INIS 10-K
Radnostix Inc (INIS)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
For the fiscal year ended
or
For the transition period from ___________ to ______________
Commission file number:
RADNOSTIX INC.
(Exact name of registrant as specified in its charter)
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Securities registered pursuant to Section 12(b) of the Act: None.
Securities registered pursuant to Section 12(g) of the Act:
(Title of Class)
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
| Large accelerated filer ☐ | Accelerated filer ☐ |
| | Smaller reporting company |
| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes
The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the average bid and asked price of such common equity at June 30, 2025, the last business day of the registrant’s second fiscal quarter, was approximately $
As of March 26, 2026, the number of shares outstanding of the registrant’s common stock, $.01 par value, was
DOCUMENTS INCORPORATED BY REFERENCE
Certain information called for in Part III of this Annual Report on Form 10-K is incorporated by reference from the registrant’s definitive proxy statement for the 2026 annual meeting of shareholders, which will be filed with the Securities and Exchange Commission not later than 120 days after the registrant’s fiscal year ended December 31, 2025.
FORM 10-K
TABLE OF CONTENTS
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| Item 1C. | Cybersecurity | 15 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Changes in and Disagreements With Accountants on Accounting and Financial Disclosure |
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Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. |
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| PART III |
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
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Certain Relationships and Related Transactions, and Director Independence |
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Cautionary Note Regarding Forward-Looking Statements
This Annual Report on Form 10-K (the “Annual Report”) contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including statements regarding industry prospects and future results of operations or financial position, made in this Annual Report are forward-looking. Words such as: “anticipates,” “believes,” “should,” “expects,” “future” and “intends” and similar expressions identify forward-looking statements. In particular, statements regarding: financial condition, operating results and liquidity, future cash flow from operations, our ability to achieve profitability, the expected growth in business segment revenues, our expansion into new markets, the ability of our products to compete with several larger companies and products, the results of market studies used to support our business model, our anticipated improvement in economic conditions, our ability to continue cobalt-60 production, continuously source certain isotopes, and the sufficiency of our available cash and revenues from operations to meet our operating needs, are forward-looking. Forward-looking statements reflect management’s current expectations, plans or projections and are inherently uncertain. Actual results could differ materially from management's expectations, plans or projections. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Annual Report. Certain risks and uncertainties that could cause actual results to differ significantly from management’s expectations are described in the section entitled “Risk Factors” in this Annual Report. That section, along with other sections of this Annual Report, describes some, but not all, of the factors that could cause actual results to differ significantly from management’s expectations. We do not intend to publicly release any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are urged, however, to review the risks and other factors set forth in the other reports that we file from time to time with the Securities and Exchange Commission (the “SEC”).
PART I
General Business and Products Description
Radnostix Inc. (the “Company”, “we”, “us” and “our”) manufactures a wide range of radioisotope-focused products used in variety of medical and industrial applications. We were formed as a Texas corporation in 1995. On December 23, 2025, we filed a Certificate of Amendment in the state of Texas for the sole purpose of amending our Certificate of Formation to change our corporate name from International Isotopes Inc. to Radnostix, Inc. Our board of directors approved the name change on October 21, 2025, and a majority of shareholders approved the name change by written consent on November 25, 2025.
Our wholly-owned subsidiaries are International Isotopes Idaho Inc., a Texas corporation; International Isotopes Fluorine Products, Inc., an Idaho corporation; International Isotopes Transportation Services, Inc., an Idaho corporation; RadQual, LLC, a limited liability company (RadQual); RadVent, LLC, a limited liability company; and TI Services, LLC, a limited liability company (TI Services). Our core business consists of five reportable segments which include: Theranostics Products, Cobalt Products, Calibration & Reference Products (previously called Nuclear Medicine Standards), Medical Devices, and Fluorine Products.
In 2026, we plan to continue investment in these segments including work to pursue product development, reduce production costs, and expand sales in each of our segments. The following paragraphs provide a brief description of each of our business segments. Certain financial information with respect to each of our business segments, including revenues from external customers, a measure of profit or loss, and total assets, is set forth in Note 15 to our Consolidated Financial Statements which begin on page F-7.
Theranostics Products
This segment includes the production and distribution of various isotopically pure radiopharmaceuticals, APIs, and radiochemicals for medical, industrial, and research applications. These products are produced by us from radioisotopes supplied by our vendors. We produce and distribute various products in customized volumes, concentrations, chemical formulations, packages, and specifications tailored to meet our FDA specifications or customer and market demands. To our knowledge, our FDA approved generic sodium iodide I-131 drug product is the only generic product of this type manufactured in the U.S. and offers customers an attractive domestic alternative to the single existing foreign commercial drug manufacturer. Additionally, this segment distributes APIs, and radiochemicals from third party suppliers for pre-clinical, industrial, and research applications. According to BCC Research, the theranostics market was valued at $4.3 billion in 2024 and is expected to grow to $12.7 billion by 2029, reflecting a 24% compound annual growth rate.
Cobalt Products
Our Cobalt Products segment includes the production of various cobalt-60 products and services, including the fabrication of cobalt-60 sealed sources for radiation therapy, various industrial and medical applications, and recycling of expended cobalt-60 sources.
We have explored, and intend to continue to explore, opportunities to further develop cobalt-60 and other high-energy and high-activity products and sales on an ongoing basis. The production, use, transport, and import/export of these products are all heavily regulated by the NRC and DOT, state and local agencies as well as similar regulatory authorities in territories outside of the United States (i.e., EU, China, Australia, Brazil and Argentina), but we have developed a highly experienced staff of technicians, shipping specialists, and supervisors in order to comply with the regulations and to deliver these products in a cost-effective, timely manner.
We believe that our domestically manufactured products and service offerings provide us with a competitive edge over other cobalt-60 manufacturers.
Calibration & Reference Products (Previously Called Nuclear Medicine Standards)
The Calibration & Reference Products segment consists of various sealed source calibration and reference products, including our own manufactured products, jointly manufactured products, and third-party products. These products are sold through our RadQual subsidiary for use with SPECT and PET imaging equipment, patient positioning, radiopharmacy and radiopharmaceutical Contract Development and Manufacturing Organization (“CDMO”) lab equipment, pre-clinical imaging equipment, clinical trial or custom geometry applications, and calibration or operational testing of measuring and/or testing equipment. Our Calibration & Reference Products include flood sources, dose calibrator sources, cylinder phantoms, annulus phantoms, rod sources, line sources, flexible and rigid rulers, spot markers, pen point markers, and a host of specialty design items. Our pre-clinical products include distribution of fillable sources from Phantech and pre-clinical sealed sources via our PhanQual joint venture with Phantech. Our Calibration and Reference sources include RadQual products for lab equipment; we also distribute non-medical sealed source calibration and reference standards manufactured by ORANO LEA, with whom we have a bilateral relationship. Our Calibration & Reference Products segment also commercializes bulk isotope sales and shielding and accessories related to our sealed source products. In 2025 we completed construction of a dedicated facility for our Calibration & Reference Products at our 1359 Commerce Way leased facility. We plan to continue to invest in that facility in 2026 to complete the fit-out and receive an NRC operational license. We expect the dedicated facility to greatly expand our manufacturing capacity, allow us to expand our product portfolio, as well as improve product quality.
According to the International Atomic Energy Agency’s Medical imAGIng and Nuclear mEdicine global resources database (IMAGINE), as of September 2025, at least 131 countries have SPECT and/or PET imaging cameras, with more than 29,000 installed units in total. These installed cameras use calibration and reference sources on a regular repeat basis, with many of them requiring calibration as part of on-going certification. Most Calibration and Reference Product sales are to U.S. customers. However, in recent years, because of stronger marketing efforts, we have seen an increase in foreign sales. All these products contain radioactive isotopes that decay at a predictable rate. Therefore, customers are required to periodically replace most of these products when they reach the end of their useful lives. The useful life of these products varies depending on the isotope used in manufacture, but in most cases averages eighteen months to two years. The various isotopes used in manufacturing these Calibration & Reference Products are from several sources world-wide, and we are continually working to develop multiple sources of each isotope. In addition to the products themselves, we have developed a line of specialty packaging for the safe transportation and handling of these products.
Medical Devices
We started the Medical Devices segment in 2024 and many of our products in this segment remain under development. In 2022 we entered a joint venture to develop the EasyFill Automated Capsule System, a robotic lab device to be paired with our Theranostics Products. The EasyFill Automated Capsule System (or “EasyFill”) is still in the developmental stage. We are targeting a Q3 2026 roll out and Q2 2027 commercial ramp up, including additional sales of I-131.
In 2023, we entered into an asset purchase agreement with AMICI, Inc. to purchase manufacturing molds, device registrations, trademarks, and all production rights to several AMICI, Inc. medical device and accessory products for lung ventilation; this included the Swirler Radioaerosol System and Tru-Fit mouthpiece products. In January 2025, as part of an amendment to the AMICI, Inc. asset purchase agreement, we received the manufacturing molds, device registrations, trademarks, and all production rights to the AMICI, Inc. line of Xenon System products. These acquired assets from AMICI, Inc. are currently under development and are expected to be released in 2026 to be sold through our RadVent subsidiary. In 2024, our Medical Device segment entered into a distribution and servicing agreement with Scintomics ATT for their complete line of radiosynthesis modules; to date, all of our revenue in the Medical Devices segment comes from the sale of third party products.
Fluorine Products and the Planned Uranium De-Conversion Facility
We established the fluorine products business segment in 2004 to support production and sale of various fluoride gases produced using our Fluorine Extraction Process ("FEP"). FEP was intended to be completed in conjunction with the operation of a proposed depleted uranium ("DUF6") de-conversion facility in Lea County, New Mexico. DUF6 is the waste by-product of uranium enrichment, and any uranium enrichment facility will create very large quantities of DUF6. In October 2012, we received a construction and operating license from the U.S. Nuclear Regulatory Commission ("NRC") for the planned facility. Changes in the nuclear industry near the end of 2013, however, significantly reduced commercial demand for this type of facility. Therefore, we suspended all further development work on the project, but we have maintained all licenses and permits for the project.
On March 11, 2026, we executed a mutual termination of an asset purchase agreement ("DUF6 APA") dated February 8, 2024 to sell all our assets related to the Fluorine Products segment and the Planned Uranium De-Conversion Facility to American Fuel Resources ("AFR"), which was expected to close in the first quarter of 2026. AFR contacted the Company requesting a 1-year extension due to AFR being unable to make payment of the balance of the purchase price by March 31, 2026 (the “Outside Date”) in order to meet the Condition to Seller’s Obligations as defined in the DUF6 APA. The parties were in the final stages of the NRC consent process and were on the cusp of receiving NRC consent to transfer; however, the parties mutually agreed to withdraw the application and terminate the APA.
AFR already made a non-refundable $50,000 prepayment and twelve non-refundable NRC extension fee payments totaling $120,000 and was to pay an additional $12,450,000 at closing. We decided it was in the best interest of the shareholders to regain control of the assets as we believe they have appreciated in value since we entered the DUF6 APA and we had low confidence that AFR would be able to secure funding to close the deal by the requested extension date. We will evaluate all possible options for the DUF6 Plant and related assets.
Given the recent boom in nuclear energy and fuel cycle industry and related global investments, the Company will evaluate all possible options for the DUF6 Plant and related assets, including keeping the assets and developing them into an operating entity focused on uranium deconversion. The company will also explore the potential to amend the current NRC approved license to include additional up-stream and down-stream uranium related activities.
Industry Overview, Target Markets, and Competition
The radioisotope market encompasses the production, distribution, and application of radioactive isotopes for medical, industrial, and research purposes. Such radioisotopes include iodine-131, technetium-99m, cobalt-60, and lutetium-177, which are used in nuclear medicine diagnostics, targeted therapies, cancer treatment, and imaging procedures such as PET and SPECT scans. In addition to medical uses, radioisotopes serve industrial applications including sterilization, material testing, and scientific research.
Demand in the radioisotope market is driven by growth in nuclear medicine, expansion of radiopharmaceutical therapies, increasing clinical and research applications, and the continued need for industrial isotopes. Overall, the radioisotope market represents a specialized segment of healthcare, research, and industrial supply chains, providing essential materials that enable both emerging therapies and established diagnostic procedures.
Theranostics and radiopharmaceuticals are downstream applications of the radioisotope market. Radiopharmaceuticals are medicinal formulations that contain radioisotopes and are used for both diagnostic imaging and targeted therapy. Theranostics, an approach that combines therapeutics and diagnostics, applies these agents to enable personalized medicine by pairing a diagnostic radiopharmaceutical that identifies the presence of a molecular target with a therapeutic radiopharmaceutical that delivers a cytotoxic dose of radiation to diseased tissue. Global demand for radiopharmaceuticals is influenced by the rising prevalence of cancer and cardiovascular disease, ongoing advances in molecular imaging, and the adoption of precision oncology approaches, and is expected to grow. According to BCC Research, the global theranostics market was valued at $4.3 billion in 2024 and is forecast to grow at a compound annual growth rate of 24%, to reach an estimated $12.7 billion by 2029.
Within this industry context, our operations span multiple market segments that leverage radioactive materials across healthcare, research, and industrial applications. Our business provides radiopharmaceuticals, medical devices, high-energy isotopes, and calibration and reference standards, addressing the specialized demands of end-users such as radiopharmacies, clinical research organizations, and industrial operators. These segments are shaped by high barriers to entry, technical expertise requirements, and supply chain considerations, positioning our operations within the broader framework of established and emerging markets for radioactive materials.
Our competitors include companies such (i) as Jubilant DraxImage, where we compete on I-131 radiopharmaceutical products, (ii) Eckert & Ziegler, where we compete on our entire portfolio of Calibration & Reference Products, and (iii) in some limited markets, we compete with Epsilon Radioactive Sources’s limited portfolio of products. Our cobalt-60 Products competes with Nordion. Our Medical Device segment will compete with Jubilant and Eckert & Ziegler. Various government entities also manufacture competing products. Such entities include NTP (South Africa), which manufactures finished I-131 for the African markets; BRIT (India), which manufactures I-131 for local use; CIRC (China), which manufactures I-131 for the mainland Chinese markets; and Rosatom (Russia), which makes I-131 for Russian hospitals and clinics and a limited number of calibration and reference source products for the local market.
Theranostics Products
In February 2020, our abbreviated new drug application (“ANDA”) for a generic radiopharmaceutical sodium iodide I-131 drug product was approved by the FDA. This product is approved for use in treatment of hyperthyroidism and carcinoma of the thyroid and is the only generic sodium iodide I-131 product approved by the FDA that is manufactured in the U.S. We believe we currently are the only U.S. supplier of an FDA approved sodium iodide product that otherwise is only available from a foreign manufacturer.
We sell our generic sodium iodide I-131 to radiopharmacy customers, who manufacture patient-specific capsules and make direct sales in the U.S. to clinicians. We directly ship our generic sodium iodide I-131 to all 50 states and we also periodically supply a GMP equivalent to some overseas locations.
Since the launch of this drug product in 2020, the corresponding sales have had a significant positive impact on our revenues. This growth in sales has continued in 2025 and we expect growth to continue as we grow our market share in the U.S., expand into new territories, and develop strategic joint-ventures in countries where it is not economical to serve from our existing manufacturing site.
We also supply Theranostics Products in API and radiochemical form. The markets for most radiochemicals are highly competitive. The target markets for these products are customers who (1) incorporate them into finished industrial or medical devices; (2) use radioisotope products in clinical trials for various medical applications with the aim to further process and include the radioisotope products into pharmaceutical products approved by the U.S. FDA for labeled use in therapy or imaging, or (3) include our radioisotope products into their pharmaceutical products approved outside the U.S. for encapsulated and/or labeled use in therapy or imaging. We can ship to all 50 states and internationally. We are deploying a unique product strategy which we believe will make us the go-to API supplier for third party radiopharmaceutical products.
We believe that we are well positioned to hold a competitive advantage in the growing theranostics space because of our unique combination of high energy and high activity NRC licensing status that permits handling of high energy and high activity radioisotopes, our compliance with GMP, our FDA licensed operating facility, and experienced and skilled personnel.
Cobalt-60 products are used in various applications where high-energy isotopes are required, such as radiation therapy, gamma sterilization, security devices, radiography examination and industrial applications.
Stringent regulatory, facility safety, and operator qualification requirements associated with the manufacturer and distribution of sealed cobalt-60 sources present significant entry barriers for new market participants. To our knowledge, there are no other domestic suppliers of cobalt-60 products in the US and there is one major foreign supplier in the North American market. We are actively working to add robustness to our supply chain, exploring the availability of cobalt-60 material from foreign suppliers.
