Delaware
|
80-0138937
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
Number)
|
8131
W. Grandridge Blvd. Suite 101, Kennewick WA
|
99336
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Title of each class
|
Name of Exchange on which to be so registered each class is to be
registered
|
|
Common Stock, $.001 par
value
|
N/A
|
Large accelerated filer
|
o
|
Accelerated filer
|
o
|
||
Non-accelerated filer
|
o
|
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
x
|
ITEM
1.
|
DESCRIPTION
OF BUSINESS.
|
4
|
ITEM
1A.
|
RISK
FACTORS.
|
9
|
ITEM
2.
|
FINANCIAL
INFORMATION.
|
16
|
ITEM
3.
|
DESCRIPTION
OF PROPERTY.
|
22
|
ITEM
4.
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
|
22
|
ITEM
5.
|
DIRECTORS
AND EXECUTIVE OFFICERS.
|
23
|
ITEM
6.
|
EXECUTIVE
COMPENSATION.
|
24
|
ITEM
7.
|
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS.
|
31
|
ITEM
8.
|
LEGAL
PROCEEDINGS.
|
31
|
ITEM
9.
|
MARKET
PRICE OF AND DIVIDENDS ON THE REGISTRANT’S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS.
|
31
|
ITEM
10.
|
RECENT
SALES OF UNREGISTERED SECURITIES.
|
32
|
ITEM
11.
|
DESCRIPTION
OF REGISTRANT’S SECURITIES TO BE REGISTERED.
|
33
|
ITEM
12.
|
INDEMNIFICATION
OF DIRECTORS AND OFFICERS.
|
34
|
ITEM
13.
|
FINANCIAL
STATEMENTS AND SUPPLEMENTARY DATA.
|
35
|
ITEM
14.
|
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE.
|
35
|
ITEM
15.
|
FINANCIAL
STATEMENTS AND EXHIBITS.
|
36
|
INDEX
TO EXHIBITS
|
37
|
|
SIGNATURES
|
38
|
As
of
September 27, 2006
|
||||
Cash | $ | 310,000 | ||
License fee | 3,040,000 | |||
Net assets acquired | $ | 3,350,000 |
2008
|
$ |
10,000
|
||
2009
|
$ |
15,000
|
||
2010
|
$ |
15,000
|
||
2011
|
$ |
45,000
|
||
2012
and each year thereafter
|
$ |
60,000
|
||
$ | 145,000 |
·
|
$75,000
for a patent license fee, good for the life of the patent, for the
production of Actinium 225;
|
·
|
$3,040,000
of preferred stock issuance for a patent license, good for the life of the
patent, of a Neutron Generator; and
|
|
·
|
$658,750
for the purchase of a company in order to acquire the rights of
intellectual property related to the process for the production of
isotopes, customer lists, contracts and agreements with third party
companies, and certain equipment. The amortization of these
items is computed using the straight-line method over the following
estimated useful lives:
|
Intellectual
property
|
3
years
|
Contracts
and agreements
|
3
years
|
Customer
lists
|
2
years
|
·
|
Successfully
execute our business strategy;
|
|
·
|
Respond
to competitive developments; and
|
|
·
|
Attract,
integrate, retain and motivate qualified
personnel.
|
·
|
sets
forth the basis on which the broker or dealer made the suitability
determination; and
|
|
·
|
that the broker or dealer received a signed, written agreement from the investor prior to the transaction. |
Three
Months Ended
March
31, 2009
|
Three
Months Ended
March
31, 2008
|
|||||||
Revenues
|
$
|
60,975
|
$
|
32,335
|
||||
Cost
of goods sold
|
21,836
|
17,537
|
||||||
Gross
profit
|
39,139
|
14,798
|
||||||
Operating
expenses
|
610,824
|
1,466,738
|
||||||
Operating
loss
|
(571,685
|
)
|
(1,451,940
|
)
|
||||
Non-operating
expenses
|
(606,944
|
)
|
-
|
|||||
Interest
expense
|
(181,870
|
)
|
(16,076
|
)
|
||||
Net
income (loss)
|
$
|
(1,360,499
|
)
|
$
|
(1,468,016
|
)
|
Three
Months Ended
March
31, 2009
|
Three
Months Ended
March
31, 2008
|
||||||||
Revenues
|
|||||||||
Stable
Isotopes
|
$
|
7,875
|
$
|
32,335
|
|||||
F-18
|
53,100
|
-
|
|||||||
Total
Revenue
|
$
|
60,975
|
$
|
32,335
|
|||||
Cost
of Goods Sold
|
|||||||||
Stable
Isotopes
|
$
|
6,500
|
$
|
17,537
|
|||||
F-18
|
15,336
|
-
|
|||||||
Total
Cost of Goods Sold
|
$
|
21,836
|
$
|
17,537
|
Three
Months Ended
March
31, 2009
|
Three
Months Ended
March
31, 2008
|
|||||||
Depreciation
and amortization expense
|
$
|
140,668
|
$
|
320,302
|
||||
Professional
fees
|
169,687
|
252,433
|
||||||
Stock
options granted
|
87,236
|
638,628
|
||||||
Payroll
expenses
|
100,129
|
140,924
|
||||||
General
and administrative expenses
|
112,939
|
106,753
|
||||||
Sales
and marketing expense
|
165
|
7,698
|
||||||
$
|
610,824
|
$
|
1,466,738
|
Year Ended
December 31, 2008
|
Year Ended
December 31, 2007
|
|||||||
Revenues
|
$ | 268,242 | $ | 130,055 | ||||
Cost
of goods sold
|
155,457 | 55,841 | ||||||
Gross
profit
|
112,785 | 74,214 | ||||||
Operating
expenses
|
6,052,087 | 2,664,621 | ||||||
Operating
loss
|
(5,939,302 | ) | (2,590,407 | ) | ||||
Non-operating
expenses
|
- | (40,000 | ) | |||||
Interest
expense
|
(219,453 | ) | (238,984 | ) | ||||
Net
income (loss)
|
$ | (6,158,755 | ) | $ | (2,869,391 | ) |
Year Ended
December 31, 2008
|
Year Ended
December 31, 2007
|
|||||||
Depreciation
and amortization expense
|
$ | 1,531,214 | $ | 1,135,841 | ||||
Impairment
expense
|
903,535 | - | ||||||
Professional
fees
|
1,281,557 | 607,379 | ||||||
Stock
options granted
|
1,211,392 | 592,447 | ||||||
Payroll
expenses
|
574,228 | 197,557 | ||||||
General
and administrative expenses
|
510,813 | 129,012 | ||||||
Sales
and marketing expense
|
39,348 | 2,385 | ||||||
$ | 6,052,087 | $ | 2,664,621 |
Contractual
Obligation
|
Total
Payments Due
|
Less
than 1 Year
|
1-3
Years
|
3-5
Years
|
More
than 5 Years
|
|||||||||||||||
Capital
Lease Obligation
|
$
|
2,138,852
|
$
|
352,118
|
$
|
1,213,149
|
$
|
573,585
|
$
|
-
|
||||||||||
Production
center lease
|
185,497
|
46,872
|
138,625
|
-
|
-
|
|||||||||||||||
Corporate
office lease
|
86,041
|
60,736
|
25,305
|
-
|
-
|
|||||||||||||||
License
agreement with Regents of the University of California
|
335,000
|
25,000
|
70,000
|
180,000
|
60,000
|
|||||||||||||||
Total
|
$
|
2,745,390
|
$
|
484,726
|
$
|
1,447,079
|
$
|
753,585
|
$
|
60,000
|
Twelve
months ended December 31, 2009
|
$ | 46,872 | ||
Twelve
months ended December 31, 2010
|
50,622 | |||
Twelve
months ended December 31, 2011
|
54,671 | |||
Twelve
months ended December 31, 2012
|
33,332 | |||
Total
|
$ | 185,497 |
Twelve
months ended December 31, 2009
|
$ | 60,736 | ||
Twelve
months ended December 31, 2010
|
25,305 | |||
Twelve
months ended December 31, 2011
|
- | |||
Twelve
months ended December 31, 2012
|
- | |||
Total
|
$ | 86,041 |
Name
and Address
|
Amount
and Nature of
Beneficial
Ownership (1)
|
Percentage
of Class
|
||||||
James
C. Katzaroff, CEO and Chairman
|
7,419,002
|
14.8
|
||||||
L.
