-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TQJDJ9Iz2lKHx8XLzMErTJ5TpYvz5QXs1OWVxUuNaa5t8StlIcbRjexQxtvjoBjD CIiPZs2bszv2GYTvibxgRQ== 0000950146-97-001488.txt : 19970930 0000950146-97-001488.hdr.sgml : 19970930 ACCESSION NUMBER: 0000950146-97-001488 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970929 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERNATIONAL ISOTOPES INC CENTRAL INDEX KEY: 0001038277 STANDARD INDUSTRIAL CLASSIFICATION: IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES [2835] IRS NUMBER: 742763837 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-22923 FILM NUMBER: 97687867 BUSINESS ADDRESS: STREET 1: 2600 LONGHORN BLVD STREET 2: STE 105 CITY: AUSTIN STATE: TX ZIP: 78758 BUSINESS PHONE: 5128341822 MAIL ADDRESS: STREET 1: 2600 LONGHORN BLVD STREET 2: STE 105 CITY: AUSTIN STATE: TX ZIP: 78758 10-Q 1 QUARTERLY REPORT FORM 10-Q SECURITIES EXCHANGE COMMISSION Washington, D. C. 20549 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1997 Commission file number: 333-26269 SB-2 INTERNATIONAL ISOTOPES INC. (Exact name of registrant as specified in its charter) Texas 74-2763837 (State of incorporation) (IRS Employer Identification Number) 2600 Longhorn Boulevard, Suite 105 78758 Austin, Texas (Zip Code) (Address of principal executive offices) 512-834-1822 (Registrant's telephone number, including area code) 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. YES NO X* As of August 19, 1997 the aggregate market value of the common stock of the registrant held by non-affiliates of the registrant as determined by reference to the closing price of Common Stock as reported on the Nasdaq small cap market, was $55,043,550. As of August 19, 1997 the number of shares of common stock, $.01 par value, outstanding was 6,115,950. *Registrant became subject to the filing requirements of the Securities Exchange Act of 1934 on August 14, 1997, when its Registration Statements on Form SB-2 and Form 8-A were declared effective by the Commission. INTERNATIONAL ISOTOPES INC. TABLE OF CONTENTS Page No. PART I - FINANCIAL INFORMATION: Item 1 - Financial Statements: Consolidated Balance Sheets at June 30, 1997 and December 31, 1996 (unaudited) Consolidated Statements of Operations for the Six Months Ended June 30, 1997 and for the Period November 1, 1995 (inception) through June 30, 1997 (unaudited). Consolidated Statements of Cash Flows for the six Months Ended June 30, 1997 and 1996 and for the period from November 1, 1995 (inception) through June 30, 1997 (unaudited). Notes to Consolidated Financial Statements (unaudited). Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations PART II - OTHER INFORMATION: Item 6 - Exhibits and Reports on Form 8-K SIGNATURE PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS INTERNATIONAL ISOTOPES INC. AND SUBSIDIARY (development stage enterprises) Consolidated Balance Sheet June 30, 1997 and December 31, 1996
06/30/97 12/31/96 -------- -------- Assets Current assets: Cash and cash equivalents ............................................. 265,145 331,397 Restricted certificate of deposit ..................................... 100,000 300,000 Assets held for sale .................................................. 544,760 546,613 Inventory ............................................................. 702,691 757,498 Prepaids .............................................................. 342,198 Other ................................................................. 14,747 10,855 ---------- ---------- Total current assets ...................................... 1,969,541 1946363 Property and equipment, net: Land .................................................................. 87,894 87,894 Buildings ............................................................. 149,834 Furniture and equipment ............................................... 1,092,000 972,922 ---------- ---------- Total property and equipment, net ....................... 1,329,728 1,060,816 ---------- ---------- Total assets .............................................. 3,299,179 3,007,179 ========== ========== Liabilities and Stockholders' Equity Current liabilities: Accounts payable ...................................................... 213,593 241,341 Accrued liabilities ................................................... 692,325 16,475 Notes payable to bank ................................................. 1,370,171 1,850,000 Notes payable to chairman ............................................. 20,000 20,000 Payable to lending institution ........................................ 569,454 Long Term liability - notes payable to banks .......................... 1,645,985 ---------- ---------- Total Liabilities ......................................... 