Executive Summary

Q4 2015 revenue was $1.94M, up ~8% year over year, led by Radiological Services; gross profit down and net loss widened on higher R&D spend .
Radiological Services revenue surged to $0.51M vs $0.06M in Q4 2014, driven by DOE Orphan Source Recovery Program contracts and gemstone processing volumes .
Management highlighted a second consecutive year of positive operating cash flow ($0.34M in 2015) and an FDA submission planned in 2016 for I3odine/MAX sodium iodide product .
Cobalt-60 product revenue remained constrained due to DOE ATR supply interruptions; management expects a meaningful ramp beginning in late 2017 under the 10-year DOE agreement .

What Went Well and What Went Wrong

What Went Well

Radiological Services segment strength: “resulted in a 90% increase in revenue within this segment during 2015 compared to 2014” and Q4 Radiological Services revenue of $513,668 vs $55,891 in Q4 2014 .
Operating cash flow consistency: “second year in a row of positive cash flow from operating activities,” with 2015 operating cash flow of $339,604 .
Capacity and commercial progress: nuclear medicine production area expanded for ~40% capacity increase; multi-year cobalt-60 supply agreements with customers (including services) .

What Went Wrong

Cobalt products headwind: “global supplies of Cobalt-60 continue to be very constrained” due to DOE ATR interruption; limited ability to procure cobalt from alternatives .
Margin pressure and wider loss: Q4 gross profit fell to $647,843 from $708,328 (–9%); other expense jumped to $279,974 from $68,181 (+311%); net loss widened to $554,697 from $297,085 (+87%) .
Elevated R&D investment: Q4 R&D was $223,562 vs $45,174; FY R&D nearly doubled to $821,453 vs $464,206, contributing to higher full-year net loss .

Financial Results

Metric	Q4 2014	Q2 2015	Q3 2015	Q4 2015
Revenue ($)	$1,793,468	$1,580,376	$1,609,061	$1,936,278
Gross Profit ($)	$708,328	$627,213	$617,368	$647,843
Total Operating Expense ($)	$937,232	$990,780	$1,164,605	$922,566
Operating Loss Before Other Exp. ($)	$(228,904)	$(363,567)	$(547,237)	$(274,723)
Other Income (Expense) ($)	$(68,181)	$(86,968)	$(105,913)	$(279,974)
Net Loss ($)	$(297,085)	$(447,492)	$(653,150)	$(554,697)

Segment revenue breakdown (quarterly):

Segment Revenue ($)	Q2 2015	Q3 2015	Q4 2015
Radiochemical Products	$433,520	$428,378	N/A
Cobalt Products	$232,743	$293,590	N/A
Nuclear Medicine Standards	$778,791	$650,971	N/A
Radiological Services	$99,272	$214,122	$513,668
Transportation	$36,050	$22,000	N/A

Key KPIs (annual and liquidity):

KPI	FY 2014	FY 2015
Sale of Product ($)	$7,536,860	$7,062,196
Gross Profit ($)	$2,977,115	$2,702,962
Total Operating Expense ($)	$3,762,999	$4,144,620
Operating Loss Before Other Exp. ($)	$(785,884)	$(1,441,658)
Other Income (Expense) ($)	$(753,347)	$(384,322)
Net Loss ($)	$(1,545,077)	$(1,818,225)
Net Loss Per Common Share ($)	$0.00	$0.00
Weighted Avg. Shares Outstanding	369,334,615	398,055,278
Cash and Equivalents (Dec 31) ($)	$558,541	$397,955
Net Cash Provided by Operating Activities ($)	$339,808	$339,604
R&D Spend ($)	$464,206	$821,453

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Cobalt-60 supply/segment revenue trajectory	Late 2017 and beyond	10-year DOE ATR cobalt production agreement secured in Oct 2014; irradiation resumed Feb 2015	“Ramp up revenue within this segment beginning in late 2017”	Maintained timeline; reiterated ramp expectation
Radiological Services activity	2015–2016	OSRP contracts enabled growth; mobile hot cell and license expansions in place	Continued OSRP contracts; 90% segment revenue increase in 2015 vs 2014	Raised activity commentary (2015 growth)
Nuclear Medicine Standards capacity	Effective Oct 2015 onward	Maintenance outage increased capacity	“~40% increase in production capacity” after manufacturing expansion	Capacity increased
Radiochemical product pipeline (I3odine/MAX)	2016 submission	Direct distribution of iodine products (pricing secured through 12/31/2016)	Expect to submit I3odine/MAX to FDA in 2016	New product submission plan
Fluorine de-conversion project	Indefinite deferral	Project on hold; NRC license maintained; costs to maintain licenses	Limiting spending to licensing and interactions; deferring further engineering until financing/contracts secured	Maintained deferral

Earnings Call Themes & Trends

No Q4 2015 earnings call transcript was found for INIS following document searches; analysis below relies on press release and prior 10-Q commentary .