Bruce Jolliff, CFO
|
550,000
|
1.1
|
||||||
Carlton
Cadwell, Director
|
18,420,145
|
37.0
|
||||||
All
Officers and Directors as a group (5 individuals)
|
29,414,147
|
52.1
|
||||||
*
less than 1 percent
|
(1)
|
In
determining beneficial ownership of our common stock as of a given date,
the number of shares shown includes shares of common stock which may be
acquired on exercise of warrants or options or conversion of convertible
securities within 60 days of that date. In determining the
percent of common stock owned by a person or entity on March 31,
2009, (a) the numerator is the number of shares of the class
beneficially owned by such person or entity, including shares which may be
acquired within 60 days on exercise of warrants or options and conversion
of convertible securities, and (b) the denominator is the sum of
(i) the total shares of common stock outstanding on March 31, 2009,
and (ii) the total number of shares that the beneficial owner may
acquire upon conversion of the preferred and on exercise of the warrants
and options. Unless otherwise stated, each beneficial owner has sole power
to vote and dispose of its shares. Beneficial ownership of
shares includes 350,000 options currently exercisable by James C.
Katzaroff and 550,000 options currently exercisable by L. Bruce Jolliff
and 100,000 options currently exercisable by Carlton
Cadwell.
|
NAME
|
AGE
|
POSITION
|
||
James
C. Katzaroff
|
51
|
CEO
and Chairman
|
||
L.
Bruce Jolliff
|
58
|
Chief
Financial Officer
|
||
Carlton
Cadwell
|
64
|
Director
|
Name & Position |
Year
|
Salary
($)
|
Bonus
($)
|
Stock
Awards ($)
|
Option
Awards
($)
|
Non-Equity
Incentive Plan Compensation ($)
|
Changes
in Pension Value and Nonqualified Deferred Compensation
Earnings
($)
|
All
Other Compensation ($)
|
Total
($)
|
|||||||||||||||||||||||||
James C. Katzaroff, |
2006
|
$
|
36,053
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
36,053
|
|||||||||||||||||
CEO and Chairman |
2007
|
$
|
112,034
|
$
|
0
|
$
|
0
|
$
|
67,215
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
179,249
|
|||||||||||||||||
2008
|
$
|
192,109
|
$
|
0
|
$
|
0
|
$
|
50,819
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
242,928
|
||||||||||||||||||
William J. Stokes, |
2006
|
$
|
0
|
$
|
0
|
$
|
105,000
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
105,000
|
|||||||||||||||||
President (1) |
2007
|
$
|
0
|
$
|
30,000
|
$
|
70,000
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
100,000
|
|||||||||||||||||
2008
|
$
|
40,000
|
$
|
8,500
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
48,500
|
||||||||||||||||||
L. Bruce Jolliff, |
2006
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
-
|
||||||||||||||||||
CFO (2) |
2007
|
$
|
101,124
|
$
|
0
|
$
|
$
|
1,046,837
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
1,147,961
|
||||||||||||||||||
2008
|
$
|
139,267
|
$
|
25,000
|
$
|
0
|
$
|
25,409
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
189,676
|
||||||||||||||||||
Fu-Min Su, |
2006
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
|||||||||||||||||
Chief Radiochemist |
2007
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
|||||||||||||||||
2008
|
$
|
74,615
|
$
|
5,000
|
$
|
76,750
|
$
|
25,409
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
181,774
|
|
(1)
|
Mr.
Stokes did not receive the compensation required by his employment
agreement. The Board of Directors issued stock awards to Mr.
Stokes in place of his salary. William J. Stokes resigned,
effective May 21, 2009, as our President citing constraints upon his
availability to continue to serve as an officer. Pursuant to
his employment agreement, we are not liable for any severance
payments to Mr. Stokes.
|
|
(2)
|
Mr.
Jolliff received an additional $1,124 and $39,267 to compensate him for
additional duties he performed that were not contemplated in his
employment contract.
|
Option
Awards
|
Stock
Awards
|
|||||||||||||||||||||||||||||||||||||||
Name
|
Grant
Date
|
Number
of Securities Underlying Unexercised Options (#)
Exercisable
|
Equity
Incentive Plan Awards: Number of Securities Underlying Unexercised
Unearned Options (#)
|
Number
of Securities Underlying Unexercised Options (#)
Unexercisable
|
Option
Exercise Price
($)
|
Option
Expiration Date
|
Number
of Shares or Units of Stock That Have Not Vested (#)
|
Market
Value of Shares or Units of Stock That Have Not Vested
($)
|
Equity
Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights
That Have Not Vested (#)
|
Equity
Incentive Awards: Market or Payout Value of Unearned Shares, Units or
Other Rights That Have Not Vested ($)
|
||||||||||||||||||||||||||||||
James
C. Katzaroff
|
1-23-07
|
250,000
|
-
|
-
|
$
|
0.29
|
1-23-2010
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||
11-26-08
|
100,000
|
-
|
-
|
$
|
0.55
|
11-26-2011
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
L.
Bruce Jolliff
|
5-16-07
|
500,000
|
-
|
1,000,000
|
$
|
0.50
|
5-16-2012
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||
11-26-08
|
50,000
|
-
|
-
|
$
|
0.55
|
11-26-2011
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Fu-Min
Su
|
11-26-08
|
50,000
|
-
|
-
|
$
|
0.55
|
11-26-2011
|
-
|
-
|
-
|
-
|
Risk-free
interest rate
|
4.79
|
%
|
||
Dividend
yield
|
0.00
|
%
|
||
Volatility
factor
|
329.1
|
%
|
||
Weighted
average expected life
|
3
years
|
Risk-free
interest rate
|
4.60
|
%
|
||
Dividend
yield
|
0.00
|
%
|
||
Volatility
factor
|
329.1
|
%
|
||
Weighted
average expected life
|
3
years
|
Risk-free
interest rate
|
4.67
|
%
|
||
Dividend
yield
|
0.00
|
%
|
||
Volatility
factor
|
257.3
|
%
|
||
Weighted
average expected life
|
5 years
|
Risk-free
interest rate
|
4.60
|
%
|
||
Dividend
yield
|
0.00
|
%
|
||
Volatility
factor
|
329.1
|
%
|
||
Weighted
average expected life
|
3
years
|
Risk-free
interest rate
|
3.49
|
%
|
||
Dividend
yield
|
0.00
|
%
|
||
Volatility
factor
|
257.3
|
%
|
||
Weighted
average expected life
|
5
years
|
Risk-free
interest rate
|
2.05
|
%
|
||
Dividend
yield
|
0.00
|
%
|
||
Volatility
factor
|
312.5
|
%
|
||
Weighted
average expected life
|
1 year
|
Risk-free
interest rate
|
2.48
|
%
|
||
Dividend
yield
|
0.00
|
%
|
||
Volatility
factor
|
257.3
|
%
|
||
Weighted
average expected life
|
5
years
|
Risk-free
interest rate
|
3.49
|
%
|
||
Dividend
yield
|
0.00
|
%
|
||
Volatility
factor
|
257.5
|
%
|
||
Weighted
average expected life
|
5
years
|
Risk-free
interest rate
|
2.87
|
%
|
||
Dividend
yield
|
0.00
|
%
|
||
Volatility
factor
|
337.6
|
%
|
||
Weighted
average expected life
|
3 years
|
·
|
Two
board members, James C. Katzaroff and Carlton Cadwell, options to purchase
an aggregate of 100,000 shares each and one board member, William E. Root,
options to purchase an aggregate of 25,000 shares of the Company’s common
stock. The fair value of the options totaled $50,819, $50,819,
and $12,705, for an aggregate of $114,343, and was recorded as stock-based
compensation in the accompanying financial statements for the year ended
December 31, 2008.
|
·
|
five
non-executive employees options to purchase the following shares: 50,000,
25,000, 10,000, 10,000, and 5,000, for an aggregate of 100,000 shares of
the Company’s common stock and our Chief Financial Officer, L. Bruce
Jolliff, options to purchase 50,000 shares of the Company’s common stock.
