10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _______________

Commission file number:

000-22923

INTERNATIONAL ISOTOPES INC.

(Exact name of registrant as specified in its charter)

Texas	74-2763837
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

4137 Commerce Circle

Idaho Falls, Idaho, 83401

(Address of principal executive offices, including zip code)

(208) 524-5300

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None

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. ý Yes ¨ No

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). ý Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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.

Large accelerated Filer ¨	Accelerated Filer ¨
Non-accelerated Filer ¨	Smaller reporting company x
	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 pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes x No

As of August 8, 2021, the number of shares of common stock, $0.01 par value, outstanding was 501,003,705.

1 

INTERNATIONAL ISOTOPES INC.

Form 10-Q

For The Quarter Ended June 30, 2021

TABLE OF CONTENTS

		Page No.
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements
	Unaudited Condensed Consolidated Balance Sheets at June 30, 2021 and December 31, 2020	3
	Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2021 and 2020	4
	Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2021 and 2020	5
	Unaudited Statement of Reconciliation of Stockholder’s (Deficit) Equity for the Three and Six Months Ended June 30, 2021 and 2020	6
	Notes to Unaudited Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	18
Item 4.	Controls and Procedures	28
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 6.	Exhibits	29
Signatures		30

2 

Part I. Financial Information

Item I. Financial Statements

INTERNATIONAL ISOTOPES INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(unaudited)

	June 30,			December 31,
	2021			2020
Assets
Current assets
Cash and cash equivalents	$	517,506		$	1,113,032
Accounts receivable		1,068,550			796,128
Inventories		668,781			837,787
Prepaids and other current assets		148,779			1,247,430
Total current assets		2,403,616			3,994,377
Long-term assets
Restricted cash		830,725			638,660
Property, plant and equipment, net		4,346,063			4,489,551
Capitalized lease disposal costs, net		256,059			—
Financing lease right-of-use asset		21,637			24,642
Operating lease right-of-use asset		2,486,142			2,539,580
Goodwill		1,384,255			1,384,255
Patents and other intangibles, net		4,081,249			4,025,684
Total long-term assets		13,406,130			13,102,372
Total assets	$	15,809,746		$	17,096,749
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	1,225,050		$	2,115,348
Accrued liabilities		923,098			1,204,672
Unearned revenue		990,886			1,160,274
Current portion of operating lease right-of-use liability		105,593			86,494
Current portion of financing lease liability		8,155			7,786
Current portion of related party notes payable, net of debt discount		613,295			606,589
Current installments of notes payable		221,317			480,889
Current portion of mandatorily redeemable preferred stock, net of debt discount		4,778,339			—
Total current liabilities		8,865,733			5,662,052
Long-term liabilities
Related party notes payable, net of current portion and debt discount		865,603			487,470
Notes payable, net of current portion		88,560			57,202
Asset retirement obligation		867,956			588,105
Financing lease liability, net of current portion		12,716			16,888
Operating lease right-of-use liability, net of current portion		2,426,354			2,484,359
Mandatorily redeemable convertible preferred stock, net of current portion and discount		—			4,913,421
Total long-term liabilities		4,261,189			8,547,445
Total liabilities		13,126,922			14,209,497
Commitments and contingencies (Note 8)
Stockholders' equity
Common stock, $0.01 par value; 750,000,000 shares authorized; 460,830,469 and 424,344,298 shares issued and outstanding respectively		4,608,305			4,243,443
Additional paid in capital		122,292,543			122,191,837
Accumulated deficit		(126,644,273	)		(125,861,734	)
Equity attributable to International Isotopes Inc. stockholders		256,575			573,546
Equity attributable to noncontrolling interest		2,426,249			2,313,706
Total equity		2,682,824			2,887,252
Total liabilities and stockholders' equity	$	15,809,746		$	17,096,749

See accompanying notes to the unaudited condensed consolidated financial statements.

3 

INTERNATIONAL ISOTOPES INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations 

	Three months ended June 30,						Six months ended June 30,
	2021			2020			2021			2020
Sale of product	$	2,759,896		$	2,159,559		$	4,752,408		$	4,495,345
Cost of product		1,171,968			903,909			2,003,322			1,872,434
Gross profit		1,587,928			1,255,650			2,749,086			2,622,911
Operating costs and expenses
Salaries and contract labor		625,428			736,539			1,293,948			1,477,744
General, administrative and consulting		875,799			573,747			1,781,728			1,362,185
Research and development		71,979			41,465			109,216			88,393
Total operating expenses		1,573,206			1,351,751			3,184,892			2,928,322
Net operating income (loss)		14,722			(96,101	)		(435,806	)		(305,411	)
Other income (expense):
Other income		32,356			559,895			175,476			583,713
Interest income		46			748			81			3,083
Interest expense		(211,456	)		(196,344	)		(409,747	)		(391,224	)
Total other (expense) income		(179,054	)		364,299			(234,190	)		195,572
Net (loss) income		(164,332	)		268,198			(669,996	)		(109,839	)
Less income attributable to noncontrolling interest		17,055			38,870			112,543			83,327
Net (loss) income attributable to International Isotopes Inc.	$	(181,387	)	$	229,328		$	(782,539	)	$	(193,166	)
Net loss per common share - basic:	$	—		$	—		$	—		$	—
Net loss per common share - diluted:	$	—		$	—		$	—		$	—
Weighted average common shares outstanding - basic:		460,798,173			423,751,657			457,123,946			422,211,840
Weighted average common shares outstanding - diluted:		460,798,173			432,629,537			457,123,946			422,211,840

See accompanying notes to the unaudited condensed consolidated financial statements.

4 

INTERNATIONAL ISOTOPES INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows 

	Six months ended June 30,
	2021			2020
Cash flows from operating activities
Net loss	$	(669,996	)	$	(109,839	)
Adjustments to reconcile net loss to net Cash (used in) provided by operating activities
Depreciation and amortization		287,250			150,969
Accretion of obligation for lease disposal costs		19,136			20,387
Accretion of beneficial conversion feature and discount		199,757			191,933
Equity based compensation		49,093			68,531
Forgiveness of Paycheck Protection Program Loan		—			(495,500	)
Right-of-use asset amortization		14,532			14,448
Changes in operating assets and liabilities:
Accounts receivable		(272,422	)		(425,334	)
Inventories		169,006			992,742
Prepaids and other current assets		1,098,651			657,016
Accounts payable and accrued liabilities		(964,392	)		(785,178	)
Unearned revenues		(169,388	)		135,743
Net cash (used in) provided by operating activities		(238,773	)		415,918
Cash flows from investing activities:
Purchase of property, plant and equipment		(191,666	)		(1,565	)
Net cash used in investing activities		(191,666	)		(1,565	)
Cash flows from financing activities:
Proceeds from sale of stock		8,995			10,273
Payments on financing lease		(3,803	)		(1,556	)
Proceeds from the issuance of notes payable		351,250			871,100
Principal payments on notes payable		(329,464	)		(1,035,169	)
Net cash provided by (used in) financing activities		26,978			(155,352	)
Net (decrease) increase in cash, cash equivalents, and restricted cash		(403,461	)		259,001
Cash, cash equivalents, and restricted cash at beginning of period		1,751,692			1,210,920
Cash, cash equivalents, and restricted cash at end of period	$	1,348,231		$	1,469,921
Supplemental disclosure of cash flow activities:
Cash paid for interest	$	61,320		$	65,536
Supplemental disclosure of noncash financing and investing transactions
Decrease in accrued interest and increase in equity for conversion of dividends to stock	$	207,480		$	204,480
Increase in operating lease right-of-use asset and right-of-use liability for new lease	$	1,603		$	2,649,070
Increase in equity and decrease in liability for the conversion of preferred stock	$	200,000		$	—
Non-cash increase of capitalized ARO for increased funding plan	$	260,715		$	—
Decrease in operating lease right-of-use asset and right-of-use liability for disposal of old lease	$	—		$	697,009
Increase in financing lease right-of-use asset and right-of-use liability for new lease	$	—		$	16,524
Decrease in inventory and decrease in accounts payable for cancellation of DOE contract	$	—		$	1,132,010
Decrease in related party notes payable and increase in equity for amounts allocated to warrants and beneficial conversion feature	$	—		$	247,560

Reconciliation of cash, cash equivalents, and restricted cash as shown in the condensed consolidated statements of cash flows is presented in the table below:

	June 30,		June 30,
	2021		2020
Cash and cash equivalents	$	517,506	$	831,359
Restricted cash included in long-term assets		830,725		638,562
Total cash, cash equivalents, and restricted cash shown in statement of cash flows	$	1,348,231	$	1,469,921

See accompanying notes to the unaudited condensed consolidated financial statements.

5 

INTERNATIONAL ISOTOPES INC. AND SUBSIDIARIES

Reconciliation of Stockholders' (Deficit) Equity

Three and Six Months Ended June 30, 2021

(Unaudited)

										Equity
										Attributable			Equity
										to			Attributable
	Common stock			Additional						Internat'l			to		Total
	Shares	Common		Paid-in			Accumulated			Isotopes			Noncontrolling		(Deficit)
	Outstanding	Stock		Capital			Deficit			Shareholders			Interest		Equity
Balance, January 1, 2021	424,344,298	$	4,243,443	$	122,191,837		$	(125,861,734	)	$	573,546		$	2,313,706	$	2,887,252
Shares issued under employee stock purchase plan	211,640		2,117		6,878			—			8,995			—		8,995
Stock grant	118,315		1,183		(1,183	)		—			—			—		—
Stock in lieu of dividends on convertible preferred C	1,398,200		13,982		193,498			—			207,480			—		207,480
Shares issued for exercise of employee stock options	1,799,107		17,991		(17,991	)		—			—			—		—
Warrant exercise	32,621,409		326,214		(326,214	)		—			—			—		—
Conversion of preferred C stock	250,000		2,500		22,500			—			25,000			—		25,000
Conversion of preferred B stock	87,500		875		174,125			—			175,000			—		175,000
Stock based compensation	—		—		49,093			—			49,093			—		49,093
Net (loss) income	—		—		—			(782,539	)		(782,539	)		112,543		(669,996	)
Balance, June 30, 2021	460,830,469	$	4,608,305	$	122,292,543		$	(126,644,273	)	$	256,575		$	2,426,249	$	2,682,824

									Equity
									Attributable			Equity
									to			Attributable
	Common stock			Additional					Internat'l			to		Total
	Shares	Common		Paid-in		Accumulated			Isotopes			Noncontrolling		(Deficit)
	Outstanding	Stock		Capital		Deficit			Shareholders			Interest		Equity
Balance, April 1, 2021	460,636,690	$	4,606,367	$	122,103,290	$	(126,462,886	)	$	246,771		$	2,409,194	$	2,655,965
Shares issued under employee stock purchase plan	106,279		1,063		3,454		—			4,517			—		4,517
Conversion of preferred B stock	87,500		875		174,125		—			175,000			—		175,000
Stock based compensation	—		—		11,674		—			11,674			—		11,674
Net (loss) income	—		—		—		(181,387	)		(181,387	)		17,055		(164,332	)
Balance, June 30, 2021	460,830,469	$	4,608,305	$	122,292,543	$	(126,644,273	)	$	256,575		$	2,426,249	$	2,682,824

6 

INTERNATIONAL ISOTOPES INC. AND SUBSIDIARIES

Reconciliation of Stockholders' (Deficit) Equity

Three and Six Months Ended June 30, 2020

(Unaudited)

										Deficit
										Attributable			Equity
										to			Attributable
	Common stock			Additional						Internat'l			to		Total
	Shares	Common		Paid-in			Accumulated			Isotopes			Noncontrolling		(Deficit)
	Outstanding	Stock		Capital			Deficit			Shareholders			Interest		Equity
Balance, January 1, 2020	419,842,256	$	4,198,423	$	121,680,163		$	(128,064,385	)	$	(2,185,799	)	$	2,073,649	$	(112,150	)
Shares issued under employee stock purchase plan	241,707		2,417		7,856			—			10,273			—		10,273
Stock grant	302,125		3,021		(3,021	)		—			—			—		—
Stock in lieu of dividends on convertible preferred C	3,408,000		34,080		170,400			—			204,480			—		204,480
Convertible debenture beneficial conversion feature	—		—		102,584			—			102,584			—		102,584
Warrants issued with convertible debenture	—		—		144,976			—			144,976			—		144,976
Stock based compensation	—		—		68,531			—			68,531			—		68,531
Net (loss) income	—		—		—			(193,166	)		(193,166	)		83,327		(109,839	)
Balance, June 30, 2020	423,794,088	$	4,237,941	$	122,171,489		$	(128,257,551	)	$	(1,848,121	)	$	2,156,976	$	308,855

									Deficit
									Attributable			Equity
									to			Attributable
	Common stock			Additional					Internat'l			to		Total
	Shares	Common		Paid-in		Accumulated			Isotopes			Noncontrolling		(Deficit)
	Outstanding	Stock		Capital		Deficit			Shareholders			Interest		Equity
Balance, April 1, 2020	423,709,226	$	4,237,092	$	122,151,722	$	(128,486,879	)	$	(2,098,065	)	$	2,118,106	$	20,041
Shares issued under employee stock purchase plan	84,862		849		2,758		—			3,607			—		3,607
Stock based compensation	—		—		17,009		—			17,009			—		17,009
Net income	—		—		—		229,328			229,328			38,870		268,198
Balance, June 30, 2020	423,794,088	$	4,237,941	$	122,171,489	$	(128,257,551	)	$	(1,848,121	)	$	2,156,976	$	308,855

See accompanying notes to the unaudited condensed consolidated financial statements

7 

INTERNATIONAL ISOTOPES INC. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements

June 30, 2021

(1)      The Company and Basis of Presentation

International Isotopes Inc. (INIS) was incorporated in Texas in November 1995. The accompanying unaudited condensed 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 INIS and its wholly owned subsidiaries. The unaudited condensed consolidated financial statements also include the accounts of INIS’s 50% owned joint venture, TI Services, LLC (TI Services), and the accounts of INIS’s 24.5% interest in 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 and calibration devices, and is headquartered in Idaho Falls, Idaho. In August 2017, affiliates of INIS purchased 75.5% of RadQual and at the time INIS was named as one of the two managing members of RadQual. As a result of this ownership change, INIS has significant influence in management decisions with regard to RadQual’s business operations. In July 2021, INIS purchased the remaining interest in RadQual and now owns 100% of RadQual. INIS, its subsidiaries, TI Services, and RadQual are collectively referred to herein as the “Company,” “we,” “our” or “us.”

Nature of Operations – INIS and its subsidiaries, TI Services and RadQual, manufacture a full range of nuclear medicine calibration and reference standards, generic sodium iodide I-131 drug product, cobalt teletherapy sources, and a varied selection of radiochemicals for medical research, and clinical applications. The Company also offers contract manufacturing services for certain pharmaceutical products. The Company’s business consists of five business segments: Nuclear Medicine Standards, Cobalt Products, Radiochemical Products, Fluorine Products, and Radiological Services. 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 contracts, where shipment will not take place for greater than one year, have been recorded as unearned revenue and, depending upon estimated ship dates, classified under either current or long-term liabilities on the Company’s condensed consolidated balance sheets. These unearned revenues are being recognized as revenue in the periods during which the cobalt shipments take place. All assets expected to be realized in cash or sold during the normal operating cycle of business are classified as current assets.

Principles of Consolidation – The accompanying unaudited condensed consolidated financial statements are presented in conformity with GAAP and include all operations and balances of INIS and its wholly-owned subsidiaries. The Company also consolidates the accounts of RadQual into the accompanying unaudited condensed consolidated financial statements. See Note 4 “Investment and Business Consolidation” for additional information regarding RadQual. All significant intercompany accounts and transactions have been eliminated in consolidation.

Interim Financial Information – The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Accordingly, the accompanying unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments and reclassifications considered necessary in order to make the financial statements not misleading and for a fair and comparable presentation have been included and are of a normal recurring nature. Operating results for the three or six-month period ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 or any future periods. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 30, 2021.

Recent Accounting Pronouncements – In August 2020, the Financial Accounting Standards Board issued ASU 2020-06 Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). The update simplifies accounting related to convertible debt instruments. The standard is effective for fiscal years beginning after December 15, 2023 including interim periods within those fiscal years. INIS is currently evaluating the effect this standard will have on its financial statements.

8 

(2)       Current Developments and Liquidity

Business Condition – Since inception, the Company has incurred substantial losses. During the six months ended June 30, 2021, the Company reported net loss of $782,539, net of non-controlling interest, and net cash used in operating activities of $238,773. During the six months ended June 30, 2020, the Company reported a net loss of $193,166, net of non-controlling interest, and net cash provided by operating activities of $415,918.

During the six months ended June 30, 2021, the Company continued its focus on its strongest long-standing core business segments which consist of its radiochemical products, cobalt products, and nuclear medicine standards, and in particular, the pursuit of new business opportunities within those segments.

Additionally, the Company holds a Nuclear Regulatory Commission (NRC) construction and operating license for the depleted uranium facility in, 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 considers it a valuable asset.

The Company expects that cash from operations, equity or debt financing, 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.

(3)       Net Income (Loss) Per Common Share - Basic and Diluted

For the three and six months ended June 30, 2021, the Company had 18,252,500 stock options outstanding, 7,065,000 warrants outstanding, 675 outstanding shares of Series B redeemable convertible preferred stock (Series B Preferred Stock), and 4,188 outstanding shares of Series C redeemable convertible preferred stock (Series C Preferred Stock), each of which were not included in the computation of diluted income (loss) per common share because they would be anti-dilutive.

For the six months ended June 30, 2020, the Company had 24,605,000 stock options outstanding, 50,090,000 warrants outstanding, 850 outstanding shares of Series B Preferred Stock, and 4,213 outstanding shares of Series C Preferred Stock, each of which were not included in the computation of diluted income per common share because they would be anti-dilutive.

For the three months ended June 30, 2020, the Company had 14,005,000 stock options outstanding, 20,090,000 warrants outstanding, 850 outstanding shares of Series B redeemable convertible preferred stock, and 4,213 outstanding shares of Series C redeemable convertible preferred stock, each of which were not included in the computation of diluted income (loss) per common share because they would be anti-dilutive. The Company used the treasury stock method in calculating weighted average common shares diluted.

The table below shows the calculation of diluted shares:

	3 Months Ended				6 Months Ended
	June 30,		June 30,		June 30,		June 30,
	2021		2020		2021		2020
Weighted average common shares outstanding - basic		460,798,173		423,751,657		457,123,946		422,211,840
Effects of dilutive shares
Stock Options		—		3,177,880		—		—
Warrants		—		5,700,000		—		—
Weighted average common shares outstanding - diluted		460,798,173		432,629,537		457,123,946		422,211,840

The table below summarizes common stock equivalents outstanding at June 30, 2021 and 2020:

	June 30,
	2021		2020
Stock options		18,252,500		24,605,000
Warrants		7,065,000		50,090,000
Shares of Series B redeemable convertible preferred stock		337,500		425,000
Shares of Series C redeemable convertible preferred stock		41,880,000		42,130,000
		67,535,000		117,250,000

9 

(4)       Investment and Business Consolidation

At June 30, 2021, the Company owned a 24.5% interest in RadQual, with which the Company has an exclusive manufacturing agreement for nuclear medicine products. In August 2017, affiliates of the Company, including the Company’s Chairman of the Board and the Chief Executive Officer, acquired the remaining 75.5% interest in RadQual. The Company’s Chairman of the Board and its Chief Executive Officer also each serve as the managing members of RadQual. As a result of this change in ownership, and other factors, the Company determined that it gained the ability to exercise significant management control over the operations of RadQual. Because of this increased management control, and pursuant to GAAP, the Company has consolidated the accounts of RadQual into its financial statements.

(5)       Inventories

Inventories consisted of the following at June 30, 2021 and December 31, 2020:

	June 30, 2021		December 31, 2020
Raw materials	$	33,609	$	33,609
Work in process		634,060		803,171
Finished goods		1,112		1,007
	$	668,781	$	837,787

Work in process also includes costs to irradiate cobalt-60 material under a contract with the DOE. This material has been placed in the ATR and the Company made progress payments to purchase this material. During the second quarter and fourth quarter of 2020, the Company modified its agreement with the DOE due to delays in delivery of Cobalt material. As a result, the DOE refunded certain payments made by INIS in relation to this material and INIS stopped paying the scheduled payments for the inventory. At June 30, 2021, and at December 31, 2020, this cobalt target inventory had a carrying value of $0 and $383,312, respectively.