Topic	Previous Mentions (Q2 2015)	Previous Mentions (Q3 2015)	Current Period (Q4 2015)	Trend
Cobalt-60 supply constraints	Limited access to ATR cobalt since 2013; Nordion supply agreement executed Apr 2015; unearned revenue from quarterly progress payments	Continued constraints; expecting decisions on old-design targets by mid-2016; unearned revenue up; sealed source sales down YoY	“Global supplies ... constrained” due to ATR interruption; revenue ramp expected late 2017	Constrained near-term; improving outlook post-2017
Radiological Services	Field services fluctuating; gemstone processing up; mobile hot cell enabling expansion	OSRP-driven revenue growth; segment net income up sharply	Strong Q4 and FY performance; DOE contracts continue	Improving
Nuclear Medicine Standards	Focus on flood source; TI Services pressure from paper/ink decline	Maintenance outage in Sep; capacity increased; sales to RadQual and TI Services impacted	Manufacturing area expansion enabling ~40% capacity increase	Capacity improved; sales recovery expected
Radiochemical Products	Direct iodine distribution; pricing secured through 12/31/2016	Stable revenue; pipeline enhancements	Elevated R&D; pursuing generic pharmaceuticals; I3odine/MAX trademarked	Pipeline building
Fluorine de-conversion project	On hold; NRC license a competitive barrier; maintenance costs ongoing	On hold; PPA extension dates amended	Spending limited to licensing/interactions; deferral until financing/contracts	Maintained deferral

Management Commentary

“I believe the Company’s completion of its second year in a row of positive cash flow produced from operating activities is a significant indicator of our improving business performance.”
“We expect shareholders will see the first of those new products being submitted for U.S. Food and Drug Administration (FDA) approval in 2016. We have obtained trademark registration of I3odine/MAXTM...”
“In our Nuclear Medicine Standards segment, we completed an expansion... that will permit approximately a 40% increase in our production capacity.”
“In our Cobalt Products segment, ... several long-term supply agreements” and “... Orphan Source Recovery Program ... resulted in a 90% increase in revenue within this segment during 2015 compared to 2014.”

Q&A Highlights

No Q4 2015 earnings call transcript was available for INIS in our search; therefore, Q&A highlights and guidance clarifications are not available from a call .

Estimates Context

We attempted to retrieve S&P Global consensus for Q4 2015 EPS and revenue but were unable to access estimates due to request limit errors; INIS appears not to have widely disseminated sell-side coverage, and no consensus could be validated within tool constraints. As a result, comparisons vs Wall Street consensus are unavailable for this quarter [tool error on GetEstimates].

Key Takeaways for Investors

Near-term cobalt revenue remains constrained until late 2017; watch progress on DOE ATR irradiation schedule and old-target decisions as catalysts for backlog conversion and segment recovery .
Radiological Services strength provides diversification; OSRP-related activity and gemstone processing contributed materially to Q4 and FY results—monitor contract flow to gauge sustainability .
Elevated R&D is strategically expanding the radiochemical/pharma pipeline (I3odine/MAX submission planned in 2016); expect continued opex-to-R&D mix impacting near-term margins .
Capacity expansion in Nuclear Medicine Standards (~40% increase) positions the segment for throughput and margin improvement as manufacturing normalizes post-maintenance .
Liquidity steady with positive operating cash flow; however, cash balance declined year over year—capital planning for the de-conversion project remains deferred until financing is secured .
Absent sell-side estimates, investors should benchmark quarterly trends vs sequential and year-ago performance; Q4 2015 revenue growth (+8% YoY) alongside wider net loss underscores the R&D investment cycle .
Watch for additional commercial contracts (e.g., cobalt-60 supply agreements) and regulatory milestones (FDA submissions) as potential stock catalysts .

INTERNATIONAL ISOTOPES INC (INIS)·Q4 2015 Earnings Summary