The fair value of the options totaled $25,409, $25,409, $12,705, $5,082,
$5,082, and $2,541, for an aggregate of $76,228, and was recorded as
stock-based compensation in the accompanying financial statements for the
year ended December 31, 2008.
|
·
|
non-employee
consultant, in exchange for financial and marketing expertise options to
purchase an aggregate of 25,000 shares of the Company’s common stock The
fair value of the options totaled $12,705 and was recorded as stock-based
compensation in the accompanying financial statements for the year ended
December 31, 2008.
|
·
|
non-employee
consultant, in exchange for his strategic business advice as an expert in
our industry, options to purchase an aggregate of 75,000 shares of the
Company’s common stock The fair value of the options totaled $38,114 and
was recorded as stock-based compensation in the accompanying financial
statements for the year ended December 31,
2008.
|
·
|
non-employee
consultant, in exchange for marketing efforts, options to purchase an
aggregate of 5,000 shares of the Company’s common stock The fair value of
the options totaled $2,541 and was recorded as stock-based compensation in
the accompanying financial statements for the year ended December 31,
2008.
|
Risk-free
interest rate
|
1.51
|
%
|
||
Dividend
yield
|
0.00
|
%
|
||
Volatility
factor
|
337.22
|
%
|
||
Weighted
average expected life
|
3
years
|
Name |
Fees
earned or paid in cash
($)
|
Stock
awards
($)
|
Option
awards
($)
|
All
other compensation
($)
|
Total
($)
|
||||||||||||||||
2006
|
- | - | $ | 17,500 | - | $ | 17,500 | ||||||||||||||
Carlton Cadwell |
2007
|
- | $ | 67,215 | - | $ | 67,215 | ||||||||||||||
2008
|
- | $ | 50,819 | - | $ | 50,819 | |||||||||||||||
2006
|
- | $ | 17,500 | - | $ | 17,500 | |||||||||||||||
William E. Root |
2007
|
- | $ | 67,215 | - | $ | 67,215 | ||||||||||||||
2008
|
- | - | $ | 12,705 | - | $ | 12,705 |
High
Bid
|
Low
Bid
|
|||||||
Fiscal
Year Ended December 31, 2006
|
||||||||
First
Fiscal Quarter
|
$
|
.01
|
$
|
.0001
|
||||
Second
Fiscal Quarter
|
.35
|
.0030
|
||||||
Third
Fiscal Quarter
|
.26
|
.0500
|
||||||
Fourth
Fiscal Quarter
|
.24
|
.1100
|
||||||
Fiscal
Year Ended December 31, 2007
|
||||||||
First
Fiscal Quarter
|
$
|
1.04
|
$
|
0.10
|
||||
Second
Fiscal Quarter
|
0.98
|
0.64
|
||||||
Third
Fiscal Quarter
|
0.87
|
0.39
|
||||||
Fourth
Fiscal Quarter
|
0.50
|
0.40
|
||||||
Fiscal
Year Ended December 31, 2008
|
||||||||
First
Fiscal Quarter
|
$
|
0.84
|
$
|
0.56
|
||||
Second
Fiscal Quarter
|
0.89
|
0.44
|
||||||
Third
Fiscal Quarter
|
0.78
|
0.35
|
||||||
Fourth
Fiscal Quarter
|
0.72
|
0.26
|
Names/Identities
of
Persons
to
whom
Securities Issued
|
Issue
Date
|
Amount
of Shares Issued
|
Price
of Shares
|
Aggregate
Value of Securities Issued ($)
|
Purpose
of Issuance
|
||||||||||
Consultant
|
May
2006
|
600,000
|
$
|
0.20
|
$
|
120,000
|
Consulting
services
|
||||||||
William
J. Stokes
|
August
2006
|
1,500,000
|
$
|
0.18
|
$
|
270,000
|
Compensation
for Officer
|
||||||||
Consultant
|
September
2006
|
250,000
|
$
|
0.18
|
$
|
45,000
|
Consulting
services
|
||||||||
Consultant
|
September
2006
|
300,000
|
$
|
0.18
|
$
|
54,000
|
Legal
services
|
||||||||
Consultant
|
September
2006
|
500,000
|
$
|
0.18
|
$
|
90,000
|
Compensation
as Chief
Scientific Officer
|
Names/Identities
of
Persons
to
whom
Securities Issued
|
Issue
Date
|
Amount
of Shares Issued
|
Price
of Shares
|
Aggregate
Value of Securities Issued ($)
|
Purpose
of Issuance
|
||||||||||
Consultant
|
February
2007
|
250,000
|
$
|
0.30
|
$
|
75,000
|
Patent
license
|
||||||||
Consultant
|
March
2007
|
250,000
|
$
|
0.87
|
$
|
217,500
|
Business
consulting services
|
||||||||
Investors
|
April
2007
|
112,277
|
$
|
0.71
|
$
|
79,717
|
Private
Offering
|
||||||||
Consultant
|
May
2007
|
250,000
|
$
|
0.07
|
$
|
120,000
|
Exercise
of Options
|
||||||||
Consultant
|
June
2007
|
160,000
|
$
|
0.75
|
$
|
120,000
|
Settlement
of Debt
|
||||||||
Carl
Cadwell
|
June
2007
|
2,215,000
|
$
|
0.40
|
$
|
850,000
|
Private
Offering
|
||||||||
Landlord
|
August
2007
|
416,667
|
$
|
0.45
|
$
|
187,500
|
Prepaid
rent
|
||||||||
Consultant
|
September
2007
|
100,000
|
$
|
0.82
|
$
|
82,000
|
Business
consulting services
|
||||||||
Consultants
|
November
2007
|
117,000
|
$
|
0.74
|
$
|
86,580
|
Legal
services
|
||||||||
Consultant
|
November
2007
|
15,000
|
$
|
0.75
|
$
|
11,250
|
Consulting
services
|
||||||||
Consultant
|
December
2007
|
25,000
|
$
|
0.75
|
$
|
18,750
|
Consulting
services
|
||||||||
Consultant
|
December
2007
|
7,000
|
$
|
0.82
|
$
|
5,740
|
Bonus
|
||||||||
William
J. Stokes
|
December
2007
|
1,000,000
|
$
|
0.07
|
$
|
70,000
|
Exercise
of Options (Company paid exercise price)
|
||||||||
Preferred
Stockholder
|
December
2007
|
299,642
|
$
|
0.56
|
$
|
167,495
|
Stock
Conversion
|
||||||||
Investors
|
January
2008
|
137,500
|
$
|
0.40
|
$
|
55,000
|
Private
Offering
|
||||||||
Consultant
|
January
2008
|
250,000
|
$
|
0.29
|
$
|
72,500
|
Exercise
of Warrants
|
||||||||
Investors
|
February
2008
|
950,000
|
$
|
0.40
|
$
|
380,000
|
Private
Offering
|
||||||||
Investors
|
February
2008
|
825,893
|
$
|
0.22
|
$
|
185,688
|
Private
Offering (received in 2007)
|
||||||||
Consultant
|
March
2008
|
299,642
|
$
|
0.78
|
$
|
233,720
|
Business
consulting services
|
||||||||
Investors
|
March
2008
|
550,700
|
$
|
0.40
|
$
|
220,280
|
Private
Offering
|
||||||||
Investors
|
April
2008
|
92,856
|
$
|
0.18
|
$
|
185,688
|
Private
Offering (received in 2007)
|
||||||||
Consultants
|
April
2008
|
310,000
|
$
|
0.75
|
$
|
232,500
|
Business
consulting services
|
||||||||
Consultant
|
July
2008
|
3,818
|
$
|
0.63
|
$
|
2,405
|
Business
consulting services
|
||||||||
Investors
|
July
2008
|
250,000
|
$
|
0.40
|
$
|
100,000
|
Private
Offering
|
||||||||
Investors
|
August
2008
|
150,000
|
$
|
0.40
|
$
|
60,000
|
Private
Offering
|
||||||||
Consultants
|
September
2008
|
100,000
|
$
|
0.55
|
$
|
54,688
|
Loan
Fee
|
||||||||
Consultant
|
October
2008
|
87,900
|
$
|
0.53
|
$
|
46,857
|
Business
consulting services
|
||||||||
Consultant
|
October
2008
|
35,000
|
$
|
0.58
|
$
|
20,300
|
Business
consulting services
|
||||||||
Consultants
|
September
2008
|
20,000
|
$
|
0.43
|
$
|
8,746
|
Loan
Fee
|
||||||||
Consultant
|
November
2008
|
129,765
|
$
|
0.17
|
$
|
72,500
|
Exercise
of Options
|
||||||||
Consultant
|
November
2008
|
35,000
|
$
|
0.35
|
$
|
15,750
|
Business
consulting services
|
||||||||
Consultant
|
November
2008
|
375,000
|
$
|
0.51
|
$
|
191,250
|
Business
consulting services
|
||||||||
Investors
|
November
2008
|
333,333
|
$
|
0.30
|
$
|
100,000
|
Private
Offering
|
||||||||
Consultant
|
December
2008
|
27,253
|
$
|
0.33
|
$
|
9,099
|
Business
consulting services
|
||||||||
Consultants
|
December
2008
|
150,000
|
$
|
0.31
|
$
|
46,053
|
Loan
Fee
|
||||||||
Consultant
|
January
2009
|
190,000
|
$
|
0.27
|
$
|
51,300
|
Accounts
payable for services
|
||||||||
Consultant
|
February
2009
|
80,000
|
$
|
0.42
|
$
|
33,600
|
Business
consulting services
|
||||||||
Consultant
|
March
2009
|
25,000
|
$
|
0.35
|
$
|
33,600
|
Business
consulting services
|
||||||||
Consultant
|
March
2009
|
150,000
|
$
|
0.35
|
$
|
52,500
|
Accounts
payable for services
|
||||||||
Consultant
|
March
2009
|
33,333
|
$
|
0.35
|
$
|
11,666
|
Business
consulting services
|
||||||||
Consultants
|
March
2009
|
40,000
|
$
|
0.28
|
$
|
11,032
|
Loan
Fee
|
||||||||
Investor
|
March
2009
|
37,037
|
$
|
0.27
|
$
|
10,000
|
Private
offering
|
||||||||
Investor
|
March
2009
|
1,500,000
|
$
|
0.15
|
$
|
225,000
|
Private
offering
|
||||||||
Investor
|
April
2009
|
55,556
|
$
|
0.27
|
$
|
15,000
|
Private
offering
|
||||||||
Investor
|
April
2009
|
525,000
|
$
|
0.20
|
$
|
105,000
|
Private
offering
|
||||||||
Investor
|
April
2009
|
50,000
|
$
|
0.31
|
$
|
15,500
|
Rent
for offices
|
||||||||
Investor | April 2009 |
20,000
|
$
|
0.35
|
$
|
7,000
|
Issued to Convertible Noteholder |
•
|
any
breach of the director's duty of loyalty to the corporation or its
stockholders;
|
•
|
acts
or omissions not in good faith or which involve intentional misconduct or
a knowing violation of law;
|
•
|
payments
of unlawful dividends or unlawful stock repurchases or redemptions;
or
|
•
|
any
transaction from which the director derived an improper personal
benefit.
