International Isotopes Announces Second Quarter and Six Months 2010 Financial Results

IDAHO FALLS, Idaho, Aug. 17 /PRNewswire-FirstCall/ -- International Isotopes Inc. (OTC Bulletin Board: INIS) announces financial results for the second quarter and six-months ended June 30, 2010.

Revenue for the three-month period ended June 30, 2010, was $1,485,293, as compared to $1,485,599 for the same period in 2009, a decrease of $306 or less than 1%. Revenue for the six-month period ended June 30, 2010, was $2,594,844, as compared to $3,185,269 for the same period in 2009, a decrease of $590,425 or approximately 19%. The Company believes the lack of revenue growth for the period has been influenced to a great extent by current economic conditions. Another significant factor contributing to the decline in revenue for the six-month period was attributed to differences in bulk cobalt sales for the period comparisons. Because each bulk cobalt sale represents a material dollar amount, these sales can create significant variations in period-to-period comparisons. Therefore, management believes a comparison of total revenue excluding bulk cobalt sales, as provided in the following table, provides meaningful information to investors because of these large period-to-period variations. This information has limitations as an analytical tool and you should not consider it in isolation or as a substitute for total revenue.

The Company’s operating expenses increased to $2,290,438 for the three-month period ended June 30, 2010, compared to $1,557,774 for the same period in 2009. This represents an increase of $732,664 or approximately 47%. Operating expenses were $3,837,049 for the six-month period ended June 30, 2010, compared to $2,997,908 for the same period in 2009. This represents an increase of $839,141 or approximately 28%.

The Company reported a net loss for the three-month period ended June 30, 2010, of $1,707,070, as compared to $758,634 for the same period in 2009 and representing an increase in loss of $948,436, or 125%. The reported net loss for the six-month period was $2,971,932, as compared to $1,346,561 for the same period in 2009, representing an increase in loss of $1,625,371, or 121%. For both periods the increase in operating expense and net loss was attributable to research and development costs related to the Company’s continuing efforts to fund, license, design, and construct its planned uranium de-conversion and fluorine extraction processing facility.

Steve T. Laflin, President and CEO of International Isotopes Inc. said, “We are continuing our plan to construct the country’s first commercial depleted uranium de-conversion and fluorine extraction processing facility and we have spent more than $3 million thus far in the first six months of 2010 directly and indirectly on this project. One of several options we have undertaken for funding a considerable portion of the project is the pursuit of a loan guarantee under the Department of Energy’s loan guarantee program solicitation for renewable energy and energy savings in manufacturing projects. The Company’s part 1 application for that loan guarantee was recently approved by the DOE and the Company has been invited to submit its part 2 application, which we plan to complete by year end. While we are making continuous progress on this project, we will continue to incur significant costs. We expect the Company will continue to incur significant losses until the planned uranium de-conversion facility commences commercial production, which we do not expect to occur until the first quarter of 2013 at the earliest.”