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Note 2 - Business Condition and Liquidity
12 Months Ended
Dec. 31, 2023
Notes to Financial Statements  
Substantial Doubt about Going Concern [Text Block]

NOTE 2 – BUSINESS CONDITION AND LIQUIDITY

 

The Company has a history of recurring losses with an accumulated deficit of $127,329,859 at December 31, 2023 and net loss of $869,016 for the year then ended. The Company’s working capital has increased by $257,797 from the prior year. The Company has cash flows provided by operations of $582,589.  During 2023, the Company sought to improve future cash flows from operating activities through execution of new sales agreements, improving operating cost control measures, making improvements in current manufacturing processes, pursuing new service contracts, and developing new products. The Company’s net loss was $869,016 in 2023, compared to net income of $303,238 in 2022. This is a decrease in net income of $1,172,254. This decrease in net income is largely the result of the approximate $1.8 million gain on sale of assets that occurred in 2022.

 

During the year ended December 31, 2023, the Company continued to focus on its long-standing core business segments, which consist of its Theranostics Products (formerly Radiochemical Products), Cobalt Products, and Nuclear Medicine Standards, and in particular, the pursuit of new business opportunities within those segments.

 

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 (40) year operating license and is the first commercial license of this type issued in the United States. There are no other companies with a similar license application under review by the NRC. Therefore, the NRC license represents a significant competitive barrier, and the Company believes that it provides it with a very valuable asset. In February 2024, the Company entered into and Asset Purchase Agreement to sell all the assets associated with the planned de-conversion facility. The Company expects to close the transaction in approximately 12 to 24 months, subject to satisfaction of certain closing condition. Proceeds from this sale would be $12.5 million in total.

 

The Company expects that cash from operations and its current cash balance will be sufficient to fund operations for the next twelve months. Future liquidity and capital funding requirements will depend on numerous factors, including, contract manufacturing agreements, commercial relationships, technological developments, market factors, available credit, and voluntary warrant redemption by shareholders. There is no assurance that additional capital and financing will be available on acceptable terms to the Company or at all.