Calibration & Reference Products
We manufacture and distribute sealed sources and devices for various applications, including medical, laboratory, pre-clinical, industrial, and research. Many of our products are registered with the NRC and FDA where required, as well as their equivalent regulatory authorities in international jurisdictions. We ship these products directly to all 50 states and many overseas locations. We are certified under ISO-9001:2015 and ISO-13485-2016 quality programs which allow us to sell our products into several foreign countries where these quality certifications are required for manufacturers.
We have varying target markets and distribution tactics and channels, depending on the type of products we are selling. We predominately sell our medical products through distributors who make direct sales in the U.S. and internationally to end-users. Medical calibration and reference standards are used for daily or periodic operational checks and calibration of nuclear medicine devices, such as SPECT and PET cameras and lab equipment, which are routinely used in nuclear medicine clinics and radiopharmacies around the world. As part of licensing and certification requirements in the U.S. and other high-regulatory jurisdictions, calibration and quality assurance testing for equipment accuracy is required to be part of routine operations of this equipment. Over 140 countries have availability of SPECT and/or PET cameras, with more than 33,000 installed units in total. We believe that there are more than 400 radiopharmacy and CDMO sites which use lab equipment that relies on calibration and reference standards. We also commercialize our PhanQual pre-clinical products in partnership with PhanTech; these products are targeted directly to end-users. Our non-medical industrial products are sold direct to end-users or to OEMs who bundle the sealed sources with their equipment. In the U.S., the core target market for industrial sources and calibration standards are utilities, mining operations, the U.S. Department of Energy, and environmental laboratories.
To our knowledge there are a few small regional suppliers internationally and only one major producer of a similar catalog of products in the world that competes directly with us for this broad portfolio of products. Most of the products manufactured by our major competitor are similar in design to our products as these products must meet Original Equipment Manufacturer (“OEM”) dimensional and performance standards. We attempt to differentiate our products through strategic alignment with OEMs, high levels of service, competitive pricing, patent protections, and exclusive arrangements with OEMs.
We continue working to expand the number and types of products that are manufactured in this segment and expand our qualified suppliers for the raw material used for our products. We plan to eventually manufacture some of our medical products in China through our joint-venture, Radnostix China. In 2025 we completed construction of a dedicated facility for our Calibration & Reference Products at our 1359 Commerce Way leased facility. We plan to continue to invest in that facility in 2026 to complete the fit-out and receive an NRC operational license. We expect the dedicated facility to greatly expand our manufacturing capacity, allow us to expand our product portfolio, as well as improve product quality.
Medical Devices
Our Medical Device segment will consist of our own medical devices and the distribution and servicing of third-party products. We intend to leverage our existing network of distributors for Theranostics Products and Calibration & Reference Products to purchase, use, and distribute our catalog of Medical Device products. We are actively working to launch three products in this segment: EasyFill, RadVent, and third-party products.
We intend to complete development of our EasyFill Automated Capsule System and then subsequently market it to radiopharmacy partners both in the US and around the world. There are over 400 radiopharmacy locations globally, of which approximately 20% of them prepare sodium iodide I-131 capsules in house. Currently, most of these radiopharmacies lease a shielded encapsulation device from a single foreign supplier that is also the only other supplier of sodium iodide I-131 into the U.S. We believe a launch of EasyFill will allow us to improve our market share of sodium iodide I-131. We expect to complete development of the EasyFill Automated Capsule system in the first half of 2026. We are targeting a roll out in the third quarter of 2026 and a commercial ramp up in the second quarter of 2027 of both the EasyFill Automated Capsule System and our generic sodium iodide I-131.
Our RadVent products were purchased from AMICI, Inc and are used with various lung imaging studies in conjunction with other approved radiopharmaceuticals, such as technetium-99m-DTPA and xenon-133. We generally sell RadVent products to the same end-users through the same distributors we use for our Theranostics Products and Calibration & Reference Products. The AMICI, Inc. products are well-established in the market however, AMICI, Inc. faltered during the COVID pandemic when lung imaging was curtailed. After amending our agreement with AMICI, Inc. in January 2025, we are establishing new manufacturing channels and expect to relaunch the first products from the RadVent portfolio before the end of the second quarter of 2026.
Our Medical Devices segment also plans to commercialize various nuclear medicine focused devices which target the same core user base as our own devices and could leverage our existing personnel skills, facilities, logistics, and service engineering capabilities. In 2024 we entered an exclusive agreement for U.S. and Canada to distribute, service, and supply consumables for Scintomics ATT’s entire lineup of radiosynthesis equipment.
Fluorine Products and the Planned Depleted Uranium De-Conversion Facility
Our Fluorine Products segment was developed in conjunction with uranium de-conversion to take advantage of the anticipated need for depleted uranium de-conversion services. During 2013, we curtailed all further work on the de-conversion facility because of a lack of demand for uranium de-conversion services at that time. We have continued to maintain the assets and licenses related to our previously planned de-conversion facility. On March 11, 2026, we executed a mutual termination of our DUF6 APA dated February 8, 2024 to sell all our assets related to the Fluorine Products segment and the Planned Uranium De-Conversion Facility to AFR. We will evaluate all possible options for the DUF6 Plant and related assets.
Given the recent boom in nuclear energy and fuel cycle industry and related global investments, the Company will evaluate all possible options for the DUF6 Plant and related assets, including keeping the assets and developing them into an operating entity focused on uranium deconversion. The company will also explore the potential to amend the current NRC approved license to include additional up-stream and down-stream uranium related activities.
Government Regulation
Nuclear Regulatory Commission Oversight
We currently operate under two NRC licenses, one for broad scope operations and another for exempt distribution. Our broad scope license covers calibration and reference standard manufacturing and distribution, radioisotope processing and distribution, large scale cobalt-60 processing and recycle operations, radioactive gemstone processing, environmental sample analysis, certain field service activities, and research and development. The exempt distribution license permits the release and distribution of irradiated gemstones to unlicensed entities in the U.S. All of our existing licenses and permits are adequate to allow current business operations. We do not handle “special nuclear materials” (i.e. nuclear fuels and weapons grade uranium, thorium or plutonium); therefore, our facility is not designated as a “nuclear” facility that would require additional licensing.
As a condition of our NRC licenses in Idaho, we are required to provide financial assurance for decommissioning activities. We fulfill this license requirement with a surety bond which names the NRC as beneficiary and is supported by a restricted cash account held in trust by a third party.
In October 2012, we were granted a 40-year construction and operating license by the NRC for our planned depleted uranium de-conversion and fluorine extraction processing facility (the “de-conversion facility”). The de-conversion facility was planned to be located in Lea County, New Mexico. Further engineering work on the proposed deconversion facility was placed on hold in 2013 due to changes in market conditions. There is no specific timeline required by the NRC for the start of construction on this project. Most of the pre-construction design, licensing and state permitting has already been completed for the project. These licenses for the de-conversion facility are expected to be included in any proposed sale of the DUF6 assets.
Regulation of Radioisotope Production Waste
Our manufacturing processes generate some radioactive waste. We handle this waste pursuant to the Low-Level Radioactive Waste (“LLRW”) Policy Act (“LLRW Act”), which requires the safe disposal of mildly radioactive materials. The estimated costs for storage and disposal of these materials have been included in the manufacturing and sales price of our products. Actual disposal costs are subject to change at the discretion of the disposal sites. We have obtained all necessary permits and approvals for the disposal of our waste materials, and we do not anticipate any negative changes in capacity or regulatory conditions that would limit or restrict our waste disposal capabilities.
Other Regulations
We are registered as a medical device manufacturer through the FDA for several of our Calibration & Reference Products segment’s and Medical Devices segment’s products. We are registered with the U.S. Department of Transportation (DOT) for the shipment of radioactive materials. We also have an NRC license for the import and export of radioactive materials. Because of increasing security controls and regulations, it is likely that we may encounter additional regulations affecting transportation, storage, sale, and import/export of radioactive materials.
We are also subject to inspection by the FDA to manufacture our sodium iodide I-131 product in compliance with our ANDA for sodium iodide I-131 and all applicable cGMP requirements for this and other contract manufactured products. We are registered with the FDA as a drug manufacturing facility, and we are subject to periodic and random inspections by the FDA for the continued manufacture of drug products.
We are subject to government regulation and intervention both in the U.S. and in all foreign jurisdictions in which we conduct business. Compliance with applicable laws and regulations results in higher capital expenditures and operating costs and changes to current regulations with which we must comply can necessitate further capital expenditures and increases in operating costs to enable continued compliance.
Environmental Compliance
We are subject to various federal, state, local and foreign government requirements regulating the discharge of materials into the environment or otherwise relating to the protection of the environment. These laws and regulations include, but are not limited to CERCLA, RCRA and state statutes such as the Idaho Hazardous Waste Management Act, the LLRW Act, NRC regulations concerning various irradiated, radioactive, and depleted uranium materials, and DOT regulations concerning shipment of radioactive materials. Certain of these laws and regulations can impose substantial fines and criminal sanctions for violations and require installation of costly equipment or operational changes to limit emissions and/or decrease the likelihood of accidental hazardous substance releases. We have incurred, and expect to continue to incur, capital and operating costs to comply with these laws and regulations. In addition, changes in laws, regulations and enforcement of policies, or the imposition of new clean-up requirements or remedial techniques, could require us to incur costs in the future that would have a negative effect on our financial condition or results of operations.
Distribution Methods for Products
We sell our products directly to our customers who, in some cases, are both end users and distributors. We use common commercial carriers for delivery of our products, and in some cases our customers arrange for deliveries from our manufacturing facilities.
Dependence on Customers
Combined sales, on which we are dependent, to our three largest customers, accounted for 31% of our total gross revenues in 2025 and accounted for 32% of our total gross revenues in 2024.
Patents, Trademarks, Licenses and Royalty Agreements
In 2001 we received a USPTO trademark for Radshield. The trademark is assigned to our RadQual subsidiary.
In 2004, we obtained certain patents related to the FEP. In 2010, we were granted an additional process patent on the FEP process. During 2012, we were granted additional process patents for the FEP process in the United States. These patents are included in the DUF6 Asset Sale as noted above.
In 2009, the University of Washington entered an exclusive utility patent license and royalty agreement with RadQual whereby RadQual has the exclusive right to exploit a patent for a calibration method and system for PET scanners.
In 2009, the USPTO granted a utility patent for Simulated dose calibrator source standard for positron emission tomography radionuclides. The patent is assigned to our RadQual subsidiary.
In 2013, the USPTO granted a patent for Universal mounting system for calibration source for use in PET scanners. The patent is assigned to our RadQual subsidiary.
In 2015, we received a USPTO trademark for Radlite. The trademark is assigned to our RadQual subsidiary.
In 2022, we filed a patent application for a Barium-based standard which simulates the energy outputs of I-131. This patent is still pending approval.
In 2023, we filed utility patents in the U.S. and other international jurisdictions for our EasyFill product. These patents are currently pending approval by the USPTO and international authorities.
In 2023, as part of an asset purchase agreement with AMICI, Inc., we acquired the trademarks for the Swirler Radioaerosol System.
In 2024, we received trademarks in China for our RadQual and Radnostix branding.
In 2024, our application to trademark our RadVent branding and logo in the U.S. was accepted. These marks are awaiting final registration by the USPTO.
In 2024, Phantech LLC entered an exclusive Joint Venture to develop Phanqual products with RadQual whereby the Phanqual joint venture has the exclusive rights to exploit Phantech’s patent for Systems and methods for a linearly filled nuclear imaging phantom as a sealed source product.
Seasonality
Our management believes that our operations are generally not subject to seasonal influences.
Employees
As of December 31, 2025, we had 45 total employees, including 44 full-time employees.
Available Information
Our internet website address is www.radnostix.com. We are subject to the reporting requirements under the Securities Exchange Act of 1934, as amended (the Exchange Act). Consequently, we are required to file reports and information with the SEC, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act. These reports and other information concerning us are available free of charge through (i) our website as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC, and (ii) the SEC’s website at www.sec.gov. Information contained on, or accessible through, our website is not incorporated by reference into this Annual Report or other reports filed with the SEC.
Readers should carefully consider the following factors that may affect our business, future operating results, and financial condition, as well as other information included in this Annual Report. The risks and uncertainties described below are not the only ones the Company faces. Additional risks and uncertainties not presently known to us or that we currently deem immaterial also may impair our business operations. If any of the following risks occur, our business, financial condition results of operations, or cash flow could be materially adversely affected.
Risks Related To Our Company
We have incurred, and may continue to incur, losses. We have incurred net losses for most fiscal periods since our inception. From inception through December 31, 2025, we have an accumulated deficit (including preferred stock dividends and returns) in the amount of $128,229,287. The negative cash flow we have sustained has materially reduced our working capital, which in turn could materially and negatively impact our ability to fund future operations and continue to operate as a going concern. Management has taken, and continues to take, actions to improve our financial condition and results of operations. The availability of necessary working capital, however, is subject to many factors beyond our control, including, among other things, our ability to obtain financing on favorable terms, or at all, economic cycles, market acceptance of our products, competitors' responses to our products, the intensity of competition in our markets, and the level of demand for our products.
We may need additional financing to continue operations. Because we may continue to experience negative cash flow, we may need to obtain additional financing to continue operations. Additionally, we may need financing in connection with our development activities. Management will continue to plan and take actions to improve our financial results which could enhance our ability to obtain financing. However, obtaining additional financing is subject to many factors beyond our control and may not be available to us on acceptable terms or at all. If we are unable to raise additional funds when needed, we could be required to delay the development and construction of projects, reduce the scope of, abandon or sell some or all our growth projects or default on our contractual commitments in the future, any of which would have a material adverse effect on our business, financial condition and operating results.
Our operations expose us to the risk of material environmental liabilities. We are subject to potential material liabilities related to the remediation of environmental hazards and to personal injuries or property damage that may be caused by hazardous substance releases and exposures. The materials used in our operations expose us to risks of environmental contamination that could subject us to liability, including remediation obligations that could be very costly. In addition, the discovery of previously unknown contamination could require us to incur costs in the future that would have a negative effect on our financial condition or results of operations. We have a surety bond in place supported by funds in a restricted cash account to provide the financial assurance required by the NRC for our Idaho facility license for decommissioning and a similar mechanism will be required to fund the decommissioning of the proposed new depleted uranium facility. However, if a contamination event occurred within, or outside of, our facility, we may be financially responsible to remediate such contamination and could have to borrow money or fund the remediation liability from our future revenue. We may not be able to borrow the funds, or have available revenue, sufficient to meet this potential liability, which could have a significant negative impact on our financial condition and results of operations.
We are dependent upon key personnel. Our ongoing operations are currently dependent on Shahe Bagerdjian, President and Chief Executive Officer. The loss of Mr. Bagerdjian could have a material adverse effect on our business. We maintain a $4.1 million key man life insurance policy on Mr. Bagerdjian and an employment agreement that extends through July 18, 2030. However, there is no assurance that we will be able to retain Mr. Bagerdjian or our existing personnel or attract additional qualified employees. The loss of any of our key personnel or an inability to attract additional qualified employees could result in a significant decline in revenue.
General economic conditions in markets in which we do business can impact the demand for our goods and services. Decreased demand for our products and services can have a negative impact on our financial performance and cash flow. Demand for our products and services, in part, depends on the general economic conditions affecting the countries and industries in which we do business. A downturn in economic conditions in the U.S. or industry that we serve may negatively impact demand for our products and services, in turn negatively impacting our operations and financial results. Further, changes in demand for our products and services can magnify the impact of economic cycles on our businesses.
Volatility in raw material and energy costs, interruption in ordinary sources of supply and an inability to recover unanticipated increases in energy and raw material costs from customers could result in lost sales or significantly increase the cost of doing business. Market and economic conditions affecting the costs of raw materials, utilities, energy costs, and infrastructure required for the delivery of our goods and services are beyond our control and any disruption or halt in supplies, or rapid escalations in costs could affect our ability to manufacture products or to competitively price our products in the marketplace. Our reliance on a just-in-time supply chain for radioisotopes could cause significant and irreversible harm to our business, including delays in manufacturing and commercial operations. Unlike traditional pharmaceuticals that can be stockpiled, our business is uniquely dependent on a just-in-time supply chain for our radioisotopes and finished products. The radioisotopes we use have a medium-to-long half-lives. This physical constraint means we have limited ability to maintain inventory as a buffer against disruption. Any delay at a single point in our supply chain—from a production outage at a nuclear reactor or cyclotron to a logistics failure, an equipment malfunction, or a regulatory hold—could render an entire shipment partially or completely unusable. Such a failure would not only result in a total loss of product and revenue for that product but would also have a direct, negative impact on patient care and could delay or halt customer’s clinical trials. The complexity of this supply chain, including reliance on specialized facilities and highly regulated global transport, represents a fundamental and unavoidable risk to our business and future growth.