|
|
1.
|
the
application of accounting principles to any specified transaction, either
completed or proposed, or the type of audit opinion that might be rendered
our financial statements, and neither a written report was provided to our
company nor oral advice was provided that HJ & Associates concluded
was an important factor considered by our company in reaching a decision
as to the accounting, auditing or financial reporting issue;
or
|
|
2.
|
any
matter that was either subject of disagreement or event, as defined in
Item 304(a)(1)(iv) of Regulation S-K and the related instruction to Item
304 of Regulation S-K, or a reportable event, as that term is explained in
Item 304(a)(1)(iv) of Regulation
S-K.
|
Page
|
|
Report
of Independent Registered Public Accounting Firm for 2008 and
2007
|
F-1
|
Financial
Statements:
|
|
Balance
Sheets as of December 31, 2008 and 2007
|
F-2
|
Statements
of Operations for the years ended December 31, 2008 and
2007
|
F-3
|
Statements
of Shareholders’ Equity (Deficit) for the years ended December 31, 2008
and 2007
|
F-4
|
Statements
of Cash Flow for the years ended December 31, 2008 and
2007
|
F-7
|
Notes
to Financial Statements for the years ended December 31, 2008 and
2007
|
F-8
|
Balance Sheets as of March 31, 2009 and December 31, 2008 |
F-32
|
Statements of Operations for the three months ended March 31, 2009 |
F-33
|
Statements of Shareholders' Equity (Deficit) for the period ended March 31, 2009 |
F-34
|
Statements of Cash Flows for the three months ended March 31, 2009 and the three months ended March 31, 2008 |
F-35
|
Notes to the Consolidated Financial Statements for the three months ended March 31, 2009 and the year ended December 31, 2008 |
F-37
|
Advanced
Medical Isotope Corporation
|
||||||||
(A
Development Stage Company)
|
||||||||
Balance
Sheets
|
||||||||
ASSETS
|
||||||||
December
31,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
Current
Assets:
|
||||||||
Cash
and cash equivalents
|
$ | 86,631 | $ | 54,508 | ||||
Accounts
receivable
|
35,747 | 12,000 | ||||||
Prepaid
expenses
|
3,000 | - | ||||||
Prepaid
expenses paid with stock, current portion
|
140,579 | 239,250 | ||||||
Inventory
|
7,100 | 28,400 | ||||||
Total
current assets
|
273,057 | 334,158 | ||||||
Fixed
assets, net of accumulated depreciation
|
2,272,784 | 875,044 | ||||||
Other
assets:
|
||||||||
License
fees, net of amortization
|
27,083 | 1,661,875 | ||||||
Intangible
assets, net of amortization
|
- | 511,701 | ||||||
Patents
|
24,594 | - | ||||||
Prepaid
expenses paid with stock, long-term portion
|
96,875 | 161,563 | ||||||
Deposits
|
155,406 | 5,928 | ||||||
Total
other assets
|
303,958 | 2,341,067 | ||||||
Total
assets
|
$ | 2,849,799 | $ | 3,550,269 | ||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY (DEFICIT)
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 580,258 | $ | 180,488 | ||||
Accrued
interest payable
|
188,956 | 171,628 | ||||||
Payroll
liabilities payable
|
9,098 | 45,163 | ||||||
Preferred
stock redeemable as common
|
3,182,405 | 3,182,405 | ||||||
Line
of credit
|
- | 40,908 | ||||||
Loan
from shareholder
|
194,599 | - | ||||||
Convertible
notes payable
|
257,481 | - | ||||||
Current
portion of capital lease obligations
|
352,119 | 86,983 | ||||||
Total
current liabilities
|
4,764,916 | 3,707,575 | ||||||
Long
term liabilities:
|
||||||||
Capital
lease obligations, net of current portion
|
1,786,734 | 581,630 | ||||||
Total
liabilities
|
6,551,650 | 4,289,205 | ||||||
Shareholders’
Equity (Deficit):
|
||||||||
Preferred
stock, $.001 par value; 100,000 authorized;
|
||||||||
95,000
and 95,000 shares issued and outstanding, respectively
|
95 | 95 | ||||||
Common
stock, $.001 par value; 100,000,000 shares authorized;
|
||||||||
36,778,611
and 31,664,631 shares issued and outstanding,
|
||||||||
respectively
|
36,779 | 31,655 | ||||||
Paid
in capital
|
9,546,087 | 6,152,861 | ||||||
Common
stock subscriptions
|
- | 202,500 | ||||||
Accumulated
deficit prior to the development stage
|
(2,884,043 | ) | (2,884,043 | ) | ||||
Deficit
accumulated during the development stage
|
(10,400,769 | ) | (4,242,014 | ) | ||||
Total
shareholders’ equity (deficit)
|
(3,701,851 | ) | (738,936 | ) | ||||
Total
liabilities and shareholders’ equity (deficit)
|
$ | 2,849,799 | $ | 3,550,269 |
From
inception of
|
||||||||||||
development
stage
|
||||||||||||
Years
ended
|
on
January 1, 2006
|
|||||||||||
December
31,
|
through
December
|
|||||||||||
|
2008
|
2007
|
31,
2008
|
|||||||||
Revenues
|
$ | 268,242 | $ | 130,055 | $ | 398,297 | ||||||
Cost
of goods sold
|
155,457 | 55,841 | 211,298 | |||||||||
Gross
profit
|
112,785 | 74,214 | 186,999 | |||||||||
Operating
expenses
|
||||||||||||
Sales
and marketing expenses
|
39,348 | 2,385 | 51,733 | |||||||||
Start
up costs
|
- | - | 62,510 | |||||||||
Amortization
expense
|
1,531,214 | 1,135,841 | 2,989,013 | |||||||||
Impairment
expense
|
903,535 | - | 903,535 | |||||||||
Professional
fees
|
1,281,557 | 607,379 | 2,468,144 | |||||||||
Stock
options granted
|
1,211,392 | 592,447 | 1,943,839 | |||||||||
Payroll
expenses
|
574,228 | 197,557 | 771,785 | |||||||||
General
and administrative expenses
|
510,813 | 129,012 | 747,750 | |||||||||
Total
operating expenses
|
6,052,087 | 2,664,621 | 9,938,310 | |||||||||
Operating
loss
|
(5,939,302 | ) | (2,590,407 | ) | (9,751,311 | ) | ||||||
Non-operating
income (expense):
|
||||||||||||
Interest
expense
|
(219,453 | ) | (238,984 | ) | (551,958 | ) | ||||||
Investment
loss
|
- | - | (28,500 | ) | ||||||||
Loss
on conversion of shareholder loan
|
- | (40,000 | ) | (69,000 | ) | |||||||
Non-operating
income
|
||||||||||||
(expense),
net
|
(219,453 | ) | (278,984 | ) | (649,458 | ) | ||||||
Loss
before Income Taxes
|
(6,158,755 | ) | (2,869,391 | ) | (10,400,769 | ) | ||||||
Income
Tax Provision
|
- | - | - | |||||||||
Net
loss
|
(6,158,755 | ) | $ | (2,869,391 | ) | $ | (10,400,769 | ) | ||||
Loss
per common share
|
$ | (0.18 | ) | $ | (0.10 | ) | ||||||
Weighted
average common shares
|
||||||||||||
outstanding
|
34,745,710 | 28,744,391 |
Deficit
|
||||||||||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||||||||||
Series
A Preferred
|
during
|
|||||||||||||||||||||||||||||||||||
Stock
|
Common
Stock
|
Paid
in
|
Subscriptions
|
Accumulated
|
development
|
|||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Receivable
|
Deficit
|
Stage
|
Total
|
||||||||||||||||||||||||||||
Balances
at December 31,
|
||||||||||||||||||||||||||||||||||||
2005,
prior to inception of
|
||||||||||||||||||||||||||||||||||||
development
stage
|
||||||||||||||||||||||||||||||||||||
company
|
- | $ | - | 23,237,045 | $ | 23,237 | $ | 2,830,806 | $ | 30,000 | $ | (2,884,043 | ) | $ | - | $ | - | |||||||||||||||||||
Common
stock issued for:
|
||||||||||||||||||||||||||||||||||||
Services
as of May 15, 2006
|
||||||||||||||||||||||||||||||||||||
($.20
per share)
|
- | - | 600,000 | 600 | 119,400 | - | - | - | 120,000 | |||||||||||||||||||||||||||
Compensation
as of August 15,
|
||||||||||||||||||||||||||||||||||||
2006
($.18 per share)
|
- | - | 1,500,000 | 1,500 | 268,500 | - | - | - | 270,000 | |||||||||||||||||||||||||||
Services
September 1, 2006
|
||||||||||||||||||||||||||||||||||||
($.18
per share)
|
- | - | 250,000 | 250 | 44,750 | - | - | - | 45,000 | |||||||||||||||||||||||||||
Debt
settlement October 10,
|
||||||||||||||||||||||||||||||||||||
2006
($.18 per share)
|
- | - | 300,000 | 300 | 53,700 | - | - | - | 54,000 | |||||||||||||||||||||||||||
Compensation
as of
|
||||||||||||||||||||||||||||||||||||
September
1, 2006
|
||||||||||||||||||||||||||||||||||||
($.18
per share)
|
- | - | 500,000 | 500 | 89,500 | - | - | - | 90,000 | |||||||||||||||||||||||||||
Issuance
of common stock
|
||||||||||||||||||||||||||||||||||||
options
August and
|
||||||||||||||||||||||||||||||||||||
September
2006 pursuant
|
||||||||||||||||||||||||||||||||||||
to
exercise of options
|
- | - | - | - | 140,000 | - | - | - | 140,000 | |||||||||||||||||||||||||||
Issuance
of shares
|
||||||||||||||||||||||||||||||||||||
December
6, 2006 for cash
|
||||||||||||||||||||||||||||||||||||
received
in 1999
|
- | - | 150,000 | 150 | 29,850 | (30,000 | ) | - | - | - | ||||||||||||||||||||||||||
Issuance
of preferred shares
|
||||||||||||||||||||||||||||||||||||
September
22, 2006 for
|
||||||||||||||||||||||||||||||||||||
acquisition
of license
|
||||||||||||||||||||||||||||||||||||
fees
|
100,000 | 100 | - | - | - | - | - | - | 100 | |||||||||||||||||||||||||||
Net
loss
|
- | - | - | - | - | - | - | (1,372,623 | ) | (1,372,623 | ) | |||||||||||||||||||||||||
Balances
at December 31,
|
||||||||||||||||||||||||||||||||||||
2006
|
100,000 | 100 | 26,537,045 | 26,537 | 3,576,506 | - | (2,884,043 | ) | (1,372,623 | ) | (653,523 | ) | ||||||||||||||||||||||||
Common
stock issued for:
|
||||||||||||||||||||||||||||||||||||
Patent
license as of
|
||||||||||||||||||||||||||||||||||||
February
2007 ($.30
|
||||||||||||||||||||||||||||||||||||
per
share)
|
- | - | 250,000 | 250 | 74,750 | - | - | - | $ | 75,000 | ||||||||||||||||||||||||||
Services
March 2007
|
||||||||||||||||||||||||||||||||||||
($.87
per share)
|
- | - | 250,000 | 250 | 217,250 | - | - | - | $ | 217,500 | ||||||||||||||||||||||||||
Cash
April 2007
|
||||||||||||||||||||||||||||||||||||
($.71
per share)
|
- | - | 112,277 | 112 | 79,605 | - | - | - | $ | 79,717 | ||||||||||||||||||||||||||
Options
exercised May
|
||||||||||||||||||||||||||||||||||||
2007
($.07 per share)
|
- | - | 250,000 | 250 | 17,250 | - | - | - | $ | 17,500 | ||||||||||||||||||||||||||
Debt
April 2007 ($.75
|
||||||||||||||||||||||||||||||||||||
per
share
|
- | - | 160,000 | 160 | 119,840 | - | - | - | $ | 120,000 | ||||||||||||||||||||||||||
Cash
June 2007 ($.40
|
||||||||||||||||||||||||||||||||||||
per
share)
|
- | - | 2,125,000 | 2,125 | 847,875 | - | - | - | 850,000 | |||||||||||||||||||||||||||
Prepaid
rent August 2007
|
||||||||||||||||||||||||||||||||||||
($.45
per share)
|
- | - | 416,667 | 417 | 187,083 | - | - | - | 187,500 | |||||||||||||||||||||||||||
Services
September 2007
|
||||||||||||||||||||||||||||||||||||
($.82
per share)
|
- | - | 100,000 | 100 | 81,900 | - | - | - | 82,000 |
Deficit
|
||||||||||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||||||||||
Series
A Preferred
|
|
during
|
||||||||||||||||||||||||||||||||||
Stock
|
Common
Stock
|
Paid
in
|
Subscriptions
|
Accumulated
|
development
|
|||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Receivable
|
Deficit
|
Stage
|
Total
|
||||||||||||||||||||||||||||
Services
November 2007
|
||||||||||||||||||||||||||||||||||||
($.74
per share)
|
- | - | 117,000 | 117 | 86,463 | - | - | - | 86,580 | |||||||||||||||||||||||||||
Services
November 2007
|
||||||||||||||||||||||||||||||||||||
($.75
per share)
|
- | - | 15,000 | 15 | 11,235 | - | - | - | 11,250 | |||||||||||||||||||||||||||
Services
December 2007
|
||||||||||||||||||||||||||||||||||||
($.75
per share)
|
- | - | 25,000 | 25 | 18,725 | - | - | - | 18,750 | |||||||||||||||||||||||||||
Options
exercised December
|
||||||||||||||||||||||||||||||||||||
2007
($.07 per share)
|
- | - | 1,000,000 | 1,000 | 69,000 | - | - | - | 70,000 | |||||||||||||||||||||||||||
Services
December 2007
|
||||||||||||||||||||||||||||||||||||
($.82
per share)
|
- | - | 7,000 | 7 | 5,733 | - | - | - | 5,740 | |||||||||||||||||||||||||||
Convert
5,000 convertible
|
||||||||||||||||||||||||||||||||||||
preferred
shares ($.559
|
||||||||||||||||||||||||||||||||||||
per
share)
|
(5,000 | ) | (5 | ) | 299,642 | 300 | 167,200 | - | - | - | 167,495 | |||||||||||||||||||||||||
Cash
received July 2007 for
|
||||||||||||||||||||||||||||||||||||
shares
issued in 2008
|
- | - | - | - | - | 10,000 | - | - | 10,000 | |||||||||||||||||||||||||||
Cash
received August 2007
|
||||||||||||||||||||||||||||||||||||
for
shares issued in 2008
|
- | - | - | - | - | 20,000 | - | - | 20,000 | |||||||||||||||||||||||||||
Cash
received September
|
||||||||||||||||||||||||||||||||||||
2007
for shares issued in
|
||||||||||||||||||||||||||||||||||||
2008
|
- | - | - | - | - | 17,500 | - | - | 17,500 | |||||||||||||||||||||||||||
Cash
received November
|
||||||||||||||||||||||||||||||||||||
2007
for shares issued in
|
||||||||||||||||||||||||||||||||||||
2008
|
- | - | - | - | - | 150,000 | - | - | 150,000 | |||||||||||||||||||||||||||
Cash
received December
|
||||||||||||||||||||||||||||||||||||
2007
for shares issued in
|
||||||||||||||||||||||||||||||||||||
2008
|
- | - | - | - | - | 5,000 | - | - | 5,000 | |||||||||||||||||||||||||||
Granting
of common stock
|
||||||||||||||||||||||||||||||||||||
options
December 2007
|
- | - | - | - | 592,446 | - | - | - | 592,446 | |||||||||||||||||||||||||||
Net
loss
|
- | - | - | - | - | - | - | (2,869,391 | ) | (2,869,391 | ) | |||||||||||||||||||||||||
Balances
at December 31,
|
||||||||||||||||||||||||||||||||||||
2007
|
95,000 | 95 | 31,664,631 | 31,665 | 6,152,861 | 202,500 | (2,884,043 | ) | (4,242,014 | ) | (738,936 | ) | ||||||||||||||||||||||||
Common
stock issued for:
|
||||||||||||||||||||||||||||||||||||
Cash
January 2008 ($.40
|
||||||||||||||||||||||||||||||||||||
per
share)
|
- | - | 137,500 | 137 | 54,863 | - | - | - | 55,000 | |||||||||||||||||||||||||||
Options
exercised 2008
|
||||||||||||||||||||||||||||||||||||
($.29
per share)
|
- | - | 250,000 | 250 | 72,250 | - | - | - | 72,500 | |||||||||||||||||||||||||||
Cash
February 2008
|
||||||||||||||||||||||||||||||||||||
($.40
per share)
|