3,942,074 2,697,270 Stockholders' equity: Preferred stock, $1.00 par value; 5,000,000 shares authorized, no shares issued and outstanding at June 30, 1997 and no shares issued and outstanding at December 31, 1996 Common stock, $.01 par value; 10,000,000 shares authorized; 3,915,950 shares issued and outstanding at June 30, 1997, ..................................... 39,159 37,667 3,766, 663 issued and outstanding at December 31, 1996 Additional paid-in capital ........................................ 2,933,047 1,266,688 Deficit accumulated during the development stage .................. (3,143,101) (834,446) Receivable from stock sales ....................................... (160,000) ---------- ---------- Total stockholders' equity ................................ (642,895) 309,909 ---------- ---------- Total liabilities and stockholders' equity ................ 3,299,179 3,007,179 ========== ==========
Page 1 INTERNATIONAL ISOTOPES INC. AND SUBSIDIARY (development stage enterprises) Consolidated Statement of Operations (unaudited)
Period from Six Months ended Three Months ended November 1, 1995 June 30, June 30, (inception) through 1997 1996 1997 1996 June 30, 199 ---------- ---------- ---------- ---------- --------- Sale of accelerator components 135,187 -- 7,115 -- 910,289 Cost of sales 68,438 -- 2,782 -- 331,878 ---------- ---------- ---------- ---------- --------- Gross Profit ......................... 66,749 -- 4,333 -- 578,411 General and administrative .................... 212,602 319,481 129,464 319,481 259,964 Sales and Marketing ........................... 116 116 -- 116 Commissions and fees .......................... -- -- 95,315 95,315 Consulting fees ............................... 5,183 173,282 1,724 173,282 372,932 Legal and professional fees ................... 8,425 370 7,198 370 68,110 Salaries and contract labor ................... 1,928,036 8,181 1,250,244 2,429 2,087,923 Rent and security ............................. 78,996 2,369 32,256 2,369 180,470 Other ......................................... 8,700 -- 105,213 ----------------------- ---------- ----------------------- Total operating expenses ............. 2,233,359 512,383 1,421,002 497,931 3,116,990 ------------------------ ---------- ----------------------- Loss from development stage operations (2,166,610) (512,383) (1,416,669) (497,931) 2,538,585 Gain on sale of assets held for sale .......... -- -- -- -- 336,364 Interest income ............................... 7,258 807 6,385 807 12,167 Interest expense .............................. (149,303) (616) (65,987) (433,044) Loan financing fees ........................... -- (616) (750,000) ------------------------ ---------- ----------------------- Loss before extraordinary item ....... (2,308,655) (512,192) (1,475,821) (497,740) 13,393,301 ---------- ---------- ---------- ----------------------- Extraordinary gain on debt extinguishment ..... 0 250,000 ----------------------- (2,308,655) (512,192) (1,475,821) (497,740) 250,000 ========== ========== ========== ========== ========= 4,143,101
See accompanying notes to unaudited consolidated financial statements Page 1 Sheet 1 INTERNATIONAL, ISOTOPES INC. AND SUBSIDIARY (development stage enterprises) Consolidated Statement of Cash Flows (unaudited)
Period from Six Months November 15, 1995 Ended June 30, inception) through 1997 1996 June 30, 1997 Cash flows from operating activities: Net loss .................................................................... ($2,308,655) ($512,193) ($3,393,216) Adjustments to reconcile net loss to net cash used in operating activitiies -- Depreciation and amortization ............................................. 4,836 6,496 Gain on sale of assets .................................................... (336,364) Services compensated by stock issuance .................................... 1,171,383 1,432,269 Changes in operating assets and liabilities: Other assets ....................................................... 3,892 (101,100) (6,963) Inventory .......................................................... 54,807 (702,691) Accounts payable ................................................... (342,198) (342,198) Accrued liabilities ................................................ (27,748) 120,772 213,593 Net cash used in operating activities .............................. 675,850 289,857 692,325 ----------- ----------- ----------- (767,833) (202,664) (2,186,634) Cash flows from investing activities: Proceeds from redemption of certificate of deposit ............ 200,000 200,000 Purchase of certificate of deposit ......................................... (300,000) Building Construction costs ................................................. (149,834) (149,834) Purchase of assets for resale and furniture and equipment held for operations (123,914) (2,595,000) (2,012,587) Proceeds from sale of assets held for sale, net of related expenses ........ 