The Company has contracted with several customers for the sale of some of this product material and has collected advance payments for project management, up-front handling, and other production costs from those customers. The advance payments from customers were recorded as unearned revenue which are recognized in the Company’s condensed consolidated financial statements as cobalt products are completed and shipped. For the six months ended June 30, 2021 and 2020, the Company recognized approximately $157,890 and $22,000, respectively, of revenue in its condensed consolidated statements of operations for customer orders filled during the period under these cobalt contracts. For the three-months ended June 30, 2021 and 2020, the Company recognized approximately $150,090 and $11,500, respectively of revenue in its condensed consolidated statements of operations for customer orders filled during the period under these cobalt contracts.

(6)       Stockholders’ Equity, Options, and Warrants

Employee Stock Purchase Plan

The Company has an employee stock purchase plan pursuant to which employees of the Company may participate to purchase shares of common stock at a discount. During the six months ended June 30, 2021 and 2020, the Company issued 211,640 and 241,707 shares of common stock, respectively, to employees under the employee stock purchase plan for proceeds of $8,995 and $10,273, respectively. As of June 30, 2021, 2,888,271 shares of common stock remain available for issuance under the employee stock purchase plan.

Stock-Based Compensation Plans

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 20,000,000 shares. The 2015 Plan provides for the grant of incentive and non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and units, and other stock or cash-based awards. At June 30, 2021, there were 37,204,004 shares available for issuance under the 2015 Plan.

Employee/Director Grants - The Company accounts for issuances of stock-based compensation to employees by recognizing, as compensation expense, the cost of employee services received in exchange for equity awards. The compensation expense is based on the grant date fair value of the award. Stock option compensation expense is recognized over the period during which an employee is required to provide service in exchange for the award (the vesting period).

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Non-Employee Grants - The Company accounts for its issuances of stock-based compensation to non-employees by recognizing compensation expense based on the grant date fair value of the award. Stock option compensation expense is recognized over the vesting period for the award.

Option awards outstanding as of June 30, 2021, and changes during the six months ended June 30, 2021, were as follows:

Fixed Options	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding at December 31, 2020		20,400,000		$	0.06
Granted		125,000		$	0.05
Exercised		(2,062,500	)	$	0.04
Expired		—		$	—
Forfeited		(210,000	)	$	0.07
Outstanding at June 30, 2021		18,252,500		$	0.05		5.3	$	1,560,550
Exercisable at June 30, 2021		15,379,500		$	0.05		4.9	$	1,324,930

The intrinsic value of outstanding and exercisable shares is based on the closing price of the Company’s common stock on the OTCQB of $0.14 per share on June 30, 2021, the last trading day of the quarter.

As of June 30, 2021, there was $29,693 of unrecognized compensation expense related to stock options that will be recognized over a weighted-average period of 1.98 years.

Total stock-based compensation expense for the six months ended June 30, 2021 and 2020 was $49,093 and $68,531 respectively. Total stock-based compensation expense for the three-months ended June 30, 2021 and 2020 was $11,674 and $17,009, respectively.

During the six months ended June 30, 2021, the Company granted 125,000 qualified stock options to several of its employees. All options vest over a five-year period with the first vesting at one-year anniversary for all grants and expiration at the ten year anniversary for all grants. The weighted average exercise price for these options was $0.05 per share. The options have a fair value of $3,280 as estimated on the date of issue using the Black-Scholes options pricing model with the following weighted-average assumptions: risk free interest rate of 0.46% to 0.78%, expected dividend yield rate of 0%, expected volatility of 52.52% to 55.63% and an expected life between 5.5 and 7.5 years.

In January 2021, 2,062,500 qualified stock options were exercised under a cashless exercise. The company withheld 263,393 shares to satisfy the exercise price and issued 1,799,107 shares of common stock. The options exercised were granted under the 2015 Plan, and, accordingly, there was not any income tax effect in the condensed consolidated financial statements for the year ended December 31, 2021.

Pursuant to an employment agreement with its Chief Executive Officer, the Company awarded 195,804 fully vested shares of common stock to its Chief Executive Officer in February 2021 under the 2015 Plan. The number of shares awarded was based on a $28,000 stock award using a price of $0.143 per share. The employment agreement provides that the number of shares issued will be based on the average closing price of common stock for the 20 trading days prior to issue date but not less than $0.05 per share. Compensation expense recorded pursuant to this stock grant was $14,198, which was determined by multiplying the number of shares awarded by the closing price of the common stock on February 28, 2021, which was $0.12 per share. The Company withheld 77,489 shares of common stock to satisfy payroll tax obligations in connection with this issuance. The net shares issued on February 28, 2021 totaled 118,315.

Warrants

In January 2021, all 30,000,000 Class O Warrants and 13,025,000 Class M Warrants were exercised under a cashless exercise. The Company withheld 10,403,591 shares to satisfy the exercise price and issued 32,621,409 shares of common stock.

Warrants outstanding at June 30, 2021, included 4,140,000 Class M Warrants which are immediately exercisable at an exercise price of $0.12 per share and expire on February 17, 2022 and 2,925,000 Class N Warrants which are immediately exercisable at an exercise price of $0.10 per share and expire on May 12, 2022.

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Warrants outstanding at June 30, 2020, included 17,165,000 Class M Warrants which are immediately exercisable at an exercise price of $0.12 per share and expire on February 17, 2022 and 2,925,000 Class N Warrants which are immediately exercisable at an exercise price of $0.10 per share and expire on May 12, 2022; and 30,000,000 Class O Warrants which are immediately exercisable at an exercise price of $0.045 per share and expire December 30, 2024.

Preferred Stock

At June 30, 2021, there were 675 shares of the Series B Preferred Stock outstanding with a mandatory redemption date of May 2022 at $1,000 per share or $675,000. The shares of Series B Preferred Stock are also convertible into 337,500 shares of the Company’s common stock at a conversion price of $2.00 per share. These shares of Series B Preferred Stock do not carry any dividend preferences. Due to the mandatory redemption provision, the Series B Preferred Stock has been classified as a liability in the accompanying condensed consolidated balance sheets.

At June 30, 2021, there were 4,188 shares of the Series C Preferred Stock outstanding with a mandatory redemption date of February 2022 at $1,000 per share in either cash or shares of common stock, at the option of the holder. Holders of the 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. The Series C Preferred Stock accrues dividends at a rate of 6% per annum, payable annually on February 17th of each year. The Series C Preferred Stock are convertible at the option of the holders at any time into shares of the Company's common stock at an initial conversion price equal to $0.10 per share, subject to adjustment. If the volume-weighted average closing price of the Company’s common stock over a period of 90 consecutive trading days is greater than $0.25 per share, the Company 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 March 2021, 25 shares of the Series C Preferred Stock were converted to 250,000 shares of common stock at the request of the holder.

In April 2021, 175 shares of the Series B Preferred Stock were converted to 87,500 shares of common stock at the request of the holder.

During the six months ended June 30, 2021 and 2020 dividends paid to holders of the Series C Preferred Stock totaled $254,280 and $251,280, respectively. Some holders of the Series C Preferred Stock elected to settle their dividend payments with shares of the Company’s common stock in lieu of cash. For the six months ended June 30, 2021 and 2020 the Company issued 1,398,200 and 3,408,000 shares of common stock, respectively, in lieu of a dividend payment of $207,480 and $204,480, respectively. The remaining $46,800 of dividend payable was settled with cash.

(7)          Debt

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 $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. In December 2019, the 2013 Promissory Note was modified to extend the maturity date to December 31, 2021, with all remaining terms unchanged.

At June 30, 2021, the principal balance of the 2013 Promissory Note was $500,000 and accrued interest payable on the 2013 Promissory Note was $226,734. Interest expense recorded for the six months ended June 30, 2021, was $15,000.

In April 2018, the Company borrowed $120,000 from its Chief Executive Officer and Chairman of the Board pursuant to a promissory note (the 2018 Promissory Note). The 2018 Promissory Note accrues interest at 6% per annum, which is payable upon maturity of the 2018 Promissory Note. The 2018 Promissory Note was originally unsecured and originally matured on August 1, 2018. At any time, the holder 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. Pursuant to an amendment to the 2018 Promissory Note in June 2018, the maturity date was extended to March 31, 2019 with all other provisions remaining unchanged. Pursuant to a second amendment to the 2018 Promissory Note in February 2019, the maturity date was extended to July 31, 2019 with all other provisions remaining unchanged. Pursuant to a third amendment to the 2018 Promissory Note in July 2019, the maturity date was extended to January 31, 2020 with all other provisions remaining unchanged. Pursuant to a fourth amendment to the 2018 Promissory Note in December 2019, the maturity date was extended to December 31, 2021, the note was modified to become secured by company assets, with all other provisions remaining unchanged. At June 30, 2021, accrued interest on the 2018 Promissory Note totaled $22,970.

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In April 2019, one of the prepaid revenue customers requested a refund of the amounts paid. The Company entered into a note agreement to repay $2,182,142 over the next 12 months. The modification was necessary to address the delays to cobalt delivery in 2019 caused by changes to the ATR operating schedule and also to accommodate this customer’s request to reduce their cobalt purchase obligations in future years. The modifications require that the Company refund approximately $1,100,000, of payments received for prior year undelivered material, plus interest at 12% per year, payable over a one-year period on a portion of that amount. The Company has also agreed with this customer to refund approximately $1,100,000 paid for material that was to have been delivered in later years. There will be no interest charge on this refund. In December 2019, this agreement was modified further allowing the Company to delay the original payments by 3 months and refund an additional $462,258 with no interest charge. At June 30, 2021 balance on this refund is $154,282 and is included in short-term notes payable.

On December 20, 2019, the Company entered into a promissory note agreement with four of the Company’s major shareholders (the 2019 Promissory Note). The 2019 Promissory Note authorizes the Company to borrow up to $1,000,000. As of December 31, 2019, the Company had borrowed $675,000 under the 2019 promissory note. In February 2020, the Company borrowed an additional $325,000. The 2019 Promissory Note bears an interest rate of 4% annually and is 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 connection with the 2019 Promissory Note, the lenders were issued warrants totaling 30,000,000 warrants to purchase shares of the Company’s common stock at $0.045 per share (the Class O Warrants). The fair value of these Class O Warrants issued totaled $446,079 and was recorded as a debt discount and will be amortized over the life of the 2019 Promissory Note. The Company calculated a beneficial conversion feature of $315,643 which will be accreted to interest expense over the life of the 2019 Promissory Note. At June 30, 2021 accrued interest on the 2019 Promissory Note totaled $59,131.

In March 2021, one of the Company’s subsidiaries, RadQual, entered into a promissory note (the March 2021 Promissory Note) for the purchase of equipment. The principal amount under the March 2021 Promissory Note totals $101,250, bears interest at 5%, is secured by equipment, and is due March 2023.

In April 2021, the Company borrowed $250,000 from our Chief Executive Officer and Chairman of the Board pursuant to a promissory note (the April 2021 Promissory Note). The April 2021 Promissory Note bears an interest rate of 6% annually and is due December 31, 2022. At any time, the holder of the April 2021 Promissory Note may elect to have any or all of the principal and accrued interest settled with shares of the Company’s common stock based at the price of $0.11 per share. .At June 30, 2021 accrued interest on the April 2021 Promissory Note totaled $3,250.

(8)       Commitments and Contingencies

Dependence on Third Parties

The production of High Specific Activity Cobalt is dependent upon the DOE, and its prime operating contractor, which controls the ATR and laboratory operations at the ATR located outside of Idaho Falls, Idaho. In October 2014, the Company signed a ten-year contract with the DOE for the irradiation of cobalt targets for the production of cobalt-60. The Company will be able to purchase cobalt targets for a fixed price per target with an annual 5% escalation in price. The contract term is October 1, 2014, through September 30, 2024, however, the contract may be extended beyond that date. Also, the DOE may end the contract if it determines termination is necessary for the national defense, security or environmental safety of the United States. If this were to occur, all payments made by the Company, for partially irradiated undelivered cobalt material, would be refunded.

Sales of our most predominant radiochemical products are dependent upon a few key suppliers. An interruption in production by any of these individual suppliers could have an immediate negative impact upon radiochemical sales until material can be purchased from alternate suppliers including obtaining regulatory approval to use material from alternative suppliers if necessary.

Nuclear Medicine Reference and Calibration Standard manufacturing is conducted under an exclusive contract with RadQual, which in turn has an agreement in place with several companies for distributing the products. The radiochemical product sold by the Company is supplied to the Company through agreements with two suppliers. A loss of any of these customers or suppliers could adversely affect operating results by causing a delay in production or a possible loss of sales.

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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 operations 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 held with North American Specialty Insurance Company which is supported by a restricted money market account held with Merrill Lynch in the amount of $830,725.

In August 2011, the Company received land from Lea County, New Mexico, pursuant to a Project Participation Agreement (PPA), whereby the land was deeded to the Company for no monetary consideration. In return, the Company committed to construct a uranium de-conversion and Fluorine Extraction Process facility on the land.  In order to retain title to the property, the Company was to begin construction of the de-conversion facility no later than December 31, 2014, and complete Phase I of the project and have hired at least 75 persons to operate the facility no later than December 31, 2015, although commercial operations need not have begun by that date. In 2015, the Company negotiated a modification to the PPA that extended the start of construction date to December 31, 2015, and the hiring milestone to December 31, 2016. Those dates were also not met. The Company has been in discussion with commercial companies possibly interested in purchasing rights to this project. Should those discussions come to fruition the Company plans to negotiate a second modification to the PPA agreement to further extend the commitment dates. If the Company is not successful in reaching an amendment to extend the performance dates in the PPA. then it may, at its sole option, either purchase or re-convey the property to Lea County, New Mexico.  The purchase price of the property would be $776,078, plus interest at the annual rate of 5.25% from the date of the closing to the date of payment.  The Company has not recorded the value of this property as an asset and will not do so until such time that sufficient progress on the project has been made to meet the Company’s obligations under the agreements for permanent transfer of the title.

On May 2, 2019, the Company’s radiological services team was involved in a contamination event involving a breached cesium-137 source at an off-site location in the state of Washington. This work was being performed under a contract with the DOE. The Company supported the initial onsite contamination clean-up operations at that location and completed removal of the cesium source and Company equipment. The Company has reviewed the results of the DOE investigation into this event and has implemented appropriate corrective actions. Beginning in August 2019, the DOE assumed full control of the cleanup operations and assumed all the financial obligations associated with the contractors hired to carry out all of the facility recovery operations. On January 5, 2021, the Company was notified by the DOE that they have been indemnified from any financial liability for this event under the Price Anderson Act (PAA). As part of this indemnification notification, the Company received payment in full for its claim with the DOE for recovery of certain expenses incurred for this event. The Company recognized Other Income of approximately $112,000 in the six months ended June 30, 2021 for additional cost recoveries for this event. All remaining cost recoveries as part of this settlement with the DOE were recognized in previous financial periods pursuant to ASC 410-30. The Company used these funds to pay all outstanding subcontractors and reimburse their insurance company for payments they previous paid the Company for this matter. The Company is actively pursuing a final settlement with its insurance company regarding this claim as of the date of this filing.

The Company’s corrective actions for this event included termination of all field service activities and removal of these activities from the Company’s NRC license. The Company believes that the loss in revenue resulting from suspension of radiological field service work will be compensated for by increased revenues in the Company’s remaining business segments.

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(9)         Revenue Recognition

Revenue from Product Sales

The following tables present the Company’s revenue disaggregated by business segment and geography, based on management’s assessment of available data:

	Three Months Ended June 30, 2021									Three Months Ended June 30, 2020
	U.S.		Outside U.S.		Total Revenues		% of Total Revenues			U.S.		Outside U.S.		Total Revenues		% of Total Revenues
Radiochemical Products	$	1,091,114	$	137,095	$	1,228,209		45	%	$	988,952	$	124,101	$	1,113,053		40	%
Cobalt Products		562,744		14,250		576,994		21	%		217,433		7,233		224,666		8	%
Nuclear Medicine Products		699,384		186,344		885,728		32	%		592,170		185,703		777,873		28	%
Radiological Services		68,965		—		68,965		2	%		43,967		—		43,967		2	%
Fluorine Products		—		—		—		0	%		—		—		—		0	%
	$	2,422,206	$	337,689	$	2,759,896		100	%	$	1,842,522	$	317,037	$	2,159,559		78	%

	Six Months Ended June 30, 2021									Six Months Ended June 30, 2020
	U.S.		Outside U.S.		Total Revenues		% of Total Revenues			U.S.		Outside U.S.		Total Revenues		% of Total Revenues
Radiochemical Products	$	1,637,924	$	251,462	$	1,889,386		40	%	$	1,657,543	$	210,731	$	1,868,274		39	%
Cobalt Products		676,023		19,344		695,367		15	%		522,428		7,858		530,286		11	%
Nuclear Medicine Products		1,581,450		433,437		2,014,887		42	%		1,459,773		360,224		1,819,997		38	%
Radiological Services		130,755		—		130,755		3	%		116,288		—		116,288		2	%
Fluorine Products		22,013		—		22,013		0	%		160,500		—		160,500		3	%
	$	4,048,165	$	704,243	$	4,752,408		100	%	$	3,916,532	$	578,813	$	4,495,345		100	%

The Company’s revenue consists primarily of calibration and reference standards manufactured for use in the nuclear medicine industry, distribution of radiochemicals including sodium iodide I-131 drug product, and cobalt 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 contracts, where shipment will not take place for greater than one year, have been recorded as unearned revenue on the Company’s condensed consolidated balance sheets and classified under current or long-term liabilities, depending upon estimated ship dates. For the six months ended June 30, 2021, the Company reported current unearned revenue of $990,886. For the period ended December 31, 2020, the Company reported current unearned revenue of $1,160,274. These unearned revenues will be recognized as revenue in the periods during which the cobalt shipments take place. 

Contract Balances

The Company records a receivable when it has an unconditional right to receive consideration after the performance obligations are satisfied.  As of June 30, 2021, and December 31, 2020, accounts receivable totaled $1,068,550 and $796,128, respectively.  For the six months ended June 30, 2021, the Company did not incur material impairment losses with respect to its receivables.

(10)         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.

