock options outstanding, 20,090,000 warrants outstanding, 4,213 outstanding shares of Series C redeemable convertible preferred stock, and 850 outstanding shares of Series B redeemable convertible preferred stock, each of which were not included in the computation of diluted income (loss) per common share because they would be anti-dilutive. The Company used the treasury stock method in calculating weighted average common shares diluted. The table below shows the calculation of diluted shares: 3 Months Ended 9 Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Weighted average common shares outstanding - basic 424,054,007 419,800,218 422,832,562 417,645,817 Effects of dilutive shares Stock Options 3,211,795 9,800,000 3,211,795 — Warrants 6,176,611 — 6,176,611 — Series B redeemable convertible preferred stock — — — — Series C redeemable convertible preferred stock — — — — Weighted average common shares outstanding - diluted 433,442,413 429,600,218 432,220,968 417,645,817 For the nine months ended September 30, 2019, the Company had 23,605,000 stock options outstanding, 20,090,000 warrants outstanding, 4,213 outstanding shares of Series C Preferred Stock, and 850 outstanding shares of Series B Preferred Stock, each of which were not included in the computation of diluted income per common share because they would be anti-dilutive. For the three-months ended September 30, 2019, the Company had 13,805,000 stock options outstanding, 20,090,000 warrants outstanding, 4,213 outstanding shares of Series C Preferred Stock, and 850 outstanding shares of Series B Preferred Stock, each of which were not included in the computation of diluted income per common share because they would be anti-dilutive. The table below summarizes common stock equivalents outstanding at September 30, 2020 and 2019: September 30, 2020 2019 Stock options 22,275,000 23,605,000 Warrants 50,090,000 20,090,000 850 Shares of Series B redeemable convertible preferred stock 425,000 425,000 4,213 Shares of Series C redeemable convertible preferred stock 42,130,000 42,130,000 114,920,000 86,250,000 |
Investment and Business Consoli
Investment and Business Consolidation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Investment and Business Consolidation | (4) Investment and Business Consolidation The Company owns a 24.5% interest in RadQual, with which the Company has an exclusive manufacturing agreement for nuclear medicine products. In August 2017, affiliates of the Company, including the Company’s Chairman of the Board and the Chief Executive Officer, acquired the remaining 75.5% interest in RadQual. The Company’s Chairman of the Board and its Chief Executive Officer also each serve as the managing members of RadQual. As a result of this change in ownership, and other factors, the Company determined that it gained the ability to exercise significant management control over the operations of RadQual. Because of this increased management control, and pursuant to GAAP, the Company has consolidated the accounts of RadQual into its financial statements. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | (5) Inventories Inventories consisted of the following at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Raw materials $ 33,609 $ 40,648 Work in process 1,200,830 3,379,943 Finished goods 3,595 2,829 $ 1,238,034 $ 3,423,420 Work in process includes cobalt-60 targets that are located in the U.S. Department of Energy’s (DOE) Advanced Test Reactor (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 ATR. At September 30, 2020, and at December 31, 2019, this cobalt target inventory had a carrying value of $170,603 and $201,349, respectively. Work in process also includes costs to irradiate cobalt-60 material under a contract with the DOE. This material has been placed in the ATR and the Company made progress payments to purchase this material. During the second quarter of 2020, the Company modified its agreement with the DOE due to delays in delivery of Cobalt material. As a result, the DOE refunded certain payments made by INIS in relation to this material and INIS stopped paying the scheduled payments for the inventory. During the nine months ended September 30, 2020, work in process was reduced by $2,050,100 from a $918,090 cash refund from the DOE and a reduction of accounts payable of $1,132,010. At September 30, 2020, and at December 31, 2019, this cobalt target inventory had a carrying value of $741,617 and $2,810,100, respectively. The Company has contracted with several customers for the sale of some of this product material and has collected advance payments for project management, up-front handling, and other production costs from those customers. The advance payments from customers were recorded as unearned revenue which are recognized in the Company’s condensed consolidated financial statements as cobalt products are completed and shipped. For the nine months ended September 30, 2020 and 2019, the Company recognized approximately $145,500 and $107,500, respectively, of revenue in its condensed consolidated statements of operations for customer orders filled during the period under these cobalt contracts. For the three-months ended September 30, 2020 and 2019, the Company recognized approximately $123,500 and $5,000, respectively of revenue in its condensed consolidated statements of operations for customer orders filled during the period under these cobalt contracts. |
Stockholders' Equity, Options a
Stockholders' Equity, Options and Warrants | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity, Options and Warrants | (6) Stockholders’ Equity, Options, and Warrants Employee Stock Purchase Plan The Company has an employee stock purchase plan pursuant to which employees of the Company may participate to purchase shares of common stock at a discount. During the nine months ended September 30, 2020 and 2019, the Company issued 303,610 and 99,372 shares of common stock, respectively, to employees under the employee stock purchase plan for proceeds of $13,430 and $5,036, respectively. As of September 30, 2020, 3,171,551 shares of common stock remain available for issuance under the employee stock purchase plan. Stock-Based Compensation Plans 2015 Incentive Plan Employee/Director Grants Non-Employee Grants Option awards outstanding as of September 30, 2020, and changes during the nine months ended September 30, 2020, were as follows: Fixed Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at December 31, 2019 23,655,000 $ 0.05 Granted 1,200,000 $ 0.05 Exercised (1,000,000 ) $ 0.04 Expired — $ — Forfeited (1,580,000 ) $ 0.07 Outstanding at September 30, 2020 22,275,000 $ 0.05 5.7 $ 126,000 Exercisable at September 30, 2020 19,049,500 $ 0.05 5.3 $ 126,000 The intrinsic value of outstanding and exercisable shares is based on the closing price of the Company’s common stock on the OTCQB of $0.05 per share on September 30, 2020, the last trading day of the quarter. As of September 30, 2020, there was $50,382 of unrecognized compensation expense related to stock options that will be recognized over a weighted-average period of 2.05 years. During the nine months ended September 30, 2020, the Company granted an aggregate of 1,200,000 qualified stock options to several of its employees. All options vest over a five-year period with the first vesting at the one year anniversary for all grants and expiration at ten year anniversary for all grants. The weighted average exercise price for these options was $0.05 per share. The options have a fair value of $32,582 as estimated on the date of issue using the Black-Scholes options pricing model with the following weighted-average assumptions: risk free interest rate of 0.36% to 0.63%, expected dividend yield rate of 0%, expected volatility of 56.18% to 58.75% and an expected life between 5.5 and 7.5 years. Total stock-based compensation expense for the nine months ended September 30, 2020 and 2019 was $80,203 and $113,093 respectively. Total stock-based compensation expense for the three-months ended September 30, 2020 and 