691,051 ----------- ----------- ----------- Net cash used in investing activities .............................. (73,748) (2,595,000) (1,571,370) Cash flows from financing activities: Proceeds from issuance of notes payable to chairman ........................ 120,123 Proceeds from sale of common stock ......................................... 260,475 8,466 1,063,841 Proceeds from issuance of debt ............................................. 3,558,154 3,100,000 8,308,154 Principal payments on notes payable (3,043,204) (5,373,750) Payments on notes payable from chairman .................................... (21,960) (95,000) ----------- ----------- ----------- Net cash provided by financing activities .......................... 775,425 3,086,506 4,023,245 ----------- ----------- ----------- Net increase in cash and cash equivalents ................................... (66,156) 288,842 265,241 ----------- ----------- ----------- Cash and cash equivalents at beginning of period ............................ 265,241 288,842 265,241 =========== =========== =========== Cash and cash equivalents at end of period .................................. 331,397 -- -- Supplemental disclosure of cash flow activities: Cash paid for interest ............................................... 112,410 407,836 Cash paid for financing fees ......................................... 15,261 515,261 Supplemental disclosure of noncash transactions: Conversion of notes payable to common stock .......................... 5,000 Acquisition of subsidiary through issuance of common stock ........... 73,003 Acquisition of patent through issuance of common stock ............... 110 110
Item 1 - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) INTERNATIONAL ISOTOPES INC.AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS June 30, 1997 (Unaudited) (1) THE COMPANY AND BASIS OF PRESENTATION International Isotopes Inc. (the "Company") was incorporated on November 15, 1995 and is a development stage enterprise. The Company's primary activities have been to obtain assets to be used in the production of radioisotopes and to obtain funding to complete the reconfiguration and reassembly of the linear accelerator. The accompanying unaudited consolidated financial statements include the results of operations of the Company and its wholly owned subsidiary, Gazelle Realty, all significant intercompany accounts and transactions have been eliminated in consolidation pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The unaudited financial statements included herein have been prepared by the Company without audit and in accordance with generally accepted accounting principles. These statements reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of the Company's financial position as of June 30, 1997, and the results of its operations for the three and six months ended June 30, 1997 and 1996 and its cash flows for the six months ended June 30, 1997 and 1996. This information should be read in conjunction with the Company's audited consolidated financial statements for the year ending December 31, 1996 included in the Prospectus contained in Amendment No. 2 to the Registration Statement on form SB-2 filed with the SEC and became effective on August 19, 1997. Certain information in footnote disclosures, normally included in the financial statements were prepared in accordance with generally accepted accounting principles, and have been condensed or omitted pursuant to the rules and regulations. The financial data disclosed in the notes to the consolidated statements are unaudited for these periods. (2) NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS Net loss per share attributable to common stockholders is computed using the weighted average number of shares outstanding. Common equivalent shares from stock options and warrants are excluded from the computation as their effect is antidulitive, except that, pursuant to the SEC Staff Accounting Bulletin No. 83, common stock issued for consideration below the IPO price and warrants exercised, warrants granted and stock options granted with exercise prices below the IPO price during the 12 month period preceding the date of the initial filing of the registration statement, even when antidilutive, have been included in the calculation of common equivalent shares, using the treasury stock method based on the assumed IPO price as if they were outstanding for all periods presented. (3) NOTES PAYABLE TO BANKS Notes payable to bank consisted of the following: June 30, 1997 (unaudited) 8.5% Note payable to a bank, secured by substantially all of the assets of the Company, including a restricted certificate of deposit and collateral and personal guarantees of certain officers and stockholders. Principal reductions of $3,240 were made in July 1997. Interest payable monthly through November 1997, and principal and interest payments are due monthly beginning December 19, 1997. The outstanding principal and interest was paid in August and September 1997. (See note 6) $1,652,193 8.5% Interim Construction Note payable to a bank, secured by land and improvements, due February 19, 2018. Principal and interest payments are due monthly beginning March 19, 1998. Additional amounts of $67,344 were drawn during August 1997. 