15 

	Six Months Ended June 30,
	2021			2020
Operating lease costs	$	126,904		$	130,378
Short-term operating lease costs		7,670			19,928
Financing lease expense:
Amortization of right-of-use assets		3,005			2,179
Interest on lease liabilities		1,018			579
Total financing lease expense		4,023			2,758
Total lease expense	$	138,597		$	153,064
Right-of-use assets obtained in exchange for new operating lease liabilities	$	1,603		$	2,649,070
Right-of-use assets obtained in exchange for new financing lease liabilities	$	—		$	16,524
Weighted-average remaining lease term (years) - operating leases		13.6			14.6
Weighted-average remaining lease term (years) - financing leases		2.6			3.6
Weighted-average discount rate - operating leases		6.75	%		6.75	%
Weighted-average discount rate - financing leases		8.76	%		8.82	%

The future minimum payments under these operating lease agreements are as follows:

	Operating			Financing
2021 (excluding the six months ended June 30, 2021)	$	131,858		$	4,821
2022		285,159			9,641
2023		287,108			5,881
2024		287,108			2,929
2025		287,108			—
Thereafter		2,599,409			—
Total minimum operating lease obligations		3,877,750			23,272
Less-amounts representing interest		(1,345,803	)		(2,401	)
Present value of minimum operating lease obligations		2,531,947			20,871
Current maturities		(105,593	)		(8,155	)
Lease obligations, net of current maturities	$	2,426,354		$	12,716

(11)        Segment Information

The Company has five reportable segments which include: Nuclear Medicine Standards, Cobalt Products, Radiochemical Products, Fluorine Products, and Radiological Services. Information regarding the operations and assets of these reportable business segments is contained in the following table:

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	Three months ended June 30,				Six months ended June 30,
Sale of Product	2021		2020		2021		2020
Radiochemical Products	$	1,228,209	$	1,113,053	$	1,889,386	$	1,868,274
Cobalt Products		576,994		224,666		695,367		530,286
Nuclear Medicine Standards		885,728		777,873		2,014,887		1,819,997
Radiological Services		68,965		43,967		130,755		116,288
Fluorine Products		—		—		22,013		160,500
Total Segments		2,759,896		2,159,559		4,752,408		4,495,345
Corporate revenue		—		—		—		—
Total Consolidated	$	2,759,896	$	2,159,559	$	4,752,408	$	4,495,345

	Three months ended June 30,					Six months ended June 30,
Depreciation and Amortization	2021		2020			2021		2020
Radiochemical Products	$	78,430	$	10,354		$	157,977	$	20,708
Cobalt Products		12,399		8,762			26,038		17,523
Nuclear Medicine Standards		17,868		15,989			34,238		31,978
Radiological Services		252		8,519			504		17,155
Fluorine Products		31,158		30,898			57,253		56,993
Total Segments		140,107		74,522			276,010		144,357
Corporate depreciation and amortization		6,941		(349	)		11,240		4,433
Total Consolidated	$	147,048	$	74,173		$	287,250	$	148,790

	Three months ended June 30,						Six months ended June 30,
Segment Income (Loss)	2021			2020			2021			2020
Radiochemical Products	$	404,457		$	380,728		$	408,882		$	386,347
Cobalt Products		208,581			75,874			178,484			199,670
Nuclear Medicine Standards		51,843			117,056			262,754			302,357
Radiological Services		58,242			(13,532	)		110,649			(28,461	)
Fluorine Products		(31,627	)		(36,460	)		(65,141	)		86,410
Total Segments		691,496			523,666			895,628			946,323
Corporate loss		(872,883	)		(294,338	)		(1,678,167	)		(1,139,489	)
Net Income (Loss)	$	(181,387	)	$	229,328		$	(782,539	)	$	(193,166	)

	Three months ended June 30,				Six months ended June 30,
Expenditures for Segment Assets	2021		2020		2021		2020
Radiochemical Products	$	—	$	—	$	3,103	$	—
Cobalt Products		—		—		16,592		—
Nuclear Medicine Standards		32,911		—		167,911		—
Radiological Services		—		—		—		—
Fluorine Products		—		—		4,060		1,565
Total Segments		32,911		—		191,666		1,565
Corporate purchases		—		—		—		—
Total Consolidated	$	32,911	$	—	$	191,666	$	1,565

	June 30,		December 31,
Segment Assets	2021		2020
Radiochemical Products	$	3,067,625	$	2,916,442
Cobalt Products		632,133		743,127
Nuclear Medicine Standards		2,235,779		2,052,220
Radiological Services		15,057		60,696
Fluorine Products		5,312,164		5,371,506
Total Segments		11,262,758		11,143,991
Corporate assets		4,546,988		5,952,758
Total Consolidated	$	15,809,746	$	17,096,749

(12)         Subsequent Events

On July 8, 2021, the Company entered into a Membership Interest Purchase Agreement (the Purchase Agreement) with RadQual and the sellers set forth in the Purchase Agreement, which included the Company’s Chairman of the Board, Chief Executive Officer, former Chairman of the Board, and certain other stockholders of the Company (collectively, the “Sellers”). Pursuant to the Purchase Agreement, the Company acquired all of the outstanding membership interests of RadQual not then owned by the Company for an aggregate purchase price of approximately $4.4 million, payable in shares of the Company’s common stock valued at $0.11 per share (determined by the average trading price of the Company’s common stock on the OTC Markets during the 60 trading day period immediately prior to June 2, 2021) (the “RadQual Acquisition”). The Company issued an aggregate of 40,176,236 shares of its common stock to the Sellers as consideration in the RadQual Acquisition. Prior to the RadQual Acquisition, the Company owned approximately 24.5% of the outstanding membership interests of RadQual, and after acquiring all of the remaining membership interests of RadQual, RadQual became a wholly-owned subsidiary of the Company. The RadQual Acquisition closed on July 8, 2021.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Quarterly Report on Form 10-Q (the “Quarterly 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 Quarterly Report are forward-looking statements. Words such as “anticipates,” “believes,” “should,” “expects,” “future,” “intends” and similar expressions identify forward-looking statements.  In particular, statements regarding impact of the COVID-19 outbreak on our business, financial condition, operating results and liquidity, the future prospects of our business segments, future cash flow from operations, the Company’s ability to achieve profitability, the business prospects and growth projection for our business segments, and the status of our proposed uranium de-conversion facility, are forward-looking statements. 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 Quarterly Report. Certain risks and uncertainties that could cause our actual results to differ significantly from management’s expectations are described in the risk factors set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed with the Securities and Exchange Commission (SEC) on March 30, 2021 and in the other reports we file with the SEC. These factors describe some but not all of the factors that could cause actual results to differ significantly from management’s expectations. We undertake no obligation to update any forward-looking statements 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 reports that we file from time to time with the SEC.

BUSINESS OVERVIEW

International Isotopes Inc., its subsidiaries and joint venture, TI Services, LLC, and RadQual, LLC (collectively, the Company, we, our, or us) manufacture a full range of nuclear medicine calibration and reference standards, manufacture a range of cobalt products, and distribute sodium iodide I-131 as a generic drug. We also own a 24.5% interest in, and have management control of, RadQual, LLC (RadQual), a global supplier of molecular imaging quality control and calibration devices, with which we have an exclusive manufacturing agreement.

In August 2017, affiliates of the Company, including the Company’s Chairman of the Board and the Chief Executive Officer, acquired the remaining 75.5% interest in RadQual. The Company’s Chairman of the Board and its Chief Executive Officer also serve as the managing members of RadQual. As a result of this change in ownership, and other factors, the Company determined that it had gained the ability to exercise significant management control over the operations of RadQual. Because of this increased management ability and pursuant to GAAP, the Company has consolidated the accounts of RadQual into its financial statements beginning as of August 2017. See Note 4, “Investment and Business Consolidation” to our unaudited condensed consolidated financial statements in this report for additional information.

RADQUAL ACQUISTION

On July 8, 2021, the Company entered into a Membership Interest Purchase Agreement (the Purchase Agreement) with RadQual and the sellers set forth in the Purchase Agreement, which included the Company’s Chairman of the Board, Chief Executive Officer, former Chairman of the Board, and certain other stockholders of the Company (collectively, the Sellers). Pursuant to the Purchase Agreement, the Company acquired all of the outstanding membership interests of RadQual not then-owned by the Company for an aggregate purchase price of approximately $4.4 million, payable in shares of the Company’s common stock valued at $0.11 per share (determined by the average trading price of the Company’s common stock on the OTC Markets during the 60 trading day period immediately prior to June 2, 2021) (the RadQual Acquisition). The Company issued an aggregate of 40,176,236 shares of its common stock to the Sellers as consideration in the RadQual Acquisition. Prior to the RadQual Acquisition, the Company owned approximately 24.5% of the outstanding membership interests of RadQual, and after acquiring all of the remaining membership interests of RadQual, RadQual became a wholly-owned subsidiary of the Company. The RadQual Acquisition closed on July 8, 2021.

Our business consists of the following five business segments:

Nuclear Medicine Standards. Our Nuclear Medicine Standards segment consists of the manufacture of sources and standards associated with Single Photon Emission Computed Tomography (SPECT) and Positron Emission Tomography (PET) imaging. These sources are used for indication of patient positioning for SPECT imaging, SPECT and PET camera operational testing, and calibration of dose measurement equipment commonly used in the practice of nuclear pharmacy. Revenue from nuclear medicine products includes consolidated sales from TI Services, LLC (TI Services), a 50/50 joint venture that we formed with RadQual in December 2010 to distribute our products, as well as consolidated sales from RadQual, pursuant to the change in RadQual’s ownership in August 2017, as discussed above. Our nuclear medicine standards products include a host of specially designed items used in the nuclear

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medicine industry. In addition to the manufacture of these products, we have developed a complete line of specialty packaging for the safe transport and handling of these products.

Cobalt Products. Our Cobalt Products segment includes the production of bulk cobalt (cobalt-60), fabrication of cobalt capsules for radiation therapy and various industrial applications, and recycling of expended cobalt sources. We are the only company in the U.S. that can provide all these unique services. There has been a significant increase in regulation by the Nuclear Regulatory Commission (NRC) in recent years that has created a significant barrier to new entrants into this market. The Company has a contract in place with the U.S. Department of Energy (DOE) for the production of high specific activity cobalt in the Advanced Test Reactor (ATR) in Idaho. This agreement will be in effect until October 2024.

Radiochemical Products. Our Radiochemical Products segment includes production and distribution and FDA approved generic sodium iodide I-131 drug product for the treatment of hyperthyroidism and carcinoma of the thyroid. We are the only U.S. Company distributing this generic drug product. This segment also includes distribution of certain other radiochemical products and contract manufacturing of radiopharmaceutical products for our customers.

Fluorine Products. We established the Fluorine Products segment in 2004 to support production and sale of the gases that we expected to produce using our Fluorine Extraction Process (FEP) in conjunction with the operation of the proposed depleted uranium de-conversion facility in Lea County, New Mexico. Near the end of 2013, due to changes in the nuclear industry, we placed further engineering work on this project on hold. We continue to hold discussions with potential future customers seeking this type of service, however, further development activity within this segment will be deferred until market and industry conditions change to justify resuming design and construction of the facility. In the meantime, the Company expects to continue to incur some costs associated with the maintenance of licenses and other necessary project investments, and to continue to keep certain agreements in place that will support resumption of project activities at the appropriate time.

Radiological Services. Our Radiological Services segment consisted of a wide variety of miscellaneous services such as decommissioning disused irradiation units, performing sealed source exchanges in irradiation and therapy units, and gemstone processing. The Company has suspended all of its field service activities and is in the process of terminating most gemstone processing. The Company will continue to perform some limited testing services of various gemstones for exempt distribution. The Company believes that eliminating work in the Radiological Services segment will allow the Company to better focus upon our core business segments and our new products pipeline. We believe that the loss in revenue resulting from wrapping up of radiological field service work will be more than offset by increased revenues in our remaining business segments.

COVID-19 UPDATE

As a result of the COVID-19 pandemic, we experienced a reduction of sales within our nuclear medicine calibration standards segment and radiochemicals segment during the six months ended June 30, 2020.  There was no discernable impact from COVID-19 to our cobalt products business segment during the period.  The decrease in sales for the six months ended June 30, 2020 for our nuclear medicine calibration standards segment was the result of the temporary closure of many imaging clinics and suspension of elective or non-essential imaging procedures. The sale of radiochemical products increased during the six month period, however, we believe the increase in revenue would have been greater were it not for the negative impact of COVID-19. 

Starting in June 2020, we saw our sales through RadQual substantially recover from the impact of the COVID-19 pandemic. We have seen little impact on our 2021 sales due to COVID-19. We believe that many of the medical procedures had been delayed, not canceled, and there was a pent-up demand for these products. Revenue within our nuclear medicine calibration standards segment for the six months ended June 30, 2021 increased approximately 11% compared to the same period in 2020. We will also continue to work towards development of several new products and to further expand our international sales. In addition, we will continue to work with TI Services on marketing strategies to boost customer service and sales of some nuclear medicine imaging and pharmacy products.

To-date we have not furloughed or terminated any employees as a result of the financial impact of COVID-19.  The Company has only seen a limited impact in our raw material supply chain related to the COVID-19, primarily some plastics which have been in strong demand for certain types of PPE.  Alternative sources of raw materials have been obtained without any interruption to production.  With the heightened concern about corporate liquidity during the COVID-19 pandemic, the Company believes that it has adequate cash to support continuing operations.

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RESULTS OF OPERATIONS

Three Months Ended June 30, 2021 Compared to Three Months Ended June 30, 2020

Revenue for the three months ended June 30, 2021 was $2,759,896 as compared to $2,159,559 for the same period in 2020, an overall increase of $600,337, or approximately 28%. This increase in revenue was largely the result of increased revenue in our Cobalt Products and Nuclear Medicine Standards segments, as discussed in detail below.

The following table presents a period-to-period comparison of total revenue by segment for the three months ended June 30, 2021 and 2020:

	For the three- months ended June 30,		For the three- months ended June 30,
Sale of Product	2021		2020		$ change		% change
Radiochemical Products	$	1,228,209	$	1,113,053	$	115,156	10	%
Cobalt Products		576,994		224,666		352,328	157	%
Nuclear Medicine Standards		885,728		777,873		107,855	14	%
Radiological Services		68,965		43,967		24,998	57	%
Fluorine Products		—		—		—	0	%
Total Consolidated	$	2,759,896	$	2,159,559	$	600,337	28	%

Cost of sales increased to $1,171,968 for the three months ended June 30, 2021 from $903,909 for the same period in 2020. This is an increase of $268,059, or approximately 30%. The increase in cost of sales in the three-month comparison was primarily due to the increased sales activity in our Radiochemical, Cobalt, and Nuclear Medicine segments, as discussed in detail below. Gross profit for the three months ended June 30, 2021 was $1,587,928, compared to $1,255,650 for the same period in 2020. This represents an increase in gross profit of $332,278, or approximately 26%.

The following table presents cost of sales and gross profit data for each of our business segments for the three months ended June 30, 2021 and 2020:

	For the three- months ended June 30,			% of Total Sales		For the three- months ended June 30,			% of Total Sales
	2021			2021		2020			2020
Total Sales	$	2,759,896				$	2,159,559
Cost of Sales
Radiochemical Products	$	487,126		18	%	$	480,816		22	%
Cobalt Products		263,948		10	%		79,091		4	%
Nuclear Medicine Standards		420,894		15	%		332,380		15	%
Radiological Services		—		0	%		11,622		1	%
Fluorine Products		—		0	%		—		0	%
Total Segments		1,171,968		42	%		903,909		42	%
Gross Profit	$	1,587,928				$	1,255,650
Gross Profit %		58	%				58	%

Operating expense increased approximately 16% to $1,573,206 for the three months ended June 30, 2021, from $1,351,751 for the same period in 2020. This increase of $221,455, is primarily due to an approximate 53% increase in General, Administrative and Consulting Costs. This increase in mainly due to increased costs for licenses and depreciation.

The following table presents a comparison of total operating expense for the three months ended June 30, 2021 and 2020:

	For the three- months ended June 30,		For the three- months ended June 30,
Operating Costs and Expenses:	2021		2020		% change			$ change
Salaries and Contract Labor	$	625,428	$	736,539		-15	%	$	(111,111	)
General, Administrative and Consulting		875,799		573,747		53	%		302,052
Research and Development		71,979		41,465		74	%		30,514
Total operating expenses	$	1,573,206	$	1,351,751		16	%	$	221,455

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Other income was $32,356 for the three months ended June 30, 2021, as compared to Other Income of $559,895 for the same period in 2020. This is a decrease of $527,539. The decrease is due to income from the SBA Loan (as defined below) of $495,500 converted to grant income during the three months ended June 30, 2020. Interest expense for the three months ended June 30, 2021 was $211,456, compared to $196,344 for the same period in 2020. This is an increase of $15,112, or approximately 8%. Interest expense includes dividends accrued on our Series C Redeemable Convertible Preferred Stock (Series C Preferred Stock). For the three months ended June 30, 2021, we accrued dividends payable of $63,195, which have been recorded as interest expense. Additionally, non-cash interest expense in the amount of $32,084 was recorded for this same period for the issuance of warrants related to the preferred stock issuances. See Note 7 “Debt” to our unaudited condensed consolidated financial statements in this Quarterly Report for additional information about our indebtedness and the associated interest expense.

Our net loss for the three months ended June 30, 2021, was ($181,387), compared to net income of $229,328, for the same period in 2020. This is a decrease of income of $410,715 is the result of $495,500 of income from the SBA Loan converted to grant income during the second quarter of 2020.

Radiochemical Products. Revenue from the sale of radiochemical products for the three months ended June 30, 2021 was $1,228,209, compared to $1,113,053 for the same period in 2020. This is an increase of $115,156, or approximately 10%. The increase is the result of increased sales of our new generic sodium iodide I-131 drug product.

Gross profit of radiochemical products for the three months ended June 30, 2021 was $741,083, compared to $632,237, for the same period in 2020, and gross profit percentages were approximately 60% and 57% for the three months ended June 30, 2021 and 2020, respectively. This increased gross profit percentage is a result of sales of our new generic sodium iodine I-131 drug product and continued improvements of utilization of raw materials. Cost of sales for radiochemical products increased to $487,126 for the three months ended June 30, 2021, as compared to $480,816 for the same period in 2020. This is an increase of $6,310, or approximately 1%, and was the result of increased sales of product. Operating expense for this segment increased to $336,627 for the three months ended June 30, 2021, compared to $251,509 for the same period in 2020. This increase in operating expense of $85,118, or approximately 34%, is primarily due to increased costs for license and depreciation expenses. This segment reported net income of $404,457 for the three months ended June 30, 2021, as compared to net income of $380,728 for the same period in 2020. The increase in net income of $23,728 or approximately 6%, is primarily the result of increased radiochemical product sales but somewhat offset by increased operating expenses during the three months ended June 30, 2020.

Cobalt Products. Revenue from the sale of cobalt products for the three months ended June 30, 2021 was $576,994, compared to $224,666, for the same period in 2020. This represents an increase of $352,328, or approximately 157%. Our cobalt sealed source manufacturing is largely dependent on our ability to procure cobalt material from the DOE’s Advanced Test Reactor (ATR). The increased sales in the three months ended June 30, 2021 is due to sales of material received from the ATR during the period.

In October 2014, we entered into a ten-year agreement with the DOE for the irradiation of cobalt targets. The agreement gives us the ability to purchase the current full capacity of the DOE’s ATR throughout the ten-year period. It takes many years to irradiate these cobalt targets to the desired level of activity. Our production calculations indicated we should have anticipated having high specific activity cobalt available for our customers in late 2019. However, extended reactor shutdowns and lower than expected production rates of cobalt-60 in the new design cobalt targets delayed delivery of high specific activity cobalt until May 2021.

During 2015, we entered into cobalt-60 supply agreements with several customers. The terms of the agreements required pre-payments to secure cobalt material in future years. Those prepayments were recorded as unearned revenue on our condensed consolidated balance sheet.

Cost of sales for the three months ended June 30, 2021, was $263,948, as compared to $79,091, for the same period in 2020. Gross profit for cobalt products for the three months ended June 30, 2021 was $313,046 compared to $145,575 for the same period in 2020. This is an increase of $167,471, or approximately 115% and is primarily attributable to increased sales for the three months ended June 30, 2021, as compared to the same period in 2020. Operating expense in this segment increased to $104,465 for the three months ended June 30, 2021, from $69,701 for the same period in 2020. This is an increase of $34,764, or approximately 50%. This increase in operating expenses for the three months ended June 30, 2021 is due to increased support labor from increased shipment activity. Our net income for cobalt products was $208,581 for the three months ended June 30, 2021, as compared to a net income of $75,874 for the same period in 2020. The increase in net income of $132,707, or approximately 175%, was attributable to increased sales.

Nuclear Medicine Standards. Revenue from nuclear medicine products for the three months ended June 30, 2021, was $885,728, compared to $777,873 for the same period in 2020. This represents an increase in revenue of $107,855, or approximately 14%. As discussed above, due to a change in the member ownership of RadQual, in August 2017 we began reporting our investment in RadQual on a consolidated basis. Therefore, revenue in this segment includes all sales of RadQual and TI Services with all intercompany sales for the consolidated period eliminated. The increase in sales for the period ended June 30, 2021 was due to increased order activity as recovery from the Covid-19 pandemic continues.

