Investment

6 Months Ended

Jun. 30, 2017

Equity Method Investments and Joint Ventures [Abstract]

Investment

(4) Investment

The Company owns a 24.5% interest in RadQual, with which the Company has an exclusive manufacturing agreement for nuclear medicine products. The 24.5% ownership of RadQual has a balance of $1,505,019 and is reported as an asset at June 30, 2017. For the six months ended June 30, 2017, member distributions from RadQual totaled $32,895 and were recorded as a reduction of the investment. For the same period in 2016, member distributions totaled $3,900 and were recorded as a reduction of the investment. During the six months ended June 30, 2017 and 2016, earnings allocated to the Company from RadQual totaled $45,133 and $44,573, respectively. These allocated earnings were recorded as equity in net income of affiliate on the Company’s condensed consolidated statements of operations.

At June 30, 2017 and December 31, 2016, the Company had receivables from RadQual in the amount of $382,183 and $282,470, respectively, which are recorded as part of accounts receivable on the Company’s condensed consolidated balance sheets. For the three months ended June 30, 2017 and 2016, the Company reported revenue from RadQual in the amount of $555,771 and $553,204, respectively. For the six months ended June 30, 2017 and 2016, the Company reported revenue from RadQual in the amount of $1,088,383 and $1,070,237, respectively. Revenue from RadQual is recorded as sale of product on the Company’s condensed consolidated statements of operations.

Summarized balance sheet information for the six months ended June 30, 2017 and the twelve months ended December 31, 2016, and summarized operating information for the three and six months ended June 30, 2017 and 2016 for RadQual is presented below:

	June 30,		December 31,
RadQual LLC	2017		2016
Current assets	$	598,000	$	501,000
Noncurrent assets		12,000		12,000
Current liabilities		397,000		293,000
Noncurrent liabilities		-		-

	For the three-months ended June 30,				For the six-months ended June 30,
	2017		2016		2017		2016
Revenue	$	797,000	$	819,000	$	1,657,000	$	1,622,000
Gross profit		209,000		231,000		472,000		458,000
Net income		66,000		101,000		185,000		185,000

On August 10, 2017, affiliates of the Company, including the Chairman of the Board and the Chief Executive Officer, acquired approximately 75% of the member units of RadQual. The Company is currently evaluating the impact that this acquisition will have on the Company’s financial statements.