56,819 Prime rate revolving loan with a line of credit with a bank $619,000. Interest is payable monthly, with maturity at November 19, 1997. The outstanding principal and interest was paid in full in August and September 1997. (See Note 6) 607,144 10% , $1,500,000 revolving line of credit from a company related to a director. Principal and interest is due in full on June 1, 1999. An additional $250,000 was drawn in July, 1997. The outstanding principal and interest paid in August, 1997. (See Note 6) 500,000 7% Note payable to bank, secured by collateral owned by a stockholder, due September 17, 1997. The remaining balance was paid in August, 1997. (See Note 6) 100,000 7.05% Note payable to bank, secured by collateral owned by a stockholder, due September 17, 1997. The remaining balance was paid in full in August, 1997.(See Note 6) 100,000 TOTAL $3,016,156 (4) COMMON STOCK During the six months ended June 1997, the Company agreed to issue a total of 320,000 shares of common stock at a purchase price of $1.60 as incentives to four recently hired key employees. Of these shares, 170,000 were issued in June 1997. The remaining 150,000 shares are first purchasable at December 31, 1997. The Company recognized $ 1,643,750 of compensation expense related to these incentive grants during the first six months of 1997. In January 1997, the Company agreed to issue 62,500 shares of stock to each of two directors as compensation for loan guarantees at a purchase price of $1.60 per share. These shares were issued in June 1997. The stock issued in June 1997 for incentive stock and compensation, as noted above, resulted in notes receivable by the Company from the issuees of $472,000. (5) STOCK OPTION PLAN On May 17, 1997, the Shareholders approved the terms of the Company's 1997 Long Term Incentive Plan, whereby up to 600,000 shares of the Company's common stock may be awarded to employees, directors and consultants as designated by the Company. Under the terms of the Plan the Board may designate the participants to whom stock options are to be awarded and the vesting terms of the awards. As of June 30, 1997, options to purchase 290,000 shares of Common Stock had been granted by the Board of Directors at an exercise price of 85% of the IPO price. (6) SUBSEQUENT EVENTS Initial Public Offering On August 19, 1997, the Company completed an offering of 2,200,000 shares of its Common Stock at $9.00 per share. The Company received proceeds of $17,805,283 after deducting underwriters' discounts and commissions. Additional expenses associated with the offering due to legal, audit, printing and other expenses are approximately $1,000,000, resulting in estimate net proceeds of $ 16,805,823 (assuming no exercise of the underwriters' over-allotment option). The Company has received notification of the underwriter's intent to exercise its over-allotment option to purchase an additional 100,000 share of the Company's Common Stock and 100,000 shares from selling shareholders at $9.00 per share Debt Restructuring In August 1997 and September 1997, the Company applied approximately $3,235,000 of the proceeds of the offering to eliminate all outstanding bank loans, except for their construction loan. In August 1997, outstanding debts to two directors were also paid in full. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS AND DISCUSSION OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Except for historical information contained herein, the following contains forward-looking information that is subject to certain risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, set forth in the "Risk Factors" section included in the Prospectus contained in Amendment No. 3 to the Registration Statement on Form SB-2 filed with the Securities Exchange Commission (SEC) on May 1, 1997 (the Prospectus) which was approved and became effective on August 14, 1997. The following discussion should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in the Prospectus. OVERVIEW International Isotopes Inc. (the "Company") is a development stage company which intends to be the first domestic producer of a full range of pharmaceutical grade radioactive isotopes ("radioisotopes") and radiopharmaceuticals (on a contract or joint venture basis) for commercial sale to the nuclear medicine industry. Radioisotopes, which are indispensable components of nuclear medicine, are radiation emitting atoms that are used for both medical diagnostics and in-the-body ("in vivo") therapeutics. Presently, the most commonly used radioisotopes in the United States, such as molybdenum-99 ("Mo-99"), thallium-201, gallium-67, indium-111 and