For instance, an interruption in the supply of isotopes such as cobalt-57, cobalt-60, or iodine-131 could result in lost sales in Calibration & Reference Products, Cobalt Product, and Theranostics Products segments.
We also are in ongoing discussions regarding the long-term viability of some territorial or regional distributors and may need to procure new distributors and if we are unable to do so, we would have a loss of revenue.
We also purchase a significant portion of our raw material radioisotopes from overseas suppliers, some of which are government agencies or work with government agencies for the manufacture of radioisotopes. The price and availability of those products could be adversely affected through changes in currency exchange rates, tariffs, sanctions, geopolitics, national security classifications, embargos, regional conflicts, or other restrictions. During the year ended December 31, 2024, there was a global shortage of cobalt-57, a key isotope for our Calibration & Reference Products segment. This shortage occurred from January 2024 until the end of July 2024 and resulted in significant lost sales for this business segment. Our supply of cobalt-57 was restored in July 2024, and we added additional suppliers in 2024. In 2025, we did not experience any shortages of cobalt-57 raw materials.
Starting in January 2024, there has been a continuing global outage of gadolinium-153, a key isotope for our Calibration & Reference Products segment. We are working on establishing new suppliers and believe that we will be able to have supply restored by 2026; however. if we are unable to do so, we would have a loss of revenue.
We are continuing to search for additional means to produce and procure certain critical isotopes, including through our joint venture with Alpha Nuclide Inc., which we entered into in June 2024 for our I-131 and Radqual products.
During multiple weeks in March, July, and August of 2025, we had low quantities or complete outages for our Theranostics Products segments’ raw material radioisotopes. These constraints in supply resulted in lost revenue for this segment. In July of 2024, the FDA approved an additional raw material radioisotope supplier. Our I-131 products are highly reliant on research reactors for this supply; research reactors have a higher frequency of down time compared to traditional power reactors.
To our knowledge and based upon review of FDA publications, we are the only domestic-based manufacturer of finishing cobalt-60 sources and are sole-sourcing cobalt-60 from the Idaho National Lab (“INL”), located less than 60 miles from our facility. We work through the U.S. Department of Energy’s (“DOE”) National Isotope Development Center and the Office of Science and INL to coordinate manufacturing and delivery schedules. There are known risks related to the DOE supply chain including:
| ● |
access to cobalt-59 pellets, which is the necessary feed stock for irradiation; |
| ● |
reliance on research reactors for medical isotopes and our reliance in particular on the Advanced Test Reactor (“ATR”) at INL that will have planned maintenance in 2027 that could disrupt our access to isotopes; |
| ● |
ATR’s main goal is to service the U.S. Navy’s nuclear fleet and there is a risk that the ATR would need to solely focus on Naval operations and thus not be able to supply us with cobalt-60; |
| ● |
Our reliance on ATR means that we are subject to availability and ongoing access to products from the ATR and any transition to another reactor would be time-consuming and complicated. |
Disruptions to our supply chain would likely impede our ability to meet product demand for our customers, which could harm our sales and revenues.
We are subject to extensive government regulation in jurisdictions around the globe in which we do business. Regulations address, among other things, environmental compliance, import/export restrictions, healthcare services, taxes and financial reporting, can significantly increase the cost of doing business, which in turn can negatively impact our operations, financial results and cash flow. We are subject to government regulation and intervention both in the United States and in all foreign jurisdictions in which we conduct business. Compliance with applicable laws and regulations results in higher capital expenditures and operating costs and changes to current regulations with which we must comply can necessitate further capital expenditures and increases in operating costs to enable continued compliance. Additionally, from time to time, we may be involved in legal or administrative proceedings under certain of these laws and regulations. Significant areas of regulation and intervention include the following:
All our manufacturing processes generate some radioactive waste that is expensive to dispose of safely. For waste that cannot be decayed in storage we must handle this waste pursuant to the LLRW Act, which requires the safe disposal of mildly radioactive materials. The estimated costs for storage and disposal of these materials have been included in the manufacturing and sales price of our products. However, actual disposal costs are subject to change at the discretion of the disposal site. An unexpected or material increase in these costs could have a material adverse effect on our financial condition and results of operations. We recorded material waste disposal expenses of $150,000 and $230,000 in 2025 and 2024 respectively.
We are subject to extensive health and safety regulations. Health regulations dictated by the United States Occupational Safety and Health Administration and NRC are extensive in our business. There is no assurance that our activities will comply with all applicable health regulations at times and, as a result, may expose us to liability under applicable health regulations. Costs and expenses resulting from such liability may materially negatively impact our operations and financial condition. Overall, health laws and regulations will continue to affect our business worldwide.
We may be subject to NRC license enforcement actions. The NRC may take enforcement action in the event that we are found to be in violation of NRC regulations or in violation of any of our license requirements. Consequences of violations depend upon the severity of the violations as well as the adequacy and timeliness of corrective actions implemented by the licensee to investigate and correct the cause of the violation and to prevent reoccurrence. The NRC has discretionary authority in the action they choose to take against license violations, but these actions can include civil penalties and restrictions upon licensee operations or license suspension. The imposition of any such penalties and/or restrictions upon our operations or suspension of our license could have a material adverse effect on our financial condition and results of operations. In 2024 we incurred significant expenses related to two violations in 2021 and 2022. These violations resulted in NRC fines of $63,000, additional legal expenses of $47,636, and professional expenses for corrective actions of $123,216. In 2025 we entered into a settlement agreement with the NRC related to our 2022 sale and sublease to Pharmalogic, and such settlement carried no fines, penalties or violations. However, we will have to commit to various non-material administrative tasks as a license condition for a 36-month period. We do not anticipate any material costs from the settlement.
We are subject to various federal, state, local and foreign government requirements regulating the discharge of materials into the environment or otherwise relating to the protection of the environment.
There are upcoming new rules under consideration with respect to cobalt-60, in particular. While we believe the current regulatory outlook for cobalt-60 is stable and favorable, there are long-term proposed rules regarding Financial Assurance Requirements for Category 1 and 2 Byproduct Material Sealed Sources, which would essentially decommission funding of cobalt-60 finished sources, which may substantially increase costs for parties with cobalt-60 finished sources in inventory, such as the Company, as we have significant inventory of finished sources. The current timeline is as such: Regulatory Basis Publication – 6/30/2026, Proposed Rule for Signature – 5/14/2027, Proposed Rule Publication – 11/15/2027, Final Rule for Signature – 6/14/2028, Final Rule Publication – 12/14/2028.
We are subject to significant regulatory oversight of our import and export operations due to the nature of our product offerings.
We are subject to regulations governing the certification of specialty shielded transportation casks for transporting cobalt-60. We are subject to regulations governing the approval and certification of Type B packages authorized for the transport of our high activity (Type B quantities) cobalt-60 products and bulk materials. Foreign approved Type B packages may only be utilized for imports and exports of these products and bulk materials if the Type B package certificate has been revalidated by the DOT, which may take several months, but is currently provided at no cost. Domestic shipments of Type B quantities of radioactive materials require approval and certification through the NRC, which can cost millions of dollars and take years to complete. Given the cost difference to obtain a DOT revalidation of a foreign-approved Type B package, the availability of NRC certified Type B packages authorized for the domestic transport of cobalt-60 products and bulk materials is very limited. We are currently working with private and government parties to address the limited availability of Type B packages authorized for domestic use by the Company.
We may incur material losses and costs as a result of product liability claims that may be brought against us. We face an inherent business risk of exposure to product liability claims in the event that products supplied by us fail to perform as expected or such failures result, or are alleged to result, in bodily injury. Although we have purchased insurance with coverage and in amounts that we believe to be adequate and reasonable in light of our current and planned operations, if a successful product liability claim were brought against us in excess of our available insurance coverage, it would have a material adverse effect on our business and financial results.
Catastrophic events such as natural disasters, pandemics, war and acts of terrorism could disrupt our business or the business of our suppliers or customers, and any such disruptions could have a negative impact on our operations, financial results and cash flow. Our operations are at all times subject to the occurrence of catastrophic events outside our control, ranging from severe weather conditions such as hurricanes, floods, earthquakes and storms, to health epidemics and pandemics, to acts of war and terrorism. Any such event could cause a serious business disruption that could affect our ability to produce and distribute our products and possibly expose us to third-party liability claims. Additionally, such events could impact our suppliers, thereby causing energy and raw materials to become unavailable to us, and our customers, who may be unable to purchase or accept our products and services. Any such occurrence could have a negative impact on our operations and financial condition.
Our future growth is largely dependent upon our ability to develop new products that achieve market acceptance with acceptable margins. Our businesses operate in global markets that are characterized by rapidly changing technologies and evolving industry standards. Accordingly, our future growth rate depends upon several factors, including, but not limited to, our ability to (i) identify emerging technological trends in our target end-markets, (ii) develop and maintain competitive products, (iii) enhance our products by adding innovative features that differentiate our products from those of our competitors, and (iv) develop, manufacture, and bring products to market quickly and cost-effectively. Our ability to develop new products based on technological innovation or U.S. FDA approval can affect our competitive position and requires the investment of significant resources. These development efforts divert resources from other potential investments in our businesses, and they may not lead to the development of new products on a timely basis or that meet the needs of our customers as fully as competitive offerings. In addition, the markets for our products may not develop or grow as we currently anticipate. The failure of our technologies or products to gain market acceptance due to more attractive offerings by our competitors could significantly reduce our revenues and adversely affect our competitive standing and prospects.
We are dependent on various third parties in connection with our business operations. The production of high-specific activity cobalt-60 is dependent upon the U.S. Department of Energy (DOE), and its prime-operating contractor, which controls the Idaho reactor. Current activity at the Idaho ATR may continue to affect the supply of cobalt-60 material needed for the manufacture of cobalt-60 sources for our Cobalt Products business segment. Loss of this cobalt-60 supply would have a significantly impact on this business segment because there is not currently another reactor available in the U.S. that is capable of providing this type of service for us. We are continuing to search for additional means to produce and procure cobalt-60 material. Our radiochemical iodine is supplied to us through two supply sources. Unanticipated contract terminations by these suppliers or suppliers of the key raw materials of our other products or other third parties would have a material adverse impact on our operations, financial results, and cash flow.
We are dependent on a limited number of customers in connection with some of our current business operations. Combined sales to our three top customers accounted for 31% and 32% of our total gross revenue during 2025 and 2024, respectively. Although we are making efforts to reduce our dependency on a small number of customers, the loss of any one of these customers could have a significant impact on our future results of operations and financial condition. Unanticipated contract terminations by any of these current customers could have a material adverse impact on operations, financial results, and cash flow.
We believe that we have a good product to offer and have a strong relationship with our customers due to the customer’s need for supply security and the only alternative is a vertically integrated direct competitor to our customers. We believe our EasyFill capsule system has the potential to help maintain existing customers and attract new customers. We are targeting a roll out in the third quarter of 2026 and a commercial ramp up in the second quarter of 2027, including additional sales of I-131.
We are subject to competition from other companies. Each of our existing business areas has direct competition from other businesses. Cobalt-60 is supplied by other reactor facilities around the world. We are aware that nuclear medicine calibration and reference standards are being produced by at least one other major manufacturer in the U.S. We believe we have at least one major competitor in the U.S. for our generic sodium iodide I-131 drug product. Most of our competitors have significantly greater financial resources that could give them a competitive advantage over us.
Risks Related To Our Common Stock
Trading in our common stock is limited, and the price of our common stock may be subject to substantial volatility. Our common stock is quoted on the OTCQB Marketplace under the U.S. trading symbol “INIS”. The market for our securities is limited, the price of our stock is volatile, and the risk to investors in our common stock is greater than the risk associated with stock trading on other markets. These factors may reduce the potential market for our common stock by reducing the number of potential investors. This may make it more difficult for investors in our common stock to sell shares to third parties or to otherwise dispose of their shares. This could cause our stock price to decline.
We currently do not intend to pay dividends on our common stock. We do not plan to pay dividends on shares of our common stock in the near future. Consequently, an investor in our common stock can only achieve a return on its investment in us if the market price of our common stock appreciates.
We are contractually obligated to issue shares in the future, which will dilute your interest in us. As of December 31, 2025, there were approximately 21,622,500 shares of common stock issuable upon the exercise of vested stock options, at a weighted-average exercise price of $.05 per share. An additional 21,975,685 shares were reserved for issuance under our equity plan when it terminated on July 14, 2025. In 2026, we plan to submit for approval by the Company's shareholders to reinstate and extend by amendment the 2015 plan or adopt a new incentive plan. Our outstanding preferred stock and certain of our outstanding debt is also convertible into shares of our common stock at the holders’ option. In addition, we expect to issue additional options to purchase shares of our common stock to compensate employees, consultants and directors, and we may issue additional shares to raise capital to expand our manufacturing capability, develop additional products, or business segments. Any such issuance will have the effect of further diluting the interest of the holders of our securities.
Item 1B. UNRESOLVED STAFF COMMENTS
We are a smaller reporting company, and therefore, are not required to provide the information required by this item.
In 2001, we leased one property in Idaho ("Building A") which serves as or main corporate headquarters and houses all of our current manufacturing operations for our core business segments. Our TI Services subsidiary leases an office facility in Ohio. In December 2024, we purchased vacant land adjacent to our main corporate headquarters. We also hold the conditional title to 640 acres of land in Lea County, New Mexico for the proposed de-conversion facility. The following paragraphs provide a brief summary of these properties. Beginning in January 2025, we began leasing a second facility across the street from our main headquarters ("Building B").
Building A: 4137 Commerce Circle, Idaho Falls, Idaho – The facility located on this property houses our main corporate headquarters and all of our current manufacturing operations. In January 2020, we entered into a new lease agreement due to new and expanded facilities made available to us. The initial lease term is until January 2030 and provides an option to renew for an additional 5 years. The facility was new when leased in March 2001 and remains in excellent condition. We have the right of first refusal on this property that allows us to match any offer to purchase this property.
Building B: 1359 Commerce Way, Idaho Falls, Idaho – This facility is located directly across the street from Building A. We began leasing this facility in January 2025; the initial term is until December 2029 and we have the option to extend the lease for two additional terms of 5 years each. We have the right of first refusal on this property that allows us to match any offer to purchase this property.
775 Boardman-Canfield Rd, Unit A-2, Boardman, Ohio – This office facility houses the employees of TI Services who are engaged in sales activities. The facility was leased in November 2017 and is currently under tenancy from month-to-month.
Land Adjacent to Building A, Idaho Falls, Idaho – Land is located directly South of Building A; it was acquired in December 2024 through a mix of cash and seller's financing. The land has no zoning restrictions in regards to building coverage and height.
From time to time, we may become party to litigation or other legal proceedings that we consider to be a part of the ordinary course of our business. We are not currently involved in legal proceedings that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition, or results of operations. We may become involved in material legal proceedings in the future.
Item 4. MINE SAFETY DISCLOSURES
Not applicable.
PART II
Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Our common stock is traded on the OTCQB under the trading symbol “INIS”. The following table shows the high and low prices of our common stock on the OTCQB. The following quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions:
| OTC Bulletin Board (Symbol “INIS”) |
||||||||
| High |
Low |
|||||||
| Period |
(US $) |
(US $) |
||||||
| First Quarter 2024 |
0.05 | 0.04 | ||||||
| Second Quarter 2024 |
0.04 | 0.03 | ||||||
| Third Quarter 2024 |
0.04 | 0.03 | ||||||
| Fourth Quarter 2024 |
0.04 | 0.03 | ||||||
| First Quarter 2025 |
0.06 | 0.03 | ||||||
| Second Quarter 2025 |
0.08 | 0.04 | ||||||
| Third Quarter 2025 |
0.11 | 0.06 | ||||||
| Fourth Quarter 2025 |
0.11 | 0.05 | ||||||
Holders of Record
As of March 2026, there were 476 holders of record of our common stock.
Dividends
We have never paid any cash dividends on our common stock. In the future, and based upon our profit performance, our Board of Directors (the “Board”) will evaluate and determine whether to issue dividends, subject to compliance and limitations under any applicable debt or other financing agreements in effect at that time or retain funds for research and development and expansion of our business. We do not anticipate paying any dividends to shareholders of our common stock for the foreseeable future.
Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities
None.
Purchases of Equity Securities by the Issuer
None.
Performance Graph
We are a smaller reporting company, and therefore, are not required to provide the information required by this item.
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion of our results of operations and financial condition should be read in conjunction with the accompanying financial statements and related notes thereto included in Item 8, “Financial Statements and Supplementary Data,” within this Annual Report. Some of the information contained in this discussion and analysis or set forth elsewhere in this Annual Report, including information with respect to our plans and strategies for our business, statements regarding the industry outlook, our expectations regarding the future performance of our business and the other non-historical statements contained herein are forward-looking statements. See “Cautionary Note Regarding Forward-Looking Statements.” You should also review the “Risk Factors” in Item 1A. of this Annual Report for a discussion of important factors that could cause actual results to differ materially from the results described herein or implied by such forward-looking statements.
Overview
Radnostix Inc. (the “Company”, “we”, “us” and “our”) produces an FDA approved generic sodium iodide I-131 drug product, manufactures a wide range of nuclear medicine calibration and reference standards, produces a variety of cobalt-60 products, and is in development to manufacture and sell medical devices for the nuclear medicine industry. A more detailed description of each of these product lines and services along with a description of our business segments can be found in Item 1, “Business” within this Annual Report.
During 2025, we focused our efforts on achieving profitability in each of our core business segments and launching a fifth segment. We reached several significant goals during 2025, which included the following:
| ● |
Recognized $13 million in total revenue, which was the second most annual revenue in company history, only trailing 2024. |
| ● |
Recognized $6.8 million in revenue in our Theranostics Products segment. This was the second most annual revenue ever for this segment, only trailing 2024. This despite an estimated $500,000 in lost sales for the year due to raw material supplier outages. |
| ● |
Recognized $1.8 million in revenue in out Cobalt Products segment. This was the second most annual revenue ever for this segment, only trailing 2024. This despite a fourth quarter shutdown to refurbish our cobalt hot cells. |
| ● |
Increased sales by 21% in out Calibration and Reference Products segment, bouncing back from our raw material supply issues in 2024. The $4.2 million in sales for this segment in 2025 was the second most annual revenue ever for this segment, nearly equaling the record $4.4 million in revenue from 2023. |
| ● |
Developed several new products for our Calibration & Reference Products segment and expanded our range of products in this segment into Positron Emission Tomography (PET) imaging standards. |
| ● |
Continued development of several products in our Medical Devices Products segment including product purchased from AMICI, Inc. that we plan to launch in 2026. |
| ● |
Completed refurbishment of our Co-60 Processing Hot Cell windows, adding another 15-20 years of life to those assets. Work began in Q4 of 2025 and was completed in Q1 of 2026. |
| ● |
Completed build-out of our 1359 Building interior structures. Received limited NRC license amendment to allow for the next phase of project; the fit-out of equipment and calibration for final NRC licensing. |
Business Strategy and Core Philosophies
Our business strategy is to continue to build our reputation as a leader in radioisotope applications, such as theranostics, radiopharmaceutical, radiochemical, medical device, cobalt-60, and nuclear medicine product industries, and to maximize revenue potential across all our product segments. We also intend to continually seek ways to improve our customer service and expand our market share, with the ultimate goal of providing greater return to our shareholders. Specifically, we are continuously working with our customers to improve and develop new products to better serve the needs of the end user which, ultimately, we believe will boost product sales. A key part of our short-term and long-term business strategy is to develop, and enter into additional markets for our Theranostics, Nuclear Medicine, and Medical Devices segments. In addition, we will manage costs and cash flow in such a way to support further expansion of our products and services to exploit additional market opportunities.
Our core philosophy is to strive to provide high quality products and services as a profitable business, while offering excellent customer service and providing a safe and productive working environment for our employees. We operate in accordance with an ISO Quality Management System and in accordance with all current Good Manufacturing Practices under which we seek to maintain the highest level of quality and continuously improve our product manufacturing processes.
Results of Operations
Following is a summary of results of operations for 2025, which is explained in greater detail below:
| ● |
Revenue in 2025 was approximately $13.0 million. This was a 6% decrease as compared to 2024, but was the second largest annual revenue generated in the company’s history. |
| ● |
Sales in our Calibration & Reference Products segment increased by approximately 21% in 2025 compared to 2024; |
| ● |
Sales in our Theranostics Products segment decreased by approximately 15% and sales in our Cobalt Products segment decreased approximately 26% in 2025 as compared to 2024; |
| ● |
Total gross profit percentage 59% in 2025 as compared to 62% in 2024; |
| ● |
Operating costs for 2025 decreased less than 1% as compared to 2024; |
| ● |
Cash provided by operating activities in 2025 was $620,163; |
| ● |
Operating loss for 2025 was $956,187 as compared to an operating profit of $6,901 in 2024. |
| ● |
Net loss of $908,002 in 2025 as compared to a net income of $8,574 in 2024. |
| ● |
EBITDA loss of $242,909 in 2025 as compared to EBITDA of $615,934 in 2024. |
| ● |
Adjusted EBITDA of $63,743 in 2025 as compared to Adjusted EBITDA of $615,934 in 2024. |
Year Ended December 31, 2025 Compared to Year Ended December 31, 2024
The following table presents comparative revenues for the years ended December 31, 2025 and 2024:
| Revenues |
For the year ended December 31, 2025 |
% of Total Revenues 2025 | For the year ended December 31, 2024 |
% of Total Revenues 2024 | ||||||||||||
| Theranostics Products |
$ | 6,841,094 | 52 | % | $ | 8,006,315 | 58 | % | ||||||||
| Cobalt Products |
1,752,217 | 13 | % | 2,365,572 | 17 | % | ||||||||||
| Calibration & Reference Products |
4,248,074 | 33 | % | 3,519,216 | 25 | % | ||||||||||
| Medical Devices Products |
228,951 | 2 | % | 8,657 | 0 | % | ||||||||||
| Fluorine Products |
— | 0 | % | — | 0 | % | ||||||||||
| Total Segments |
$ | 13,070,336 | 100 | % | $ | 13,899,760 | 100 | % | ||||||||
Revenues
Total revenues in 2025 were $13,070,336, compared to $13,899,760 in 2024, which represents an decrease of $829,424, or approximately 6%. The performance of each segment is discussed in the following paragraphs.
| Revenues |
For the year ended December 31, 2025 |
For the year ended December 31, 2024 |
$ change |
% change |
||||||||||||
| Theranostics Products |
$ | 6,841,094 | $ | 8,006,315 | $ | (1,165,221 | ) | (15 | )% | |||||||
| Cobalt Products |
1,752,217 | 2,365,572 | (613,355 | ) | (26 | )% | ||||||||||
| Calibration & Reference Products |
4,248,074 | 3,519,216 | 728,858 | 21 | % | |||||||||||
| Medical Devices Products |
228,951 | 8,657 | 220,294 | 2545 | % | |||||||||||
| Fluorine Products |
— | — | — | — | % | |||||||||||
| Total Segments |
13,070,336 | 13,899,760 | (829,424 | ) | (6 | )% | ||||||||||
| Corporate revenue |
— | — | — | — | % | |||||||||||
| Total Consolidated |
$ | 13,070,336 | $ | 13,899,760 | $ | (829,424 | ) | (6 | )% | |||||||
Theranostics Products
Sales of Theranostics Products accounted for approximately 52% of our sales revenue in 2025 as compared to 58% of our total sales revenue in 2024. Sales in this segment decreased by $1,165,221, or approximately 15% to $6,841,094 in 2025 as compared to $8,006,315 in 2024. The decrease is the result of periodic supplier outages in 2025, totaling approximately $500,000 in lost revenue and decreased sales of our generic sodium iodide I-131 drug product to a major customer offset partially offset by expanded sales of our generic sodium iodide I-131 drug product to a new customer and increased API product sales to a returning international customer that was offline for the majority of 2024.
Sales of our FDA-approved generic sodium iodide drug product make up the bulk of sales in this segment. We expect growth in sales for this product in 2026 and beyond. Within this segment, we also currently distribute sodium iodide (I-131) as a theranostics API product and a radiochemical product. The radiochemical product is used for a variety of applications including industrial use, and the theranostics API product is being used in investigational and clinical trials as well as an API for international customers, used in their approved products in their local jurisdictions. We believe that market growth, new customers, and entry into new territories, in addition to any theranostics API that we plan to submit to the FDA and European Medicines Agency ("EMA"), should increase our future sales in this business segment.
Cobalt Products
Cobalt Products sales accounted for approximately 13% of our total revenue in 2025 and approximately 17% in 2024. Sales in this segment decreased by $613,355, or approximately 26%, in 2025 to $1,752,217, as compared to $2,365,572 in 2024. The decrease in revenue within this segment was the partially the result of a shutdown of manufacturing operations in Q4 of 2025 in order to refurbish our Cobalt production hot cells. As a result of the shutdown, we delayed approximately $350,000 in revenues to 2026. These refurbishments were completed in Q1 of 2026 and will extend the life of this important production equipment, and we also expect increased production efficiency and a decrease in radiological waste expenses, estimated at $150,000 per year, as a result of the repairs. Revenue in the Cobalt Products segment is subject to the variability of cobalt-60 material supply and timing of our cobalt-60 customers' various contracts that utilize our products. Our sealed source manufacturing generates the majority of our revenue within this segment and sealed source sales depend on our ability to produce or procure cobalt-60 material.
Periodically we have been able to acquire recycled material that can be used to manufacture sealed sources for customers, and in some instances, our customers have supplied their own cobalt material for source fabrication. We will continue to have access to cobalt-60 material produced by the DOE and expect to obtain, process, and sell additional cobalt-60 products as a result during 2026.
We have entered into cobalt-60 supply agreements with several customers. The terms of these cobalt-60 contracts required some advance progress payments from each customer. The funding received under these contracts has been recorded as unearned revenue under short-term liabilities in our consolidated financial statements. We recognized some of this revenue in prior years including in 2025 and 2024 when we fulfilled contract performance objectives by supplying sealed sources manufactured with cobalt-60 from the ATR or alternate suppliers. In December 2025, we mutually terminated one of these supply agreements. As part of the termination, we refunded $23,000 and kept $74,000 in advance payments. We were also able to take 100% ownership of mobile hot cell assets which we shared with this customer. We plan to lease the hot cell out to various customers for field service work.
Calibration & Reference Products
Sales in the Calibration & Reference Products Reference segment accounted for approximately 33% of our total revenue in 2025 as compared to 25% in 2024. Sales in this segment were $4,248,074 in 2025, as compared to $3,519,216 in 2024, this is an increase of $728,858, or approximately 21%. The increase in 2025 was due to continued growth of new products, including PET-focused calibration sources, and recovery from a global shortage of cobalt-57 isotope from January 2024 to the end of July 2024 that resulted in decreased sales for the year. In 2025, we had a full year of cobalt-57 isotope supply. This increase in sales was partially offset by reduced sales from an ongoing global outage of Gadolidium-153 radioisotope that began as a shortage in 2024 and become an outage in January 2025. We have been unable to manufacture any products that utilize this Gd-153 radioisotope. We are currently working with industry partners to restore supply of this isotope, however we are uncertain when we will see sales to return for products utilizing Gd-153. We had $0 of sales of the Gd-153 products in 2025 due to this outage as compared to $210,000 in sales in 2024.
Fluorine Products
In 2025 and 2024, we had no revenues related to Fluorine Products. Work on our deconversion facility project that is the entirety of this business segment has been on hold since 2013 because of a slowdown in the nuclear industry that specifically impacted fuel cycle facilities. Since that time, we have limited our expenditures to essential items such as maintenance of the NRC license, land use agreements, communication with our prospective FEP product customers, and interface with the State of New Mexico and Lea County officials.
On March 11, 2026, we executed a mutual termination of the DUF6 APA dated February 8, 2024 to sell all our assets related to the Fluorine Products segment and the Planned Uranium De-Conversion Facility to AFR. AFR contacted the Company requesting a 1-year extension due to AFR being unable to make payment of the balance of the purchase price by the Outside Date of March 31, 2026 in order to meet the Condition to Seller’s Obligations as defined in the DUF6 APA. The parties were in the final stages of the NRC consent process and were on the cusp of receiving NRC consent to transfer; however, the parties mutually agreed to withdraw the application and terminate the APA.
AFR already made a non-refundable $50,000 prepayment and twelve non-refundable NRC extension fee payments totaling $120,000 and was to pay an additional $12,450,000 at closing. We decided it was in the best interest of the shareholders to regain control of the assets as we believe they have appreciated in value since we had entered the DUF6 APA and we had low confidence that AFR would be able to secure funding to close the deal by the requested extension date. We will evaluate all possible options for the DUF6 Plant and related assets.
During 2025, we received $100,000 of other income related to extension payment for the DUF6 APA and incurred $114,573 of expenses related to maintaining licenses and permits for the proposed de-conversion project, as compared to $50,000 of other income related to the DUF6 APA and $109,187 of expenses in 2024. The largest expense in this business segment is $104,379 for the amortization of our NRC license for this project; this amortization is approximately 91% and 96% of the total expenses for 2025 and 2024 respectively. We expect that our costs in the future will be limited to essential items such as continued interactions with our customers, the state of New Mexico, and Lea County, New Mexico. If we were to sell all our assets related to the Fluorine Products segment, we plan to pay down the related notes and dissolve the segment.
Given the recent boom in nuclear energy and fuel cycle industry and related global investments, the Company will evaluate all possible options for the DUF6 Plant and related assets, including keeping the assets and developing them into an operating entity focused on uranium deconversion. The company will also explore the potential to amend the current NRC approved license to include additional up-stream and down-stream uranium related activities.
Cost of Revenues and Gross Profit
Cost of revenues for 2025 was $5,367,680 as compared to $5,251,207 in 2024, an increase of $116,473, or 2%. Gross profit percentage decreased to 59% for 2025, from 62% in 2024. The following table presents revenues and cost of revenues information:
| For the year ended December 31, 2025 |
% of Total Revenues 2025 | For the year ended December 31, 2024 |
% of Total Revenues 2024 | |||||||||||||
| Total Revenues |
$ | 13,070,336 | 100 | % | $ | 13,899,760 | 100 | % | ||||||||
| Cost of Revenues |
||||||||||||||||
| Theranostics Products |
$ | 2,091,068 | 16 | % | $ | 2,267,138 | 16 | % | ||||||||
| Cobalt Products |
932,297 | 7 | % | 1,265,910 | 9 | % | ||||||||||
| Calibration & Reference Products |
2,145,825 | 16 | % | 1,709,369 | 12 | % | ||||||||||
| Medical Devices Products |
198,490 | 2 | % | 8,790 | 0 | % | ||||||||||
| Fluorine Products |
— | — | % | — | — | % | ||||||||||
| Total Segments |
$ | 5,367,680 | 41 | % | $ | 5,251,207 | 38 | % | ||||||||
| Gross Profit |
$ | 7,702,656 | $ | 8,648,553 | ||||||||||||
| Gross Profit % |
59 | % | 62 | % | ||||||||||||
During 2025, we continued to monitor and control direct costs. Raw materials used in our Theranostics Products and Calibration & Reference Products represented the bulk of direct costs for 2025. In each of these business segments, we have purchase agreements in place with suppliers to obtain optimum pricing. Periodically, the cost can increase for these raw materials or we may also use alternate supply sources for our material which might not carry pricing as favorable as our contracted suppliers.
The decrease in gross profit percentage in 2025 is a result of a change in our sales mix. We had decreased sales activity in Theranostics Products and Cobalt Products segments and increased sales activity in our Calibration & Reference Standards segment. We continue to work to find more effective cost controls and to increase our overall utilization of our raw materials.
Operating Costs and Expenses
Total operating costs and expenses for 2025 were $8,658,843, as compared to $8,641,652 in 2024. This is an increase of $17,191, which is less than 1%.
The following table presents operating costs and expenses for 2025 as compared to 2024:
| For the year ended December 31, 2025 |
For the year ended December 31, 2024 |
% change |
$ change |
|||||||||||||
| Operating Costs and Expenses: |
||||||||||||||||
| Salaries and Contract Labor |
$ | 4,490,011 | $ | 4,021,896 | 12 | % | $ | 468,115 | ||||||||
| General, Administrative and Consulting |
3,732,992 | 4,009,019 | (7 | )% | (276,027 | ) | ||||||||||
| Research and Development |
435,840 | 610,737 | (29 | )% | (174,897 | ) | ||||||||||
| Total operating expenses |
$ | 8,658,843 | $ | 8,641,652 | 0 | % | $ | 17,191 | ||||||||
Salaries and contract labor expenses increased by $468,115, which was the result of increased employee headcount and increases to labor rates due to merit raises and cost-of-living adjustments. Non-cash equity compensation expense recorded for the year ended December 31, 2025, was $117,822 as compared to $199,420 for the same period in 2024. This expense is for equity compensation recorded for outstanding stock options and restricted stock units granted to directors, officers, and employees.