2019 was $11,672 and $20,553, respectively. In August 2020, 1,000,000 qualified stock options were exercised under a cashless exercise. The Company withheld 583,333 shares to satisfy the exercise price and issued 416,667 shares of common stock. The options exercised were granted under the 2015 Plan, and, accordingly, there was not any income tax effect in the condensed consolidated financial statements. Pursuant to an employment agreement with its Chief Executive Officer, the Company awarded 500,000 fully vested shares of common stock to its Chief Executive Officer in February 2020 under the 2015 Plan. The number of shares awarded was based on a $28,000 stock award using a price of $0.056 per share. The employment agreement provides 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 stock grant was $18,128, which was determined by multiplying the number of shares awarded by the closing price of the common stock on February 28, 2020, which was $0.06 per share. The Company withheld 197,875 shares of common stock to satisfy the employee’s payroll tax obligations in connection with this issuance. The net shares issued on February 28, 2020 totaled 302,125. Warrants Warrants outstanding at September 30, 2020, included 17,165,000 Class M Warrants which are immediately exercisable at an exercise price of $0.12 per share and expire on February 17, 2022; 2,925,000 Class N Warrants which are immediately exercisable at an exercise price of $0.10 per share and expire on May 12, 2022; and 30,000,000 Class O Warrants which are immediately exercisable at an exercise price of $0.045 per share and expire December 30, 2024. Warrants outstanding at September 30, 2019, included 17,165,000 Class M Warrants which are immediately exercisable at an exercise price of $0.12 per share and expire on February 17, 2022 and 2,925,000 Class N Warrants which are immediately exercisable at an exercise price of $0.10 per share and expire on May 12, 2022. Preferred Stock At September 30, 2020, there were 850 shares of the Series B Preferred Stock outstanding with a mandatory redemption date of May 2022 at $1,000 per share or $850,000. The shares of Series B Preferred Stock are also convertible into 425,000 shares of the Company’s common stock at a conversion price of $2.00 per share. These shares of Series B Preferred Stock do not carry any dividend preferences. Due to the mandatory redemption provision, the Series B Preferred Stock has been classified as a liability in the accompanying condensed consolidated balance sheets. At September 30, 2020, there were 4,213 shares of the Series C Preferred Stock outstanding with a mandatory redemption date of February 2022 at $1,000 per share in either 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 as set forth in the Statement of Designation of the Series C Preferred Stock. The Series C Preferred Stock accrues dividends at a rate of 6% per annum, payable annually on February 17th of each year. 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 adjustment. 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. During the nine months ended September 30, 2020 and 2019 dividends paid to holders of the Series C Preferred Stock . Some holders of the Series C Preferred Stock elected to settle their dividend payments with shares of the Company’s common stock in lieu of cash. For the nine months ended September 30, 2020 and 2019 the Company issued 3,408,000 and 3,433,000 shares of common stock, respectively, in lieu of a dividend payment of $204,480 and $205,980, respectively. The remaining $46,800 of dividend payable was settled with cash. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | (7) Debt In December 2013, we entered into a promissory note agreement with our then Chairman of the Board and one of our major shareholders, pursuant to which we borrowed $500,000 (the 2013 Promissory Note). The 2013 Promissory Note is secured and bears interest at 6% per annum and was originally due June 30, 2014. According to the terms of the 2013 Promissory Note, at any time, the lenders may settle any or all of the principal and accrued interest with shares of our common stock. In connection with the 2013 Promissory Note, each of the two lenders was issued 5,000,000 Class L warrants to purchase shares of our common stock at an exercise price of $0.06 per share. The warrants were immediately exercisable. In June 2014, we renegotiated the terms of the 2013 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 Class L warrants to purchases shares of our common stock at an exercise price of $0.06 per share. The warrants were immediately exercisable. In February 2017, the 2013 Promissory Note was further modified to extend the maturity date to December 31, 2020, with all remaining terms unchanged. On December 23, 2018, all 25,000,000 Class L warrants expired. In December 2019, the 2013 Promissory Note was further modified to extend the maturity date to December 31, 2021, with all remaining terms unchanged. At September 30, 2020, the principal balance of the 2013 Promissory Note was $500,000 and accrued interest payable on the 2013 Promissory Note was $204,234. Interest expense recorded for the nine months ended September 30, 2020, was $22,500. In April 2018, we borrowed $120,000 from our Chief Executive Officer and Chairman of the Board pursuant to a promissory note (the 2018 Promissory Note). The 2018 Promissory Note accrues interest at 6% per annum, which is payable upon maturity of the 2018 Promissory Note. The 2018 Promissory Note was originally unsecured and originally matured on August 1, 2018. At any time, the holder of the 2018 Promissory Note may elect to have any or all of the principal and accrued interest settled with shares of our common stock based on the average price of the shares over the previous 20 trading days. Pursuant to an amendment to the 2018 Promissory Note in June 2018, the maturity date was extended to March 31, 2019 with all other provisions remaining unchanged. Pursuant to a second amendment to the 2018 Promissory Note in February 2019, the maturity date was extended to July 31, 2019 with all other provisions remaining unchanged. Pursuant to a third amendment to the 2018 Promissory Note in July 2019, the maturity date was extended to January 31, 2020 with all other provisions remaining unchanged. Pursuant to a fourth amendment to the 2018 Promissory Note in December 2019, the maturity date was extended to December 31, 2021, the note was modified to become secured by company assets, with all other provisions remaining unchanged. At September 30, 2020, accrued interest on the 2018 Promissory Note totaled $17,570. In April 2019, one of the prepaid revenue customers requested a refund of the amounts paid. The Company entered into a note agreement to repay $2,182,142 over the next 12 months. The modification was necessary to address the delays to cobalt delivery in 2019 caused by changes to the ATR operating schedule and also to accommodate this customer’s request to reduce their cobalt purchase obligations in future years. The modifications require that the Company refund approximately $1,050,000, of payments received for prior year undelivered material, plus interest at 12% per year, payable over a one-year period on a portion of that amount. The Company has also agreed with this customer to refund approximately $1,100,000 paid for material that was to have been delivered in later years. There will be no interest charge on this refund. In December 2019, this agreement was modified further allowing the Company to delay the original payments by 3 months and refund an additional $462,258 with no interest charge. At September 30, 2020 balance on this refund is $462,258. On December 20, 2019, the Company entered into a promissory note agreement with four of the Company’s major shareholders (the 2019 Promissory Note). The 2019 Promissory Note authorizes the Company to borrow up to $1,000,000. As of December 31, 2019, the Company had borrowed $675,000 under the 2019 promissory note. In February 2020, the Company