palladium-103, which the Company intends to commercially produce, are produced by four domestic radiopharmaceutical companies, primarily for their own use, and by two foreign manufacturers, and are used either independently or in various combinations or "cocktails" to assist in the diagnosis of a myriad of medical conditions, including coronary heart disease, pulmonary embolism, thyroid carcinoma, bone cancer, brain disorders, acute cholecystitis (inflammation of the gall bladder), gastrointestinal bleeding, renal artery stenosis and other diseases. The Company also intends, under an exclusive worldwide license, to complete development of and to manufacture and market for use in diagnostic nuclear medicine a high resolution medical imaging camera, key components of which are patented. Based on spatial resolutions achieved in industrial applications of the licensed patented inventions, the Company believes its medical imaging camera will have resolution at least four times greater than any medical imaging camera currently on the market. The Company's activities since inception have been primarily devoted to acquisition of the SSC Linac assets with a currently appraised market value of $8,084,000, and the expenditure of funds to increase the capital assets through the assembly and upgrade of the Linac for efficient production of radioisotopes and radiopharmaceuticals. In addition, the Company has engaged in construction of administration, manufacturing and services facilities with an appraised value of $1,068,000. The Company has employed additional key-personnel in the area of Linac manufacturing, operations, radioisotope and radiopharmaceutical production, quality assurance and regulatory compliance. The Company has a limited history of operations and has experienced operating losses and significant expenses in the acquisition of key-personnel, land and facilities. As of June 30, 1997, the Company had an accumulated deficit of $3,143,101. The Company expects operating losses to continue as it initiates radioisotope and radiopharmaceutical production, validation, customer approval, marketing and product development. RESULTS OF OPERATION Three months ended June 30, 1997 and 1996 Revenues from sales of accelerator components and equipment and the corresponding costs of sales for the three months ended June 30, 1997 were $7.115 and $2,782, respectively, compared to $0 for the same period in 1996, resulting in gross profit of $4,333. During the same period in 1996, the Company had no paid personnel, no leased office facilities and only limited equipment and assets . Operating costs increased by $922,956 to $1,420,887 for the three months ended June 30, 1997 compared to $497,931 in the comparable period in 1996. The costs are primarily related to attracting highly experienced professionals as well as to incentive compensation expense related to the issuance of common stock to key employees. Salaries and contract labor expenses increased by $1,247,700, general and administrative expenses decreased by $190,017, consulting fees decreased by $171,558, legal and professional fees increased by $6,828, rent and security expenses increased by $29,987, and interest expense by $65,987, for the three months ended June 30, 1997, compared to the period ended June 30, 1996. Six Months Ended June 30, 1997 and 1996 Revenues from sales of accelerator components and equipment and the related costs of sales for the six months ended June 30, 1997 were $135,187 and $68,438, respectively, compared to $0 for the same period in 1996. A gross profit of $66,749 for the six months ended June 30, 1997 was realized. Operating costs increased to $2,233,359 for the six months ended June 30, 1997 from $512,383 the comparable period in 1996. The increase was principally due to additional personnel salaries, facilities costs and the incentive stock payments to key personnel. Consulting expense decreased from $173,282 for the six month period ending June 30, 1996 compared to the same period in 1997, due to the fact that the Company initiated capital asset projects devoted to constructing the linear accelerator for production. The Company expects its future activities to be centered on capital asset construction related to the linear accelerator assets and production facilities. Interest expense primarily relating to loans and bank financing increased from $616 in 1996 to $149,303 for the six-month period ending June 30, 1997. The Company anticipates interest expense will decrease dramatically as a result to payment of all debt from the equity funds of the public offering. Liquidity and Capital Resources From November 1, 1995 (inception) through July, 1997, the Company obtained funds primarily through principal shareholder guaranteed bank loans, sales of accelerator components and excess equipment, sales of Common Stock in a private placement to investors and from loans from