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Cost of sales for our nuclear medicine standards segment for the three months ended June 30, 2021, was $420,894, as compared to $332,380 for the same period in 2020. The increase in cost of sales in the period-to-period comparison of $88,514, or 27%, is due to increased sales for the three-month period ended June, 2021, as compared to the same period in 2020. Gross profit for our nuclear medicine standards segment for the three months ended June 30, 2021 was $464,834 compared to $445,493 for the same period in 2020. This is an increase in gross profit of $19,341, or approximately 4%. The increase in gross profit in the period-to-period comparison is primarily the result of the increased sales. Our gross profit percentages were approximately 52% and 57% for the three-month periods ended June 30, 2021 and 2020, respectively. The decrease in the gross profit percentage for the three months ended June 30, 2021 is primarily due to increased raw material cost.

Operating expense for this segment for the three months ended June 30, 2021 increased to $412,992, from $328,437 for the same period in 2020. This is an increase of $84,555, or approximately 26%, and is the result of increased expenses for production supplies, support labor expenses, and operating expenses related to RadQual as compared to the same period in 2020. Operating expense includes consolidated net operating expense reported for RadQual of $174,113 and non-controlling member interest expense of $20,121, for the three months ended June 30, 2021, as compared to $126,367 of net operating expense and non-controlling member interest expense of $39,789 for the same period in 2020. Net operating expense included for TI Services was $29,522 for the three months ended June 30, 2021, and $23,381 for the same period in 2020. TI Services non-controlling interest included was ($3,066) for the three-month period ended June 30, 2021, as compared to ($919) for the same period in 2020. Net income for this segment for the three months ended June 30, 2021 was $51,843, compared to $117,056 for the same period in 2020. This is a decrease in net income of $65,213, or approximately 56% and is primarily the result of increased operating expenses partially offset by increased gross profit.

Radiological Services. Revenue from all radiological services for the three months ended June 30, 2021 was $68,964, compared to $43,967, for the same period in 2020, an increase of $24,997 or approximately 57%. The increase in the revenue for the period comparison is the result of increased gemstone processing activity from the wrapping up of this contract work.

On May 2, 2019, our radiological services team was involved in a contamination event involving a breached cesium-137 source at an off-site location in the state of Washington. This work was being performed under a contract with the DOE. We supported the initial onsite contamination clean-up operations at that location and completed removal of the cesium source and Company equipment. We have reviewed the results of the DOE investigation into this event and has implemented appropriate corrective actions. Beginning in August 2019, the DOE assumed full control of the cleanup operations and assumed all the financial obligations associated with the contractors hired to carry out all remaining facility recovery operations. On January 5, 2021, we were notified by the DOE that we have been indemnified from any financial liability for this event under the Price Anderson Act (PAA). We are actively pursuing a final settlement with its insurance company regarding this claim as of the date of this filing. 

In January 2020, we notified our gemstone processing customer that the service contract with them was being terminated because the volume of gemstones sent for processing did not meet contract minimums. The termination activities and wrap up of this service will continue throughout 2021 and the Company expects to see a steady decline in revenue from this service as production is wrapped up. We plan to convert the spaces in the facility that had been used to perform this contract work into expanded Nuclear Medicine product manufacturing. The loss in revenue expected from termination of the gemstone processing agreement is expected to be more than compensated for by the expansion of new nuclear medicine source products.

Cost of sales for the three months ended June 30, 2021, was $0, as compared to $11,622, for the same period in 2020. Gross profit for this segment for the three months ended June 30, 2021 was $68,965, compared to $32,345, reported for the same period in 2020. The increase in gross profit of $36,619, or approximately 113%, is the result of decreased costs for gemstone processing for the three months ended June 30, 2021, as compared to the same period in 2020. We expect our costs of sales to continue to be very low going forward. Operating expense for the three months ended June 30, 2021 was $10,723 as compared to $45,877, reported for the same period in 2020. This decrease of $35,154, or approximately 77%, is the result of decreased sales and activity within the business segment.

Net income for this segment for the three months ended June 30, 2021 was $58,242, compared to net loss of $13,532, for the same period in 2020. This is an increase in net income of $71,774 is the result increase in gross profit and decreased operating expenses for the same period in 2020.

Fluorine Products. There was no revenue to report from the fluorine products segment for the three months ended June 30, 2021, or for the same period in 2020. During the three months ended June 30, 2021, we incurred $31,626 of expense related to items in support of future planning and design for the proposed de-conversion facility, as compared to $36,460 for the same three-month period in 2020. This is a decrease of 13% in the period-to-period comparison.

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We established the Fluorine Products segment in 2004 to support production and sale of the gases produced using our FEP. The project has been placed on hold since 2013 and we will continue to limit 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 until such time that we decide to resume the project.

Six Months Ended June 30, 2020 Compared to Six Months Ended June 30, 2019

Revenue for the six-month period ended June 30, 2021 was $4,752,408, as compared to $4,495,345 for the same period in 2020, an increase of $257,063, or approximately 6%. The performance of all our business segments for the six-month period is discussed in further detail below.

The following table presents a period-to-period comparison of total revenue by segment for the six months ended June 30, 2021 and June 30, 2020:

	For the six- months ended June 30,		For the six- months ended June 30,
Sale of Product	2021		2020		$ change			% change
Radiochemical Products	$	1,889,386	$	1,868,274	$	21,112		1	%
Cobalt Products		695,367		530,286		165,081		31	%
Nuclear Medicine Standards		2,014,887		1,819,997		194,890		11	%
Radiological Services		130,755		116,288		14,467		12	%
Fluorine Products		22,013		160,500		(138,487	)	-86	%
Total Consolidated	$	4,752,408	$	4,495,345	$	257,063		6	%

Gross profit for the six-month period ended June 30, 2021 was $2,749,086, compared to $2,622,911, for the same period in 2020. This represents an increase of $126,175 or approximately 5%.

The following table presents cost of sales and gross profit data for each of our business segments for the six months ended June 30, 2021 and 2020:

	For the six- months ended June 30,			% of Total Sales			For the six- months ended June 30,			% of Total Sales
	2021			2021			2020			2020
Total Sales	$	4,752,408					$	4,495,345
Cost of Sales
Radiochemical Products	$	792,609			17	%	$	890,411			20	%
Cobalt Products		307,201			6	%		143,530			3	%
Nuclear Medicine Standards		903,166			19	%		805,154			18	%
Radiological Services		346			0	%		33,339			1	%
Fluorine Products		—			0	%		—			0	%
Total Segments		2,003,322			42	%		1,872,434			42	%
Gross Profit	$	2,749,086					$	2,622,911
Gross Profit %		58	%					58	%

Operating expenses were $3,184,892 for the six-month period ended June 30, 2021, compared to $2,928,322 for the same period in 2020. This represents an increase of $256,570, or approximately 9%. This increase is primarily due to an approximate 31% increase in General, Administrative and Consulting costs that is a result of increased license and permits costs incurred during the six months ended June 30, 2021, as compared to the same period in 2020. Research and Development costs increased to $109,216, for the six months ended June 30, 2021, as compared to $88,393, for the same period in 2020. This is an increase of $20,823, or approximately 24% and is primarily the result of an increase in expenditures for product development in several of our business segments for the six months ended June 30, 2021, as compared to the same period in 2020.

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The following table shows total operating expenses for the six-month period ended June 30, 2021 and 2020:

	For the six- months ended June 30,		For the six- months ended June 30,
Operating Costs and Expenses:	2021		2020		% change		$ change
Salaries and Contract Labor	$	1,293,948	$	1,477,744	-12	%	$	(183,796	)
General, Administrative and Consulting		1,781,728		1,362,185	31	%		419,543
Research and Development		109,216		88,393	24	%		20,823
Total operating expenses	$	3,184,892	$	2,928,322	9	%	$	256,570

Interest expense for the six months ended June 30, 2021 was $409,747, compared to $391,224 for the same period in 2020. This is an increase of $18,523, or approximately 5%. Interest expense includes dividends accrued on our Series C Preferred Stock. For the six months ended June 30, 2021, we accrued dividends payable of $126,390 which have been recorded as interest expense. Additionally, non-cash interest expense in the amount of $64,167 was recorded for this same period for the issuance of warrants related to the preferred stock issuances. Additionally, non-cash interest expense in the amount of $128,133 for the issuance of warrants in conjunction with the 2019 Promissory Note was recorded for the six months ended June 30, 2021.

Our net loss for the six-month period ended June 30, 2021, was $782,539 as compared to $193,166 for the same period in 2020. This is an increase in loss of 589,373 or approximately 305%. This increase in net loss is the result $495,500 of income from the SBA Loan converted to grant income during the second quarter of 2020 and increased operating expenses in the six months ended June 30, 2021.

Radiochemical Products. Revenue from the sale of radiochemical products for the six-month period ended June 30, 2021 was $1,889,386 compared to $1,868,274 for the same period in 2020. This is an increase of $21,112, or approximately 1%. This increase was primarily the result of sales of our new generic sodium iodide I-131 drug product. We expect continued sales growth for our radiochemical products going forward.

Cost of sales was $792,609 for the six-month period ended June 30, 2021, and $890,411 for the same period in 2020. This is a decrease of $97,802, or approximately 11%. This decrease is primarily the result of shift of sales activity to our new generic sodium iodide I-131 drug product which has a higher profit margin.

Gross profit percentages for our radiochemical products for the six months ended June 30, 2021 and 2020 were approximately 58% and 52%, respectively. Operating expense for this segment for the six-month period ended June 30, 2021 was $687,895, compared to $597,951 for the same period in 2020. This is an increase of $89,944, or approximately 15%, and is primarily due to increased costs for licenses and depreciation partially offset by decreased expenses for support labor. Net income for this segment increased to $408,882 for the six-month period ended June 30, 2021, from $386,347 for the same period in 2020. This increase of $22,535, or approximately 6%, is primarily the result of increased profit margin for radiochemical product during the three months ended June 30, 2021.

Cobalt Products. Revenues from the sale of cobalt products for the six-month period ended June 30, 2021 were $695,367, compared to $530,286 for the same period in 2020. This is an increase of $165,081, or approximately 31%, and is the result of decreased Cobalt sealed source manufacturing and Cobalt recycling. Our cobalt sealed source manufacturing is largely dependent on our ability to procure cobalt material from the DOE’s Advanced Test Reactor (ATR). The increased sales in the six months ended June 30, 2021 is due to sales of material received from the ATR during the period.

During 2015, we entered into cobalt-60 supply agreements with several customers. The terms of the agreements required pre-payments to secure cobalt material in future years. Those prepayments were recorded as unearned revenue on our condensed consolidated balance sheet.

Cost of sales for the six months ended June 30, 2021, was $307,201, as compared to $143,530, for the same period in 2020. Gross profit for cobalt products for the six months ended June 30, 2021 was $388,166 compared to $386,756 for the same period in 2020. This is a increase of $1,410, or less than 1%. Our gross profit percentages were approximately 56% and 73% for the six-month periods ended June 30, 2021 and 2020, respectively. The decrease in the gross profit percentage for the six months ended June 30, 2021 is primarily due to increased costs of raw material used in the manufacture of sealed sources. Operating expense in this segment increased to $209,683 for the six months ended June 30, 2021, from $187,086 for the same period in 2020. This is an increase of $22,597, or approximately 12% is a result of increased equipment expenses in the six months ended June 30, 2021 as compared to the same period in 2020. Our net income for cobalt products was $178,484 for the six months ended June 30, 2021, as compared to a net income of $199,670 for the same period in 2020. The decrease in net income of $21,186 or approximately 11%, was attributable to the increase in operating expenses for the six months ended June 30, 2021, as compared to the same period in 2020.

24 

Nuclear Medicine Standards. Revenue from nuclear medicine products for the six-month period ended June 30, 2021 was $2,014,887 compared to $1,819,997 for the same period in 2020. This represents an increase in revenue attributable to this segment of $194,890, or approximately 11%. The increase in sales for the period ended June 30, 2021 was due to increased order activity as recovery from the Covid-19 pandemic continues.

Gross profit for the six-month period ended June 30, 2021 was $1,111,722, as compared to $1,014,843 for the same period in 2020, a increase of $96,879, or approximately 10%. Operating expense for this segment for the six-month period ended June 30, 2021 increased to $893,747, from $748,086 for the same period in 2020. This is an increase of $145,661 or approximately 19% and includes consolidated net operating expense reported for RadQual of $331,144 and non-controlling member interest expense of $108,953, for the six months ended June 30, 2021, compared to consolidated net operating expense of $304,430 and non-controlling member interest expense of $82,223, for the six months ended June 30, 2020. Net income for this segment for the six-month period ended June 30, 2021, decreased to $262,754, approximately 13%, from $302,357 for the same six-month period in 2020.

Radiological Services. Revenue from all radiological services for the six months ended June 30, 2021 was $130,755, compared to $116,288, for the same period in 2020, an increase of $14,467 or approximately 12%. The decrease in the revenue for the period comparison is the result of decreased gemstone processing activity.

On May 2, 2019, our radiological services team was involved in a contamination event involving a breached cesium-137 source at an off-site location in the state of Washington. On January 5, 2021, we were notified by the DOE that we have been indemnified from any financial liability for this event under the Price Anderson Act (PAA). As part of this indemnification notification, we received payment in full for our claim with the DOE for recovery of certain expenses incurred for this event. We recognized Other Income of approximately $112,000 in the six months ended June 30, 2021 for additional cost recoveries for this event. All remaining cost recoveries as part of this settlement with the DOE were recognized in previous financial periods pursuant to ASC 410-30. These funds were used to pay all outstanding subcontractors and reimburse our insurance company for payments they previous paid us for this matter. We are actively pursuing a final settlement with its insurance company regarding this claim as of the date of this filing.

Cost of sales for the six months ended June 30, 2021, was $346, as compared to $33,339, for the same period in 2020. Gross profit for this segment for the six months ended June 30, 2021 was $130,408, compared to $82,949, reported for the same period in 2020. The increase in gross profit of $47,459, or approximately 57%, is the result of decreased costs for gemstone processing for the three months ended June 30, 2021, as compared to the same period in 2020. Operating expense for the six months ended June 30, 2021 was $19,760 as compared to $111,410, reported for the same period in 2020. This decrease of $91,650, or approximately 82%, is the result of decreased sales and activity within the business segment.

Net income for this segment for the six months ended June 30, 2021 was $110,649, compared to net loss of $28,461, for the same period in 2020. This is an increase in net income of $139,110 and is the result in the increase in gross profit and decreased operating expenses for the same period in 2020.

Fluorine Products. For the six months ended June 30, 2021, we had revenues related to Fluorine Products of $22,013 compared to $160,500, for the same period in 2020, a decrease of $138,487 or approximately 86%. These revenues were related to an agreement to provide engineering and technical assistance services related to our fluorine products intellectual property. During the six months ended June 30, 2021, we incurred $87,153 of expense related to items in support of future planning and design for the proposed de-conversion facility, as compared to $74,090 for the same six-month period in 2020. This is an increase of 18% in the period-to-period comparison.

We established the Fluorine Products segment in 2004 to support production and sale of the gases produced using our Fluorine Extraction Process (“FEP”). We will continue to limit 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.

LIQUIDITY AND CAPITAL RESOURCES

At June 30, 2021, we had cash and cash equivalents of $517,506 as compared to $1,113,032 at December 31, 2020. This is a decrease of $595,526 or approximately 54%. For the six months ended June 30, 2021, net cash used in operating activities was $238,773 and net cash provided for the six months ended June 30, 2020 in operating activities was $415,918. The increase in cash used in operating activities and decrease in cash and cash equivalents at period end in the period-to-period comparison is the result of increased net loss and decreased accounts payable.

25 

Inventories at June 30, 2021 totaled $668,781, and inventories at December 31, 2020 totaled $837,787. Previously, a significant amount of our inventory consisted of work-in-process cobalt raw material held at the ATR located outside of Idaho Falls, Idaho. Work in process includes costs to irradiate cobalt-60 material under a contract with the DOE. This material has been placed in the ATR and the Company made progress payments to purchase this material. At June 30, 2021, this raw cobalt material inventory at the ATR accounted for approximately 0% of our work-in-process inventory. At December 31, 2020, this in-process raw material inventory accounted for approximately 46% of our work in process inventory.

Cash used in investing activities was $191,666 for the six months ended June 30, 2021, and cash used in investing activities was $1,565 for the same period in 2020. The cash used in the six months ended June 30, 2021 was for the purchase of equipment.

Financing activities provided cash of $26,978, during the six months ended June 30, 2021, and cash used by financing activities for the same period in 2020 was $155,352. During the six months ended June 30, 2021, cash paid for interest was $61,320 and during the same six-month period in 2020, cash paid for interest was $65,536. Additionally, during the six months ended June 30, 2021, we received $8,995 in proceeds from the sale of our common stock through our Employee Stock Purchase Plan, as compared to $10,273 for the same period in 2020.

In February 2021, the Company paid its third annual dividend on the Series C Preferred Stock. Dividends payable totaled $254,280. Some holders of the Series C Preferred Stock elected to settle their dividend payments with shares of the Company’s common stock in lieu of cash. The Company issued 1,398,200 shares of common stock in lieu of a dividend payment of $207,480. The remaining $46,800 of dividend payable was settled with cash.

Total decrease in cash for the six-month period ended June 30, 2021, was $403,461 compared to a cash increase of $259,001 for the same period in 2020.

We expect that cash from operations, cash raised via equity or debt financings, and our current cash balance will be sufficient to fund operations for the next twelve months. Our future liquidity and capital funding requirements will depend on numerous factors, including, contract manufacturing agreements, commercial relationships, technological developments, market factors, available credit, our ability to raise additional capital 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, especially in light of the market volatility and uncertainty as a result of the COVID-19 pandemic.

At June 30, 2021, there were 7,065,000 outstanding warrants to purchase our common stock. Included in this number are 4,140,000 Class M Warrants issued February 17, 2017, with an exercise price of $0.12 per share and an expiration date of February 17, 2022; and, 2,925,000 Class N Warrants issued May 12, 2017, with an exercise price of $0.10 per share and an expiration date of May 12, 2022.

Debt

In December 2013, we entered into a promissory note agreement with our then Chairman of the Board 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. In connection with the 2013 Promissory Note, each of the two lenders was issued 5,000,000 Class L warrants to purchase shares of our common stock at an exercise price of $0.06 per share. The warrants were immediately exercisable. In June 2014, we renegotiated the terms of the 2013 Promissory Note. Pursuant to the modification, the maturity date was extended to December 31, 2017 and each lender was granted an additional 7,500,000 Class L warrants to purchases shares of our common stock at an exercise price of $0.06 per share. The warrants were immediately exercisable. In February 2017, the 2013 Promissory Note was further modified to extend the maturity date to December 31, 2020, with all remaining terms unchanged. On December 23, 2018, all 25,000,000 Class L warrants expired. In December 2019, the 2013 Promissory Note was further modified to extend the maturity date to December 31, 2021, with all remaining terms unchanged.

At June 30, 2021, accrued interest payable on the 2013 Promissory Note totaled $226,734.

26 

In April 2018, we borrowed $120,000 from our Chief Executive Officer and Chairman of the Board pursuant to a promissory note (the 2018 Promissory Note). The 2018 Promissory Note accrues interest at 6% per annum, which is payable upon maturity of the 2018 Promissory Note. The 2018 Promissory Note was originally unsecured and originally matured on August 1, 2018. At any time, the holder 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. Pursuant to an amendment to the 2018 Promissory Note in June 2018, the maturity date was extended to March 31, 2019 with all other provisions remaining unchanged. Pursuant to a second amendment to the 2018 Promissory Note in February 2019, the maturity date was extended to July 31, 2019 with all other provisions remaining unchanged. Pursuant to a third amendment to the 2018 Promissory Note in July 2019, the maturity date was extended to January 31, 2020 with all other provisions remaining unchanged. Pursuant to a fourth amendment to the 2018 Promissory Note in December 2019, the maturity date was extended to December 31, 2021, the note was modified to become secured by company assets, with all other provisions remaining unchanged. At June 30, 2021, accrued interest on the 2018 Promissory Note totaled $22,970.