borrowed an additional $325,000. The 2019 Promissory Note bears an interest rate of 4% annually and is due December 31, 2022. According to the terms of the 2019 Promissory 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 based on the average closing price of the Company’s common stock for the 20 days preceding the payment. In connection with the 2019 Promissory Note, the lenders were issued warrants totaling 30,000,000 warrants to purchase shares of the Company’s common stock at $0.045 per share. The fair value of these warrants issued totaled $446,079 and was recorded as a debt discount and will be amortized over the life of the 2019 Promissory Note. The Company calculated a beneficial conversion feature of $315,643 which will be accreted to interest expense over the life of the 2019 Promissory Note. At September 30, 2020 accrued interest on the 2019 Promissory Note totaled $29,131. On April 23, 2020, the Company, through its wholly-owned subsidiary entered into a Loan Agreement and Promissory Note (collectively the “SBA Loan”) with KeyBank National Association pursuant to the Paycheck Protection Program (the “PPP”) under the recently enacted Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) administered by the U.S. Small Business Administration (the “SBA”). The Company received total proceeds of $546,100 from the SBA Loan. The SBA Loan is scheduled to mature on April 22, 2022 and has a 1.00% interest rate and is subject to the terms and conditions applicable to loans administered by the SBA under the CARES Act. The SBA Loan may be prepaid at any time prior to maturity with no prepayment penalties. The SBA Loan contains customary events of default relating to, among other things, payment defaults and breaches of representations and warranties. Subject to certain conditions, the SBA Loan may be forgiven in whole or in part by applying for forgiveness pursuant to the CARES Act and the PPP. The amount of loan proceeds eligible for forgiveness is based on a formula based on a number of factors, including the amount of loan proceeds used by the Company during the twenty-four week period after the loan origination for certain purposes, including payroll costs, interest on certain mortgage obligations, rent payments on certain leases, and certain qualified utility payments, provided that, among other things, at least 60% of the loan amount is used for eligible payroll costs, the employer maintaining or rehiring employees and maintaining salaries at certain level. As of September 30, 2020, the Company has used the entire loan proceeds to fund qualifying expenses. As a result, the Company believes that it has met the PPP eligibility criteria for forgiveness and has concluded that the loan represents, in substance, a government grant that is expected to be forgiven. As such, the Company has recognized the entire loan amount as ‘Other Income’ at September 30, 2020. The Company does not anticipate taking any action that would cause any portion of the loan to be ineligible for forgiveness. However, to the extent that any amount is deemed unforgivable, such amount is payable over two to five years at an interest rate of 1%, with a deferral of payments for the first six months. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (8) Commitments and Contingencies Dependence on Third Parties The production of High Specific Activity Cobalt is dependent upon the DOE, and its prime operating contractor, which controls the ATR and laboratory operations at the ATR located outside of Idaho Falls, Idaho. In October 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 with an annual 5% escalation in price. The contract term is October 1, 2014, through September 30, 2024, however, the contract may be extended beyond that date. Also, the DOE may end the contract if it determines termination is necessary for the national defense, security or environmental safety of the United States. If this were to occur, all payments made by the Company, for partially irradiated undelivered cobalt material, 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 products. The radiochemical product sold by the Company is supplied to the Company through agreements with several suppliers. 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 operations 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 held with North American Specialty Insurance Company which is supported by a restricted money market account held with Merrill Lynch in the amount of $638,639. In August 2011, the Company received land from Lea County, New Mexico, pursuant to a Project Participation Agreement (PPA), whereby the land was deeded to the Company for no monetary consideration. In return, the Company committed to construct a uranium de-conversion and Fluorine Extraction Process facility on the land. In order to retain title to the property, the Company was 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 that extended the start of construction date to December 31, 2015, and the hiring milestone to December 31, 2016. Those dates were also not met. The Company has been in discussion with commercial companies possibly interested in purchasing rights to this project. Should those discussions come to fruition the Company plans to negotiate a second modification to the PPA agreement to further extend the commitment dates. If the Company is not successful in reaching an amendment to extend the performance dates in the PPA. then it may, at its 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 has 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 the Company’s obligations under the agreements for permanent transfer of the title. On May 2, 2019, the Company’s radiological services team was involved in a contamination event involving a breached cesium-137 source at an off-site location in the State of Washington. This work was being performed under a contract with the DOE. The Company supported the initial onsite contamination clean-up operations at that location and completed removal of the cesium source Company equipment. The Company has reviewed the results of the DOE investigation into this event and has implemented appropriate corrective actions. Since August 2019, the DOE has assumed full control of the ongoing cleanup operations and has assumed all of the financial obligations associated with the contractors hired to carry out all of the facility recovery operations. Under the terms of the contract, the Company believes it should be indemnified from financial liability for this event by the DOE under the Price Anderson Amendments Act (PAAA) and the Company has formally requested the DOE to provide indemnification under the PAAA. While the DOE’s review of the request is still underway, the Company believes that a determination of indemnification under the PAAA is probable. Such indemnification would allow the Company to recoup all its costs associated with this contamination event. During 2019, the Company incurred $2,384,255 in expenses related to the contamination and its cleanup. During the nine months ended September 30, 2020, the Company incurred an additional $82,683 in expenses related to the contamination and its cleanup. During 2019, the Company received $964,958 in reimbursements from its insurance company for expenses related to the contamination and its cleanup. During the nine months ended September 30, 2020, the DOE paid $576,732 on behalf of the Company for expenses related to the contamination and its cleanup. The Company has determined that an additional $718,795 of its incurred expenses related to the contamination and its cleanup are probable for recovery pursuant to ASC 410-30. The Washington Department of Health (DOH) issued a Notice of Violation to the Company in May 2020 citing two violations of the Company’s reciprocity license in the State of Washington. Also, the U.S. Nuclear Regulatory Commission (NRC) completed an inspection of the Company’s radiological safety program and issued a Notice of Violation in June 2020 citing two different violations of the Company’s