General administrative and consulting expenses decreased 7% to $3,732,992 in 2025, as compared to $4,009,019 in 2024. This decrease was due to decreased Legal and professional expenses and decreased waste expenses. General and Administrative expenses included waste disposal costs of $150,000 in 2025 as compared to $229,540 in 2024. Research and development expense was $435,840 for 2025, compared to $610,737 for 2024. This is a decrease of $174,897, or approximately 29%. This decrease in research and development expenses was the result of decreased costs associated with product development in our Medical Device segment.
Other Income (Expense)
The following table presents other income (expense) for 2025 as compared to 2024:
| For the year ended December 31, 2025 |
For the year ended December 31, 2024 |
|||||||
| Other income (expense) |
$ | 310,838 | $ | 207,966 | ||||
| Interest income |
76,628 | 122,385 | ||||||
| Interest expense |
(339,281 | ) | (328,678 | ) | ||||
| Total other (expense) |
$ | 48,185 | $ | 1,673 | ||||
Other income was $310,838 for 2025 as compared to other income of $207,966 for 2024. This increase of $102,872 was due to an increase in miscellaneous income.
Interest income in 2025 was $76,628 as compared to $122,385 in 2024. This decrease of $45,757 was due to decreased interest rates and decreased cash balances held at banks and other institutions in interest-bearing accounts.
Interest expense increased during 2025, to $339,281, from $328,678 in 2024. This increase of $10,603, or approximately 3%, was due to increased interest for notes payable. Interest expense includes dividends accrued on our Series C Preferred Stock (as defined below) issued in 2017. In 2025 and 2024 we recorded interest expense of $243,780 and $243,030, respectively, for dividends payable on our Series C Preferred Stock.
Net Income or Loss
Our net loss was $908,002 in 2025, compared to a net income of $8,574 in 2024. This is a decrease in net income of $916,576. This decrease is the result of decreased revenue and profit margin in 2025 as compared to 2024.
EBITDA and Adjusted EBITDA
The following table presents EBITDA(1) and Adjusted EBITDA(1) for 2025 and 2024, as well as reconciliations to net income (loss) for 2025 as compared to 2024:
| Years ended December 31, |
||||||||
| 2025 |
2024 |
|||||||
| Net income (loss) |
$ | (908,002 | ) | $ | 8,574 | |||
| Interest expense, net |
262,653 | 206,293 | ||||||
| Provision for income taxes |
— | — | ||||||
| Depreciation and amortization |
402,440 | 401,067 | ||||||
| EBITDA |
(242,909 | ) | 615,934 | |||||
| Non-cash stock-based compensation |
117,822 | 199,420 | ||||||
| Gain on disposal of property, plant, and equipment |
— | (13,492 | ) | |||||
| NRC Enforcement Matters (a)(1) |
45,213 | 233,852 | ||||||
| Medical Devices Buildout (b)(1) |
50,194 | 200,568 | ||||||
| Public Markets Related Non-Recurring Costs (c)(1) |
93,423 | — | ||||||
| Adjusted EBITDA |
$ | 63,743 | $ | 1,236,282 | ||||
| (a) Represents costs for an NRC violation that occurred in 2022, including legal expenses, costs for corrective actions, and NRC fines. |
||||||||
| (b) Represents legal work for intitial buildout of the Medical Devices business segment. |
||||||||
| (c) Represents non-recurring legal and professional fees in connection with discrete capital markets and compliance-oriented initiatives. |
||||||||
(1) EBITDA and Adjusted EBITDA are non-GAAP financial measure. See "Non-GAAP Financial Measures" below for more information.
Non-GAAP Financial Measures
This report contains financial measures that do not comply with U.S. generally accepted accounting principles (“GAAP”), such as EBITDA and Adjusted EBITDA. EBITDA is defined as net income plus interest, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA, adjusted to exclude items that are deemed to be unusual and non-recurring, and that we do not believe are indicative of the companies recurring operating performance, such as non-cash stock-based compensation, gain on disposal of assets, and costs associated with NRC enforcement matters and our medical devices buildout.
These non-GAAP financial measures are supplemental measures to our results of operations as reported under GAAP. Our management uses these measures to better analyze our financial results and business operations. In management’s opinion, these non-GAAP measures are useful to investors and other users of our financial statements by providing greater transparency into the ongoing operating performance of the Company and its future outlook. Such measures should not be considered alternatives to net income or any other performance measures derived in accordance with GAAP. The Company's measurement of EBITDA and Adjusted EBITDA may not be comparable to similar measures of other companies as they are not performance measures calculated in accordance with GAAP.
See the tables above for reconciliations of GAAP to non-GAAP measures.
Liquidity and Capital Resources
At December 31, 2025, we had cash and cash equivalents of $1,695,158 compared to $1,945,523 at December 31, 2024. Restricted cash, which is included in long-term assets was $1,492,227 at December 31, 2025 compared to $1,431,710 at December 31, 2024. This increase in Restricted Cash was due to interest income. Net cash provided by operating activities was $620,163 in 2025, compared to net cash provided by operating activities of $638,783 in 2024. This represents a decrease in cash provided by operating activities of $18,620.
Accounts receivable at December 31, 2025 were $1,418,235 as compared to $1,521,380 at December 31, 2024.
Inventories at December 31, 2025 were $875,449 as compared to $820,893 at December 31, 2024.
Included in our work in process inventory are in-process and completed nuclear medicine products, irradiated cobalt, and nuclear medicine-related materials and products.
We recognized net loss of $908,002, for the year ended December 31, 2025, and have an accumulated deficit of $128,229,287 since inception. To date, our operations and plant and equipment expenditures have been funded principally from proceeds from public and private sales of debt and equity as well as through asset sales.
Net cash used in investing activities was $534,155 for 2025 and net cash used in investing activities was $685,215 for 2024. During 2025, we used $534,155 to purchase equipment and leasehold improvements. We used $551,215 to purchase equipment and leasehold improvements and $170,000 towards our purchase of land in 2024. We had proceeds from sale of equipment of $36,000 in 2024, and we had no proceeds from sale of equipment in 2025.
Financing activities used cash of $275,856 for the year ended December 31, 2025. We received proceeds from the sale of common stock in the amount of $20,259 and made principal payment on loans in the amount of $296,115 in 2025. For the year ended December 31, 2024, financing activities used cash of $145,228. We received proceeds from the sale of common stock in the amount of $11,969 and made principal payment on loans in the amount of $154,365 in 2024.
In February 2017, we entered into subscription agreements with certain investors, including two of our directors, for the sale of (i) an aggregate of 3,433 shares of Series C Preferred Stock, and (ii) Class M warrants to purchase an aggregate of 17,165,000 shares of our common stock (Class M Warrants), for gross proceeds of $3,433,000. The Class M Warrants were exercisable at an exercise price of $0.12 per share, subject to adjustment as set forth in the warrant. In February 2022, 515,000 Class M Warrants were exercised; in February 2022 all remaining Class M Warrants expired.
In March 2017, we amended our 8% unsecured debentures issued that were scheduled to mature in July 2017 (the Notes) and gave the noteholders certain additional rights (the Amendment). Pursuant to the Amendment, the Notes were modified to provide each holder the right, at the holder’s option and exercisable prior to May 12, 2017, to convert all or any portion of the principal amount of the Notes, plus accrued but unpaid interest, into shares of our Series C Preferred Stock at a conversion price of $1,000 per share. Holders that elected to convert their Notes into Series C Preferred Stock received a warrant to purchase up to 3,750 shares of our common stock for each share of Series C Preferred Stock received upon conversion of the Notes, with each warrant having a five-year term, a cashless exercise feature, and an exercise price of $0.10 per share of common stock. As a result of this modification, an aggregate of $780,000 of the Notes was converted to 780 shares of Series C Preferred Stock and 2,925,000 Class N Warrants. The Class N Warrants were exercisable at an exercise price of $0.12 per share, subject to adjustment as set forth in the warrant, and expired in February 2022.
In total, 4,213 shares of Series C Preferred Stock were issued for gross proceeds of $4,213,000. The Series C Preferred Stock accrues dividends at a rate of 6% per annum, payable annually on February 17th of each year, commencing on February 17, 2018. Shares of Series C Preferred Stock are convertible at the option of the holder at any time into shares of our common stock at an initial conversion price equal to $0.10 per share, subject to adjustment. At any time after February 17, 2019, if the volume-weighted average closing price of our common stock over a period of 90 consecutive trading days is greater than $0.25 per share, we 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.
In total, 150 shares of Series C Preferred Stock have previously been converted to common stock at the option of the holder At December 31, 2023, 4,063 shares of Series C Preferred Stock were outstanding. All outstanding shares of Series C Preferred Stock were originally required to be redeemed by us on February 17, 2022 at the original purchase price per share, payable in cash or shares of common stock, at the option of the holder. Since original issuance, the redemption date of the Series C Preferred Stock has been extended to February 28, 2027. Holders of 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.
In December 2013, we entered into a promissory note agreement with the chairman of our board of directors at the time 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. Pursuant to four modifications in the time period between June 2014 and January 2022, the 2013 Promissory Note was modified to extend the maturity date to December 31, 2023, with all remaining terms unchanged. In February 2024, the 2013 Promissory Note was modified again to (i) extend the maturity date to March 31, 2026, (ii) remove the security provision to allow for the sale of all our assets related to the Fluorine Products segment and the Planned Uranium De-Conversion Facility to American Fuel Resources, LLC (the “DUF6 Asset Sale”), (iii) if reasonably possible, to reinstate a security provision against our Sodium iodide abbreviated new drug application (“ANDA”) and Iodine-131 Processing Hot Cell, and (iv) to reinstate all security interests if the DUF6 Asset Sale does not close by March 31, 2026, with all remaining terms unchanged. To date, we have not yet removed the security interests against any of our assets related to this note. In August 2025, the 2013 Promissory Note was modified again to extend the maturity date to March 31, 2028, with all remaining terms unchanged. At December 31, 2025, accrued interest payable on the 2013 Promissory Note was $361,734.
In April 2018, we borrowed $120,000 from our chief executive officer and the current chairman of our board of directors (“Chairman”) through an affiliated entity pursuant to a promissory note (the “2018 Promissory Note”). The 2018 Promissory Note is secured and accrues interest at 6% per annum, which is payable upon maturity of the 2018 Promissory Note. At any time, the holders 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. The 2018 Promissory Note was originally due August 1, 2018. Pursuit to six modifications within the period of June 2018 and December 2023, the 2018 Promissory Note was modified to extend the maturity date to January 31, 2025, with all remaining terms unchanged. In February 2024, the 2018 Promissory Note was modified to (i) extend the maturity date to March 31, 2026, (ii) remove the security provision to allow for the DUF6 Asset Sale, (iii) if reasonably possible, to reinstate a security provision against our sodium iodide ANDA and iodine-131 Processing Hot Cell, and (iv) to reinstate all security interests if the DUF6 Asset Sale does not close by March 31, 2026, with all remaining terms unchanged. To date, we have not yet removed the security interests against any of our assets related to this note. In August 2025, the 2018 Promissory Note was modified again to extend the maturity date to March 31, 2028, with all remaining terms unchanged. At December 31, 2025, accrued interest on the 2018 Promissory Note totaled $55,370.
In December 2019 and February 2020, we borrowed an aggregate of $1,000,000 from our chief executive officer, Chairman, former Chairman, and one of our major shareholders pursuant to a promissory note (the “2019 Promissory Note”). The 2019 Promissory Note bears an interest rate of 4% annually and was originally 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 December 2022, the 2019 Promissory Note was modified to extend the maturity date to December 31, 2024, with all remaining terms unchanged. In February 2024, the 2019 Promissory Note was modified to (i) extend the maturity date to March 31, 2026, (ii) remove the security provision to allow for the DUF6 Asset Sale, (iii) if reasonably possible, to reinstate a security provision against our sodium iodide ANDA and Iodine-131 Processing Hot Cell, and (iv) to reinstate all security interests if the DUF6 Asset Sale does not close by March 31, 2026, with all remaining terms unchanged. To date, we have not yet removed the security interests against any of our assets related to this note. In August 2025, the 2019 Promissory Note was modified again to extend the maturity date to March 31, 2028, with all remaining terms unchanged. At December 31, 2025, the accrued interest on the 2019 Promissory Note totaled $239,131.
We expect that cash from operations and our current cash balance will be sufficient to fund operations for the next twelve months. Although we may need to seek additional financing to fund operations or our projects in the future, there is no assurance that we will be able to secure additional financing on acceptable terms to us, or at all.
Goals for 2026
Based upon the investments we have made in our facilities and investments we anticipate making, and based on projects, and products we developed in 2025, we have the following goals for 2026:
| ● |
Continue to expand sales of our FDA approved sodium iodide I-131 generic drug product, including entering new territories and launch theranostics-focused GMP DMF product to focus on serving the emerging theranostics customer base; |
| ● |
Complete development of and launch an automated I-131 capsule loading system to pharmacies in the U.S and select overseas customers; |
| ● |
Medical Devices segment beginning to offer RadVent products from the purchased assets from AMICI, Inc.; |
| ● |
Complete build-out of dedicated Calibration & Reference Products manufacturing facility; |
| ● |
Expand sales of our Calibration & Reference Products and increase cash flow by offering new products and further expanding our international sales and distributor relationships; |
| ● |
Explore acquisition opportunities to expand our product offerings and increase revenue, cash flow, and profit margin; |
| ● |
Continue to expand our customer base, increase revenues, reduce production and operating costs, and attempt to achieve profitability in our core business segment operations; and |
| ● |
Evaluate best value of assets in the Fluorine Products segment, including raising funds to build and operationalize the assets ourselves. |
Critical Accounting Estimates
Asset retirement obligation – The asset retirement obligation is based on the expected future cash flows of the decommissioning funding plan. The decommissioning funding plan is based on the estimated number of hours of specific personnel, estimated wages and disposal costs. Once the decommissioning funding plan has been developed, we will use a discount rate to determine the estimated current value of the liability.
Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are a smaller reporting company, and therefore, are not required to provide the information required by this item.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The following financial statements are included herewith:
Index to Consolidated Financial Statements
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
Item 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as defined in Rules 13a-15I and 15d-15(e) under the Exchange Act) that are designed to ensure information required to be disclosed in our reports that are filed or submitted under the Exchange Act, is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
Management, with the participation of our Chief Executive Officer (CEO) and Chief Financial Officer (CFO), has conducted an evaluation (pursuant to Rule 13a-15(b) of the Exchange Act) of the effectiveness of our disclosure controls and procedures as of December 31, 2025. Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of December 31, 2025.
Management’s Annual Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15(d)-15(f) under the Exchange Act). Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of our financial reporting for external purposes in accordance with accounting principles generally accepted in the U.S. Internal control over financial reporting includes maintaining records that in reasonable detail accurately and fairly reflect our transactions; providing reasonable assurance that transactions are recorded as necessary for preparation of our financial statements; providing reasonable assurance that receipts and expenditures are made in accordance with management authorization; and providing reasonable assurance that unauthorized acquisition, use or disposition of company assets that could have a material effect on our financial statements would be prevented or detected on a timely basis. Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a misstatement of our financial statements would be prevented or detected.
Management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework and criteria established in Internal Control — Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission. This evaluation included review of the documentation of controls, evaluation of the design effectiveness of controls, testing of the operating effectiveness of controls and a conclusion on this evaluation. Based on this evaluation, management concluded that our internal control over financial reporting was effective as of December 31, 2025.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting during the three months ended December 31, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
During the quarter ended December 31, 2025, director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.
Item 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
None.
PART III.
Item 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
We have adopted a Code of Ethics that applies to our principal executive officer, principal financial officer, principal accounting officer and controller, or persons performing similar functions. Our Code of Ethics is posted on our website and can be accessed, free of charge, at http://www.intisoid.com. If we waive, or implicitly waive, any material provision of the Code of Ethics that apply to our executive officers, or substantively amend the Code of Ethics, in each case that is required to be disclosed, we will disclose that fact on our website.
The other information required by this item are incorporated by reference from our definitive proxy statement for our 2026 annual meeting of shareholders, which will be filed with the SEC within days after December 31, 2025.