In December 2019, we entered into a promissory note agreement with our Chief Executive Officer, Chairman of the Board, former Chairman of the Board, and one of our major shareholders (the 2019 Promissory Note). The 2019 Promissory Note authorizes us to borrow up to $1,000,000. As of December 31, 2019, we had borrowed $675,000 under the 2019 promissory note. In February 2020, we borrowed an additional $325,000. The 2019 Promissory Note is secured and bears interest at 4% per annum and has a maturity date of December 31, 2022. According to the terms of the 2019 Promissory Note, at any time, a holder of the 2019 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. In connection with the 2019 Promissory Note, we issued 30,000,000 Class O Warrants to purchase shares of our common stock at $0.045 per share (the Class O Warrants). The Class O Warrants were exercisable at an exercise price of $0.045 per share and had a term of five years. In January 2021, all 30,000,000 Class O Warrants were exercised. At June 30, 2021, accrued interest on the 2019 Promissory Note totaled $59,131.

In March 2021, one of the Company’s subsidiaries, RadQual, entered into a promissory note (the March 2021 Promissory Note) for the purchase of equipment. The principal amount under the March 2021 Promissory Note totals $101,250, bears interest at 5%, is secured by equipment, and is due March 2023.

In April 2021, we borrowed $250,000 from our Chief Executive Officer and Chairman of the Board pursuant to a promissory note (the April 2021 Promissory Note). The April 2021 Promissory Note bears an interest rate of 6% annually and is due December 31, 2022. At any time, the holder of the April 2021 Promissory Note may elect to have any or all of the principal and accrued interest settled with shares of our common stock based at the price of $0.11 per share. At June 30, 2021 accrued interest on the April 2021 Promissory Note totaled $3,250.

On April 23, 2020, we, through our wholly-owned subsidiary entered into a Loan Agreement and Promissory Note (collectively the “SBA Loan”) with KeyBank National Association pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) administered by the U.S. Small Business Administration (the “SBA”). We received total proceeds of $495,500 from the SBA Loan. The SBA Loan was scheduled to mature on April 22, 2022 and had a 1.00% interest rate and was subject to the terms and conditions applicable to loans administered by the SBA under the CARES Act.

In July 2021, we received notification from the SBA that we received approval of forgiveness of the entire loan.

OFF-BALANCE SHEET ARRANGEMENTS

As of June 30, 2021, we had no off-balance sheet arrangements or obligations.

CRITICAL ACCOUNTING POLICIES

From time-to-time, management reviews and evaluates certain accounting policies that are considered to be significant in determining our results of operations and financial position.

A description of the Company’s critical accounting policies that affect the preparation of the Company’s financial statements is set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 30, 2021.

27 

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act), that are designed to ensure that material information relating to us is made known to the officers who certify our financial reports and to other members of senior management and the Board of Directors. These disclosure controls and procedures are designed to ensure that information required to be disclosed in our reports that are filed or submitted under the Exchange Act are 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 and Chief Financial Officer, has evaluated the effectiveness, as of June 30, 2021, of our disclosure controls and procedures. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2021.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended June 30, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

A discussion of legal matters is found in Note 8, “Commitments and Contingencies”, in the accompanying notes to the unaudited condensed consolidated financial statements included in Part I - Item 1. Financial Statements of this Quarterly Report.

ITEM 1A. RISK FACTORS

There have been no material changes or updates to the risk factors previously disclosed in Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2020.

28 

ITEM 6. EXHIBITS

Exhibit No. Description

3.1 Restated Certificate of Formation, 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 International Isotopes Inc. (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on February 24, 2017).

3.3 Bylaws (incorporated by reference to Exhibit 3.2 of the Company's Registration Statement on Form SB-2 filed on May 1, 1997 (Registration No. 333-26269)).

31.1 Certification by the Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002.*

31.2 Certification by the Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002.*

32.1 Certification by the Chief Executive Officer furnished pursuant to 18 U.S.C. Section 1350 adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**

32.2 Certification by the Chief Financial Officer furnished pursuant to 18 U.S.C. Section 1350 adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**

101

The following financial statements, formatted in XBRL: (i) Unaudited Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020, (ii) Unaudited Condensed Consolidated Statements of Operations for the three months and six months ended June 30, 2021 and 2020, (iii) Unaudited Condensed Consolidated Statements of Cash Flows for the three months and six ended June 30, 2021 and 2020 and (iv) Notes to Unaudited Condensed Consolidated Financial Statements.*

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)*

______________

*    Filed herewith.

**  Furnished herewith.

29 

SIGNATURES

Pursuant to the requirements 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.

Date:  August 16, 2021	International Isotopes Inc.
	By:	/s/ Steve T. Laflin
		Steve T. Laflin
		President and Chief Executive Officer
	By:	/s/ W. Matthew Cox
		W. Matthew Cox
		Chief Financial Officer

30 

EX-31

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES OXLEY ACT OF 2002

I, Steve T. Laflin, certify that:

1.       I have reviewed this quarterly report on Form 10-Q of International Isotopes Inc.;

2       Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.       Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.       The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15 (f) and 15d-15 (f)) for the registrant and have:

(a)       Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)       Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)       Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)       Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.       The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)       All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)       Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 16, 2021

/s/ Steve T. Laflin

Steve T Laflin, Chief Executive Officer

EX-31

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES OXLEY ACT OF 2002

I, W. Matthew Cox, certify that:

1.       I have reviewed this quarterly report on Form 10-Q of International Isotopes Inc.;

2       Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.       Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.       The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15 (f) and 15d-15(f)) for the registrant and have:

(a)       Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)       Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)       Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)       Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.       The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)       All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)       Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 16, 2021

/s/ W. Matthew Cox

W. Matthew Cox, Chief Financial Officer

EX-32

Exhibit 32.1

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of International Isotopes Inc. and subsidiaries (the “Company”) for the period ended June 30, 2021, as filed with the Securities and Exchange Commission (the “Form 10-Q”), I, Steve T. Laflin, Chief Executive Officer of the Company, in my capacity as such, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78m or 78o(d)); and

(2) The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 16, 2021	/s/ Steve T. Laflin
	Steve T. Laflin
	Chief Executive Officer

EX-32

Exhibit 32.2

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of International Isotopes Inc. and subsidiaries (the “Company”) for the period ended June 30, 2021, as filed with the Securities and Exchange Commission (the “Form 10-Q”), I, W. Matthew Cox, Chief Financial Officer of the Company, in my capacity as such, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78m or 78o(d)); and

(2) The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 16, 2021	/s/ W. Matthew Cox
	W. Matthew Cox
	Chief Financial Officer

XML

Cover - shares	6 Months Ended
	Jun. 30, 2021	Aug. 08, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	000-22923
Entity Registrant Name	INTERNATIONAL ISOTOPES INC.
Entity Central Index Key	0001038277
Entity Tax Identification Number	74-2763837
Entity Incorporation, State or Country Code	TX
Entity Address, Address Line One	4137 Commerce Circle
Entity Address, City or Town	Idaho Falls
Entity Address, State or Province	ID
Entity Address, Postal Zip Code	83401
City Area Code	(208)
Local Phone Number	524-5300
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		501,003,705

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Current assets
Cash and cash equivalents	$ 517,506	$ 1,113,032
Accounts receivable	1,068,550	796,128
Inventories	668,781	837,787
Prepaids and other current assets	148,779	1,247,430
Total current assets	2,403,616	3,994,377
Long-term assets
Restricted cash	830,725	638,660
Property, plant and equipment, net	4,346,063	4,489,551
Capitalized lease disposal costs, net	256,059
Financing lease right-of-use asset	21,637	24,642
Operating lease right-of-use asset	2,486,142	2,539,580
Goodwill	1,384,255	1,384,255
Patents and other intangibles, net	4,081,249	4,025,684
Total long-term assets	13,406,130	13,102,372
Total assets	15,809,746	17,096,749
Current liabilities
Accounts payable	1,225,050	2,115,348
Accrued liabilities	923,098	1,204,672
Unearned revenue	990,886	1,160,274
Current portion of operating lease right-of-use liability	105,593	86,494
Current portion of financing lease liability	8,155	7,786
Current portion of related party notes payable, net of debt discount	613,295	606,589
Current installments of notes payable	221,317	480,889
Current portion of mandatorily redeemable preferred stock, net of debt discount	4,778,339
Total current liabilities	8,865,733	5,662,052
Long-term liabilities
Related party notes payable, net of current portion and debt discount	865,603	487,470
Notes payable, net of current portion	88,560	57,202
Asset retirement obligation	867,956	588,105
Financing lease liability, net of current portion	12,716	16,888
Operating lease right-of-use liability, net of current portion	2,426,354	2,484,359
Mandatorily redeemable convertible preferred stock, net of current portion and discount		4,913,421
Total long-term liabilities	4,261,189	8,547,445
Total liabilities	13,126,922	14,209,497
Stockholders' equity
Common stock, $0.01 par value; 750,000,000 shares authorized; 460,830,469 and 424,344,298 shares issued and outstanding respectively	4,608,305	4,243,443
Additional paid in capital	122,292,543	122,191,837
Accumulated deficit	(126,644,273)	(125,861,734)
Equity attributable to International Isotopes Inc. stockholders	256,575	573,546
Equity attributable to noncontrolling interest	2,426,249	2,313,706
Total equity	2,682,824	2,887,252
Total liabilities and stockholders' equity	$ 15,809,746	$ 17,096,749

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares issued	460,830,469	424,344,298
Common stock, shares outstanding	460,830,469	424,344,298

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Sale of product	$ 2,759,896	$ 2,159,559	$ 4,752,408	$ 4,495,345
Cost of product	1,171,968	903,909	2,003,322	1,872,434
Gross profit	1,587,928	1,255,650	2,749,086	2,622,911
Operating costs and expenses
Salaries and contract labor	625,428	736,539	1,293,948	1,477,744
General, administrative and consulting	875,799	573,747	1,781,728	1,362,185
Research and development	71,979	41,465	109,216	88,393
Total operating expenses	1,573,206	1,351,751	3,184,892	2,928,322
Net operating income (loss)	14,722	(96,101)	(435,806)	(305,411)
Other income (expense):
Other income	32,356	559,895	175,476	583,713
Interest income	46	748	81	3,083
Interest expense	(211,456)	(196,344)	(409,747)	(391,224)
Total other (expense) income	(179,054)	364,299	(234,190)	195,572
Net (loss) income	(164,332)	268,198	(669,996)	(109,839)
Less income attributable to noncontrolling interest	17,055	38,870	112,543	83,327
Net (loss) income attributable to International Isotopes Inc.	$ (181,387)	$ 229,328	$ (782,539)	$ (193,166)
Net loss per common share - basic:
Net loss per common share - diluted:
Weighted average common shares outstanding - basic:	460,798,173	423,751,657	457,123,946	422,211,840
Weighted average common shares outstanding - diluted:	460,798,173	432,629,537	457,123,946	422,211,840

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities
Net loss	$ (669,996)	$ (109,839)
Adjustments to reconcile net loss to net Cash (used in) provided by operating activities
Depreciation and amortization	287,250	150,969
Accretion of obligation for lease disposal costs	19,136	20,387
Accretion of beneficial conversion feature and discount	199,757	191,933
Equity based compensation	49,093	68,531
Forgiveness of Paycheck Protection Program Loan		(495,500)
Right-of-use asset amortization	14,532	14,448
Changes in operating assets and liabilities:
Accounts receivable	(272,422)	(425,334)
Inventories	169,006	992,742
Prepaids and other current assets	1,098,651	657,016
Accounts payable and accrued liabilities	(964,392)	(785,178)
Unearned revenues	(169,388)	135,743
Net cash (used in) provided by operating activities	(238,773)	415,918
Cash flows from investing activities:
Purchase of property, plant and equipment	(191,666)	(1,565)
Net cash used in investing activities	(191,666)	(1,565)
Cash flows from financing activities:
Proceeds from sale of stock	8,995	10,273
Payments on financing lease	(3,803)	(1,556)
Proceeds from the issuance of notes payable	351,250	871,100
Principal payments on notes payable	(329,464)	(1,035,169)
Net cash provided by (used in) financing activities	26,978	(155,352)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(403,461)	259,001
Cash, cash equivalents, and restricted cash at beginning of period	1,751,692	1,210,920
Cash, cash equivalents, and restricted cash at end of period	1,348,231	1,469,921
Supplemental disclosure of cash flow activities:
Cash paid for interest	61,320	65,536
Supplemental disclosure of noncash financing and investing transactions
Decrease in accrued interest and increase in equity for conversion of dividends to stock	207,480	204,480
Increase in operating lease right-of-use asset and right-of-use liability for new lease	1,603	2,649,070
Increase in equity and decrease in liability for the conversion of preferred stock	200,000
Non-cash increase of capitalized ARO for increased funding plan	260,715
Decrease in operating lease right-of-use asset and right-of-use liability for disposal of old lease		697,009
Increase in financing lease right-of-use asset and right-of-use liability for new lease		16,524
Decrease in inventory and decrease in accounts payable for cancellation of DOE contract		1,132,010
Decrease in related party notes payable and increase in equity for amounts allocated to warrants and beneficial conversion feature		247,560
Cash and cash equivalents	517,506	831,359
Restricted cash included in long-term assets	830,725	638,562
Total cash, cash equivalents, and restricted cash shown in statement of cash flows	$ 1,348,231	$ 1,469,921

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Reconciliation of Stockholders' Equity (Unaudited) - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Equity/Deficit Attributable to Internat’l Isotopes Shareholders	Equity Attributable to Noncontrolling Interest	Total
Beginning balance, value at Dec. 31, 2019	$ 4,198,423	$ 121,680,163	$ (128,064,385)	$ (2,185,799)	$ 2,073,649	$ (112,150)
Shares outstanding at Dec. 31, 2019	419,842,256
Shares issued under employee stock purchase plan	$ 2,417	7,856		10,273		10,273
Shares issued under employee stock purchase plan, shares	241,707
Stock grant	$ 3,021	(3,021)
Stock grant, shares	302,125
Stock in lieu of dividends on convertible preferred C	$ 34,080	170,400		204,480		204,480
Stock in lieu of dividends on convertible preferred C, shares	3,408,000
Stock based compensation		68,531		68,531		68,531
Net income			(193,166)	(193,166)	83,327	(109,839)
Ending balance, value at Jun. 30, 2020	$ 4,237,941	122,171,489	(128,257,551)	(1,848,121)	2,156,976	308,855
Shares outstanding at Jun. 30, 2020	423,794,088
Convertible debenture beneficial conversion feature		102,584		102,584		102,584
Warrants issued with convertible debenture		144,976		144,976		144,976
Beginning balance, value at Mar. 31, 2020	$ 4,237,092	122,151,722	(128,486,879)	(2,098,065)	2,118,106	20,041
Shares outstanding at Mar. 31, 2020	423,709,226
Shares issued under employee stock purchase plan	$ 849	2,758		3,607		3,607
Shares issued under employee stock purchase plan, shares	84,862
Stock based compensation		17,009		17,009		17,009
Net income			229,328	229,328	38,870	268,198
Ending balance, value at Jun. 30, 2020	$ 4,237,941	122,171,489	(128,257,551)	(1,848,121)	2,156,976	308,855
Shares outstanding at Jun. 30, 2020	423,794,088
Beginning balance, value at Dec. 31, 2020	$ 4,243,443	122,191,837	(125,861,734)	573,546	2,313,706	2,887,252
Shares outstanding at Dec. 31, 2020	424,344,298
Shares issued under employee stock purchase plan	$ 2,117	6,878		8,995		8,995
Shares issued under employee stock purchase plan, shares	211,640
Stock grant	$ 1,183	(1,183)
Stock grant, shares	118,315
Stock in lieu of dividends on convertible preferred C	$ 13,982	193,498		207,480		207,480
Stock in lieu of dividends on convertible preferred C, shares	1,398,200
Shares issued for exercise of employee stock options	$ 17,991	(17,991)
Shares issued for exercise of employee stock options, shares	1,799,107					2,062,500
Warrant exercise	$ 326,214	(326,214)
[custom:WarrantExercisesShares]	32,621,409
Conversion of preferred C stock	$ 2,500	22,500		25,000		25,000
Conversion of preferred C stock	250,000
Conversion of preferred B stock	$ 875	174,125		175,000		175,000
Conversion of preferred B stock, shares	87,500
Stock based compensation		49,093		49,093		49,093
Net income			(782,539)	(782,539)	112,543	(669,996)
Ending balance, value at Jun. 30, 2021	$ 4,608,305	122,292,543	(126,644,273)	256,575	2,426,249	2,682,824
Shares outstanding at Jun. 30, 2021	460,830,469
Beginning balance, value at Mar. 31, 2021	$ 4,606,367	122,103,290	(126,462,886)	246,771	2,409,194	2,655,965
Shares outstanding at Mar. 31, 2021	460,636,690
Shares issued under employee stock purchase plan	$ 1,063	3,454		4,517		4,517
Shares issued under employee stock purchase plan, shares	106,279
Conversion of preferred B stock	$ 875	174,125		175,000		175,000
Conversion of preferred B stock, shares	87,500
Stock based compensation		11,674		11,674		11,674
Net income			(181,387)	(181,387)	17,055	(164,332)
Ending balance, value at Jun. 30, 2021	$ 4,608,305	$ 122,292,543	$ (126,644,273)	$ 256,575	$ 2,426,249	$ 2,682,824
Shares outstanding at Jun. 30, 2021	460,830,469

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The Company and Basis of Presentation

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

The Company and Basis of Presentation

(1)      The Company and Basis of Presentation

International Isotopes Inc. (INIS) was incorporated in Texas in November 1995. The accompanying unaudited condensed 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 INIS and its wholly owned subsidiaries. The unaudited condensed consolidated financial statements also include the accounts of INIS’s 50% owned joint venture, TI Services, LLC (TI Services), and the accounts of INIS’s 24.5% interest in 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 and calibration devices, and is headquartered in Idaho Falls, Idaho. In August 2017, affiliates of INIS purchased 75.5% of RadQual and at the time INIS was named as one of the two managing members of RadQual. As a result of this ownership change, INIS has significant influence in management decisions with regard to RadQual’s business operations. In July 2021, INIS purchased the remaining interest in RadQual and now owns 100% of RadQual. INIS, its subsidiaries, TI Services, and RadQual are collectively referred to herein as the “Company,” “we,” “our” or “us.”

Nature of Operations – INIS and its subsidiaries, TI Services and RadQual, manufacture a full range of nuclear medicine calibration and reference standards, generic sodium iodide I-131 drug product, cobalt teletherapy sources, and a varied selection of radiochemicals for medical research, and clinical applications. The Company also offers contract manufacturing services for certain pharmaceutical products. The Company’s business consists of five business segments: Nuclear Medicine Standards, Cobalt Products, Radiochemical Products, Fluorine Products, and Radiological Services. 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 contracts, where shipment will not take place for greater than one year, have been recorded as unearned revenue and, depending upon estimated ship dates, classified under either current or long-term liabilities on the Company’s condensed consolidated balance sheets. These unearned revenues are being recognized as revenue in the periods during which the cobalt shipments take place. All assets expected to be realized in cash or sold during the normal operating cycle of business are classified as current assets.

Principles of Consolidation – The accompanying unaudited condensed consolidated financial statements are presented in conformity with GAAP and include all operations and balances of INIS and its wholly-owned subsidiaries. The Company also consolidates the accounts of RadQual into the accompanying unaudited condensed consolidated financial statements. See Note 4 “Investment and Business Consolidation” for additional information regarding RadQual. All significant intercompany accounts and transactions have been eliminated in consolidation.

Interim Financial Information – The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Accordingly, the accompanying unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments and reclassifications considered necessary in order to make the financial statements not misleading and for a fair and comparable presentation have been included and are of a normal recurring nature. Operating results for the three or six-month period ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 or any future periods. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 30, 2021.

Recent Accounting Pronouncements – In August 2020, the Financial Accounting Standards Board issued ASU 2020-06 Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). The update simplifies accounting related to convertible debt instruments. The standard is effective for fiscal years beginning after December 15, 2023 including interim periods within those fiscal years. INIS is currently evaluating the effect this standard will have on its financial statements.

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Current Developments and Liquidity

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Current Developments and Liquidity

(2)       Current Developments and Liquidity

Business Condition – Since inception, the Company has incurred substantial losses. During the six months ended June 30, 2021, the Company reported net loss of $782,539, net of non-controlling interest, and net cash used in operating activities of $238,773. During the six months ended June 30, 2020, the Company reported a net loss of $193,166, net of non-controlling interest, and net cash provided by operating activities of $415,918.