NRC materials license. The Company has completed Predecisional Enforcement Conferences with the Washington DOH and the NRC and has provided the agencies with information on all corrective actions completed by the Company to prevent reoccurrence. The NRC notified the Company on October 20, 2020 that it had determined the violations were considered a Severity Level II problem. In accordance with their enforcement discretion authority the NRC has decided not to impose any civil penalty against the Company for these violations in recognition of the Company’s significant corrective actions. The Company corrective actions included termination of all field service activities and removal of these activities from the Company’s NRC license. The Company is still awaiting the results of deliberations by Washington DOH on the violations and their decision for any further actions or the imposition of a civil penalty against the Company. In the event the Washington DOH Notice of Violation results in the imposition of a civil penalty against the Company, the Company’s legal counsel reasonably believes such civil penalty falls within the parameters for indemnification of the Company under the PAAA. It is not possible at this time to predict the timing or outcome of the Washington DOH violations or to estimate a potential amount of loss, if any. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | (9) Revenue Recognition Revenue from Product Sales The following tables present the Company’s revenue disaggregated by business segment and geography, based on management’s assessment of available data: Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 U.S. Outside U.S. Total Revenues % of Total Revenues U.S. Outside U.S. Total Revenues % of Total Revenues Radiochemical Products $ 1,149,698 $ 144,848 $ 1,294,546 45 % $ 917,886 $ 18,770 $ 936,656 40 % Cobalt Products 544,989 — 544,989 19 % 97,849 — 97,849 4 % Nuclear Medicine Products 755,556 202,737 958,293 34 % 1,022,291 — 1,022,291 44 % Radiological Services 54,760 — 54,760 2 % 280,692 — 280,692 12 % Fluorine Products 11,700 — 11,700 0 % — — — 0 % $ 2,516,703 $ 347,585 $ 2,864,288 100 % $ 2,318,718 $ 18,770 $ 2,337,488 100 % Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 U.S. Outside U.S. Total Revenues % of Total Revenues U.S. Outside U.S. Total Revenues % of Total Revenues Radiochemical Products $ 2,807,241 $ 355,579 $ 3,162,820 43 % $ 2,151,960 $ 22,035 $ 2,173,995 31 % Cobalt Products 1,067,417 7,858 1,075,275 15 % 687,177 — 687,177 10 % Nuclear Medicine Products 2,215,330 562,960 2,778,290 38 % 3,023,425 30,484 3,053,909 44 % Radiological Services 171,048 — 171,048 2 % 1,086,098 — 1,086,098 16 % Fluorine Products 172,200 — 172,200 2 % — — — 0 % $ 6,433,236 $ 926,397 $ 7,359,633 100 % $ 6,948,660 $ 52,519 $ 7,001,179 100 % The Company’s revenue consists primarily of calibration and reference standards manufactured for use in the nuclear medicine industry, distribution of radiochemicals including sodium iodide I-131 drug product, and cobalt source manufacturing. 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 one year, have been recorded as unearned revenue on the Company’s condensed consolidated balance sheets and classified under current or long-term liabilities, depending upon estimated ship dates. For the nine months ended September 30, 2020, the Company reported current unearned revenue of $1,198,910. For the period ended December 31, 2019, the Company reported current unearned revenue of $1,240,205. Contract Balances The Company records a receivable when it has an unconditional right to receive consideration after the performance obligations are satisfied. As of September 30, 2020, and December 31, 2019, accounts receivable totaled $1,184,105 and $875,914, respectively. For the nine months ended September 30, 2020, the Company did not incur material impairment losses with respect to its receivables. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | (10) Leases The Company leases office and warehouse space under operating leases. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments under the lease. Operating lease, right-of-use assets, and liabilities are recognized at the lease commencement date based on the present value of lease payments over the reasonably certain lease term. The implicit rates with the Company’s operating leases are generally not determinable and the Company uses its incremental borrowing rate at the lease commencement date to determine the present value of its lease payments. The determination of the Company’s incremental borrowing rate requires judgement. The company determines its incremental borrowing rate for each lease using its then-current borrowing rate. Certain of the Company’s leases include options to extend or terminate the lease. The Company establishes the number of renewal options periods used in determining the operating lease term based upon its assessment at the inception of the operating lease. The option to renew the lease may be automatic, at the option of the Company, or mutually agreed to between the landlord and the Company. Once the facility lease term has begun, the present value of the aggregate future minimum lease payments is recorded as a right-of-use asset. Lease expense is recognized on a straight-line basis over the term of the lease. Nine Months Ended September 30, 2020 2019 Operating lease costs $ 196,291 $ 112,180 Short-term operating lease costs 27,666 6,593 Financing lease expense: Amortization of right-of-use assets 3,682 — Interest on lease liabilities 1,194 — Total financing lease expense 4,876 — Total lease expense $ 228,833 $ 118,773 Right-of-use assets obtained in exchange for new operating lease liabilities $ 2,649,070 $ 810,367 Right-of-use assets obtained in exchange for new financing lease liabilities $ 16,524 $ — Weighted-average remaining lease term (years) - operating leases 14.3 7.0 Weighted-average remaining lease term (years) - financing leases 3.3 — Weighted-average discount rate - operating leases 6.75 % 6.75 % Weighted-average discount rate - financing leases 8.82 % — The future minimum payments under these operating lease agreements are as follows: Operating Financing 2020 (excluding the nine months ended September 30, 2020) $ 63,139 $ 2,410 2021 257,383 9,641 2022 284,631 9,641 2023 287,108 5,880 2024 287,108 2,929 Thereafter 2,886,518 — Total minimum operating lease obligations 4,065,887 30,501 Less-amounts representing interest (1,475,494 ) (3,991 ) Present value of minimum operating lease obligations 2,590,393 26,510 Current maturities (83,862 ) (7,608 ) Lease obligations, net of current maturities $ 2,506,531 $ 18,902 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | (11) Segment Information The Company has five reportable segments which include: Nuclear Medicine Standards, Cobalt Products, Radiochemical Products, Fluorine Products, and Radiological Services. Information regarding the operations and assets of these reportable business segments is contained in the following table: Three months ended September 30, Nine months ended September 30, Sale of Product 2020 2019 2020 2019 Radiochemical Products $ 1,294,546 $ 936,656 $ 3,162,820 $ 2,173,995 Cobalt Products 544,989 97,849 1,075,275 687,177 Nuclear Medicine Standards 958,293 1,022,291 2,778,290 3,053,909 Radiological Services 54,760 280,692 171,048 1,086,098 Fluorine Products 11,700 — 172,200 — Total Segments 2,864,288 2,337,488 7,359,633 7,001,179 Corporate revenue — — — — Total Consolidated $ 2,864,288 $ 2,337,488 $ 7,359,633 $ 7,001,179 Three months ended September 30, Nine months ended September 30, Depreciation and Amortization 2020 2019 2020 2019 Radiochemical Products $ 10,089 $ 9,892 $ 30,797 $ 27,978 Cobalt Products 8,761 1,269 26,284 3,371 Nuclear Medicine Standards 15,842 15,954 47,820 47,246 Radiological Services 8,285 8,636 25,440 25,908 Fluorine Products 28,512 28,465 85,505 85,367 Total Segments 71,489 64,216 215,846 189,870 Corporate depreciation and amortization 3,491 2,394 10,103 7,184 Total Consolidated $ 