RADNOSTIX INC Annual Report: A Plain-English Guide

I’ve put together this guide to help you understand how RADNOSTIX INC (formerly International Isotopes Inc.) performed this year. My goal is to cut through the corporate jargon so you can decide if this company fits your investment goals.

1. What does this company do?

RADNOSTIX works in nuclear and medical technology, producing radioactive materials for cancer treatments, medical imaging, and industrial testing. Their business has four main parts:

• Theranostics: They create drugs that find and treat diseases like cancer. They are the only U.S. maker of a specific thyroid drug (sodium iodide I-131), a key revenue source.
• Cobalt Products: They make radioactive sources for blood irradiation and sterilization equipment.
• Calibration & Reference: They make the "tools" used to test hospital scanners, ensuring they provide accurate results.
• Medical Devices: They develop robotic lab tools and lung ventilation equipment, such as the "Rad-Pod."

2. Financial performance

It was a difficult year. The company lost $908,002 in 2025, down from a small $8,574 profit in 2024. Revenue fell 6% to $13.1 million.

Management successfully reduced research spending by 29% and administrative costs by 7%. However, these savings were offset by lower sales and production inefficiencies. The company ended the year with about $1.2 million in cash, leaving little room for error.

3. Major wins and challenges

• Wins: The "Calibration & Reference" segment grew 21% to $3.8 million. Additionally, upgraded cobalt equipment is expected to save $150,000 annually by reducing waste.
• Challenges: Theranostics sales fell 15% due to supplier outages. Cobalt sales dropped 26% while the company paused production for equipment upgrades. A global shortage of a specific material (Gd-153) also caused a $450,000 revenue shortfall.

4. Future outlook

Management is focused on growth, with plans to spend $2.5 million over the next two years on a new facility. They also intend to launch an automated system for I-131 capsules, which could boost production by 40%.

The company relies on debt, including a major loan from insiders due in 2028 with an 8% interest rate. While they have enough cash for the next 12 months, they may issue more shares to fund projects, which would dilute existing ownership.

5. Key risks

• Financial Fragility: With over $128 million in total losses since the company started, they burn about $75,000 in cash every month.
• Asset Impairment: Past plans for a "Uranium De-conversion Facility" were abandoned. The $15 million spent on that project is gone, and ongoing cleanup costs continue to impact the balance sheet.
• Stock Risks: The stock trades on the OTCQB, a less regulated market. It is volatile and often features wide price gaps between buyers and sellers.
• Concentration: Their top three customers provide 45% of their revenue. Furthermore, they rely on a single research reactor in Idaho; if that reactor shuts down, their core business stops.

Final Thought for Investors: RADNOSTIX is a high-risk, high-stakes company. While they hold a unique position in the U.S. medical isotope market, their history of losses, reliance on a single reactor, and thin cash reserves make this a speculative play. Before investing, consider whether you are comfortable with the potential for share dilution and the volatility inherent in the OTC market.