During the six months ended June 30, 2021, the Company continued its focus on its strongest long-standing core business segments which consist of its radiochemical products, cobalt products, and nuclear medicine standards, and in particular, the pursuit of new business opportunities within those segments.

Additionally, the Company holds a Nuclear Regulatory Commission (NRC) construction and operating license for the depleted uranium facility in, 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 considers it a valuable asset.

The Company expects that cash from operations, equity or debt financing, 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.

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Net Income (Loss) Per Common Share - Basic and Diluted

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Net Income (Loss) Per Common Share - Basic and Diluted

(3)       Net Income (Loss) Per Common Share - Basic and Diluted

For the three and six months ended June 30, 2021, the Company had 18,252,500 stock options outstanding, 7,065,000 warrants outstanding, 675 outstanding shares of Series B redeemable convertible preferred stock (Series B Preferred Stock), and 4,188 outstanding shares of Series C redeemable convertible preferred stock (Series C Preferred Stock), each of which were not included in the computation of diluted income (loss) per common share because they would be anti-dilutive.

For the six months ended June 30, 2020, the Company had 24,605,000 stock options outstanding, 50,090,000 warrants outstanding, 850 outstanding shares of Series B Preferred Stock, and 4,213 outstanding shares of Series C Preferred Stock, each of which were not included in the computation of diluted income per common share because they would be anti-dilutive.

For the three months ended June 30, 2020, the Company had 14,005,000 stock options outstanding, 20,090,000 warrants outstanding, 850 outstanding shares of Series B redeemable convertible preferred stock, and 4,213 outstanding shares of Series C redeemable convertible preferred stock, each of which were not included in the computation of diluted income (loss) per common share because they would be anti-dilutive. The Company used the treasury stock method in calculating weighted average common shares diluted.

The table below shows the calculation of diluted shares:

	3 Months Ended				6 Months Ended
	June 30,		June 30,		June 30,		June 30,
	2021		2020		2021		2020
Weighted average common shares outstanding - basic		460,798,173		423,751,657		457,123,946		422,211,840
Effects of dilutive shares
Stock Options		—		3,177,880		—		—
Warrants		—		5,700,000		—		—
Weighted average common shares outstanding - diluted		460,798,173		432,629,537		457,123,946		422,211,840

The table below summarizes common stock equivalents outstanding at June 30, 2021 and 2020:

	June 30,
	2021		2020
Stock options		18,252,500		24,605,000
Warrants		7,065,000		50,090,000
Shares of Series B redeemable convertible preferred stock		337,500		425,000
Shares of Series C redeemable convertible preferred stock		41,880,000		42,130,000
		67,535,000		117,250,000

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Investment and Business Consolidation

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Investment and Business Consolidation

(4)       Investment and Business Consolidation

At June 30, 2021, the Company owned a 24.5% interest in RadQual, with which the Company has an exclusive manufacturing agreement for nuclear medicine products. In August 2017, affiliates of the Company, including the Company’s Chairman of the Board and the Chief Executive Officer, acquired the remaining 75.5% interest in RadQual. The Company’s Chairman of the Board and its Chief Executive Officer also each serve as the managing members of RadQual. As a result of this change in ownership, and other factors, the Company determined that it gained the ability to exercise significant management control over the operations of RadQual. Because of this increased management control, and pursuant to GAAP, the Company has consolidated the accounts of RadQual into its financial statements.

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Inventories

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Inventories

(5)       Inventories

Inventories consisted of the following at June 30, 2021 and December 31, 2020:

	June 30, 2021		December 31, 2020
Raw materials	$	33,609	$	33,609
Work in process		634,060		803,171
Finished goods		1,112		1,007
	$	668,781	$	837,787

Work in process also includes costs to irradiate cobalt-60 material under a contract with the DOE. This material has been placed in the ATR and the Company made progress payments to purchase this material. During the second quarter and fourth quarter of 2020, the Company modified its agreement with the DOE due to delays in delivery of Cobalt material. As a result, the DOE refunded certain payments made by INIS in relation to this material and INIS stopped paying the scheduled payments for the inventory. At June 30, 2021, and at December 31, 2020, this cobalt target inventory had a carrying value of $0 and $383,312, respectively.

The Company has contracted with several customers for the sale of some of this product material and has collected advance payments for project management, up-front handling, and other production costs from those customers. The advance payments from customers were recorded as unearned revenue which are recognized in the Company’s condensed consolidated financial statements as cobalt products are completed and shipped. For the six months ended June 30, 2021 and 2020, the Company recognized approximately $157,890 and $22,000, respectively, of revenue in its condensed consolidated statements of operations for customer orders filled during the period under these cobalt contracts. For the three-months ended June 30, 2021 and 2020, the Company recognized approximately $150,090 and $11,500, respectively of revenue in its condensed consolidated statements of operations for customer orders filled during the period under these cobalt contracts.

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Stockholders’ Equity, Options, and Warrants

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Stockholders’ Equity, Options, and Warrants

(6)       Stockholders’ Equity, Options, and Warrants

Employee Stock Purchase Plan

The Company has an employee stock purchase plan pursuant to which employees of the Company may participate to purchase shares of common stock at a discount. During the six months ended June 30, 2021 and 2020, the Company issued 211,640 and 241,707 shares of common stock, respectively, to employees under the employee stock purchase plan for proceeds of $8,995 and $10,273, respectively. As of June 30, 2021, 2,888,271 shares of common stock remain available for issuance under the employee stock purchase plan.

Stock-Based Compensation Plans

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 20,000,000 shares. The 2015 Plan provides for the grant of incentive and non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and units, and other stock or cash-based awards. At June 30, 2021, there were 37,204,004 shares available for issuance under the 2015 Plan.

Employee/Director Grants - The Company accounts for issuances of stock-based compensation to employees by recognizing, as compensation expense, the cost of employee services received in exchange for equity awards. The compensation expense is based on the grant date fair value of the award. Stock option compensation expense is recognized over the period during which an employee is required to provide service in exchange for the award (the vesting period).

Non-Employee Grants - The Company accounts for its issuances of stock-based compensation to non-employees by recognizing compensation expense based on the grant date fair value of the award. Stock option compensation expense is recognized over the vesting period for the award.

Option awards outstanding as of June 30, 2021, and changes during the six months ended June 30, 2021, were as follows:

Fixed Options	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding at December 31, 2020		20,400,000		$	0.06
Granted		125,000		$	0.05
Exercised		(2,062,500	)	$	0.04
Expired		—		$	—
Forfeited		(210,000	)	$	0.07
Outstanding at June 30, 2021		18,252,500		$	0.05		5.3	$	1,560,550
Exercisable at June 30, 2021		15,379,500		$	0.05		4.9	$	1,324,930

The intrinsic value of outstanding and exercisable shares is based on the closing price of the Company’s common stock on the OTCQB of $0.14 per share on June 30, 2021, the last trading day of the quarter.

As of June 30, 2021, there was $29,693 of unrecognized compensation expense related to stock options that will be recognized over a weighted-average period of 1.98 years.

Total stock-based compensation expense for the six months ended June 30, 2021 and 2020 was $49,093 and $68,531 respectively. Total stock-based compensation expense for the three-months ended June 30, 2021 and 2020 was $11,674 and $17,009, respectively.

During the six months ended June 30, 2021, the Company granted 125,000 qualified stock options to several of its employees. All options vest over a five-year period with the first vesting at one-year anniversary for all grants and expiration at the ten year anniversary for all grants. The weighted average exercise price for these options was $0.05 per share. The options have a fair value of $3,280 as estimated on the date of issue using the Black-Scholes options pricing model with the following weighted-average assumptions: risk free interest rate of 0.46% to 0.78%, expected dividend yield rate of 0%, expected volatility of 52.52% to 55.63% and an expected life between 5.5 and 7.5 years.

In January 2021, 2,062,500 qualified stock options were exercised under a cashless exercise. The company withheld 263,393 shares to satisfy the exercise price and issued 1,799,107 shares of common stock. The options exercised were granted under the 2015 Plan, and, accordingly, there was not any income tax effect in the condensed consolidated financial statements for the year ended December 31, 2021.

Pursuant to an employment agreement with its Chief Executive Officer, the Company awarded 195,804 fully vested shares of common stock to its Chief Executive Officer in February 2021 under the 2015 Plan. The number of shares awarded was based on a $28,000 stock award using a price of $0.143 per share. The employment agreement provides that the number of shares issued will be based on the average closing price of common stock for the 20 trading days prior to issue date but not less than $0.05 per share. Compensation expense recorded pursuant to this stock grant was $14,198, which was determined by multiplying the number of shares awarded by the closing price of the common stock on February 28, 2021, which was $0.12 per share. The Company withheld 77,489 shares of common stock to satisfy payroll tax obligations in connection with this issuance. The net shares issued on February 28, 2021 totaled 118,315.

Warrants

In January 2021, all 30,000,000 Class O Warrants and 13,025,000 Class M Warrants were exercised under a cashless exercise. The Company withheld 10,403,591 shares to satisfy the exercise price and issued 32,621,409 shares of common stock.

Warrants outstanding at June 30, 2021, included 4,140,000 Class M Warrants which are immediately exercisable at an exercise price of $0.12 per share and expire on February 17, 2022 and 2,925,000 Class N Warrants which are immediately exercisable at an exercise price of $0.10 per share and expire on May 12, 2022.

Warrants outstanding at June 30, 2020, included 17,165,000 Class M Warrants which are immediately exercisable at an exercise price of $0.12 per share and expire on February 17, 2022 and 2,925,000 Class N Warrants which are immediately exercisable at an exercise price of $0.10 per share and expire on May 12, 2022; and 30,000,000 Class O Warrants which are immediately exercisable at an exercise price of $0.045 per share and expire December 30, 2024.

Preferred Stock

At June 30, 2021, there were 675 shares of the Series B Preferred Stock outstanding with a mandatory redemption date of May 2022 at $1,000 per share or $675,000. The shares of Series B Preferred Stock are also convertible into 337,500 shares of the Company’s common stock at a conversion price of $2.00 per share. These shares of Series B Preferred Stock do not carry any dividend preferences. Due to the mandatory redemption provision, the Series B Preferred Stock has been classified as a liability in the accompanying condensed consolidated balance sheets.

At June 30, 2021, there were 4,188 shares of the Series C Preferred Stock outstanding with a mandatory redemption date of February 2022 at $1,000 per share in either cash or shares of common stock, at the option of the holder. Holders of the 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. The Series C Preferred Stock accrues dividends at a rate of 6% per annum, payable annually on February 17th of each year. The Series C Preferred Stock are convertible at the option of the holders at any time into shares of the Company's common stock at an initial conversion price equal to $0.10 per share, subject to adjustment. If the volume-weighted average closing price of the Company’s common stock over a period of 90 consecutive trading days is greater than $0.25 per share, the Company 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 March 2021, 25 shares of the Series C Preferred Stock were converted to 250,000 shares of common stock at the request of the holder.

In April 2021, 175 shares of the Series B Preferred Stock were converted to 87,500 shares of common stock at the request of the holder.

During the six months ended June 30, 2021 and 2020 dividends paid to holders of the Series C Preferred Stock totaled $254,280 and $251,280, respectively. Some holders of the Series C Preferred Stock elected to settle their dividend payments with shares of the Company’s common stock in lieu of cash. For the six months ended June 30, 2021 and 2020 the Company issued 1,398,200 and 3,408,000 shares of common stock, respectively, in lieu of a dividend payment of $207,480 and $204,480, respectively. The remaining $46,800 of dividend payable was settled with cash.

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Debt

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Debt

(7)          Debt

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 $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. In December 2019, the 2013 Promissory Note was modified to extend the maturity date to December 31, 2021, with all remaining terms unchanged.

At June 30, 2021, the principal balance of the 2013 Promissory Note was $500,000 and accrued interest payable on the 2013 Promissory Note was $226,734. Interest expense recorded for the six months ended June 30, 2021, was $15,000.

In April 2018, the Company borrowed $120,000 from its Chief Executive Officer and Chairman of the Board pursuant to a promissory note (the 2018 Promissory Note). The 2018 Promissory Note accrues interest at 6% per annum, which is payable upon maturity of the 2018 Promissory Note. The 2018 Promissory Note was originally unsecured and originally matured on August 1, 2018. At any time, the holder 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. Pursuant to an amendment to the 2018 Promissory Note in June 2018, the maturity date was extended to March 31, 2019 with all other provisions remaining unchanged. Pursuant to a second amendment to the 2018 Promissory Note in February 2019, the maturity date was extended to July 31, 2019 with all other provisions remaining unchanged. Pursuant to a third amendment to the 2018 Promissory Note in July 2019, the maturity date was extended to January 31, 2020 with all other provisions remaining unchanged. Pursuant to a fourth amendment to the 2018 Promissory Note in December 2019, the maturity date was extended to December 31, 2021, the note was modified to become secured by company assets, with all other provisions remaining unchanged. At June 30, 2021, accrued interest on the 2018 Promissory Note totaled $22,970.

In April 2019, one of the prepaid revenue customers requested a refund of the amounts paid. The Company entered into a note agreement to repay $2,182,142 over the next 12 months. The modification was necessary to address the delays to cobalt delivery in 2019 caused by changes to the ATR operating schedule and also to accommodate this customer’s request to reduce their cobalt purchase obligations in future years. The modifications require that the Company refund approximately $1,100,000, of payments received for prior year undelivered material, plus interest at 12% per year, payable over a one-year period on a portion of that amount. The Company has also agreed with this customer to refund approximately $1,100,000 paid for material that was to have been delivered in later years. There will be no interest charge on this refund. In December 2019, this agreement was modified further allowing the Company to delay the original payments by 3 months and refund an additional $462,258 with no interest charge. At June 30, 2021 balance on this refund is $154,282 and is included in short-term notes payable.

On December 20, 2019, the Company entered into a promissory note agreement with four of the Company’s major shareholders (the 2019 Promissory Note). The 2019 Promissory Note authorizes the Company to borrow up to $1,000,000. As of December 31, 2019, the Company had borrowed $675,000 under the 2019 promissory note. In February 2020, the Company borrowed an additional $325,000. The 2019 Promissory Note bears an interest rate of 4% annually and is 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 connection with the 2019 Promissory Note, the lenders were issued warrants totaling 30,000,000 warrants to purchase shares of the Company’s common stock at $0.045 per share (the Class O Warrants). The fair value of these Class O Warrants issued totaled $446,079 and was recorded as a debt discount and will be amortized over the life of the 2019 Promissory Note. The Company calculated a beneficial conversion feature of $315,643 which will be accreted to interest expense over the life of the 2019 Promissory Note. At June 30, 2021 accrued interest on the 2019 Promissory Note totaled $59,131.

In March 2021, one of the Company’s subsidiaries, RadQual, entered into a promissory note (the March 2021 Promissory Note) for the purchase of equipment. The principal amount under the March 2021 Promissory Note totals $101,250, bears interest at 5%, is secured by equipment, and is due March 2023.

In April 2021, the Company borrowed $250,000 from our Chief Executive Officer and Chairman of the Board pursuant to a promissory note (the April 2021 Promissory Note). The April 2021 Promissory Note bears an interest rate of 6% annually and is due December 31, 2022. At any time, the holder of the April 2021 Promissory Note may elect to have any or all of the principal and accrued interest settled with shares of the Company’s common stock based at the price of $0.11 per share. .At June 30, 2021 accrued interest on the April 2021 Promissory Note totaled $3,250.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

(8)       Commitments and Contingencies

Dependence on Third Parties

The production of High Specific Activity Cobalt is dependent upon the DOE, and its prime operating contractor, which controls the ATR and laboratory operations at the ATR located outside of Idaho Falls, Idaho. In October 2014, the Company signed a ten-year contract with the DOE for the irradiation of cobalt targets for the production of cobalt-60. The Company will be able to purchase cobalt targets for a fixed price per target with an annual 5% escalation in price. The contract term is October 1, 2014, through September 30, 2024, however, the contract may be extended beyond that date. Also, the DOE may end the contract if it determines termination is necessary for the national defense, security or environmental safety of the United States. If this were to occur, all payments made by the Company, for partially irradiated undelivered cobalt material, would be refunded.

Sales of our most predominant radiochemical products are dependent upon a few key suppliers. An interruption in production by any of these individual suppliers could have an immediate negative impact upon radiochemical sales until material can be purchased from alternate suppliers including obtaining regulatory approval to use material from alternative suppliers if necessary.

Nuclear Medicine Reference and Calibration Standard manufacturing is conducted under an exclusive contract with RadQual, which in turn has an agreement in place with several companies for distributing the products. The radiochemical product sold by the Company is supplied to the Company through agreements with two suppliers. A loss of any of these customers or 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 operations 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 held with North American Specialty Insurance Company which is supported by a restricted money market account held with Merrill Lynch in the amount of $830,725.

In August 2011, the Company received land from Lea County, New Mexico, pursuant to a Project Participation Agreement (PPA), whereby the land was deeded to the Company for no monetary consideration. In return, the Company committed to construct a uranium de-conversion and Fluorine Extraction Process facility on the land.  In order to retain title to the property, the Company was to begin construction of the de-conversion facility no later than December 31, 2014, and complete Phase I of the project and have hired at least 75 persons to operate the facility no later than December 31, 2015, although commercial operations need not have begun by that date. In 2015, the Company negotiated a modification to the PPA that extended the start of construction date to December 31, 2015, and the hiring milestone to December 31, 2016. Those dates were also not met. The Company has been in discussion with commercial companies possibly interested in purchasing rights to this project. Should those discussions come to fruition the Company plans to negotiate a second modification to the PPA agreement to further extend the commitment dates. If the Company is not successful in reaching an amendment to extend the performance dates in the PPA. then it may, at its sole option, either purchase or re-convey the property to Lea County, New Mexico.  The purchase price of the property would be $776,078, plus interest at the annual rate of 5.25% from the date of the closing to the date of payment.  The Company has not recorded the value of this property as an asset and will not do so until such time that sufficient progress on the project has been made to meet the Company’s obligations under the agreements for permanent transfer of the title.

On May 2, 2019, the Company’s radiological services team was involved in a contamination event involving a breached cesium-137 source at an off-site location in the state of Washington. This work was being performed under a contract with the DOE. The Company supported the initial onsite contamination clean-up operations at that location and completed removal of the cesium source and Company equipment. The Company has reviewed the results of the DOE investigation into this event and has implemented appropriate corrective actions. Beginning in August 2019, the DOE assumed full control of the cleanup operations and assumed all the financial obligations associated with the contractors hired to carry out all of the facility recovery operations. On January 5, 2021, the Company was notified by the DOE that they have been indemnified from any financial liability for this event under the Price Anderson Act (PAA). As part of this indemnification notification, the Company received payment in full for its claim with the DOE for recovery of certain expenses incurred for this event. The Company recognized Other Income of approximately $112,000 in the six months ended June 30, 2021 for additional cost recoveries for this event. All remaining cost recoveries as part of this settlement with the DOE were recognized in previous financial periods pursuant to ASC 410-30. The Company used these funds to pay all outstanding subcontractors and reimburse their insurance company for payments they previous paid the Company for this matter. The Company is actively pursuing a final settlement with its insurance company regarding this claim as of the date of this filing.

The Company’s corrective actions for this event included termination of all field service activities and removal of these activities from the Company’s NRC license. The Company believes that the loss in revenue resulting from suspension of radiological field service work will be compensated for by increased revenues in the Company’s remaining business segments.