74,980 $ 66,610 $ 225,949 $ 197,054 Three months ended September 30, Nine months ended September 30, Segment Income (Loss) 2020 2019 2020 2019 Radiochemical Products $ 542,814 $ 331,988 $ 929,162 $ 680,990 Cobalt Products 342,724 38,517 542,394 353,639 Nuclear Medicine Standards 181,097 180,828 483,454 509,571 Radiological Services 34,145 482,414 5,684 (107,541 ) Fluorine Products (26,640 ) (36,026 ) 59,770 (113,448 ) Total Segments 1,074,140 997,721 2,020,464 1,323,211 Corporate loss (767,090 ) (761,259 ) (1,906,580 ) (2,295,900 ) Net Income (Loss) $ 307,050 $ 236,462 $ 113,884 $ (972,689 ) Three months ended September 30, Nine months ended September 30, Expenditures for Segment Assets 2020 2019 2020 2019 Radiochemical Products $ — $ 3,994 $ — $ 18,839 Cobalt Products — 47,338 — 50,831 Nuclear Medicine Standards — 1,750 — 6,700 Radiological Services — — — — Fluorine Products — — 1,565 1,589 Total Segments — 53,082 1,565 77,959 Corporate purchases 5,179 — 5,179 — Total Consolidated $ 5,179 $ 53,082 $ 6,744 $ 77,959 September 30, December 31, Segment Assets 2020 2019 Radiochemical Products $ 748,527 $ 511,381 Cobalt Products 1,175,804 3,369,828 Nuclear Medicine Standards 2,058,071 2,111,225 Radiological Services 90,263 106,374 Fluorine Products 5,393,868 5,477,808 Total Segments 9,466,533 11,576,616 Corporate assets 5,495,325 3,680,179 Total Consolidated $ 14,961,858 $ 15,256,795 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | (12) Subsequent Events The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and determined that there were no material items to disclose. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
Interim Financial Information | Interim Financial Information Recent Accounting Pronouncements – |
Recent Accounting Pronouncements | Recent Accounting Pronouncements – |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share - Basic and Diluted (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The table below shows the calculation of diluted shares: 3 Months Ended 9 Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 Weighted average common shares outstanding - basic 424,054,007 419,800,218 422,832,562 417,645,817 Effects of dilutive shares Stock Options 3,211,795 9,800,000 3,211,795 — Warrants 6,176,611 — 6,176,611 — Series B redeemable convertible preferred stock — — — — Series C redeemable convertible preferred stock — — — — Weighted average common shares outstanding - diluted 433,442,413 429,600,218 432,220,968 417,645,817 |
Schedule of Common Stock Equivalents | The table below summarizes common stock equivalents outstanding at September 30, 2020 and 2019: September 30, 2020 2019 Stock options 22,275,000 23,605,000 Warrants 50,090,000 20,090,000 850 Shares of Series B redeemable convertible preferred stock 425,000 425,000 4,213 Shares of Series C redeemable convertible preferred stock 42,130,000 42,130,000 114,920,000 86,250,000 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories consisted of the following at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Raw materials $ 33,609 $ 40,648 Work in process 1,200,830 3,379,943 Finished goods 3,595 2,829 $ 1,238,034 $ 3,423,420 |
Stockholders' Equity, Options_2
Stockholders' Equity, Options and Warrants (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Share-Based Compensation Stock Option Activity | Option awards outstanding as of September 30, 2020, and changes during the nine months ended September 30, 2020, were as follows: Fixed Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding at December 31, 2019 23,655,000 $ 0.05 Granted 1,200,000 $ 0.05 Exercised (1,000,000 ) $ 0.04 Expired — $ — Forfeited (1,580,000 ) $ 0.07 Outstanding at September 30, 2020 22,275,000 $ 0.05 5.7 $ 126,000 Exercisable at September 30, 2020 19,049,500 $ 0.05 5.3 $ 126,000 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Sales from Contracts with Customers Disaggregated by Business Segment and Geography | The following tables present the Company’s revenue disaggregated by business segment and geography, based on management’s assessment of available data: Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 U.S. Outside U.S. Total Revenues % of Total Revenues U.S. Outside U.S. Total Revenues % of Total Revenues Radiochemical Products $ 1,149,698 $ 144,848 $ 1,294,546 45 % $ 917,886 $ 18,770 $ 936,656 40 % Cobalt Products 544,989 — 544,989 19 % 97,849 — 97,849 4 % Nuclear Medicine Products 755,556 202,737 958,293 34 % 1,022,291 — 1,022,291 44 % Radiological Services 54,760 — 54,760 2 % 280,692 — 280,692 12 % Fluorine Products 11,700 — 11,700 0 % — — — 0 % $ 2,516,703 $ 347,585 $ 2,864,288 100 % $ 2,318,718 $ 18,770 $ 2,337,488 100 % Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 U.S. Outside U.S. Total Revenues % of Total Revenues U.S. Outside U.S. Total Revenues % of Total Revenues Radiochemical Products $ 2,807,241 $ 355,579 $ 3,162,820 43 % $ 2,151,960 $ 22,035 $ 2,173,995 31 % Cobalt Products 1,067,417 7,858 1,075,275 15 % 687,177 — 687,177 10 % Nuclear Medicine Products 2,215,330 562,960 2,778,290 38 % 3,023,425 30,484 3,053,909 44 % Radiological Services 171,048 — 171,048 2 % 1,086,098 — 1,086,098 16 % Fluorine Products 172,200 — 172,200 2 % — — — 0 % $ 6,433,236 $ 926,397 $ 7,359,633 100 % $ 6,948,660 $ 52,519 $ 7,001,179 100 % |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Lease Expense | Nine Months Ended September 30, 2020 2019 Operating lease costs $ 196,291 $ 112,180 Short-term operating lease costs 27,666 6,593 Financing lease expense: Amortization of right-of-use assets 3,682 — Interest on lease liabilities 1,194 — Total financing lease expense 4,876 — Total lease expense $ 228,833 $ 118,773 Right-of-use assets obtained in exchange for new operating lease liabilities $ 2,649,070 $ 810,367 Right-of-use assets obtained in exchange for new financing lease liabilities $ 16,524 $ — Weighted-average remaining lease term (years) - operating leases 14.3 7.0 Weighted-average remaining lease term (years) - financing leases 3.3 — Weighted-average discount rate - operating leases 6.75 % 6.75 % Weighted-average discount rate - financing leases 8.82 % — |
Schedule of Future Minimum Payments of Lease Liabilities | The future minimum payments under these operating lease agreements are as follows: Operating Financing 2020 (excluding the nine months ended September 30, 2020) $ 63,139 $ 2,410 2021 257,383 9,641 2022 284,631 9,641 2023 287,108 5,880 2024 287,108 2,929 Thereafter 2,886,518 — Total minimum operating lease obligations 4,065,887 30,501 Less-amounts representing interest (1,475,494 ) (3,991 ) Present value of minimum operating lease obligations 2,590,393 26,510 Current maturities (83,862 ) (7,608 ) Lease obligations, net of current maturities $ 2,506,531 $ 18,902 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Information regarding the operations and assets of these reportable business segments is contained in the following table: Three months ended September 30, Nine months ended September 30, Sale of Product 2020 2019 2020 2019 Radiochemical Products $ 1,294,546 $ 936,656 $ 3,162,820 $ 2,173,995 Cobalt Products 544,989 97,849 1,075,275 687,177 Nuclear Medicine Standards 958,293 1,022,291 2,778,290 3,053,909 Radiological Services 54,760 280,692 171,048 1,086,098 Fluorine Products 11,700 — 172,200 — Total Segments 2,864,288 2,337,488 7,359,633 7,001,179 Corporate revenue — — — — Total Consolidated $ 2,864,288 $ 2,337,488 $ 7,359,633 $ 7,001,179 Three months ended September 30, Nine months ended September 30, Depreciation and Amortization 2020 2019 2020 2019 Radiochemical Products $ 10,089 $ 9,892 $ 30,797 $ 27,978 Cobalt Products 8,761 1,269 26,284 3,371 Nuclear Medicine Standards 15,842 15,954 47,820 47,246 Radiological Services 8,285 8,636 25,440 25,908 Fluorine Products 28,512 28,465 85,505 85,367 Total Segments 71,489 64,216 215,846 189,870 Corporate depreciation and amortization 3,491 2,394 10,103 7,184 Total Consolidated $ 74,980 $ 66,610 $ 225,949 $ 197,054 Three months ended September 30, Nine months ended September 30, Segment