Item 11. EXECUTIVE COMPENSATION
The information required by this item is incorporated by reference from our definitive proxy statement for our 2026 annual meeting of shareholders, which will be filed with the SEC within days after December 31, 2025.
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The information required by this item is incorporated by reference from our definitive proxy statement for our 2026 annual meeting of shareholders, which will be filed with the SEC within 120 days after December 31, 2025.
Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
The information required by this item is incorporated by reference from our definitive proxy statement for our 2026 annual meeting of shareholders, which will be filed with the SEC within 120 days after December 31, 2025.
Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
The information required by this item is incorporated by reference to our definitive proxy statement for our 2026 annual meeting of shareholders, which will be filed with the SEC within 120 days after December 31, 2025.
Item 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
(a)(1) and (a)(2) Financial Statements
See the index to and the financial statements beginning on page [31].
(a)(3) Exhibits
The following documents are filed or incorporated herein by reference as exhibits to this report:
| 3.1 |
Restated Certificate of Formation of the Company, as amended (incorporated by reference to Exhibit 3.1 of the Company’s Quarterly Report on Form 10-Q for quarter ended June 30, 2010). |
| 3.2 |
Statement of Designation of the Series C Convertible Redeemable Preferred Stock of the Company (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on February 24, 2017). |
| 3.3 |
Certificate of Amendment to Statement of Designation of the Series C Convertible Redeemable Preferred Stock of International Isotopes Inc., dated October 2, 2024 (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed October 2, 2024). |
| 3.4 |
Bylaws of the Company (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed October 17, 2025). |
| 3.5+ |
Certificate of Amendment to Restated Certificate of Formation of International Isotopes Inc. |
| 10.1† |
International Isotopes Inc. Amended and Restated Employee Stock Purchase Plan (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K, filed on July 21, 2020). |
| 10.2† |
International Isotopes Inc. Amended and Restated 2015 Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K, filed on July 30, 2018). |
| 10.3† |
Form of Director and Officer Indemnification Agreement (incorporated by reference to Exhibit 99.1 of the Company’s Current Report on Form 8-K filed on September 17, 2008). |
| 10.4 |
Registration Rights Agreement, dated February 17, 2017, among the Company and the purchasers named therein (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on February 24, 2017). |
| 10.5† |
Executive Employment Agreement, dated October 10, 2025, between the Company and Shahe Bagerdjian (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K, filed October 15, 2025). |
| 19.1+ |
| 21.1+ |
| 31.1+ |
Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002. |
| 31.2+ |
Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002. |
| 32.1* |
| 32.2* |
| 101.INS+ |
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH+ |
Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL+ |
Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF+ |
Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB+ |
Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE+ |
Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 |
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
† This exhibit constitutes a management contract or compensatory plan or arrangement.
++ Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company hereby undertakes to supplementally furnish copies of any omitted schedules to the Securities and Exchange Commission upon request.
# Certain portions of the exhibit have been omitted pursuant to Rule 601(b)(10) of Regulation S-K. The omitted information is not material and is the type of information that the registrant treats as private or confidential.
+ Filed herewith.
* Furnished herewith.
None.
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Radnostix Inc. |
|
| By: /s/ Shahe Bagerdjian |
|
| Shahe Bagerdjian |
|
| President, Chief Executive Officer, and Director |
|
| Date: March 31, 2026 |
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| March 31, 2026 |
By: /s/ Shahe Bagerdjian |
| Shahe Bagerdjian |
|
| President, Chief Executive Officer, and Director |
| March 31, 2026 |
By: /s/ W. Matthew Cox |
| W. Matthew Cox |
|
| Chief Financial Officer, Secretary |
| March 31, 2026 |
By: /s/ Robert Atcher |
| Robert Atcher |
|
| Director |
| March 31, 2026 |
By: /s/ Christopher Grosso |
| Christopher Grosso |
|
| Chairman of the Board of Directors |
| March 31, 2026 |
By: /s/ Steve Laflin |
| Steve Laflin |
|
| Director |
| March 31, 2026 |
By: /s/ Duke Fu |
| Duke Fu |
|
| Director |
RADNOSTIX INC.
AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
TABLE OF CONTENTS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and
Stockholders of Radnostix, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Radnostix, Inc. (the Company) as of December 31, 2025, and 2024, and the related consolidated statements of operations, stockholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2025, and the related notes (collectively referred to as the financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024 and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
Valuation of the Uranium De-conversion Facility
Description of the Matter:
As discussed in Note 2 and Note 6 to the consolidated financial statements, the Company has assets related to the future construction and operation of a depleted uranium de-conversion facility. The actual construction of the facility was put on hold in a previous year and performance milestones have not been met. There were plans to sell the facility, however as discussed in Note 2 and 16, the sale will not go through. Due to these factors, management must assess whether these assets are impaired. Management’s assessment relies on estimates, future projections of the market, and judgment.
Auditing management’s valuation and impairment analysis can be complex, involves judgment, and requires a thorough understanding of the irradiation process.
How We Addressed the Matter in Our Audit:
We reviewed the Company’s assumptions in developing an estimate in determining whether the assets were impaired. We reviewed all necessary agreements, and plans in place. We reviewed the Company’s amortization on the applicable assets and compared the net book value to the fair value of the assets.
|
March 31, 2026 PCAOB # | |
| We have served as the Company’s auditor since 2018. | |
RADNOSTIX INC. AND SUBSIDIARIES
Consolidated Balance Sheets
| December 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Accounts receivable | ||||||||
| Inventories | ||||||||
| Prepaids and other current assets | ||||||||
| Total current assets | ||||||||
| Long-term assets | ||||||||
| Restricted cash | ||||||||
| Property, plant, and equipment, net | ||||||||
| Capitalized lease disposal costs, net | ||||||||
| Financing lease right-of-use asset | ||||||||
| Operating lease right-of-use asset | ||||||||
| Goodwill | ||||||||
| Patents and other intangibles, net | ||||||||
| Total long-term assets | ||||||||
| Total assets | $ | $ | ||||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | $ | ||||||
| Accrued liabilities | ||||||||
| Unearned revenue | ||||||||
| Current portion of operating lease right-of-use liability | ||||||||
| Current installments of notes payable | ||||||||
| Total current liabilities | ||||||||
| Long-term liabilities | ||||||||
| Accrued long-term liabilities | ||||||||
| Related party notes payable | ||||||||
| Notes payable, net of current portion | ||||||||
| Asset retirement obligation | ||||||||
| Operating lease right-of-use liability, net of current portion | ||||||||
| Mandatorily redeemable convertible preferred stock | ||||||||
| Total long-term liabilities | ||||||||
| Total liabilities | ||||||||
| Commitments and contingencies (see Note 11) | ||||||||
| Stockholders' equity | ||||||||
| Common stock, $ par value; shares authorized; and shares issued and outstanding respectively | ||||||||
| Additional paid in capital | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Total equity | ||||||||
| Total liabilities and stockholders' equity | $ | $ | ||||||
See accompanying notes to consolidated financial statements.
RADNOSTIX INC. AND SUBSIDIARIES
Consolidated Statements of Operations
| Years ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Sale of product | $ | $ | ||||||
| Cost of product | ||||||||
| Gross profit | ||||||||
| Operating costs and expenses: | ||||||||
| Salaries and contract labor | ||||||||
| General, administrative, and consulting | ||||||||
| Research and development | ||||||||
| Total operating expenses | ||||||||
| Operating profit (loss) | ( | ) | ||||||
| Other income (expense): | ||||||||
| Other income | ||||||||
| Interest income | ||||||||
| Interest expense | ( | ) | ( | ) | ||||
| Total other (expense) income | ||||||||
| Net income (loss) | $ | ( | ) | $ | ||||
| Net income (loss) per common share - basic: | $ | $ | ||||||
| Net income (loss) per common share - diluted: | $ | $ | ||||||
| Weighted average common shares outstanding - basic | ||||||||
| Weighted average common shares outstanding - diluted | ||||||||
See accompanying notes to consolidated financial statements.
RADNOSTIX INC. AND SUBSIDIARIES
Consolidated Statement of Stockholders' Equity
Years ended December 31, 2025 and 2024
| Common Stock | Additional Paid-in | Accumulated | Total | |||||||||||||||||
| Shares | Amount | Capital | Deficit | Equity | ||||||||||||||||
| Balance December 31, 2023 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| Shares issued under employee stock purchase plan | ||||||||||||||||||||
| Stock issued in lieu of dividends on preferred C shares | ||||||||||||||||||||
| Shares issued for issuance of RSUs | ( | ) | ||||||||||||||||||
| Stock based compensation | ||||||||||||||||||||
| Net income | — | |||||||||||||||||||
| Balance December 31, 2024 | ( | ) | ||||||||||||||||||
| Shares issued under employee stock purchase plan | ||||||||||||||||||||
| Stock issued in lieu of dividends on preferred C shares | ||||||||||||||||||||
| Stock for Amici | ||||||||||||||||||||
| Shares issued for issuance of RSUs | ( | ) | ||||||||||||||||||
| Stock based compensation | ||||||||||||||||||||
| Net loss | — | — | — | ( | ) | ( | ) | |||||||||||||
| Balance December 31, 2025 | $ | $ | $ | ( | ) | $ | ||||||||||||||
See accompanying notes to consolidated financial statements.
RADNOSTIX INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
| Years ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net (loss) income | $ | ( | ) | $ | ||||
| Adjustments to reconcile net income/loss to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | ||||||||
| Gain on disposal of property, plant, and equipment | ( | ) | ||||||
| Accretion of obligation for lease disposal costs | ||||||||
| Equity based compensation | ||||||||
| Right-of-use asset changes, net | ( | ) | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | ( | ) | ||||||
| Prepaids and other current assets | ( | ) | ||||||
| Inventories | ( | ) | ||||||
| Accounts payable and accrued liabilities | ||||||||
| Unearned revenues | ( | ) | ( | ) | ||||
| Net cash provided by operating activities | ||||||||
| Cash flows from investing activities: | ||||||||
| Proceeds from sale of property, plant, and equipment | ||||||||
| Purchase of property, plant, equipment, and patents | ( | ) | ( | ) | ||||
| Net cash used in investing activities | ( | ) | ( | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from sale of stock | ||||||||
| Payments on financing lease liability | ( | ) | ||||||
| Principal payments on notes payable | ( | ) | ( | ) | ||||
| Net cash used in financing activities | ( | ) | ( | ) | ||||
| Net decrease in cash and cash equivalents and restricted cash | ( | ) | ( | ) | ||||
| Cash and cash equivalents and restricted cash at beginning of year | ||||||||
| Cash and cash equivalents and restricted cash at end of year | $ | $ | ||||||
| Supplemental disclosure of cash flow activities: | ||||||||
| Cash paid for interest | $ | $ | ||||||
| Cash paid for taxes | $ | $ | ||||||
| Supplemental disclosure of noncash financing and investing transactions: | ||||||||
| Decrease in accrued interest and increase in equity for conversion preferred dividends to stock | $ | $ | ||||||
| Property acquired in exchange for a note payable | $ | $ | ||||||
| Decrease in current installments of notes payable for issuance of stock | $ | $ | ||||||
| Increase in operating lease right-of-use asset and right-of-use liability for new lease | $ | $ | ||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash and cash equivalents | $ | $ | ||||||
| Restricted cash included in long-term assets | ||||||||
| Total cash, cash equivalents, and restricted cash shown in statement of cash flows | $ | $ | ||||||
See accompanying notes to consolidated financial statements.
RADNOSTIX INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED December 31, 2025 AND 2024
NOTE 1 – DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
Description of business – Radnostix Inc. (the “Company” or “RNX”) was incorporated in Texas in November 1995. The accompanying 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 the Company and its wholly owned subsidiaries, International Isotopes Idaho Inc., International Isotopes Fluorine Products, Inc., International Isotopes Transportation Services, Inc., and RadVent, LLC. The consolidated financial statements also include the accounts of wholly owned subsidiaries TI Services, LLC, (“TI Services”), and 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 devices, and is now headquartered in Idaho Falls, Idaho.
Nature of Operations – RNX and its subsidiaries, (collectively, the “Company,” “we,” “our” or “us”) manufacture a full range of nuclear medicine calibration and reference standards, a wide range of products, including cobalt teletherapy sources, and an FDA-approved radiopharmaceutical drug product. The Company also holds several patents for a fluorine extraction process that would be used in conjunction with a proposed commercial depleted uranium de-conversion facility which would be located in Lea County, New Mexico (the “De-Conversion Facility”). The Company’s business consists of major business segments: Theranostics Products, Cobalt Products, Calibration & Reference Products, Medical Devices, and Fluorine Products. The Company’s headquarters and all operations, with the exception of TI Services, are located in Idaho Falls, Idaho.
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-60 contracts, where shipment will not take place for greater than the operating cycle, have been recorded as unearned revenue and, depending upon estimated ship dates, classified under current or long-term liabilities on the Company’s consolidated balance sheets. These unearned revenues will be recognized as revenue in the future period during when the cobalt-60 shipment takes place. All assets expected to be realized in cash or sold during the normal operating cycle of the business are classified as current assets.
Principles of Consolidation – The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including RadQual and TI Services. All significant intercompany accounts and transactions have been eliminated during consolidation.
Significant accounting policies
a) Financial instruments and cash equivalents
The carrying value of notes payable approximates fair value because they bear interest at rates which approximate market rates.
Cash and cash equivalents, totaling $
At December 31, 2025 and 2024, the Company had pledged cash on deposit in a money market account valued at $
The Company maintains its cash accounts in various deposit accounts, the balances of which are periodically in excess of federally insured limits.
b) Accounts receivable
The Company sells products mainly to recurring customers, wherein the customer’s ability to pay has previously been evaluated. The Company generally does not require collateral. The Company periodically reviews accounts receivable for amounts considered uncollectible and allowances are provided for uncollectible accounts when deemed necessary. At December 31, 2025 and December 31, 2024 the Company had
c) Inventories
Inventories are carried at the lower of cost or net realizable value. Cost is determined using the first in, first out method. When indicators of inventory impairment exist, the Company measures the carrying value of the inventory against its market value, and if the carrying value exceeds the market value, the inventory value is adjusted down accordingly.
d) Property, plant and equipment
Depreciation on property, plant and equipment is computed using the straight-line method over the estimated useful life of the asset.
Leasehold improvements are amortized over the shorter of the life of the lease or the service life of the improvements. Maintenance, repairs, and renewals that neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Gains or losses on dispositions of property and equipment are included in the results of operations.
e) Goodwill and other intangibles
Goodwill is not amortized but is tested for impairment at least annually. Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets recorded as a result of the change in ownership of RadQual. As of December 31, 2025 and 2024, there has been
Patents and other intangibles are amortized using the straight-line method over their estimated useful lives and are evaluated for impairment at least annually or when events or circumstances arise that indicate the existence of impairment. The Company evaluates the recoverability of identifiable intangible assets whenever events or changes in circumstances indicate that an intangible asset’s carrying amount may not be recoverable. Such circumstances could include but are not limited to: (1) a significant decrease in the market value of an asset, (2) a significant adverse change in the extent or manner in which an asset is used, or (3) an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset. When indicators of impairment exist, the Company measures the carrying amount of the asset against the estimated undiscounted future cash flows associated with it. Should the sum of the expected future cash flows be less than the carrying value of the asset being evaluated, an impairment loss would be recognized. The impairment loss would be calculated as the amount by which the carrying value of the asset exceeds its fair value. The evaluation of asset impairment requires the Company to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment, and actual results may differ from assumed and estimated amounts. During the years ended December 31, 2025 and 2024, the Company had
f) Impairment of long-lived assets
Long-lived assets are reviewed for impairment annually, or when events or circumstances arise that indicate the existence of impairment, using the same evaluation process as described above for patents and other intangibles. There was
g) Income taxes
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date.
h) 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.
i) Use of estimates
Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period to prepare these consolidated financial statements in conformity with GAAP. Actual results could differ from those estimates.
j) Revenue recognition
Revenue is recognized when products are shipped. No warranty coverage or right of return provisions are provided to customers. Amounts received as prepayment on future products or services are recorded as unearned revenues and recognized as income when the product is shipped or service performed. See Note 14 Revenue Recognition.
k) Advertising Expenses
Advertising expenses, which include promotional expenses, are expensed as incurred and totaled $
l) Research and development costs
Research and development costs are expensed as incurred and totaled $
m) Share-based compensation
The Company accounts for issuances of share-based compensation to employees in accordance with GAAP which requires the recognition of the cost of employee services received in exchange for an award of equity instruments in the financial statements and is measured based on the grant date fair value of the award. Compensation expense is recognized over the period during which an employee is required to provide service in exchange for the award (the vesting period).