stockholders and directors. In December 1996, the Company borrowed $1,750,000 from an Austin, Texas bank to pay off the original acquisition financing for the purchase of the LINAC assets. In May of 1997, favorable refinancing from a Denton, Texas bank located in the Company's local community, allowed the Company to decrease interest costs and to commence construction of its administrative services their first building. In June of 1997, a company related to a director granted the Company a $1,500,000 line of credit for the purpose of increasing operations and for funding a portion of the costs related to the public offering. Funds from the public offering were utilized to extinguish all Company debt with the exception of the construction loan for the administrative and services building. Management anticipates, based on its currently proposed plans and assumptions relating to its operations, that the current cash resources will be sufficient to sustain operations for the next 18 months. PART II. OTHER INFORMATION Item 2. Changes in Securities In May and through June 30, 1997 the Company issued to several key employees and two directors 247,496 shares of common stock previously contributed to the Company by company founders plus an additional 47,504 shares from the Company. The stock was held as treasury stock at March 31, 1997. Item 4. Submission of Matters to a Vote of Security Holders On May 17, 1997, the Shareholders approved the terms of the Company's 1997 Long Term Incentive Plan, whereby up to 600,000 shares of the Company's common stock may be awarded to employees, directors and consultants as designated by the Company. Under the terms of the Plan the Board may designate the participants to whom stock options are to be awarded and the vesting terms of the awards. As of June 30, 1997, options to purchase 290,000 shares of Common Stock had been granted by the Board of Directors at an exercise price of 85% of the IPO price. Item 5. Other Information On August 14, 1997 the Company completed an offering of 2,200,000 shares of its Common Stock at $9.00 per share. The Company received proceeds of $17,805,283 after deducting underwriters' discounts and commissions. Additional expenses associated with the offering due to legal, audit, printing and other expenses are approximately $1,000,000, resulting in estimated net proceeds of $ 16,805,823 (assuming no exercise of the underwriters' over-allotment option). The Company has received notification of the underwriter intent to exercise its over-allotment option to purchase an additional 220,000 shares of the Company's Common Stock at $9.00. The Company continues construction of the administration, manufacturing and services building, however construction has been delayed due to materials and contractor scheduling as well as foundation redesign due to ground water. The Company has retained the firm of Feinstein Kean Partners of Boston, MA, to assist in public and investor relations, news releases, marketing and general corporate image. The Company has received a commendation from the State of Texas Legislature through a unanimous vote on HRS 310. The unanimous resolution expressed the State's support of the Company's business plans and utilization of the Superconducting Super Collider Linac assets to establish a medical radioisotope and radiopharmaceutical industry in the State of Texas. The State further recommends funding and the support to establish an academic school of Radiopharmacy. The Company, on July 24, 1997, entered into a contract with the University of North Texas to install and operate a CP-42 cyclotron for research, development of new isotopes and production of research isotopes. The contract is subject to the University of North Texas obtaining the CP-42 cyclotron from M.D. Anderson Health Science Center, Houston, TX. The Company continues to implement the strategic marketing plan through attendance at the annual meetings of the American Society of Nuclear Medicine (June 1997), the European Society of Nuclear Medicine (August 1997), the International Isotope Conference of Nuclear Medicine (October 1997) and the Oppenheimer Annual Health Care Conference (October 1997). The Company has registered the Linac Accelerator with the Texas Department of Public Health, Bureau of Radiation Control and is preparing the application for its license to operate the accelerator prior to isotope production. Item 6. Exhibits and Reports on Form 8 - K a. Exhibits: (None) b. Reports on Form 8-K No reports were filed on Form 8-K during the quarter for which this report on Form 10-QSB is filed. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be wsigned on its behalf by the undersigned, thereunto duly authorized. INTERNATIONAL ISOTOPES INC. (Registrant) Ira Lon Morgan Chairman and Treasurer Joan H. Gillett Chief Financial Officer Date: September 26, 1997 -----END PRIVACY-ENHANCED MESSAGE-----