Income (Loss) 2020 2019 2020 2019 Radiochemical Products $ 542,814 $ 331,988 $ 929,162 $ 680,990 Cobalt Products 342,724 38,517 542,394 353,639 Nuclear Medicine Standards 181,097 180,828 483,454 509,571 Radiological Services 34,145 482,414 5,684 (107,541 ) Fluorine Products (26,640 ) (36,026 ) 59,770 (113,448 ) Total Segments 1,074,140 997,721 2,020,464 1,323,211 Corporate loss (767,090 ) (761,259 ) (1,906,580 ) (2,295,900 ) Net Income (Loss) $ 307,050 $ 236,462 $ 113,884 $ (972,689 ) Three months ended September 30, Nine months ended September 30, Expenditures for Segment Assets 2020 2019 2020 2019 Radiochemical Products $ — $ 3,994 $ — $ 18,839 Cobalt Products — 47,338 — 50,831 Nuclear Medicine Standards — 1,750 — 6,700 Radiological Services — — — — Fluorine Products — — 1,565 1,589 Total Segments — 53,082 1,565 77,959 Corporate purchases 5,179 — 5,179 — Total Consolidated $ 5,179 $ 53,082 $ 6,744 $ 77,959 September 30, December 31, Segment Assets 2020 2019 Radiochemical Products $ 748,527 $ 511,381 Cobalt Products 1,175,804 3,369,828 Nuclear Medicine Standards 2,058,071 2,111,225 Radiological Services 90,263 106,374 Fluorine Products 5,393,868 5,477,808 Total Segments 9,466,533 11,576,616 Corporate assets 5,495,325 3,680,179 Total Consolidated $ 14,961,858 $ 15,256,795 |
The Company and Basis of Pres_2
The Company and Basis of Presentation (Details Narrative) | Sep. 30, 2020 | Aug. 31, 2017 |
TI Services, LLC | ||
Ownership interest, percentage by parent | 50.00% | |
RadQual, LLC | ||
Ownership interest, percentage by parent | 24.50% | |
RadQual, LLC | Affiliates of the Company | ||
Ownership interest, percentage by parent | 75.50% |
Current Developments and Liqu_2
Current Developments and Liquidity (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Net (loss) income attributable to International Isotopes Inc. | $ 307,050 | $ 236,462 | $ 113,884 | $ (972,689) |
Net cash (used in) provided by operating activities | $ 960,314 | $ 208,004 | ||
Operating license term, description | NRC license for the de-conversion facility for a 40 year operating license. |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Basic and Diluted - Schedule of Weighted Average Number of Shares (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Weighted average common shares outstanding, basic | 424,054,007 | 419,800,218 | 422,832,562 | 417,645,817 |
Effects of dilutive shares | 114,920,000 | 86,250,000 | ||
Weighted average common shares outstanding, diluted | 433,442,413 | 429,600,218 | 432,220,968 | 417,645,817 |
Stock Options | ||||
Effects of dilutive shares | 3,211,795 | 9,800,000 | 3,211,795 | |
Warrants | ||||
Effects of dilutive shares | 6,176,611 | 6,176,611 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Basic and Diluted - Schedule of Common Stock Equivalents (Details) - shares | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Common stock equivalents of options, outstanding | 22,275,000 | 23,605,000 | 23,655,000 |
Warrants, outstanding | 50,090,000 | 20,090,000 | |
Common stock equivalents, outstanding | 114,920,000 | 86,250,000 | |
Series B Convertible Redeemable Preferred Stock | |||
Redeemable convertible preferred stock, outstanding | 850 | 850 | |
Weighted average shares, outstanding | 425,000 | 425,000 | |
Series C Redeemable Convertible Preferred Stock | |||
Redeemable convertible preferred stock, outstanding | 4,213 | 4,213 | |
Weighted average shares, outstanding | 42,130,000 | 42,130,000 |
Net Income (Loss) Per Common _5
Net Income (Loss) Per Common Share - Basic and Diluted (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Series B Convertible Redeemable Preferred Stock | ||||
Stock equivalents excluded from the computation of diluted net loss per common share | 850 | 850 | 850 | 850 |
Series C Redeemable Convertible Preferred Stock | ||||
Stock equivalents excluded from the computation of diluted net loss per common share | 4,213 | 4,213 | 4,213 | 4,213 |
Stock Options | ||||
Stock equivalents excluded from the computation of diluted net loss per common share | 13,875,000 | 13,805,000 | 13,875,000 | 23,605,000 |
Warrants | ||||
Stock equivalents excluded from the computation of diluted net loss per common share | 20,090,000 | 20,090,000 | 20,090,000 | 20,090,000 |
Investment and Business Conso_2
Investment and Business Consolidation (Details Narrative) - RadQual, LLC | Sep. 30, 2020 | Aug. 31, 2017 |
Ownership interest, percentage by parent | 24.50% | |
Affiliates of the Company | ||
Ownership interest, percentage by parent | 75.50% |
Inventories - Schedule of Inven
Inventories - Schedule of Inventory, Current (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory, Net, Items Net of Reserve | ||
Raw materials | $ 33,609 | $ 40,648 |
Work in process | 1,200,830 | 3,379,943 |
Finished goods | 3,595 | 2,829 |
Total inventory | $ 1,238,034 | $ 3,423,420 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Inventory, Work in Process and Raw Materials | |||||
Approximate revenue from contract with customer | $ 123,500 | $ 5,000 | $ 145,500 | $ 107,500 | |
Decrease in work in process | (2,050,100) | ||||
Proceeds from cash refund | 918,090 | ||||
Reduction of accounts payable | (1,132,010) | ||||
Inventory Target #1 | |||||
Inventory, Work in Process and Raw Materials | |||||
Inventory, cobalt-60 isotopes, carrying value | 170,603 | 170,603 | $ 201,349 | ||
Inventory Target #2 | |||||
Inventory, Work in Process and Raw Materials | |||||
Inventory, cobalt-60 isotopes, carrying value | $ 741,617 | $ 741,617 | $ 2,810,100 |
Shareholders' Equity, Options a
Shareholders' Equity, Options and Warrants - Schedule of Stock Option Activity (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Share-Based Compensation Arrangement By Share-Based Payment Award Options Outstanding | ||
Stock options outstanding, beginning of period | 23,655,000 | |
Stock options, granted | 1,200,000 | |
Stock options, exercised | (1,000,000) | |
Stock options, expired | ||
Stock options, forfeited | (1,580,000) | |
Stock options outstanding, end of period | 22,275,000 | 23,605,000 |
Stock options exercisable, end of period | 19,049,500 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | ||
Weighted average exercise price outstanding, beginning of period | $ 0.05 | |
Weighted average exercise price, granted | 0.05 | |
Weighted average exercise price, exercised | 0.04 | |
Weighted average exercise priced, expired | ||
Weighted average exercise priced, forfeited | 0.07 | |
Weighted average exercise price outstanding, end of period | 0.05 | |
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 9 months | |
Weighted average remaining contractual life exercisable, end of period | 5 years 1 month | |
Average intrinsic value outstanding, end of period | $ 126,000 | |
Average intrinsic value, exercisable, end of period | $ 126,000 |
Shareholders' Equity, Options_2
Shareholders' Equity, Options and Warrants - Employee Stock Purchase Plan (Details Narrative) - Employee Stock Purchase Plan - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||
Number of shares available for issuance | 3,171,551 | |
Shares issued during period | 303,610 | 99,372 |
Proceeds from issuance of shares during the period | $ 13,430 | $ 5,036 |
Shareholders' Equity, Options_3
Shareholders' Equity, Options and Warrants - Stock-Based Compensation Plans (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | ||
Share price | $ 0.06 | $ 0.06 | ||||
Compensation expense | $ 11,672 | $ 20,553 | $ 80,203 | $ 113,093 | ||
Warrants outstanding | 50,090,000 | 20,090,000 | 50,090,000 | 20,090,000 | ||
Mandatorily redeemable convertible preferred stock | $ 4,881,337 | $ 4,881,337 | $ 4,785,086 | |||
Unrecognized compensation expense | $ 50,382 | $ 50,382 | ||||
Period for recognition | 2 years 1 month | |||||
Stock options, exercised | (1,000,000) | |||||
Stock options, granted | 1,200,000 | |||||
Series B Convertible Redeemable Preferred Stock | ||||||
Preferred stock outstanding | 850 | 850 | 850 | 850 | ||
Redemption date | May 31, 2022 | |||||
Redemption price per share | $ 1,000 | $ 1,000 | ||||
