International Isotopes Inc. (OTCQB: INIS)

International Isotopes Inc. (OTCQB: INIS) (the “Company”) reported its fiscal results for the three and nine months finished September 30, 2k19.

Revenue for the three months finished September 30, 2k19 was $2,337,488.00 as compared to $2,680,760.00 for the similar duration in 2k18, a decline of approximately 13.00 percent. Revenue for the nine-month duration finished September 30, 2k19 was $ 7,001,179.00 as compared to $7,874,092.00 for the similar duration in 2k18, a decline of approximately 11.00 percent.  This decline in revenue for both durations was largely the result of revenue declines in the Company’s cobalt products and radiological services segments.

Gross profit for the three months finished September 30, 2k19 inclined approximately 10.00 percent compared with the similar duration in 2k18. Gross profit for the nine-month duration finished September 30, 2k19 inclined approximately 9.0 percent compared to the similar duration in 2k18.   The incline in gross profit for both durations was largely the result of inclined gross profit in the radiochemical products segment.  Operating cost inclined approximately 9.0 percent for the three months finished September 30, 2k19.  Operating costs inclined approximately 6.0 percent for the nine-month duration finished September 30, 2k19, compared to the similar duration in 2k18.  The incline in operating cost for both durations was primarily due to an incline in general and administrative costs.

The Company reported a net income for the three months finished September 30, 2k19, of $236,462.00 compared to a net loss of $333,222.00 for the similar duration in 2k18.  The net loss for the nine-month duration finished September 30, 2k19, was $972,689.00 as compared to $631,097.00 for the similar duration in 2k18, an incline in loss of approximately 54.00 percent.  The incline in net income for the 3.0-month duration was a result of the timing of recognition of estimated cost recovery of costs related to the cleanup of a contamination event that occurred in the State of Washington throughout the 2nd-quarter 2k19.  The incline in net loss for the nine-month duration was due to inclined costs attributed to the cleanup and recovery from the similar contamination event.  Further discussion of this event and the impact to the Company financial statements is included in the radiological services segment discussion in this release.

Further detail on the performance of each of the Company’s business segments is provided in the following paragraphs.

Revenue from radiochemical products for the three months finished September 30, 2k19 inclined approximately 99.00 percent compared to the similar duration in 2k18.  Revenue from radiochemical products for the 9.0-month duration finished September 30, 2k19 inclined approximately 31.00 percent compared to the similar duration in 2k18.  The major contributor to inclined revenue within this segment for both durations was attributed to inclined revenue from contract manufacturing operations.

Revenue from the sale of cobalt products for the three months finished September 30, 2k19 declined approximately 91.00 percent compared to the similar duration in 2k18. Revenue from the sale of cobalt products for the nine-month duration finished September 30, 2k19 declined approximately 61.00 percent compared to the similar duration in 2k18.  The Company has been working toward a resumption of cobalt sales by producing cobalt in the U.S. Department of Energy’s (DOE) Advanced Test Reactor (ATR) under a ten-year agreement with the DOE.  Revenue from the sales of that material should begin in 2k20.  In the meantime, the Company had acquired cobalt from an alternate supplier in 2k18, which allowed the resumption of some cobalt product manufacturing.  Similar alternate supplies were not available in 2k19 and that caused the decline in revenue for both duration comparisons.

Revenue from radiological services for the three months finished September 30, 2k19 inclined approximately 91.00 percent compared to the similar duration in 2k18, but the Company reported a decline in revenue in this segment of approximately 29.00 percent for the 9.0-month duration finished September 30, 2k19 compared to the similar duration in 2k18.  Most of the radiological services revenue is generated by the performance of contract field service activities for the DOE and International Atomic Energy Agency (IAEA).  The incline in revenue for the three-month comparison was due to the timing of these contracts where revenue may fluctuate quarter to quarter based on when the contracts are completed.  The decline in revenue for the 9.0-month duration comparison is the result of the decline in the amount of these contracts the Company has been able to secure in 2k19.

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