For the years ended December 31, 2025 and 2024, the Company recognized share-based compensation expense of $
n) Net income/loss per common share – basic and diluted
Basic income/loss per share is computed on the basis of the weighted-average number of common shares outstanding during the year. Diluted income/loss per share is computed on the basis of the weighted-average number of common shares plus all potentially dilutive issuable common shares outstanding during the year.
The table below shows the calculation of diluted shares:
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Weighted average common shares outstanding - basic | ||||||||
| Effects of dilutive shares | ||||||||
| Stock options | ||||||||
| Series C redeemable convertible preferred stock | ||||||||
| Weighted average common shares outstanding - diluted | ||||||||
For the year ended December 31, 2025, the Company had
For the year ended December 31, 2024, the Company had
The table below summarizes common stock equivalents outstanding at December 31, 2025 and 2024:
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Stock options | ||||||||
| Shares of Series C redeemable convertible preferred stock | ||||||||
n) Business segments and related information
GAAP establishes standards for the way public business enterprises are to report information about operating segments in annual financial statements and requires enterprises to report selected information about operating segments in interim financial reports issued to shareholders. It also establishes standards for related disclosure about products and services, geographic areas and major customers. The Company currently operates in five business segments.
o) Recent accounting standards
In December 2023, Financial Accounting Standards Board ("FASB") issued ASU 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures, which enhances the disclosures required for income taxes in the Company’s annual consolidated financial statements. Notably, this ASU requires entities to disclose specific categories in the effective tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company adopted ASU 2023-09 during the year ended December 31, 2025. See Note 10, Income Taxes for further detail.
In November 2024, the FASB issued ASU 2024-03, "Disaggregation of Income Statement Expenses (Subtopic 220-40)." This update requires public business entities (PBEs) to disclose, in the footnotes, a breakdown of certain expense line items by specified categories, such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization. The guidance is effective for fiscal years beginning after December 15, 2026, with early adoption permitted, and may be applied retrospectively. The Company is currently evaluating the impact of adopting the new ASU on its consolidated financial statements and related disclosures.
NOTE 2 – BUSINESS CONDITION AND LIQUIDITY
The Company has a history of recurring losses with an accumulated deficit of $
During the year ended December 31, 2025, the Company continued to focus on its long-standing core business segments, which consist of its Theranostics Products, Cobalt Products, and Calibration & Reference Products, and particularly the pursuit of new business opportunities within those segments. The Company is also developing a Medical Device segment.
Due to changes in the nuclear industry, the Company’s plans for the design and construction of a large-scale uranium de-conversion and fluorine extraction facility were placed on hold. The Company will continue to incur some costs associated with the maintenance of licenses and other necessary project investments for the proposed facility. The Company holds a Nuclear Regulatory Commission (“NRC”) construction and operating license for the depleted uranium facility as well as the property agreement with Lea County, New Mexico, where the plant is intended to be constructed. The NRC license for the de-conversion facility is a forty (
On March 11, 2026, the Company executed a mutual termination of an asset purchase agreement ("DUF6 APA") dated February 8, 2024 to sell all our assets related to the Fluorine Products segment and the Planned Uranium De-Conversion Facility to American Fuel Resources ("AFR"). AFR contacted the Company requesting a 1-year extension due to AFR being unable to make payment of the balance of the purchase price by March 31, 2026 (the “Outside Date”) in order to meet the Condition to Seller’s Obligations as defined in the DUF6 APA. The parties were in the final stages of the NRC consent process and were on the cusp of receiving NRC consent to transfer; however, the parties mutually agreed to withdraw the application and terminate the APA.
AFR already made a non-refundable $
NOTE 3 – PURCHASED ASSET AND INVESTMENTS
AMICI Asset Purchase Agreement and Medical Devices
In June 2023, the Company acquired several medical devices with related assets and intellectual property rights from AMICI, Inc. and has been working on FDA 510k transfers, and start-up of manufacturing. In January 2025, the parties amended the Asset purchase Agreement whereby the Company received additional product rights and related assets to make up for a shortfall by AMICI in deliverable assets originally contemplated in the Asset Purchase Agreement. These acquired assets from AMICI are currently under development and are expected to be released in the second half of 2025 to be sold through our RadVent subsidiary as part of our Medical Devices segment.
On June 3, 2024, the Company entered into a Strategic Development and Distribution Agreement with Alpha Nuclide Inc for the rights to manufacture and distribute the Company’s Theranostics Products and Nuclear Medicine Products in mainland China as part of a 50/50 joint Venture between the Company and Alpha Nuclides. The parties will begin with the distribution of the Company’s Nuclear medicine Products as part of phase I of the strategic alliance, with further planned milestones for the establishment of a joint venture to register the Company’s Theranostics & Nuclear Medicine Products with the CFDA for local manufacturing and distribution. The parties envision commercializing INIS's radiopharmaceutical Iodine-131, radiochemical API, and theranostics API I-131 for 3rd party therapeutic applications in China. The parties intend to manufacture and distribute the products from Alpha Nuclide's Jiaxing facility, which Alpha Nuclides is responsible for establishing. The parties also intend to enter into a supply agreement for raw material isotopes to be supplied from Alpha Nuclide to the Company to be used in the Company’s manufacturing process at the Company’s Idaho Falls, Idaho facility.
On August 6, 2024, the Company entered into a joint venture agreement with Phantech LLC to form PhanQual. PhanQual will leverage INIS’s and Phantech’s technologies, facilities, experience, and global network to design, manufacture, and distribute sealed sources, including adapting Phantech's patented and cutting-edge fillable calibration source technology, into sealed source calibration devices to better serve the R&D and theranostics community. Additionally, RadQual will globally distribute Phantech’s entire portfolio of fillable sources through RadQual’s global network of distributors. PhanQual’s revenues and operations will operate through RadQual and will be included in our Calibration & Reference Products segment.
NOTE 4 – INVENTORIES
Inventories at December 31, 2025 totaled $
NOTE 5 – PROPERTY, PLANT AND EQUIPMENT
Property, plant, and equipment are summarized as follows at December 31, 2025 and 2024:
| December 31, | ||||||||||||
| 2025 | 2024 | Estimated Useful Lives (in years) | ||||||||||
| Furniture and fixtures | $ | $ | 3 - 5 | |||||||||
| Transportation equipment | 5 - 10 | |||||||||||
| Plant and improvements | 5 | |||||||||||
| Production equipment | 5 - 10 | |||||||||||
| Land | ||||||||||||
| Accumulated depreciation | ( | ) | ) | |||||||||
| $ | $ | |||||||||||
Included in fixed assets are assets purchased during the planning phase for the construction of a de-conversion facility in Hobbs, New Mexico; these de-conversion facility assets are included in the DUF6 Asset Sale. Although construction of the facility is currently on hold, the Company has determined that these assets continue to have future economic value based on what it considers a strong likelihood that construction of the facility will occur in the future.
Depreciation expense was $
NOTE 6 – PATENTS AND OTHER INTANGIBLE ASSETS
The Company owns certain patents and patents pending related to a fluorine extraction process (FEP), for various uses of some fluoride gases as fluorinating agents, patents pending related to the EasyFill Automated Capsule System which are owned jointly by our joint venture, and some of the RadQual nuclear medicine calibration sources. The FEP patents were developed in an effort to expand the potential markets for the high purity fluoride gases the Company had planned to produce with its fluorine extraction process. The feasibility of expanding the fluoride gas markets through the use of this patented technology is uncertain. The RadQual product patents were developed to give RadQual a unique competitive advantage by offering calibration standards exclusive to RadQual.
In October 2012, the NRC issued the Company a 40-year construction and operating license for the de-conversion facility. Capitalized costs associated with the licensing and planning process for this license are being amortized over the 40-year life of the license.
The following table summarizes the patent and intangible activity for the year ended December 31, 2025:
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Beginning | $ | $ | ||||||
| Additions | ||||||||
| Disposals | ||||||||
| Ending | ||||||||
| Accumulated amortization | ( | ) | ( | ) | ||||
| $ | $ | |||||||
During the years ended December 31, 2025 and December 31, 2024, the Company recognized $
Patent and other intangible asset amortization is based on the remaining life of the asset and estimated amortization expense is as follows:
| Years ending December 31, | ||||
| 2026 | $ | |||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| 2030 | ||||
| Thereafter | ||||
| $ |
NOTE 7 – CONVERTIBLE DEBENTURES AND NOTES PAYABLE
Convertible debentures
As discussed in Note 9 below, in February 2017, pursuant to a private placement transaction with certain investors, the Company issued
Notes payable
In December 2013, the Company entered into a promissory note agreement with its then Chairman of the Board and one of our major shareholders, pursuant to which we borrowed $
At December 31, 2025, accrued interest payable on the 2013 Promissory Note was $
In April 2018, the Company borrowed $
At December 31, 2025, accrued interest on the 2018 Promissory Note totaled $
In December 2019 and February 2020, the Company borrowed an aggregate of $
At December 31, 2025, accrued interest on the 2019 Promissory Note totaled $
Notes payable as of December 31, 2025 and 2024 consist of the following:
| 2025 | 2024 | |||||||
| Note payable to related parties bearing interest at % all principal and interest due on , secured | $ | $ | ||||||
| Note payable to related parties bearing interest at % all principal and interest due on , secured | ||||||||
| Note payable to related parties bearing interest at % all principal and interest due on , secured | ||||||||
| Note payable for purchase contract bearing no interest until the 25th month after the anniversary of the closing interest at % thereafter monthly installments of $ | ||||||||
| Note payable for purchase contract, payment of $ on January 15, 2025, remaining contract bearing interest at % annual January installments of $ | ||||||||
| Note payable to a financial institution bearing interest at % monthly installments of $, secured | ||||||||
| Total notes payable | ||||||||
| Less: current maturities | ( | ) | ( | ) | ||||
| Notes payable, net of current installments and debt discount | $ | $ | ||||||
Maturities of convertible debt and notes payable, excluding debt discount and debt issuance costs, at December 31, 2025, are as follows:
| Years ending December 31, | ||||
| 2026 | $ | |||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| Thereafter | ||||
| $ |
NOTE 8 – LEASE OBLIGATIONS
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.
| Year Ended | ||||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Operating lease costs | $ | $ | ||||||
| Short-term operating lease costs | ||||||||
| Financing lease expense: | ||||||||
| Amortization of right-of-use assets | ||||||||
| Interest on lease liabilities | ||||||||
| Total financing lease expense | ||||||||
| Total lease expense | $ | $ | ||||||
| Weighted-average remaining lease term (years) - operating leases | ||||||||
| Weighted-average remaining lease term (years) - financing leases | — | — | ||||||
| Weighted-average discount rate - operating leases | % | % | ||||||
| Weighted-average discount rate - financing leases | % | % | ||||||
Maturities of lease liabilities as of December 31, 2025, were as follows:
| Operating leases | Finance leases | |||||||
| For the years ended December 31, | ||||||||
| 2026 | $ | $ | ||||||
| 2027 | ||||||||
| 2028 | ||||||||
| 2029 | ||||||||
| 2030 | ||||||||
| Thereafter | ||||||||
| Total minimum lease obligations | ||||||||
| Less-amount representing interest | ( | ) | ||||||
| Present value of minimum lease obligations | ||||||||
| Current maturities | ( | ) | ||||||
| Lease obligations, net of current maturities | $ | $ | ||||||
NOTE 9 – SHAREHOLDERS’ EQUITY, REDEEMABLE CONVERTIBLE PREFERRED STOCK, OPTIONS AND WARRANTS
Warrants
At December 31, 2025 and December 31, 2024 there were
Mandatorily Redeemable Convertible Preferred Stock
The Company is authorized to issue up to
At December 31, 2025 and December 31, 2024, there were
The Company pays dividends on the Series C Preferred Stock in February each year. Dividends payable totaled $
The outstanding
The Class M Warrants were immediately exercisable at an exercise price of $
The Company allocated the proceeds to the Series C Preferred Stock and Class M Warrants based on their relative fair value, which resulted in $
On March 24, 2017, the Company entered into an Amendment to the
The Class N Warrants were immediately exercisable at an exercise price of $
The Company allocated the proceeds to the Series C Preferred Stock and Class N Warrants based on their relative fair value, which resulted in $
Employee Stock Purchase Plan
In September 2004, the Company’s Board approved an employee stock purchase plan for an aggregate of up to
During 2025 and 2024, the Company issued
2015 Incentive Plan
In April 2015, the Company’s Board of Directors approved the International Isotopes Inc. 2015 Incentive Plan (as amended, the “2015 Plan”) which was subsequently approved by the Company’s shareholders in July 2015. The 2015 Plan was amended and restated in July 2018 to increase the number of shares authorized for issuance under the 2015 plan by an additional
The 2015 Plan authorized the issuance of up to
Stock Options
A summary of the stock options issued under the Company’s equity plans is as follows:
| Stock Options | Outstanding Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Life | Average Intrinsic Value | ||||||||||||
| Outstanding at December 31, 2023 | ||||||||||||||||
| Granted | ||||||||||||||||
| Exercised | ||||||||||||||||
| Forfeited | ( | ) | ||||||||||||||
| Expired | ( | ) | ||||||||||||||
| Outstanding at December 31, 2024 | — | |||||||||||||||
| Granted | ||||||||||||||||
| Exercised | ||||||||||||||||
| Forfeited | ( | ) | ||||||||||||||
| Outstanding at December 31, 2025 | ||||||||||||||||
| Exercisable at December 31, 2025 | $ | |||||||||||||||
The total intrinsic value of stock options outstanding at December 31, 2025 was $
The Company recognized $
During the year ended December 31, 2025 and December 31, 2024
During the year ended December 31, 2025, the Company granted an aggregate of
All options exercised were non-qualified and accordingly, there is no income tax effect in the accompanying financial statements.
Restricted Stock Units
A summary of the non-vested restricted stock units issued under the Company’s equity plans is as follows:
| Non-Vested Restricted Stock Units | Number of restricted stock units | Weighted average grant-date fair value | ||||||
| Outstanding at December 31, 2023 | ||||||||
| Granted | — | |||||||
| Vested | ( | ) | ||||||
| Forfeited / Cancelled | — | |||||||
| Outstanding at December 31, 2024 | ||||||||
| Granted | — | |||||||
| Vested | ( | ) | ||||||
| Forfeited / Cancelled | — | |||||||
| Outstanding at December 31, 2025 | $ | |||||||
The Company recognized $
On September 11, 2024, the Company awarded
NOTE 10 – INCOME TAXES
The Company paid
| 2025 | 2024 | |||||||
| Deferred income tax asset | $ | — | $ | — | ||||
| Net operating loss carryforward | ||||||||
| Valuation allowance | ( | ) | ( | ) | ||||
| Total deferred income tax asset | ||||||||
| Deferred income tax liability - depreciation | ( | ) | ( | ) | ||||
| Deferred tax asset (liability) | $ | $ | ||||||
The reconciliation of the income tax (benefit) provision that would result from applying the federal statutory income tax rate to pre-tax income, as shown in the accompanying consolidated statements of operations, is presented below for 2024 under the income tax disclosure guidance in effect for those periods. The reconciliation for the year ended December 31, 2025, prepared in accordance with ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, is presented separately below.
| 2024 | ||||
| Federal income tax (benefit) at federal rate | $ | |||
| State income tax (benefit), net of federal tax | ||||
| Other permanent differences | ||||
| Change in valuation allowance | ||||
| Other items, net | ( | ) | ||
| Provision for income taxes | ||||
| Effective income tax rate | % | |||
Effective in 2025, the Company adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, on a prospective basis. As a result, the following table presents an expanded reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate for the year ended December 31, 2025, in accordance with the enhanced disclosure requirements of the new standard. The reconciliation for 2024 above was prepared under the guidance in effect for those periods and have not been retrospectively adjusted. As the Company operates exclusively in the United States, certain reconciling items related to foreign jurisdictions required by ASU 2023-09 are not applicable and have been omitted.
| 2025 | ||||||||
| Amount | % | |||||||
| U.S. federal statutory tax rate | $ | ( | ) | % | ||||
| State and local income taxes, net of federal income tax effect* | ( | ) | % | |||||
| Change in valuation allowance | % | |||||||
| Nontaxable or Nondeductible Items | ||||||||
| Excess tax benefit from stock comp | % | |||||||
| other permanent differences | % | |||||||
| Other adjustments, net | ( | ) | % | |||||
| Effective tax rate | $ | % | ||||||
| *State taxes in Idaho made up the majority (greater than 50 percent) of the tax effect in this category. | ||||||||
At December 31, 2025, the Company had net operating losses of approximately $
In accordance with GAAP, the Company has analyzed its filing positions in all jurisdictions where it is required to file income tax returns for the open tax years in such jurisdictions. The Company currently believes that all significant filing positions are highly certain and that all of its significant income tax filing positions and deductions would be sustained upon audit. Therefore, the Company has
The Internal Revenue Code contains provisions which reduce or limit the availability and utilization of net operating loss carry forwards in the event of a more than 50% change in ownership. If such an ownership change occurs with the Company, the use of these net operating losses could be limited.