Mandatorily redeemable convertible preferred stock | $ 850,000 | $ 850,000 | ||||
Convertible preferred stock convertible into common stock | 425,000 | 425,000 | ||||
Conversion price per share | $ 2 | |||||
Series C Redeemable Convertible Preferred Stock | ||||||
Preferred stock outstanding | 4,213 | 4,213 | 4,213 | 4,213 | ||
Redemption date | Feb. 28, 2022 | |||||
Redemption price per share | $ 1,000 | $ 1,000 | ||||
Preferred stock dividend rate | 6.00% | |||||
Conversion price per share | $ 0.10 | |||||
Dividends paid | $ 251,280 | $ 252,780 | ||||
Value of shares issued in lieu of dividend payment | 204,480 | $ 205,980 | ||||
Preferred stock dividend, settlement in cash | $ 46,800 | |||||
Common stock issued in lieu of dividend | 3,408,000 | 3,433,000 | ||||
Class M Warrants | ||||||
Warrants outstanding | 17,165,000 | 17,165,000 | 17,165,000 | 17,165,000 | ||
Exercise price of warrants | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | ||
Maturity date of warrants | Feb. 17, 2022 | Feb. 17, 2022 | ||||
Class N Warrants | ||||||
Warrants outstanding | 2,925,000 | 2,925,000 | 2,925,000 | 2,925,000 | ||
Exercise price of warrants | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | ||
Maturity date of warrants | May 12, 2022 | May 12, 2022 | ||||
Class O Warrants | ||||||
Warrants outstanding | 30,000,000 | 30,000,000 | ||||
Exercise price of warrants | $ 0.045 | $ 0.045 | ||||
Maturity date of warrants | Dec. 30, 2024 | |||||
2015 Incentive Plan | ||||||
Additional shares authorized | [1] | 20,000,000 | ||||
Shares available for issuance | 33,768,926 | 33,768,926 | ||||
2015 Incentive Plan | Chief Executive Officer | ||||||
Shares issued | 500,000 | |||||
Shares issued, value | $ 28,000 | |||||
Net shares issued | 302,125 | |||||
Shares issued, price per share | $ 0.056 | $ 0.056 | ||||
Share price | $ 0.06 | $ 0.06 | ||||
Shares withheld to satisfy payroll tax liabilities | 197,875 | |||||
Compensation expense | $ 18,128 | |||||
Qualified Stock Options | ||||||
Net shares issued | 416,667 | |||||
Shares withheld to satisfy payroll tax liabilities | 583,333 | |||||
Stock options, exercised | (1,000,000) | |||||
Stock options, granted | 1,200,000 | |||||
Stock options, vesting period | 5 years | |||||
Intrinsic value, per share | $ 0.05 | |||||
Fair value of options | $ 32,582 | |||||
Risk free interest rate, minimum | 0.36% | |||||
Risk free interest rate, maximum | 0.63% | |||||
Expected volatility, minimum | 56.18% | |||||
Expected volatility, maximum | 58.75% | |||||
Qualified Stock Options | Minimum | ||||||
Expected life | 5 years 6 months | |||||
Qualified Stock Options | Maximum | ||||||
Expected life | 7 years 6 months | |||||
[1] | In July 2018, the Plan was amended and restated to increase the number of shares authorized for issuance by an additional 20,000,000. |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2014 | Dec. 31, 2013 | |||
"SBA Loan" Paycheck Protection Program | ||||||||
Interest rate | 1.00% | |||||||
Maturity date | Apr. 22, 2022 | |||||||
Proceeds from the SBA's Paycheck Protection Program | $ 546,100 | |||||||
Note Agreement | ||||||||
Note payable | 462,258 | $ 2,182,142 | ||||||
Notes payable, payment terms | In April 2019, one of the prepaid revenue customers requested a refund of the amounts paid. The modification was necessary to address the delays to cobalt delivery in 2019 caused by changes to the ATR operating schedule and also to accommodate this customer’s request to reduce their cobalt purchase obligations in future years. The modifications require that the Company refund approximately $1,050,000, of payments received for prior year undelivered material, plus interest at 12% per year, payable over a one-year period on a portion of that amount. The Company has also agreed with this customer to refund approximately $1,100,000 paid for material that was to have been delivered in later years. There will be no interest charge on this refund. In December 2019, this agreement was modified further allowing the Company to delay the original payments by 3 months and refund an additional $462,258 with no interest charge. | |||||||
2013 Promissory Note | Former Chairman of the Board | ||||||||
Maturity date | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2017 | Jun. 30, 2014 | ||||
Debt instrument, description | The maturity date was extended to December 31, 2020, with all remaining terms unchanged. | |||||||
Note payable, related party | 500,000 | $ 500,000 | ||||||
Accrued interest | 204,234 | |||||||
Note payable, related party, interest rate | 6.00% | |||||||
Interest expense | 22,500 | |||||||
Warrants issued | 15,000,000 | [1] | 10,000,000 | [2] | ||||
Warrants, exercise price | $ 0.06 | $ 0.06 | ||||||
Warrants expired | 25,000,000 | |||||||
2018 Promissory Note | Chief Executive Officer and Chairman of the Board | ||||||||
Accrued interest | 17,570 | |||||||
Note payable, related party, interest rate | 6.00% | |||||||
Note payable, related party, maturity date | Dec. 31, 2021 | Mar. 31, 2019 | ||||||
Promissory note | $ 120,000 | |||||||
2019 Promissory Note | Major Shareholders | ||||||||
Available borrowings | $ 1,000,000 | |||||||
Proceeds from borrowings | 325,000 | $ 675,000 | ||||||
Accrued interest | $ 29,131 | |||||||
Note payable, related party, interest rate | 4.00% | |||||||
Note payable, related party, maturity date | Dec. 31, 2022 | |||||||
Warrants issued | 30,000,000 | |||||||
Warrants, exercise price | $ 0.045 | |||||||
Fair value, warrants | $ 446,079 | |||||||
Beneficial conversion feature | $ 315,643 | |||||||
[1] | Each of the two lenders were granted 7,500,000 additional Class L warrants. | |||||||
[2] | Each of two lenders issued 5,000,000 Class L warrants. |
Commitments and Contingencies (
Commitments and Contingencies (Detail Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Oct. 31, 2014 | Aug. 31, 2011 | Sep. 30, 2020 | Dec. 31, 2019 | |
Restricted cash | $ 638,562 | |||
Other commitments, description | In October 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 with an annual 5% escalation in price. The contract term is October 1, 2014, through September 30, 2024, however, the contract may be extended beyond that date. Also, the DOE may end the contract if it determines termination is necessary for the national defense, security or environmental safety of the United States. If this were to occur, all payments made by the Company, for partially irradiated undelivered cobalt material, would be refunded. | In August 2011, the Company received land from Lea County, New Mexico, pursuant to a Project Participation Agreement (PPA), whereby the land was deeded to the Company for no monetary consideration. In return, we committed to construct a uranium de-conversion and Fluorine Extraction Process (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 the Company is not successful in extending the performance dates in the agreement then it may, at its 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 has 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. | ||
Contamination Event | ||||
Expenses related to contamination | 82,683 | $ 2,384,255 | ||
Proceeds from insurance claims | $ 964,958 | |||
Payments made by the DOE on behalf of the company | 576,732 | |||
Potential recovery from claims of additional incurred expenses | $ 718,795 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Sales from Contracts with Customers by Business Segment and Geography (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 2,864,288 | $ 2,337,488 | $ 7,359,633 | $ 7,001,179 |
Percent of total revenues | 100.00% | 100.00% | 100.00% | 100.00% |
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 2,516,703 | $ 2,318,718 | $ 6,433,236 | $ 6,948,660 |
Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 347,585 | 18,770 | 926,397 | 52,519 |
Radiochemical Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 1,294,546 | $ 936,656 | $ 3,162,820 | $ 2,173,995 |
Percent of total revenues | 45.00% | 40.00% | 43.00% | 31.00% |