- | - | 950,000 | 950 | 379,050 | - | - | - | 380,000 | |||||||||||||||||||||||||||
Services
March 2008
|
||||||||||||||||||||||||||||||||||||
($.78
per share)
|
- | - | 299,642 | 299 | 233,421 | - | - | - | 233,720 | |||||||||||||||||||||||||||
Cash
March 2008
|
||||||||||||||||||||||||||||||||||||
($.40
per share)
|
- | - | 550,700 | 551 | 219,729 | - | - | - | 220,280 | |||||||||||||||||||||||||||
Services
April 2008
|
||||||||||||||||||||||||||||||||||||
($.75
per share)
|
- | - | 310,000 | 310 | 232,190 | - | - | - | 232,500 | |||||||||||||||||||||||||||
Services
July 2008
|
||||||||||||||||||||||||||||||||||||
($.63
per share)
|
- | - | 3,818 | 4 | 2,401 | - | - | - | 2,405 | |||||||||||||||||||||||||||
Cash
July 2008 ($.40
|
||||||||||||||||||||||||||||||||||||
per
share
|
- | - | 250,000 | 250 | 99,750 | - | - | - | 100,000 | |||||||||||||||||||||||||||
Cash
August 2008
|
||||||||||||||||||||||||||||||||||||
($.40
per share)
|
- | - | 150,000 | 150 | 59,850 | - | - | - | 60,000 | |||||||||||||||||||||||||||
Loan
fee September 2008
|
||||||||||||||||||||||||||||||||||||
($.55
per share)
|
- | - | 100,000 | 100 | 54,588 | - | - | - | 54,688 |
Deficit
|
||||||||||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||||||||||
Series
A Preferred
|
|
during
|
||||||||||||||||||||||||||||||||||
Stock
|
Common
Stock
|
Paid
in
|
Subscriptions
|
Accumulated
|
development
|
|||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Receivable
|
Deficit
|
Stage
|
Total
|
||||||||||||||||||||||||||||
Services
October 2008
|
||||||||||||||||||||||||||||||||||||
($.53
per share)
|
- | - | 87,900 | 88 | 46,499 | - | - | - | 46,587 | |||||||||||||||||||||||||||
Services
October 2008
|
||||||||||||||||||||||||||||||||||||
($.58
per share)
|
- | - | 35,000 | 35 | 20,265 | - | - | - | 20,300 | |||||||||||||||||||||||||||
Loan
fee November 2008
|
||||||||||||||||||||||||||||||||||||
($.43
per share)
|
- | - | 20,000 | 20 | 8,726 | - | - | - | 8,746 | |||||||||||||||||||||||||||
Options
exercised November
|
||||||||||||||||||||||||||||||||||||
2008
($.17 per share)
|
- | - | 129,765 | 130 | 21,930 | - | - | - | 22,060 | |||||||||||||||||||||||||||
Services
November 2008
|
||||||||||||||||||||||||||||||||||||
($.45
per share)
|
- | - | 35,000 | 35 | 15,715 | - | - | - | 15,750 | |||||||||||||||||||||||||||
Services
November 2008
|
||||||||||||||||||||||||||||||||||||
($.51
per share)
|
- | - | 375,000 | 375 | 190,875 | - | - | - | 191,250 | |||||||||||||||||||||||||||
Cash
November 2008
|
||||||||||||||||||||||||||||||||||||
($.30
per share)
|
- | - | 333,333 | 333 | 99,667 | - | - | - | 100,000 | |||||||||||||||||||||||||||
Services
December 2008
|
||||||||||||||||||||||||||||||||||||
($.33
per share)
|
- | - | 27,573 | 28 | 9,072 | - | - | - | 9,099 | |||||||||||||||||||||||||||
Loan
fee December 2008
|
||||||||||||||||||||||||||||||||||||
($.31
per share)
|
- | - | 150,000 | 150 | 45,903 | - | - | - | 46,053 | |||||||||||||||||||||||||||
Issuance
of shares February,
|
||||||||||||||||||||||||||||||||||||
2008
for cash received
|
||||||||||||||||||||||||||||||||||||
in
2007
|
- | - | 825,893 | 826 | 184,862 | (185,688 | ) | - | - | - | ||||||||||||||||||||||||||
Stock
offering costs March,
|
||||||||||||||||||||||||||||||||||||
2008
|
- | - | - | - | (233,720 | ) | - | - | - | (233,720 | ) | |||||||||||||||||||||||||
Issuance
of shares April,
|
||||||||||||||||||||||||||||||||||||
2008
for cash received
|
||||||||||||||||||||||||||||||||||||
in
2007
|
- | - | 92,856 | 93 | 16,719 | (16,812 | ) | - | - | - | ||||||||||||||||||||||||||
Granting
of stock options
|
||||||||||||||||||||||||||||||||||||
June
2008
|
- | - | - | - | 753,140 | - | - | - | 753,140 | |||||||||||||||||||||||||||
Granting
of stock options
|
||||||||||||||||||||||||||||||||||||
September
2008
|
- | - | - | - | 127,086 | - | - | - | 127,086 | |||||||||||||||||||||||||||
Granting
of stock options
|
||||||||||||||||||||||||||||||||||||
December
2008
|
- | - | - | - | 331,166 | - | - | - | 331,166 | |||||||||||||||||||||||||||
Intrinsic
value of convertible
|
||||||||||||||||||||||||||||||||||||
debt
issued October 2008
|
- | - | - | - | 24,996 | - | - | - | 24,996 | |||||||||||||||||||||||||||
Intrinsic
value of convertible
|
||||||||||||||||||||||||||||||||||||
debt
issued November 2008
|
- | - | - | - | 322,234 | - | - | - | 322,234 | |||||||||||||||||||||||||||
Net
Loss
|
- | - | - | - | - | - | - | (6,158,755 | ) | (6,158,755 | ) | |||||||||||||||||||||||||
Balances
at December 31,
|
||||||||||||||||||||||||||||||||||||
2008
|
95,000 | $ | 95 | 36,778,611 | $ | 36,778 | $ | 9,546,088 | - | $ | (2,884,043 | ) | $ | (10,400,769 | ) | $ | (3,701,851) |
From
inception of
|
||||||||||||
development
stage on
|
||||||||||||
Year
ended
|
Year
ended
|
January
1, 2006 through
|
||||||||||
December 31, 2008
|
December 31, 2007
|
December 31, 2008
|
||||||||||
CASH
FLOW FROM OPERATING ACTIVITIES:
|
||||||||||||
Net
Loss
|
$ | (6,158,755 | ) | $ | (2,869,391 | ) | $ | (10,400,769 | ) | |||
Adjustments
to reconcile net loss to net cash
|
||||||||||||
used
by operating activities:
|
||||||||||||
Depreciation
of fixed assets
|
288,256 | 22,313 | 310,569 | |||||||||
Amortization
of licenses and intangible assets
|
1,242,958 | 1,135,841 | 2,700,757 | |||||||||
Amortization
of prepaid expense paid with stock
|
208,609 | 247,688 | 533,797 | |||||||||
Amortization
of debt discount
|
39,198 | - | 39,198 | |||||||||
Impairment
of intangible assets
|
903,535 | - | 903,535 | |||||||||
Common
stock issued for services
|
1,211,392 | 118,320 | 1,743,712 | |||||||||
Stock
options issued for services
|
347,422 | 592,447 | 1,079,869 | |||||||||
Stock
issued for repairs and maintenance
|
7,875 | - | 7,875 | |||||||||
Loss
on conversion of shareholder loan
|
- | 40,000 | 40,000 | |||||||||
Changes
in operating assets and liabilities:
|
||||||||||||
Accounts
receivable
|
(23,747 | ) | (12,000 | ) | (35,747 | ) | ||||||
Inventory
|
21,300 | (28,400 | ) | (7,100 | ) | |||||||
Prepaid
expenses
|
(3,000 | ) | - | (3,000 | ) | |||||||
Deposits
|
(149,478 | ) | (5,930 | ) | (155,408 | ) | ||||||
Accounts
payable
|
326,530 | 180,489 | 507,019 | |||||||||
Payroll
liabilities
|
(36,065 | ) | 45,163 | 9,098 | ||||||||
Stock
based consulting fees payable
|
212,644 | - | 212,644 | |||||||||
Accrued
interest
|
17,328 | 125,565 | 188,956 | |||||||||
Accrued
interest (rolled into notes payable)
|
- | 94,917 | 142,375 | |||||||||
Net
cash used by operating activities
|
(1,543,998 | ) | (312,978 | ) | (2,182,620 | ) | ||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Cash
acquired from investment
|
- | - | 310,000 | |||||||||
Cash
used to acquire equipment
|
(1,685,996 | ) | (897,357 | ) | (2,583,353 | ) | ||||||
Cash
used to acquire patents
|