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Revenue Recognition

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

(9)         Revenue Recognition

Revenue from Product Sales

The following tables present the Company’s revenue disaggregated by business segment and geography, based on management’s assessment of available data:

	Three Months Ended June 30, 2021									Three Months Ended June 30, 2020
	U.S.		Outside U.S.		Total Revenues		% of Total Revenues			U.S.		Outside U.S.		Total Revenues		% of Total Revenues
Radiochemical Products	$	1,091,114	$	137,095	$	1,228,209		45	%	$	988,952	$	124,101	$	1,113,053		40	%
Cobalt Products		562,744		14,250		576,994		21	%		217,433		7,233		224,666		8	%
Nuclear Medicine Products		699,384		186,344		885,728		32	%		592,170		185,703		777,873		28	%
Radiological Services		68,965		—		68,965		2	%		43,967		—		43,967		2	%
Fluorine Products		—		—		—		0	%		—		—		—		0	%
	$	2,422,206	$	337,689	$	2,759,896		100	%	$	1,842,522	$	317,037	$	2,159,559		78	%

	Six Months Ended June 30, 2021									Six Months Ended June 30, 2020
	U.S.		Outside U.S.		Total Revenues		% of Total Revenues			U.S.		Outside U.S.		Total Revenues		% of Total Revenues
Radiochemical Products	$	1,637,924	$	251,462	$	1,889,386		40	%	$	1,657,543	$	210,731	$	1,868,274		39	%
Cobalt Products		676,023		19,344		695,367		15	%		522,428		7,858		530,286		11	%
Nuclear Medicine Products		1,581,450		433,437		2,014,887		42	%		1,459,773		360,224		1,819,997		38	%
Radiological Services		130,755		—		130,755		3	%		116,288		—		116,288		2	%
Fluorine Products		22,013		—		22,013		0	%		160,500		—		160,500		3	%
	$	4,048,165	$	704,243	$	4,752,408		100	%	$	3,916,532	$	578,813	$	4,495,345		100	%

The Company’s revenue consists primarily of calibration and reference standards manufactured for use in the nuclear medicine industry, distribution of radiochemicals including sodium iodide I-131 drug product, and cobalt 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 contracts, where shipment will not take place for greater than one year, have been recorded as unearned revenue on the Company’s condensed consolidated balance sheets and classified under current or long-term liabilities, depending upon estimated ship dates. For the six months ended June 30, 2021, the Company reported current unearned revenue of $990,886. For the period ended December 31, 2020, the Company reported current unearned revenue of $1,160,274. These unearned revenues will be recognized as revenue in the periods during which the cobalt shipments take place. 

Contract Balances

The Company records a receivable when it has an unconditional right to receive consideration after the performance obligations are satisfied.  As of June 30, 2021, and December 31, 2020, accounts receivable totaled $1,068,550 and $796,128, respectively.  For the six months ended June 30, 2021, the Company did not incur material impairment losses with respect to its receivables.

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Leases

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

(10)         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.

	Six Months Ended June 30,
	2021			2020
Operating lease costs	$	126,904		$	130,378
Short-term operating lease costs		7,670			19,928
Financing lease expense:
Amortization of right-of-use assets		3,005			2,179
Interest on lease liabilities		1,018			579
Total financing lease expense		4,023			2,758
Total lease expense	$	138,597		$	153,064
Right-of-use assets obtained in exchange for new operating lease liabilities	$	1,603		$	2,649,070
Right-of-use assets obtained in exchange for new financing lease liabilities	$	—		$	16,524
Weighted-average remaining lease term (years) - operating leases		13.6			14.6
Weighted-average remaining lease term (years) - financing leases		2.6			3.6
Weighted-average discount rate - operating leases		6.75	%		6.75	%
Weighted-average discount rate - financing leases		8.76	%		8.82	%

The future minimum payments under these operating lease agreements are as follows:

	Operating			Financing
2021 (excluding the six months ended June 30, 2021)	$	131,858		$	4,821
2022		285,159			9,641
2023		287,108			5,881
2024		287,108			2,929
2025		287,108			—
Thereafter		2,599,409			—
Total minimum operating lease obligations		3,877,750			23,272
Less-amounts representing interest		(1,345,803	)		(2,401	)
Present value of minimum operating lease obligations		2,531,947			20,871
Current maturities		(105,593	)		(8,155	)
Lease obligations, net of current maturities	$	2,426,354		$	12,716

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Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

(11)        Segment Information

The Company has five reportable segments which include: Nuclear Medicine Standards, Cobalt Products, Radiochemical Products, Fluorine Products, and Radiological Services. Information regarding the operations and assets of these reportable business segments is contained in the following table:

	Three months ended June 30,				Six months ended June 30,
Sale of Product	2021		2020		2021		2020
Radiochemical Products	$	1,228,209	$	1,113,053	$	1,889,386	$	1,868,274
Cobalt Products		576,994		224,666		695,367		530,286
Nuclear Medicine Standards		885,728		777,873		2,014,887		1,819,997
Radiological Services		68,965		43,967		130,755		116,288
Fluorine Products		—		—		22,013		160,500
Total Segments		2,759,896		2,159,559		4,752,408		4,495,345
Corporate revenue		—		—		—		—
Total Consolidated	$	2,759,896	$	2,159,559	$	4,752,408	$	4,495,345

	Three months ended June 30,					Six months ended June 30,
Depreciation and Amortization	2021		2020			2021		2020
Radiochemical Products	$	78,430	$	10,354		$	157,977	$	20,708
Cobalt Products		12,399		8,762			26,038		17,523
Nuclear Medicine Standards		17,868		15,989			34,238		31,978
Radiological Services		252		8,519			504		17,155
Fluorine Products		31,158		30,898			57,253		56,993
Total Segments		140,107		74,522			276,010		144,357
Corporate depreciation and amortization		6,941		(349	)		11,240		4,433
Total Consolidated	$	147,048	$	74,173		$	287,250	$	148,790

	Three months ended June 30,						Six months ended June 30,
Segment Income (Loss)	2021			2020			2021			2020
Radiochemical Products	$	404,457		$	380,728		$	408,882		$	386,347
Cobalt Products		208,581			75,874			178,484			199,670
Nuclear Medicine Standards		51,843			117,056			262,754			302,357
Radiological Services		58,242			(13,532	)		110,649			(28,461	)
Fluorine Products		(31,627	)		(36,460	)		(65,141	)		86,410
Total Segments		691,496			523,666			895,628			946,323
Corporate loss		(872,883	)		(294,338	)		(1,678,167	)		(1,139,489	)
Net Income (Loss)	$	(181,387	)	$	229,328		$	(782,539	)	$	(193,166	)

	Three months ended June 30,				Six months ended June 30,
Expenditures for Segment Assets	2021		2020		2021		2020
Radiochemical Products	$	—	$	—	$	3,103	$	—
Cobalt Products		—		—		16,592		—
Nuclear Medicine Standards		32,911		—		167,911		—
Radiological Services		—		—		—		—
Fluorine Products		—		—		4,060		1,565
Total Segments		32,911		—		191,666		1,565
Corporate purchases		—		—		—		—
Total Consolidated	$	32,911	$	—	$	191,666	$	1,565

	June 30,		December 31,
Segment Assets	2021		2020
Radiochemical Products	$	3,067,625	$	2,916,442
Cobalt Products		632,133		743,127
Nuclear Medicine Standards		2,235,779		2,052,220
Radiological Services		15,057		60,696
Fluorine Products		5,312,164		5,371,506
Total Segments		11,262,758		11,143,991
Corporate assets		4,546,988		5,952,758
Total Consolidated	$	15,809,746	$	17,096,749

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Subsequent Events

6 Months Ended

Jun. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

(12)         Subsequent Events

On July 8, 2021, the Company entered into a Membership Interest Purchase Agreement (the Purchase Agreement) with RadQual and the sellers set forth in the Purchase Agreement, which included the Company’s Chairman of the Board, Chief Executive Officer, former Chairman of the Board, and certain other stockholders of the Company (collectively, the “Sellers”). Pursuant to the Purchase Agreement, the Company acquired all of the outstanding membership interests of RadQual not then owned by the Company for an aggregate purchase price of approximately $4.4 million, payable in shares of the Company’s common stock valued at $0.11 per share (determined by the average trading price of the Company’s common stock on the OTC Markets during the 60 trading day period immediately prior to June 2, 2021) (the “RadQual Acquisition”). The Company issued an aggregate of 40,176,236 shares of its common stock to the Sellers as consideration in the RadQual Acquisition. Prior to the RadQual Acquisition, the Company owned approximately 24.5% of the outstanding membership interests of RadQual, and after acquiring all of the remaining membership interests of RadQual, RadQual became a wholly-owned subsidiary of the Company. The RadQual Acquisition closed on July 8, 2021.

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The Company and Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation – The accompanying unaudited condensed consolidated financial statements are presented in conformity with GAAP and include all operations and balances of INIS and its wholly-owned subsidiaries. The Company also consolidates the accounts of RadQual into the accompanying unaudited condensed consolidated financial statements. See Note 4 “Investment and Business Consolidation” for additional information regarding RadQual. All significant intercompany accounts and transactions have been eliminated in consolidation.

Interim Financial Information

Interim Financial Information – The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Accordingly, the accompanying unaudited condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments and reclassifications considered necessary in order to make the financial statements not misleading and for a fair and comparable presentation have been included and are of a normal recurring nature. Operating results for the three or six-month period ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 or any future periods. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 30, 2021.

Recent Accounting Pronouncements

Recent Accounting Pronouncements – In August 2020, the Financial Accounting Standards Board issued ASU 2020-06 Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). The update simplifies accounting related to convertible debt instruments. The standard is effective for fiscal years beginning after December 15, 2023 including interim periods within those fiscal years. INIS is currently evaluating the effect this standard will have on its financial statements.

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Net Income (Loss) Per Common Share - Basic and Diluted (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Net Income (Loss) Per Common Share - Basic and Diluted - Schedule of Weighted Average Number of Shares

The table below shows the calculation of diluted shares:

	3 Months Ended				6 Months Ended
	June 30,		June 30,		June 30,		June 30,
	2021		2020		2021		2020
Weighted average common shares outstanding - basic		460,798,173		423,751,657		457,123,946		422,211,840
Effects of dilutive shares
Stock Options		—		3,177,880		—		—
Warrants		—		5,700,000		—		—
Weighted average common shares outstanding - diluted		460,798,173		432,629,537		457,123,946		422,211,840

Net Income (Loss) Per Common Share - Basic and Diluted - Schedule of Common Stock Equivalents Outstanding

The table below summarizes common stock equivalents outstanding at June 30, 2021 and 2020:

	June 30,
	2021		2020
Stock options		18,252,500		24,605,000
Warrants		7,065,000		50,090,000
Shares of Series B redeemable convertible preferred stock		337,500		425,000
Shares of Series C redeemable convertible preferred stock		41,880,000		42,130,000
		67,535,000		117,250,000

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Inventories (Tables)

6 Months Ended

Jun. 30, 2021

Inventory Disclosure [Abstract]

Inventories - Schedule of Inventory, Current

Inventories consisted of the following at June 30, 2021 and December 31, 2020:

	June 30, 2021		December 31, 2020
Raw materials	$	33,609	$	33,609
Work in process		634,060		803,171
Finished goods		1,112		1,007
	$	668,781	$	837,787

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Stockholders’ Equity, Options, and Warrants (Tables)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Stockholders’ Equity, Options and Warrants - Schedule of Share-Based Compensation Stock Option Activity

Option awards outstanding as of June 30, 2021, and changes during the six months ended June 30, 2021, were as follows:

Fixed Options	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding at December 31, 2020		20,400,000		$	0.06
Granted		125,000		$	0.05
Exercised		(2,062,500	)	$	0.04
Expired		—		$	—
Forfeited		(210,000	)	$	0.07
Outstanding at June 30, 2021		18,252,500		$	0.05		5.3	$	1,560,550
Exercisable at June 30, 2021		15,379,500		$	0.05		4.9	$	1,324,930

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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition - Summary of Sales from Contracts with Customers Disaggregated by Business Segment and Geography

The following tables present the Company’s revenue disaggregated by business segment and geography, based on management’s assessment of available data:

	Three Months Ended June 30, 2021									Three Months Ended June 30, 2020
	U.S.		Outside U.S.		Total Revenues		% of Total Revenues			U.S.		Outside U.S.		Total Revenues		% of Total Revenues
Radiochemical Products	$	1,091,114	$	137,095	$	1,228,209		45	%	$	988,952	$	124,101	$	1,113,053		40	%
Cobalt Products		562,744		14,250		576,994		21	%		217,433		7,233		224,666		8	%
Nuclear Medicine Products		699,384		186,344		885,728		32	%		592,170		185,703		777,873		28	%
Radiological Services		68,965		—		68,965		2	%		43,967		—		43,967		2	%
Fluorine Products		—		—		—		0	%		—		—		—		0	%
	$	2,422,206	$	337,689	$	2,759,896		100	%	$	1,842,522	$	317,037	$	2,159,559		78	%

	Six Months Ended June 30, 2021									Six Months Ended June 30, 2020
	U.S.		Outside U.S.		Total Revenues		% of Total Revenues			U.S.		Outside U.S.		Total Revenues		% of Total Revenues
Radiochemical Products	$	1,637,924	$	251,462	$	1,889,386		40	%	$	1,657,543	$	210,731	$	1,868,274		39	%
Cobalt Products		676,023		19,344		695,367		15	%		522,428		7,858		530,286		11	%
Nuclear Medicine Products		1,581,450		433,437		2,014,887		42	%		1,459,773		360,224		1,819,997		38	%
Radiological Services		130,755		—		130,755		3	%		116,288		—		116,288		2	%
Fluorine Products		22,013		—		22,013		0	%		160,500		—		160,500		3	%
	$	4,048,165	$	704,243	$	4,752,408		100	%	$	3,916,532	$	578,813	$	4,495,345		100	%

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Leases (Tables)

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases - Schedule of Lease Expense

	Six Months Ended June 30,
	2021			2020
Operating lease costs	$	126,904		$	130,378
Short-term operating lease costs		7,670			19,928
Financing lease expense:
Amortization of right-of-use assets		3,005			2,179
Interest on lease liabilities		1,018			579
Total financing lease expense		4,023			2,758
Total lease expense	$	138,597		$	153,064
Right-of-use assets obtained in exchange for new operating lease liabilities	$	1,603		$	2,649,070
Right-of-use assets obtained in exchange for new financing lease liabilities	$	—		$	16,524
Weighted-average remaining lease term (years) - operating leases		13.6			14.6
Weighted-average remaining lease term (years) - financing leases		2.6			3.6
Weighted-average discount rate - operating leases		6.75	%		6.75	%
Weighted-average discount rate - financing leases		8.76	%		8.82	%

Leases - Schedule of Future Minimum Payments of Lease Liabilities

The future minimum payments under these operating lease agreements are as follows:

	Operating			Financing
2021 (excluding the six months ended June 30, 2021)	$	131,858		$	4,821
2022		285,159			9,641
2023		287,108			5,881
2024		287,108			2,929
2025		287,108			—
Thereafter		2,599,409			—
Total minimum operating lease obligations		3,877,750			23,272
Less-amounts representing interest		(1,345,803	)		(2,401	)
Present value of minimum operating lease obligations		2,531,947			20,871
Current maturities		(105,593	)		(8,155	)
Lease obligations, net of current maturities	$	2,426,354		$	12,716

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three months ended June 30,				Six months ended June 30,
Sale of Product	2021		2020		2021		2020
Radiochemical Products	$	1,228,209	$	1,113,053	$	1,889,386	$	1,868,274
Cobalt Products		576,994		224,666		695,367		530,286
Nuclear Medicine Standards		885,728		777,873		2,014,887		1,819,997
Radiological Services		68,965		43,967		130,755		116,288
Fluorine Products		—		—		22,013		160,500
Total Segments		2,759,896		2,159,559		4,752,408		4,495,345
Corporate revenue		—		—		—		—
Total Consolidated	$	2,759,896	$	2,159,559	$	4,752,408	$	4,495,345

	Three months ended June 30,					Six months ended June 30,
Depreciation and Amortization	2021		2020			2021		2020
Radiochemical Products	$	78,430	$	10,354		$	157,977	$	20,708
Cobalt Products		12,399		8,762			26,038		17,523
Nuclear Medicine Standards		17,868		15,989			34,238		31,978
Radiological Services		252		8,519			504		17,155
Fluorine Products		31,158		30,898			57,253		56,993
Total Segments		140,107		74,522			276,010		144,357
Corporate depreciation and amortization		6,941		(349	)		11,240		4,433
Total Consolidated	$	147,048	$	74,173		$	287,250	$	148,790

	Three months ended June 30,						Six months ended June 30,
Segment Income (Loss)	2021			2020			2021			2020
Radiochemical Products	$	404,457		$	380,728		$	408,882		$	386,347
Cobalt Products		208,581			75,874			178,484			199,670
Nuclear Medicine Standards		51,843			117,056			262,754			302,357
Radiological Services		58,242			(13,532	)		110,649			(28,461	)
Fluorine Products		(31,627	)		(36,460	)		(65,141	)		86,410
Total Segments		691,496			523,666			895,628			946,323
Corporate loss		(872,883	)		(294,338	)		(1,678,167	)		(1,139,489	)
Net Income (Loss)	$	(181,387	)	$	229,328		$	(782,539	)	$	(193,166	)

	Three months ended June 30,				Six months ended June 30,
Expenditures for Segment Assets	2021		2020		2021		2020
Radiochemical Products	$	—	$	—	$	3,103	$	—
Cobalt Products		—		—		16,592		—
Nuclear Medicine Standards		32,911		—		167,911		—
Radiological Services		—		—		—		—
Fluorine Products		—		—		4,060		1,565
Total Segments		32,911		—		191,666		1,565
Corporate purchases		—		—		—		—
Total Consolidated	$	32,911	$	—	$	191,666	$	1,565

	June 30,		December 31,
Segment Assets	2021		2020
Radiochemical Products	$	3,067,625	$	2,916,442
Cobalt Products		632,133		743,127
Nuclear Medicine Standards		2,235,779		2,052,220
Radiological Services		15,057		60,696
Fluorine Products		5,312,164		5,371,506
Total Segments		11,262,758		11,143,991
Corporate assets		4,546,988		5,952,758
Total Consolidated	$	15,809,746	$	17,096,749

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The Company and Basis of Presentation (Details Narrative)	Jul. 08, 2021	Jun. 30, 2021	Aug. 31, 2017
TI Services, LLC
Ownership interest, percentage by parent		50.00%
RadQual, LLC
Ownership interest, percentage by parent		24.50%
RadQual, LLC | Subsequent Event
Ownership interest, percentage by parent	100.00%
RadQual, LLC | Affiliates
Ownership interest, percentage by parent			75.50%

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Current Developments and Liquidity (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net (loss) income attributable to International Isotopes Inc.	$ 181,387	$ (229,328)	$ 782,539	$ 193,166
Net cash (used in) provided by operating activities			$ 238,773	$ (415,918)
Operating license term, description			NRC license for the de-conversion facility is a forty (40) year operating license

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Net Income (Loss) Per Common Share - Basic and Diluted - Schedule of Weighted Average Number of Shares (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Weighted average common shares outstanding - basic	460,798,173	423,751,657	457,123,946	422,211,840
Weighted average common shares outstanding - diluted	460,798,173	432,629,537	457,123,946	422,211,840
Stock Options
Effects of dilutive shares		3,177,880
Warrants
Effects of dilutive shares		5,700,000

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Net Income (Loss) Per Common Share - Basic and Diluted - Schedule of Common Stock Equivalents Outstanding (Details) - shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Stock options	18,252,500	24,605,000	20,400,000
Warrants	7,065,000	50,090,000
Common stock equivalents	67,535,000	117,250,000
Series B Preferred Stock
Weighted average shares, outstanding	337,500	425,000
Series C Preferred Stock
Weighted average shares, outstanding	41,880,000	42,130,000

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Net Income (Loss) Per Common Share - Basic and Diluted (Details Narrative) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Series B Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock equivalents excluded from the computation of diluted net loss per common share	675	850	675	850
Series C Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock equivalents excluded from the computation of diluted net loss per common share	4,188	4,213	4,188	4,213
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock equivalents excluded from the computation of diluted net loss per common share	18,252,500	14,005,000	18,252,500	24,605,000
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock equivalents excluded from the computation of diluted net loss per common share	7,065,000	20,090,000	7,065,000	50,090,000

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Investment and Business Consolidation (Details Narrative) - RadQual, LLC	Jun. 30, 2021	Aug. 31, 2017
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Ownership interest, percentage by parent	24.50%
Affiliates
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Ownership interest, percentage by parent		75.50%