NOTE 11 – COMMITMENTS AND CONTINGENCIES
Dependence on Third Parties
Sales during 2025 to the Company’s top
The production of cobalt-60 is dependent upon the DOE, and its prime operating contractor, which controls the reactor and laboratory operations at the ATR located outside of Idaho Falls, Idaho. From 2014 to 2024, the Company had a -year contract with the DOE for the irradiation of cobalt targets for the production of cobalt-60. The Company was able to purchase cobalt targets as available for a fixed price per target and with an annual
The key isotope materials used to manufacture our Theranostics Products and Calibration & Reference Products are supplied to the Company through agreements with several suppliers. The loss of any of these suppliers could adversely affect operating results by causing a delay in production or a possible loss of sales.
Contingencies
Because all the Company’s business segments involve the handling or use of radioactive material, the Company is required to have an operating license from the NRC and specially trained staff to handle these materials. The Company has amended this operating license numerous times to increase the amount of material permitted within the Company’s facility. Although this license does not currently restrict the volume of business operation performed or projected to be performed in the upcoming year, additional processing capabilities and license amendments could be implemented that would permit processing of other reactor-produced radioisotopes by the Company. The financial assurance required by the NRC to support this license has been provided for with a surety bond and a restricted money market account, in the amount of $
Defined Contribution Pension Plan
The Company has a 401(k) defined-contribution pension plan (the “401(k) Plan”). Employees are eligible to participate in the Plan after completing six months of full-time service. Participants, under provision of Internal Revenue Code § 401(k), may elect to contribute up to $
NOTE 12 – ASSET RETIREMENT OBLIGATION
As part of the Company’s NRC operating license and as part of the Company’s facility lease agreements, the Company is responsible for decommissioning any facilities upon termination or relocation of operations. The Company has developed a decommissioning funding plan using guidelines provided by the NRC and has estimated the cost of decommissioning the facility in Idaho Falls. The decommissioning cost estimate is reviewed at least annually to validate the assumptions and is revised as necessary when changes in the facility processes or radiological characteristics would affect the cost of decommissioning.
In accordance with GAAP, the Company has recognized future estimated decommissioning costs as an asset retirement obligation and a related capitalized lease disposal cost. The Company has recognized period-to-period changes in the liability (accretion) in the statement of operations as amortization expense. Changes resulting from revisions to the original estimate are recorded as an increase or decrease to the capitalized lease disposal cost. Capitalized lease disposal cost is amortized on a straight-line basis over the remaining life of the facility operating lease agreement.
The following summarizes the activity of the asset retirement obligation for the years ended December 31, 2025 and 2024:
| Obligation for Lease Disposal Cost | ||||
| Balance at December 31, 2023 | ||||
| Increase in lease disposal costs | ||||
| Accretion expense/amortization expense | ||||
| Balance at December 31, 2024 | ||||
| Increase in lease disposal costs | ||||
| Accretion expense/amortization expense | ||||
| Balance at December 31, 2025 | $ | |||
NOTE 13 – FAIR VALUE MEASUREMENTS
At December 31, 2025 and 2024, the Company had
NOTE 14 – REVENUE RECOGNITION
Revenue from Product Sales
The following tables present the Company’s revenue disaggregated by business segment, based on management’s assessment of available data:
| Revenues | For the year ended December 31, 2025 | % of Total Revenues 2025 | For the year ended December 31, 2024 | % of Total Revenues 2024 | ||||||||||||
| Theranostics Products | $ | % | $ | % | ||||||||||||
| Cobalt Products | % | % | ||||||||||||||
| Calibration & Reference Products | % | % | ||||||||||||||
| Medical Devices Products | % | % | ||||||||||||||
| Fluorine Products | % | % | ||||||||||||||
| Total Segments | $ | % | $ | % | ||||||||||||
Prior period amounts have not been adjusted under the modified retrospective approach.
Under ASC Topic 606, the Company recognizes revenue when it satisfies a performance obligation by transferring control of the promised goods or services to its customers, in an amount that reflects the consideration the Company expects to receive in exchange for the product or service.
Product sales consist of a single performance obligation that the Company satisfies at a point in time. All transactions in the Theranostics Products, Calibration & Reference Products, and Medical Devices segments fall into this category. Most sales transactions in the Cobalt Products business segment fall into this category but other Cobalt Products sales are recorded as deferred income as discussed below. The Company recognizes product revenue when the following events have occurred: (a) the Company has transferred physical possession of the products, (b) the Company has a present right to payment, (c) the customer has legal title to the products, and (d) the customer bears significant risks and rewards of ownership of the products. Based on the Company’s historical practices and shipping terms specified in the sales agreements and invoices, these criteria are generally met when the products are:
| • | Invoiced. |
| • | Shipped from the Company’s facilities (“FOB shipping point”, which is the Company’s standard shipping term). For these sales, the Company determined that the customer is able to direct the use of, and obtain substantially all of the benefits from, the products at the time the products are shipped. |
The Company’s revenue consists primarily of products manufactured for use in the nuclear medicine industry, distribution of radiochemicals and radiopharmaceuticals, and cobalt-60 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-60 contracts, where shipment will not take place for greater than one year, have been recorded as unearned revenue on the Company’s consolidated balance sheets and classified under current or long-term liabilities, depending upon estimated ship dates. These unearned revenues will be recognized as revenue in the periods during which the cobalt-60 shipments take place. For the year ended December 31, 2025, the Company reported current unearned revenue of $
Contract Balances
The Company records a receivable when it has an unconditional right to receive consideration after the performance obligations are satisfied. As of December 31, 2025, and December 31, 2024, accounts receivable totaled $
Practical Expedients
The Company has elected the practical expedient not to determine whether contracts with customers contain significant financing components.
NOTE 15 – SEGMENT INFORMATION
Information related to the Company’s reportable operating business is shown below. The Company’s reportable segments are reported in a manner consistent with the way management evaluates the businesses. The results of operations are regularly reviewed by the Company's chief operating decision maker ("CODM"), the Chief Executive Officer. The Company identifies its reportable business segments based on differences in products and services. The accounting policies of the business segments are the same as those described in the summary of significant accounting policies. In order to evaluate each reportable segment's performance, the CODM uses income from operations as a measure of profit and loss. The CODM compares operational performance against management expectations when making decisions regarding allocation of operating and capital resources to each segment.
The Company has identified the following business segments:
| ● | The Calibration & Reference Products segment consists of various sealed source calibration and reference products, including our own manufactured products, jointly manufactured products, and third-party products. These products are sold through our RadQual subsidiary for use with Single Photon Emission Computed Tomography (SPECT) and Positron Emission Tomography (PET) imaging equipment, patient positioning, radiopharmacy and radiopharmaceutical CDMO lab equipment, pre-clinical imaging equipment, clinical trial or custom geometry applications, and calibration or operational testing of measuring and/or testing equipment industry. Calibration & Reference Products include flood sources, dose calibrators, cylinder phantoms, rod sources, line sources, flexible and rigid rulers, spot markers, pen point markers, and a host of specialty design items. Pre-clinical products include distribution of fillable sources from Phantech and pre-clinical sealed sources via our PhanQual joint venture with Phantech. Calibration & Reference sources include RadQual products for nuclear pharmacies and related lab equipment; the Company also distributes non-medical sources manufactured by its partner, ORANO LEA. The Calibration & Reference Products segment also commercializes bulk isotope sales, medical devices, shielding, and accessories related to the Company's sealed source products. |
| ● | The Cobalt Products segment includes management of a cobalt-60 irradiation contract, fabrication of cobalt-60 capsules for teletherapy or irradiation devices, and recycling of expended cobalt-60 sources. |
| ● | The Theranostics Products Segment includes production and distribution of various isotopically pure radiopharmaceuticals, APIs, and radiochemicals for medical, industrial, and research applications. The Company produces these products from radioisotopes supplied by its vendors. The Company produces and distributes various products in customized volumes, concentrations, chemical formulations, packages, and specifications tailored to meet FDA specifications or customer and market demands. The Company's FDA approved generic sodium iodide I-131 drug product is the only generic product of this type manufactured in the U.S. and offers customers an attractive domestic alternative to the single existing foreign commercial drug manufacturer |
| ● | The Medical Devices segment was started in 2024. The products for the Medical Devices segment are currently under development. In 2022 the Company entered a joint venture to develop the EasyFill Automated Capsule System, a robotic lab device to be paired with its Theranostics Products. The EasyFill is still in the developmental stage. In 2023, the Company entered an asset purchase agreement with AMICI, Inc. to purchase manufacturing molds, device registrations, trademarks, and all production rights to several AMICI diagnostic and therapeutic products for lung ventilation; this included the Swirler Radioaerosol System and Tru-Fit mouthpiece products. In January 2025, as part of an amendment to the AMICI asset purchase agreement, the Company received the manufacturing molds, device registrations, trademarks, and all production rights to the AMICI line of Xenon System products. The products that will use these acquired assets from AMICI are currently under development and are expected to be released in the second half of 2025 to be sold through its RadVent subsidiary. In 2024, the Company's Medical Devices segment entered into a distribution and servicing agreement with Scintomics for its complete line of radiosynthesis modules. |
| ● | The Fluorine Products segment historically involved the production of small-scale qualification samples of high purity fluoride gas for various industrial applications, as well as development of laboratory and analytical processes required to support the planned uranium de-conversion and fluorine extraction facility. During 2013, these testing activities were completed, and the pilot plant facility was closed. The Company has developed or acquired all patent rights to these processes. Future work in this segment will involve license support and, as financing permits, further work related to the de-conversion facility. |
The following presents certain segment information as of and for the years ended December 31, 2025 and 2024:
| Sale of product | 2025 | 2024 | ||||||
| Theranostics Products | $ | $ | ||||||
| Cobalt Products | ||||||||
| Calibration & Reference Products | ||||||||
| Medical Devices Products | ||||||||
| Fluorine Products | ||||||||
| Total segments | ||||||||
| Corporate revenue | ||||||||
| Total consolidated | $ | $ | ||||||
| Depreciation and amortization | 2025 | 2024 | ||||||
| Theranostics Products | $ | $ | ||||||
| Cobalt Products | ||||||||
| Calibration & Reference Products | ||||||||
| Medical Devices Products | ||||||||
| Fluorine Products | ||||||||
| Total segments | ||||||||
| Corporate depreciation and amortization | ||||||||
| Total consolidated | $ | $ | ||||||
| Segment income (loss) | 2025 | 2024 | ||||||
| Theranostics Products | $ | $ | ||||||
| Cobalt Products | ( | ) | ||||||
| Calibration & Reference Products | ( | ) | ||||||
| Medical Devices Products | ( | ) | ( | ) | ||||
| Fluorine Products | ( | ) | ( | ) | ||||
| Total segments | ||||||||
| Corporate loss | ( | ) | ( | ) | ||||
| Total consolidated | $ | ( | ) | $ | ||||
| Expenditures for segment assets | 2025 | 2024 | ||||||
| Theranostics Products | $ | $ | ||||||
| Cobalt Products | ||||||||
| Calibration & Reference Products | ||||||||
| Medical Devices Products | ||||||||
| Fluorine Products | ||||||||
| Total segments | ||||||||
| Corporate purchases | ||||||||
| Total consolidated | $ | $ | ||||||
| Segment assets | 2025 | 2024 | ||||||
| Theranostics Products | $ | $ | ||||||
| Cobalt Products | ||||||||
| Calibration & Reference Products | ||||||||
| Medical Devices Products | ||||||||
| Fluorine Products | ||||||||
| Total segments | ||||||||
| Corporate assets | ||||||||
| Total consolidated | $ | $ | ||||||
NOTE 16 – SUBSEQUENT EVENTS
Fluorine Products Termination of a Material Agreement to Sell DUF6 Deconversion Assets
On March 16, 2026, Radnostix, Inc. (formerly International Isotopes, Inc., “RNX” or the “Company”), announced a mutual termination on March 11, 2026 of an Asset Purchase Agreement (the “APA”) dated February 8, 2024 that was entered into between RNX and its wholly-owned subsidiary International Isotopes Fluorine Products, Inc. (together with RNX, the “Seller”) and American Fuel Resources, LLC (“AFR”). The APA set forth the terms pursuant to which the Company agreed to sell to AFR all the assets and certain specified liabilities of the Company’s depleted uranium deconversion and fluorine extraction plant (the “DUF6 Plant”), subject to the terms and conditions set forth in the APA. The APA provided that it may be terminated, among other things, upon mutual written consent by the parties to the APA.
AFR contacted the Company requesting a 1-year extension due to AFR being unable to make payment of the balance of the purchase price by March 31, 2026 (the “Outside Date”) in order to meet the Condition to Seller’s Obligations (as defined and set forth in Section 6.02(c) of the APA). The parties were in the final stages of the U.S. Nuclear Regulatory Commission (the “NRC”) consent process to receive NRC consent to transfer; however, the parties mutually agreed to withdraw the application and terminate the APA.
AFR already made a non-refundable $
The contractual relationship with AFR began in FY2022, and after the considerable time and efforts, the Company decided it was in the best interest of the shareholders to regain control of the assets as we believe they have appreciated in value since entering the APA and the Company had low confidence that AFR would be able to secure funding to close the deal by the requested extension date.
Given the recent boom in Nuclear Energy investments, the Company will evaluate all possible options for the DUF6 Plant and related assets, including keeping the assets and developing them into an operating entity focused on uranium deconversion. The company will also explore the potential to amend the current NRC approved license to include additional up-stream and down-stream uranium related activities.
The Company previously disclosed in its Quarterly Report on Form 10-Q for the quarter ending September 30, 2025, the expected financial and operational impacts associated with the APA. Because the agreement has been terminated, none of the previously disclosed anticipated results of the APA will occur. Specifically, the Company will not receive the balance of the purchase price, will not recognize a gain on the sale of assets, will not use proceeds to repay various long-term notes, and will not realize the previously disclosed anticipated impacts on cash, assets, liabilities, operating costs, or future financing flexibility.
Theranostic Products Generic Sodium Iodide I-131 Recalls
On February 19, 2026, the Company, which is a manufacturer of its Generic Sodium Iodide I-131, discovered during an internal review that specific lots of our Dibasic Sodium Phosphate Capsules that may be provided with our Generic Sodium Iodide I-131 kits manufactured between 2022 and 2025 were out of specification for final capsule weight. The Company initiated a voluntary recall of specific lots of our Dibasic Sodium Phosphate Capsules shipped between August 19, 2024 to February 17, 2026. The Company has notified affected pharmacies, clinics, and veterinarians of the voluntary recall. The recall is being conducted with the knowledge of the FDA. The Company wrote off impaired capsule inventory of approximately $
Cobalt Products Hot Cell Window Rehabilitation
In Q4 of 2025 the Company shut down Cobalt-60 manufacturing operations to prepare to repair the window gaskets of both its process hot cells. This is a significant and necessary rebuild to ensure the Cobalt-60 process hot cell can remain operational for the considerable future. In 2022 the Company noticed an issue with our hot cell window gasket. The issue was manageable, but it significantly hampered operational efficiency. While the issue affected only one of our process hot cell windows, the Company made a strategic decision to repair all the gaskets for the windows on all our process hot cells as the gaskets had reached their prescribed end-of-life. In Q1 of 2026, the Company removed both sets of Cobalt hot cell windows and a 3rd party vendor rehabilitated the windows and gaskets on site. Work was completed in Q1, and the Company returned to regular manufacturing operations in March of 2026. The cost for the rehabilitation was approximately $
Calibration & Reference Products Dedicated Facility Licensing
The Company completed the internal building structures build-out of our future Calibration & Reference Products manufacturing rooms and received final inspection sign off in Q4 of 2025. The Company received NRC License approval, amendment 43, on January 16th, 2026 allowing it to start planning for equipment installs and calibrations. A further NRC license amendment will be needed in FY2026 to be fully operational.