(24,594 | ) | - | (24,594 | ) | |||||||
Cash
used to acquire intangible assets
|
- | (658,750 | ) | (658,750 | ) | |||||||
Net
cash provided by investing activities
|
(1,710,590 | ) | (1,556,107 | ) | (2,956,697 | ) | ||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Proceeds
received from bank line of credit
|
179,000 | 40,908 | 219,908 | |||||||||
Payments
on line of credit
|
(219,908 | ) | - | (219,908 | ) | |||||||
Proceeds
from Washington Trust debt
|
199,908 | - | 199,908 | |||||||||
Payments
on Washington Trust debt
|
(5,309 | ) | - | (5,309 | ) | |||||||
Proceeds
from convertible debt
|
675,000 | - | 675,000 | |||||||||
Proceeds
from officers related party debt
|
48,000 | - | 48,000 | |||||||||
Payments
on officer related party debt
|
(48,000 | ) | - | (48,000 | ) | |||||||
Proceeds
from capital lease
|
1,748,142 | 697,014 | 2,445,156 | |||||||||
Principal
payments on capital lease
|
(277,902 | ) | (28,401 | ) | (306,303 | ) | ||||||
Proceeds
received from shareholder loan
|
- | 50,000 | 80,000 | |||||||||
Proceeds
from cash sales of common shares
|
915,280 | 894,716 | 1,809,996 | |||||||||
Proceeds
from exercise of options and warrants
|
72,500 | 52,500 | 125,000 | |||||||||
Proceeds
from subscription shares payable
|
- | 202,500 | 202,500 | |||||||||
Net
cash provided by financing activities
|
3,286,711 | 1,909,237 | 5,225,948 | |||||||||
Net
increase in cash and cash equivalents
|
32,123 | 40,152 | 86,631 | |||||||||
Cash
and cash equivalents, beginning of period
|
54,508 | 14,356 | - | |||||||||
CASH
AND CASH EQUIVALENTS, END OF PERIOD
|
$ | 86,631 | $ | 54,508 | $ | 86,631 | ||||||
Supplemental
disclosures of cash flow information:
|
||||||||||||
Cash
paid for interest
|
$ | 25,772 | $ | 18,502 | $ | 44,274 | ||||||
Cash
paid for income taxes
|
$ | - | $ | - | $ | - |
Production
equipment
|
3
to 7 years
|
Office
equipment
|
2
to 5 years
|
Furniture
and fixtures
|
2
to 5 years
|
|
·
|
A
significant decrease in the market price of a live-lived
asset.
|
|
·
|
A
significant adverse change in the extent or manner in which a long-lived
asset is being used or in its physical
condition.
|
|
·
|
A
significant adverse change in legal factors or in the business climate
that could affect the value of a long-lived asset, including an adverse
action or assessment by a
regulator.
|
|
·
|
An
accumulation of costs significantly in excess of the amount originally
expected for the acquisition or construction of a long-lived
asset.
|
|
·
|
A
current period operating or cash flow loss combined with a history of
operating or cash flow losses or a projection or forecast that
demonstrates continuing losses associated with the use of a long-lived
asset.
|
|
·
|
A
current expectation that, more likely than not, a long-lived asset will be
sold or otherwise disposed of significantly before the end of its
previously estimated useful life.
|
Intellectual
property
|
3
years
|
Contracts
and agreements
|
3
years
|
Customer
lists
|
2 years |
2008
|
2007
|
|||||||
Convertible debt | 1,269,541 | - | ||||||
Preferred
stock
|
7,577,381 | 4,700,358 | ||||||
Common
stock options
|
5,609,021 | 5,447,400 | ||||||
Total
potential dilutive securities
|
14,455,943 | 10,147,758 |
2008
|
2007
|
|||||||
Production
equipment
|
$ | 2,113,218 | $ | 191,250 | ||||
Building
|
446,772 | - | ||||||
Office
equipment
|
20,128 | - | ||||||
Leasehold
improvements
|
3,235 | - | ||||||
Construction
in progress
|
- | 706,107 | ||||||
2,583,353 | 897,357 | |||||||
Less
accumulated depreciation
|
(310,569 | ) | (22,313 | ) | ||||
$ | 2,272,784 | $ | 875,044 |
December
31, 2008
|
December
31, 2007
|
|||||||
Production
equipment
|
$ | 252,759 | $ | 22,313 | ||||
Building
|
54,707 | - | ||||||
Leasehold
improvements
|
560 | - | ||||||
Office
equipment
|
2,543 | - | ||||||
Construction
in progress
|
- | - | ||||||
$ | 310,569 | $ | 22,313 |
2008
|
2007
|
|||||||
Intellectual
property
|
$ | 250,750 | $ | 250,750 | ||||
Contracts
and agreements
|
213,000 | 213,000 | ||||||
Customer
lists
|
195,000 | 195,000 | ||||||
658,750 | 658,750 | |||||||
Less
accumulated amortization
|
(658,750 | ) | (147,049 | ) | ||||
$ | - | $ | 511,701 |
Production
Facility
|
Corporate
Offices
|
Total
|
||||||||||
Twelve months ended December 31, 2009 | $ | 46,872 | $ | 60,736 | $ | 107,608 | ||||||
Twelve months ended December 31, 2010 | 50,622 | 25,305 | 75,927 | |||||||||
Twelve months ended December 31, 2011 | 54,671 | - | 54,671 | |||||||||
Twelve months ended December 31, 2012 | 33,332 | - | 33,332 | |||||||||
Total | $ | 185,497 | $ | 86,041 | $ | 271,538 |
December 31,
|
|||||||||
2008
|
2007
|
||||||||
ABI
|
$ | - | $ | 15,147 | |||||
Office
and warehouse lease effective August 1, 2007
|
|||||||||
Monthly
rental payments
|
43,400 | 17,500 | |||||||
Rental
expense in the form of stock issuance
|
37,500 | 15,625 | |||||||
Corporate
office
|
31,708 | - | |||||||
Total
Rental Expense
|
$ | 112,608 | $ | 28,397 |
Intellectual
property related to the production of Indium-111 as
focused
|
||||||||
on
the chemical separation of Indium from a Cadmium-112
target
|
$ | 70,750 | ||||||
Consulting
expense incurred by Isonics for training of Indium-111
production
|
150,000 | |||||||
License
fees paid by Isonics for Indium-111 production
|
30,000 | |||||||
Customer
list associated with the Indium-111 production
|
65,000 | |||||||
Total
purchase price allocated to Indium-111 production
|
315,750 | |||||||
Contract
with Kurchatov Institute dated July 14, 2004 for the
purchase
|
||||||||
Of
Actinium-225
|
71,000 | |||||||
Contract
with Institute for Physics and Power Engineering for the
|
||||||||
Purchase
of Actinium-225
|
71,000 | |||||||
Customer
list associated with the purchases of Actinium-225
|
65,000 | |||||||
Total
purchase price allocated to Actinium-225 purchases
|
207,000 | |||||||
Service
Agreement with Global Scientific Technologies and Center
of
|
||||||||
Molecular
Research in connection with the production, marketing,
|
||||||||
and
sale of Oxygen-18
|
71,000 | |||||||
Customer
list associated with the sale of Oxygen-18
|
65,000 | |||||||
Total
purchase price allocated to Oxygen-18 production
|
||||||||
and
marketing
|
136,000 | |||||||
Equipment
located at Central Radiopharmaceutical Services, Buffalo, New
York
|
191,250 | |||||||
$ | 850,000 |
As
of
|
||||
September
27, 2006
|
||||
Cash
|
$ | 310,000 | ||
License
fee
|
3,040,000 | |||
Net
assets acquired
|
$ | 3,350,000 |
|
·
|
$25,000
License Issue Fee, described above;
|
|
·
|
$25,000
upon submission by University of California to U.S. Federal Drug
Administration (or comparable agency) of either notification of or request
for approval of (as applicable), a Licensed
Product;
|
|
·
|
$100,000
upon satisfaction of necessary requirements (e.g., notification or receipt