Radiochemical Products | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 1,149,698 | $ 917,886 | $ 2,807,241 | $ 2,151,960 |
Radiochemical Products | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 144,848 | 18,770 | 355,579 | 22,035 |
Cobalt Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 544,989 | $ 97,849 | $ 1,075,275 | $ 687,177 |
Percent of total revenues | 19.00% | 4.00% | 15.00% | 10.00% |
Cobalt Products | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 544,989 | $ 97,849 | $ 1,067,417 | $ 687,177 |
Cobalt Products | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 7,858 | |||
Nuclear Medicine Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 958,293 | $ 1,022,291 | $ 2,778,290 | $ 3,053,909 |
Percent of total revenues | 34.00% | 44.00% | 38.00% | 44.00% |
Nuclear Medicine Products | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 755,556 | $ 1,022,291 | $ 2,215,330 | $ 3,023,425 |
Nuclear Medicine Products | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 202,737 | 562,960 | 30,484 | |
Radiological Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 54,760 | $ 280,692 | $ 171,048 | $ 1,086,098 |
Percent of total revenues | 2.00% | 12.00% | 2.00% | 16.00% |
Radiological Services | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 54,760 | $ 280,692 | $ 171,048 | $ 1,086,098 |
Radiological Services | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | ||||
Fluorine Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 11,700 | $ 0 | $ 172,200 | $ 0 |
Percent of total revenues | 0.00% | 0.00% | 2.00% | 0.00% |
Fluorine Products | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 11,700 | $ 172,200 | ||
Fluorine Products | Outside U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues |
Revenue Recognition (Details Na
Revenue Recognition (Details Narrative) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Unearned revenue, current | $ 1,198,910 | $ 1,240,205 |
Accounts receivable | $ 1,184,105 | $ 875,914 |
Leases - Schedule of Lease Expe
Leases - Schedule of Lease Expense (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease costs | $ 196,291 | $ 112,180 |
Short-term operating lease costs | 27,666 | 6,593 |
Finance lease expense: | ||
Amortization of right-of-use assets | 3,682 | |
Interest on lease liabilities | 1,194 | |
Total financing lease expense | 4,876 | |
Total lease expense | 228,833 | 118,773 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 2,649,070 | $ 810,367 |
Right-of-use assets obtained in exchange for new financing lease liabilities | $ 16,524 | |
Weighted-average remaining lease term (years) - operating leases | 14 years 4 months | 7 years |
Weighted-average remaining lease term (years) - financing leases | 3 years 4 months | |
Weighted-average discount rate - operating leases | 6.75% | 6.75% |
Weighted-average discount rate - financing leases | 8.82% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments of Lease Liabilities (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Operating Leases Liability | ||
Year ending December 31, 2020 (excluding the nine-months ended September 30, 2020) | $ 63,139 | |
Year ending December 31, 2021 | 257,383 | |
Year ending December 31, 2022 | 284,631 | |
Year ending December 31, 2023 | 287,108 | |
Year ending December 31, 2024 | 287,108 | |
Thereafter | 2,886,518 | |
Total minimum operating lease obligations | 4,065,887 | |
Less-amount representing interest | (1,475,494) | |
Present value of minimum operating lease obligations | 2,590,393 | |
Current maturities | (83,862) | $ (100,777) |
Lease obligations, net of current maturities | 2,506,531 | 609,106 |
Finance Leases Liability | ||
Year ending December 31, 2020 (excluding the nine-months ended September 30, 2020) | 2,410 | |
Year ending December 31, 2021 | 9,641 | |
Year ending December 31, 2022 | 9,641 | |
Year ending December 31, 2023 | 5,880 | |
Year ending December 31, 2024 | 2,929 | |
Thereafter | ||
Total minimum finance lease obligations | 30,501 | |
Less-amount representing interest | (3,991) | |
Present value of minimum finance lease obligations | 26,510 | |
Current maturities | (7,608) | (2,367) |
Lease obligations, net of current maturities | $ 18,902 | $ 10,970 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||||
Sale of Product | $ 2,864,288 | $ 2,337,488 | $ 7,359,633 | $ 7,001,179 | |
Depreciation and Amortization | 74,980 | 66,610 | 225,949 | 197,054 | |
Segment Income (Loss) | 307,050 | 236,462 | 113,884 | (972,689) | |
Expenditures for Segment Assets | 5,179 | 53,082 | 6,744 | 77,959 | |
Segment Assets | 14,961,858 | 14,961,858 | $ 15,256,795 | ||
Radiochemical Products | |||||
Segment Reporting Information [Line Items] | |||||
Sale of Product | 1,294,546 | 936,656 | 3,162,820 | 2,173,995 | |
Cobalt Products | |||||
Segment Reporting Information [Line Items] | |||||
Sale of Product | 544,989 | 97,849 | 1,075,275 | 687,177 | |
Radiological Services | |||||
Segment Reporting Information [Line Items] | |||||
Sale of Product | 54,760 | 280,692 | 171,048 | 1,086,098 | |
Fluorine Products | |||||
Segment Reporting Information [Line Items] | |||||
Sale of Product | 11,700 | 0 | 172,200 | 0 | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Sale of Product | 2,864,288 | 2,337,488 | 7,359,633 | 7,001,179 | |
Depreciation and Amortization | 71,489 | 64,216 | 215,846 | 189,870 | |
Segment Income (Loss) | 1,074,140 | 997,721 | 2,020,464 | 1,323,211 | |
Expenditures for Segment Assets | 53,082 | 1,565 | 77,959 | ||
Segment Assets | 9,466,533 | 9,466,533 | 11,576,616 | ||
Operating Segments | Radiochemical Products | |||||
Segment Reporting Information [Line Items] | |||||
Sale of Product | 1,294,546 | 936,656 | 3,162,820 | 2,173,995 | |
Depreciation and Amortization | 10,089 | 9,892 | 30,797 | 27,978 | |
Segment Income (Loss) | 542,814 | 331,988 | 929,162 | 680,990 | |
Expenditures for Segment Assets | 3,994 | 18,839 | |||
Segment Assets | 748,527 | 748,527 | 511,381 | ||
Operating Segments | Cobalt Products | |||||
Segment Reporting Information [Line Items] | |||||
Sale of Product | 544,989 | 97,849 | 1,075,275 | 687,177 | |
Depreciation and Amortization | 8,761 | 1,269 | 26,284 | 3,371 | |
Segment Income (Loss) | 342,724 | 38,517 | 542,394 | 353,639 | |
Expenditures for Segment Assets | 47,338 | 50,831 | |||
Segment Assets | 1,175,804 | 1,175,804 | 3,369,828 | ||
Operating Segments | Nuclear Medicine Standards | |||||
Segment Reporting Information [Line Items] | |||||
Sale of Product | 958,293 | 1,022,291 | 2,778,290 | 3,053,909 | |
Depreciation and Amortization | 15,842 | 15,954 | 47,820 | 47,246 | |
Segment Income (Loss) | 181,097 | 180,828 | 483,454 | 509,571 | |
Expenditures for Segment Assets | 1,750 | 6,700 | |||
Segment Assets | 2,058,071 | 2,058,071 | 2,111,225 | ||
Operating Segments | Radiological Services | |||||
Segment Reporting Information [Line Items] | |||||
Sale of Product | 54,760 | 280,692 | 171,048 | 1,086,098 | |
Depreciation and Amortization | 8,285 | 8,636 | 25,440 | 25,908 | |
Segment Income (Loss) | 34,145 | 482,414 | 5,684 | (107,541) | |
Expenditures for Segment Assets | |||||
Segment Assets | 90,263 | 90,263 | 106,374 | ||
Operating Segments | Fluorine Products | |||||
Segment Reporting Information [Line Items] | |||||
Sale of Product | 11,700 | 172,200 | |||
Depreciation and Amortization | 28,512 | 28,465 | 85,505 | 85,367 | |
Segment Income (Loss) | (26,640) | (36,026) | 59,770 | (113,448) | |
Expenditures for Segment Assets | 1,565 | 1,589 | |||
Segment Assets | 5,393,868 | 5,393,868 | 5,477,808 | ||
Corporate Allocation | |||||
Segment Reporting Information [Line Items] | |||||
Sale of Product | |||||
Depreciation and Amortization | 3,491 | 2,394 | 10,103 | 7,184 | |
Segment Income (Loss) | (767,090) | (761,259) | (1,906,580) | (2,295,900) | |
Expenditures for Segment Assets | 5,179 | 5,179 | |||
Segment Assets | $ 5,495,325 | $ 5,495,325 | $ 3,680,179 |
Segment Information (Details Na
Segment Information (Details Narrative) | 9 Months Ended |
Sep. 30, 2020Number | |
Segment Reporting [Abstract] | |
Number of reportable segments | 5 |