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Inventories - Schedule of Inventory, Current (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 33,609	$ 33,609
Work in process	634,060	803,171
Finished goods	1,112	1,007
Total Inventory	$ 668,781	$ 837,787

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Inventories (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventory, cobalt-60 isotopes, carrying value	$ 0		$ 0		$ 383,312
Approximate revenue from contract with customer	$ 150,090	$ 11,500	$ 157,890	$ 22,000

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Stockholders’ Equity, Options and Warrants - Schedule of Share-Based Compensation Stock Option Activity (Details)	6 Months Ended
	Jun. 30, 2021 USD ($) $ / shares shares
Equity [Abstract]
Shares Outstanding at December 31, 2020 | shares	20,400,000
Weighted average exercise price outstanding, beginning of period | $ / shares	$ 0.06
Shares, granted | shares	125,000
Weighted average exercise price, granted | $ / shares	$ 0.05
Shares, exercised | shares	(2,062,500)
Weighted average exercise price, exercised | $ / shares	$ 0.04
Shares, expired | shares
Weighted average exercise priced, expired | $ / shares
Shares, forfeited | shares	(210,000)
Weighted average exercise priced, forfeited | $ / shares	$ 0.07
Shares outstanding at June 30, 2021 | shares	18,252,500
Weighted average exercise price outstanding, end of period | $ / shares	$ 0.05
Weighted average remaining contractual life outstanding, end of period	5 years 3 months 18 days
Average intrinsic value outstanding, end of period | $	$ 1,560,550
Shares exercisable at June 30, 2021 | shares	15,379,500
Weighted average exercise price exercisable, end of period | $ / shares	$ 0.05
Weighted average remaining contractual life exercisable, end of period	4 years 10 months 24 days
Average intrinsic value, exercisable, end of period | $	$ 1,324,930

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Stockholders’ Equity, Options, and Warrants (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended
	Jul. 31, 2018	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Feb. 28, 2020
Intrinsic value of outstanding and exercisable shares, per share		$ 0.14		$ 0.14
Unrecognized compensation expense, stock options		$ 29,693		$ 29,693
Period for recognition, stock options				1 year 11 months 23 days
Compensation expense		$ 11,674	$ 17,009	$ 49,093	$ 68,531
Stock options, granted				125,000
Weighted average exercise price				$ 0.05
Stock options, exercised				2,062,500
Warrants outstanding		7,065,000	50,090,000	7,065,000	50,090,000
Mandatorily redeemable convertible preferred stock, value						$ 4,913,421
Series B Preferred Stock
Preferred stock, shares outstanding		675		675
Redemption date				mandatory redemption date of May 2022
Redemption price, per share		$ 1,000		$ 1,000
Mandatorily redeemable convertible preferred stock, value		$ 675,000		$ 675,000
Convertible preferred stock convertible into common stock				337,500
Conversion price per share				$ 2.00
Number of preferred shares, converted				175
Shares issued as a result of conversion of preferred stock		87,500		87,500
Series C Preferred Stock
Preferred stock, shares outstanding		4,188		4,188
Redemption date				mandatory redemption date of February 2022
Redemption price, per share		$ 1,000		$ 1,000
Conversion price per share				$ 0.10
Number of preferred shares, converted				25
Shares issued as a result of conversion of preferred stock		250,000		250,000
Dividends paid				$ 254,280	$ 251,280
Common stock issued in lieu of dividend				1,398,200	3,408,000
Value of shares issued in lieu of dividend payment				$ 207,480	$ 204,480
Preferred stock dividend, settlement in cash				$ 46,800
Class O Warrants
Warrants exercised				30,000,000
Warrants outstanding			30,000,000		30,000,000
Exercise price of warrants			$ 0.045		$ 0.045
Warrants, maturity date			Dec. 30, 2024		Dec. 30, 2024
Class M Warrants
Warrants exercised				13,025,000
Warrants outstanding		4,140,000	17,165,000	4,140,000	17,165,000
Exercise price of warrants		$ 0.12	$ 0.12	$ 0.12	$ 0.12
Warrants, maturity date		Feb. 17, 2022	Feb. 17, 2022	Feb. 17, 2022	Feb. 17, 2022
Class O and Class M Warrants
Shares withheld to satisfy the exercise price				10,403,591
Net shares issued				32,621,409
Class N Warrants
Warrants outstanding		2,925,000	2,925,000	2,925,000	2,925,000
Exercise price of warrants		$ 0.10	$ 0.10	$ 0.10	$ 0.10
Warrants, maturity date		May 12, 2022	May 12, 2022	May 12, 2022	May 12, 2022
Qualified Stock Options
Stock options, granted				125,000
Stock options, vesting period				5 years
Weighted average exercise price				$ 0.05
Fair value of options				$ 3,280
Risk free interest rate				0.46%
Risk free interest rate				0.78%
Expected dividend yield rate				0.00%
Expected volatility				52.52%
Expected volatility				55.63%
Qualified Stock Options | Minimum
Expected life				5 years 6 months
Qualified Stock Options | Maximum
Expected life				7 years 6 months
2015 Incentive Plan, as amended
Shares available for issuance		37,204,004		37,204,004
Additional shares authorized	20,000,000
2015 Incentive Plan, as amended | Chief Executive Officer
Compensation expense				$ 14,198
Net shares issued				118,315
Shares issued				195,804
Shares issued, value				$ 28,000
Shares issued, price per share		$ 0.143		$ 0.143
Share price							$ 0.12
Shares withheld to satisfy payroll tax liabilities				77,489
2015 Incentive Plan, as amended | Qualified Stock Options
Stock options, exercised				2,062,500
Shares withheld to satisfy the exercise price				263,393
Net shares issued				1,799,107
Employee Stock Purchase Plan
Shares issued during period				211,640	241,707
Proceeds from issuance of shares during the period				$ 8,995	$ 10,273
Shares available for issuance		2,888,271		2,888,271

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Debt (Details Narrative) - USD ($)		1 Months Ended								3 Months Ended	6 Months Ended	12 Months Ended
	Dec. 31, 2019	Apr. 30, 2021	Feb. 29, 2020	Dec. 31, 2019	Jul. 31, 2019	Apr. 30, 2019	Feb. 28, 2019	Jun. 30, 2018	Apr. 30, 2018	Mar. 31, 2021	Jun. 30, 2021	Dec. 31, 2019	Dec. 31, 2013	Dec. 31, 2020	Dec. 20, 2019
Note payable, related party											$ 865,603			$ 487,470
Note Agreement
Note payable						$ 2,182,142					154,282
Notes payable, payment terms						The modification was necessary to address the delays to cobalt delivery in 2019 caused by changes to the ATR operating schedule and also to accommodate this customer’s request to reduce their cobalt purchase obligations in future years. The modifications require that the Company refund approximately $1,100,000, of payments received for prior year undelivered material, plus interest at 12% per year, payable over a one-year period on a portion of that amount. The Company has also agreed with this customer to refund approximately $1,100,000 paid for material that was to have been delivered in later years. There will be no interest charge on this refund. In December 2019, this agreement was modified further allowing the Company to delay the original payments by 3 months and refund an additional $462,258 with no interest charge.
2013 Promissory Note | Former Chairman of the Board
Note payable, related party											500,000		$ 500,000
Note payable, related party, interest rate													6.00%
Maturity date												Dec. 31, 2021	Jun. 30, 2014
Accrued interest payble											226,734
Interest expense											15,000
2018 Promissory Note | Chief Executive Officer
Note payable, related party									$ 120,000
Note payable, related party, interest rate									6.00%
Maturity date									Aug. 01, 2018
Accrued interest payble											22,970
2018 Promissory Note, Amendment #1 | Chief Executive Officer
Maturity date								Mar. 31, 2019
2018 Promissory Note, Amendment #2 | Chief Executive Officer
Maturity date							Jul. 31, 2019
2018 Promissory Note, Amendment #3 | Chief Executive Officer
Maturity date					Jan. 31, 2020
2018 Promissory Note, Amendment #4 | Chief Executive Officer
Maturity date				Dec. 31, 2021
2019 Promissory Note | Major Shareholders
Note payable, related party, interest rate				4.00%
Maturity date				Dec. 31, 2022
Accrued interest payble											59,131
Available borrowings															$ 1,000,000
Proceeds from borrowings	$ 675,000		$ 325,000
Warrants granted	30,000,000
Exercise price of warrants															$ 0.045
Fair value of warrants															$ 446,079
Beneficial conversion feature				$ 315,643
March 2021 Promissory Note | RadQual
Note payable, related party										$ 101,250
Note payable, related party, interest rate										500.00%
Maturity date										March 2023
April 2021 Promissory Note | Chief Executive Officer
Note payable, related party		$ 250,000
Note payable, related party, interest rate		6.00%
Maturity date		Dec. 31, 2022
Accrued interest payble											$ 3,250
Share price		$ 0.11

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Commitments and Contingencies (Details Narrative) - USD ($)	1 Months Ended		6 Months Ended
	Oct. 31, 2014	Aug. 31, 2011	Jun. 30, 2021
Loss Contingencies [Line Items]
Commitments, description	In October 2014, the Company signed a ten-year contract with the DOE for the irradiation of cobalt targets for the production of cobalt-60. The Company will be able to purchase cobalt targets for a fixed price per target with an annual 5% escalation in price. The contract term is October 1, 2014, through September 30, 2024, however, the contract may be extended beyond that date. Also, the DOE may end the contract if it determines termination is necessary for the national defense, security or environmental safety of the United States.	In August 2011, the Company received land from Lea County, New Mexico, pursuant to a Project Participation Agreement (PPA), whereby the land was deeded to the Company for no monetary consideration. In return, the Company committed to construct a uranium de-conversion and Fluorine Extraction Process facility on the land.  In order to retain title to the property, the Company was to begin construction of the de-conversion facility no later than December 31, 2014, and complete Phase I of the project and have hired at least 75 persons to operate the facility no later than December 31, 2015, although commercial operations need not have begun by that date. In 2015, the Company negotiated a modification to the PPA that extended the start of construction date to December 31, 2015, and the hiring milestone to December 31, 2016. Those dates were also not met. The Company has been in discussion with commercial companies possibly interested in purchasing rights to this project. Should those discussions come to fruition the Company plans to negotiate a second modification to the PPA agreement to further extend the commitment dates. If the Company is not successful in reaching an amendment to extend the performance dates in the PPA. then it may, at its sole option, either purchase or re-convey the property to Lea County, New Mexico.  The purchase price of the property would be $776,078, plus interest at the annual rate of 5.25% from the date of the closing to the date of payment.  The Company has not recorded the value of this property as an asset and will not do so until such time that sufficient progress on the project has been made to meet the Company’s obligations under the agreements for permanent transfer of the title.
Restricted money market account			$ 830,725
Contamination Event
Loss Contingencies [Line Items]
Other income			$ 112,000

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Revenue Recognition - Summary of Sales from Contracts with Customers Disaggregated by Business Segment and Geography (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Total revenues	$ 2,759,896	$ 2,159,559	$ 4,752,408	$ 4,495,345
Percent of total revenues	100.00%	78.00%	100.00%	100.00%
U.S.
Disaggregation of Revenue [Line Items]
Total revenues	$ 2,422,206	$ 1,842,522	$ 4,048,165	$ 3,916,532
Outside U.S.
Disaggregation of Revenue [Line Items]
Total revenues	337,689	317,037	704,243	578,813
Radiochemical Products
Disaggregation of Revenue [Line Items]
Total revenues	$ 1,228,209	$ 1,113,053	$ 1,889,386	$ 1,868,274
Percent of total revenues	45.00%	40.00%	40.00%	39.00%
Radiochemical Products | U.S.
Disaggregation of Revenue [Line Items]
Total revenues	$ 1,091,114	$ 988,952	$ 1,637,924	$ 1,657,543
Radiochemical Products | Outside U.S.
Disaggregation of Revenue [Line Items]
Total revenues	137,095	124,101	251,462	210,731
Cobalt Products
Disaggregation of Revenue [Line Items]
Total revenues	$ 576,994	$ 224,666	$ 695,367	$ 530,286
Percent of total revenues	21.00%	8.00%	15.00%	11.00%
Cobalt Products | U.S.
Disaggregation of Revenue [Line Items]
Total revenues	$ 562,744	$ 217,433	$ 676,023	$ 522,428
Cobalt Products | Outside U.S.
Disaggregation of Revenue [Line Items]
Total revenues	14,250	7,233	19,344	7,858
Nuclear Medicine Products
Disaggregation of Revenue [Line Items]
Total revenues	$ 885,728	$ 777,873	$ 2,014,887	$ 1,819,997
Percent of total revenues	32.00%	28.00%	42.00%	38.00%
Nuclear Medicine Products | U.S.
Disaggregation of Revenue [Line Items]
Total revenues	$ 699,384	$ 592,170	$ 1,581,450	$ 1,459,773
Nuclear Medicine Products | Outside U.S.
Disaggregation of Revenue [Line Items]
Total revenues	186,344	185,703	433,437	360,224
Radiological Services
Disaggregation of Revenue [Line Items]
Total revenues	$ 68,965	$ 43,967	$ 130,755	$ 116,288
Percent of total revenues	2.00%	2.00%	3.00%	2.00%
Radiological Services | U.S.
Disaggregation of Revenue [Line Items]
Total revenues	$ 68,965	$ 43,967	$ 130,755	$ 116,288
Radiological Services | Outside U.S.
Disaggregation of Revenue [Line Items]
Total revenues
Fluorine Products
Disaggregation of Revenue [Line Items]
Total revenues			$ 22,013	$ 160,500
Percent of total revenues	0.00%	0.00%	0.00%	3.00%
Fluorine Products | U.S.
Disaggregation of Revenue [Line Items]
Total revenues			$ 22,013	$ 160,500
Fluorine Products | Outside U.S.
Disaggregation of Revenue [Line Items]
Total revenues

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Revenue Recognition (Details Narrative) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Unearned revenue, current	$ 990,886	$ 1,160,274
Accounts receivable	$ 1,068,550	$ 796,128

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Leases - Schedule of Lease Expense (Details) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Operating lease costs	$ 126,904	$ 130,378
Short-term operating lease costs	7,670	19,928
Financing lease expense:
Amortization of right-of-use assets	3,005	2,179
Interest on lease liabilities	1,018	579
Total financing lease expense	4,023	2,758
Total lease expense	138,597	153,064
Right-of-use assets obtained in exchange for new operating lease liabilities	1,603	2,649,070
Right-of-use assets obtained in exchange for new financing lease liabilities		$ 16,524
Weighted-average remaining lease term (years) - operating leases	13 years 7 months 6 days	14 years 7 months 6 days
Weighted-average remaining lease term (years) - financing leases	2 years 7 months 6 days	3 years 7 months 6 days
Weighted-average discount rate - operating leases	6.75%	6.75%
Weighted-average discount rate - financing leases	8.76%	8.82%

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Leases - Schedule of Future Minimum Payments of Lease Liabilities (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Operating - 2021 (excluding the six months ended June 30, 2021)	$ 131,858
Financing - 2021 (excluding the six months ended June 30, 2021)	4,821
Operating - 2022	285,159
Financing - 2022	9,641
Operating - 2023	287,108
Financing - 2023	5,881
Operating - 2024	287,108
Financing - 2024	2,929
Operating - 2025	287,108
Financing - 2025
Operating - Thereafter	2,599,409
Financing - Thereafter
Operating - Total minimum operating lease obligations	3,877,750
Financing - Total minimum financing lease obligations	23,272
Operating - Less-amounts representing interest	(1,345,803)
Financing - Less-amounts representing interest	(2,401)
Operating - Present value of minimum operating lease obligations	2,531,947
Financing - Present value of minimum financing lease obligations	20,871
Operating - Current maturities	(105,593)	$ (86,494)
Financing - Current maturities	(8,155)	(7,786)
Operating - Lease obligations, net of current maturities	2,426,354	2,484,359
Financing - Lease obligations, net of current maturities	$ 12,716	$ 16,888

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Segment Information - Schedule of Segment Reporting Information by Segment (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Segment Reporting Information [Line Items]
Sale of product	$ 2,759,896	$ 2,159,559	$ 4,752,408	$ 4,495,345
Depreciation and amortization	147,048	74,173	287,250	148,790
Segment Income (Loss)	(181,387)	229,328	(782,539)	(193,166)
Expenditures for Segment Assets	32,911		191,666	1,565
Segment Assets	15,809,746		15,809,746		$ 17,096,749
Radiochemical Products
Segment Reporting Information [Line Items]
Sale of product	1,228,209	1,113,053	1,889,386	1,868,274
Cobalt Products
Segment Reporting Information [Line Items]
Sale of product	576,994	224,666	695,367	530,286
Nuclear Medicine Products
Segment Reporting Information [Line Items]
Sale of product	885,728	777,873	2,014,887	1,819,997
Radiological Services
Segment Reporting Information [Line Items]
Sale of product	68,965	43,967	130,755	116,288
Fluorine Products
Segment Reporting Information [Line Items]
Sale of product			22,013	160,500
Operating Segments
Segment Reporting Information [Line Items]
Sale of product	2,759,896	2,159,559	4,752,408	4,495,345
Depreciation and amortization	140,107	74,522	276,010	144,357
Segment Income (Loss)	691,496	523,666	895,628	946,323
Expenditures for Segment Assets	32,911		191,666	1,565
Segment Assets	11,262,758		11,262,758		11,143,991
Operating Segments | Radiochemical Products
Segment Reporting Information [Line Items]
Sale of product	1,228,209	1,113,053	1,889,386	1,868,274
Depreciation and amortization	78,430	10,354	157,977	20,708
Segment Income (Loss)	404,457	380,728	408,882	386,347
Expenditures for Segment Assets			3,103
Segment Assets	3,067,625		3,067,625		2,916,442
Operating Segments | Cobalt Products
Segment Reporting Information [Line Items]
Sale of product	576,994	224,666	695,367	530,286
Depreciation and amortization	12,399	8,762	26,038	17,523
Segment Income (Loss)	208,581	75,874	178,484	199,670
Expenditures for Segment Assets			16,592
Segment Assets	632,133		632,133		743,127
Operating Segments | Nuclear Medicine Products
Segment Reporting Information [Line Items]
Sale of product	885,728	777,873	2,014,887	1,819,997
Depreciation and amortization	17,868	15,989	34,238	31,978
Segment Income (Loss)	51,843	117,056	262,754	302,357
Expenditures for Segment Assets	32,911		167,911
Segment Assets	2,235,779		2,235,779		2,052,220
Operating Segments | Radiological Services
Segment Reporting Information [Line Items]
Sale of product	68,965	43,967	130,755	116,288
Depreciation and amortization	252	8,519	504	17,155
Segment Income (Loss)	58,242	(13,532)	110,649	(28,461)
Expenditures for Segment Assets
Segment Assets	15,057		15,057		60,696
Operating Segments | Fluorine Products
Segment Reporting Information [Line Items]
Sale of product			22,013	160,500
Depreciation and amortization	31,158	30,898	57,253	56,993
Segment Income (Loss)	(31,627)	(36,460)	(65,141)	86,410
Expenditures for Segment Assets			4,060	1,565
Segment Assets	5,312,164		5,312,164		5,371,506
Corporate Allocation
Segment Reporting Information [Line Items]
Sale of product
Depreciation and amortization	6,941	(349)	11,240	4,433
Segment Income (Loss)	(872,883)	(294,338)	(1,678,167)	(1,139,489)
Expenditures for Segment Assets
Segment Assets	$ 4,546,988		$ 4,546,988		$ 5,952,758

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Segment Information (Details Narrative)	6 Months Ended
	Jun. 30, 2021 Number
Segment Reporting [Abstract]
Number of reportable segments	5

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Subsequent Events (Details Narrative) - USD ($)	Jul. 08, 2021	Jun. 30, 2021
RadQual, LLC
Subsequent Event [Line Items]
Ownership interest, percentage by parent		24.50%
Subsequent Event | RadQual, LLC
Subsequent Event [Line Items]
Ownership interest, percentage by parent	100.00%
Subsequent Event | The Purchase Agreement
Subsequent Event [Line Items]
Aggregate purchase price, approximate	$ 4,400,000
Share price	$ 0.11
Shares issued	40,176,236