of approval, as applicable) by Federal Drug Administration (or comparable
agency) for commercial sale of a Licensed
Product;
|
|
·
|
Royalties
equal to the greater of three percent of the Selling Price of each
Licensed Product Licensee sells or the maintenance fee according to the
following schedule:
|
2006
|
$ | 0 | ||
2007
|
|
$ | 0 | |
2008
|
$ | 10,000 | (not yet paid) | |
2009
|
$ | 15,000 | ||
2010
|
$ | 15,000 | ||
2011
|
$ | 45,000 | ||
2012
and each year thereafter
|
$ | 60,000 |
2009
|
$ | 140,579 | ||
2010
|
37,500 | |||
2011
|
37,500 | |||
2012
|
21,875 | |||
$ | 237,454 |
Capital
Lease Obligation
|
||||||||||||
PET
Isotope Production System
|
Ancillary
Equipment
|
Total
|
||||||||||
Total
lease commitment
|
$ | 1,875,000 | $ | 933,888 | $ | 2,808,888 | ||||||
Advances
made for purchases
|
$ | 1,511,268 | $ | 933,888 | $ | 2,445,156 | ||||||
Principal
portion of payments
|
179,337 | 126,966 | 306,303 | |||||||||
Net
balance of advances payable
|
$ | 1,331,931 | $ | 806,922 | $ | 2,138,853 | ||||||
Add
factor to arrive at total future
minimum
lease payments
|
372,139 | 153,788 | 525,927 | |||||||||
Total
future minimum lease payments
|
1,704,070 | 960,710 | 2,664,780 | |||||||||
Less
amount representing interest
|
372,139 | 153,788 | 525,927 | |||||||||
Present
value of net minimum lease
payments
|
1,331,931 | 806,922 | 2,138,853 | |||||||||
Less
amounts due within one year
|
182,750 | 169,369 | 352,119 | |||||||||
Amounts
due after one year
|
$ | 1,149,181 | $ | 637,552 | $ | 1,786,733 |
December 31,
|
||||||||
2008
|
2007
|
|||||||
Net
loss
|
$ | (6,158,755 | ) | $ | (2,869,391 | ) | ||
Add
(subtract)
|
||||||||
Interest
|
219,453 | 238,984 | ||||||
Depreciation
and amortization
|
1,531,214 | 1,135,841 | ||||||
Unfunded
capital expenditures
|
(72,485 | ) | (191,347 | ) | ||||
Capital
injections
|
(1,838,188 | ) | - | |||||
$ | (6,318,761 | ) | $ | (1,685,913 | ) | |||
Interest
plus current portion of long-term debt
|
571,572 | 325,967 | ||||||
Debt
service coverage ratio
|
$ | 0.000 | $ | 0.000 |
Year ended December 31,
|
Production Facility
|
Ancillary Equipment
|
||||||
2009
|
$ | 182,749 | $ | 169,369 | ||||
2010
|
193,384 | 180,983 | ||||||
2011
|
210,776 | 197,115 | ||||||
2012
|
229,554 | 201,337 | ||||||
2013
|
250,378 | 58,117 | ||||||
Thereafter
|
265,090 | - | ||||||
$ | 1,331,931 | $ | 806,921 |
2008
|
2007
|
|||||||
Deferred
tax assets:
|
||||||||
Net
operating loss carryover
|
$ | 4,133,788 | $ | 1,395,015 | ||||
Deferred
tax liabilities:
|
||||||||
Depreciation
|
(683,007 | ) | (383,664 | ) | ||||
Valuation
allowance
|
(3,450,781 | ) | (1,011,351 | ) | ||||
Net
deferred tax asset
|
$ | - | $ | - |
2008
|
2007
|
|||||||
Book
income
|
$ | (2,401,914 | ) | $ | (535,323 | ) | ||
Depreciation
|
(498,618 | ) | 69,060 | |||||
Meals
and entertainment
|
3,595 | 587 | ||||||
Stock
for services
|
285,158 | 75,660 | ||||||
Options
expense
|
472,443 | - | ||||||
Officers
life insurance
|
2,094 | - | ||||||
Gain/loss
on disposal
|
(693,666 | ) | - | |||||
Valuation
allowance
|
2,830,908 | 390,016 | ||||||
$ | - | $ | - |
Risk-free
interest rate
|
4.77 | % | ||
Dividend
yield
|
0.00 | % | ||
Volatility
factor
|
404.0 | % | ||
Weighted
average expected life
|
2
years
|
Risk-free
interest rate
|
4.69 | % | ||
Dividend
yield
|
0.00 | % | ||
Volatility
factor
|
325.0 | % | ||
Weighted
average expected life
|
3
years
|
Risk-free
interest rate
|
4.79 | % | ||
Dividend
yield
|
0.00 | % | ||
Volatility
factor
|
329.1 | % | ||
Weighted
average expected life
|
3
years
|
Risk-free
interest rate
|
4.60 | % | ||
Dividend
yield
|
0.00 | % | ||
Volatility
factor
|
329.1 | % | ||
Weighted
average expected life
|
3
years
|
Risk-free
interest rate
|
4.67 | % | ||
Dividend
yield
|
0.00 | % | ||
Volatility
factor
|
257.3 | % | ||
Weighted
average expected life
|
5
years
|
Risk-free
interest rate
|
3.49 | % | ||
Dividend
yield
|
0.00 | % | ||
Volatility
factor
|
257.3 | % | ||
Weighted
average expected life
|
5
years
|
Risk-free
interest rate
|
2.05 | % | ||
Dividend
yield
|
0.00 | % | ||
Volatility
factor
|
312.5 | % | ||
Weighted
average expected life
|
1 year
|
Risk-free
interest rate
|
2.48 | % | ||
Dividend
yield
|
0.00 | % | ||
Volatility
factor
|
257.3 | % | ||
Weighted
average expected life
|
5
years
|
Risk-free
interest rate
|
3.49 | % | ||
Dividend
yield
|
0.00 | % | ||
Volatility
factor
|
257.5 | % | ||
Weighted
average expected life
|
5
years
|
Risk-free
interest rate
|
2.87 | % | ||
Dividend
yield
|
0.00 | % | ||
Volatility
factor
|
337.6 | % | ||
Weighted
average expected life
|
3 years
|
Risk-free
interest rate
|
1.51 | % | ||
Dividend
yield
|
0.00 | % | ||
Volatility
factor
|
337.2 | % | ||
Weighted
average expected life
|
3 years
|
Risk-free
interest rate
|
1.51 | % | ||
Dividend
yield
|
0.00 | % | ||
Volatility
factor
|
337.2 | % | ||
Weighted
average expected life
|
3
years
|
Risk-free
interest rate
|
1.51 | % | ||
Dividend
yield
|
0.00 | % | ||
Volatility
factor
|
337.2 | % | ||
Weighted
average expected life
|
3 years
|
Weighted
|
Weighted
|
|||||||||||||||||||
Options Outstanding
|
Average
|
Average
|
||||||||||||||||||
Number
|
Exercise
|
Remaining
|
Aggregate
|
Exercise
|
||||||||||||||||
Of
|
Price
|
Contractual
|
Intrinsic
|
Price
|
||||||||||||||||
Shares
|
Per Share
|
Life
|
Value
|
Per Share
|
||||||||||||||||
Balance
at December 31, 2005
|
- | $ | 0.00 | - | $ | - | $ | - | ||||||||||||
Options
granted
|
2,000,000 | 0.07-0.15 |
2.52 years
|
0.00 | 0.08 | |||||||||||||||
Balance
at December 31, 2006
|
2,000,000 | 0.07-0.15 |
2.52
years
|
0.00 | 0.08 | |||||||||||||||
Options
granted
|
4,947,400 | 0.17-1.05 |
1.99
years
|
402,320 | 0.56 | |||||||||||||||
Options
exercised
|
(1,750,000 | ) | 0.07 |
2.6
years
|
0.00 | 0.07 | ||||||||||||||
Options
expired
|
- | - | - | - | - | |||||||||||||||
Balance
at December 31, 2007
|
5,197,400 | $ | 0.15-1.05 |
2.03
years
|
$ | 402,320 | $ | 0.56 | ||||||||||||
Options
granted
|
3,516,386 | 0.17-1.05 |
1.50
years
|
91,953 | 0.93 | |||||||||||||||
Options
exercised
|
(379,765 | ) | 0.17-0.29 |
3.0
years
|
-72,244 | 0.25 | ||||||||||||||
Options
expired
|
(2,725,000 | ) | 0.15-1.05 |
1.09 years
|
0.00 | 0.69 | ||||||||||||||
Balance
at December 31, 2008
|
5,609,021 | $ | 0.15-1.05 |
1.52 years
|
$ | 422,029 | $ | 0.75 | ||||||||||||
Exercisable
at December 31, 2006
|
2,000,000 | $ | 0.07-0.15 |
2.52
years
|
$ | 0.00 | $ | 0.08 | ||||||||||||
Exercisable
at December 31, 2007
|
5,197,400 | $ | 0.15-1.05 |
2.03
years
|
$ | 402,300 | $ | 0.56 | ||||||||||||
Exercisable
at December 31, 2008
|
5,609,021 | $ | 0.15-1.05 |
1.52
years
|
$ | 422,029 | $ | 0.75 |
|
·
|
Increased
prepaid expense paid with stock by $45,250, increased common stock by $87,
and increased paid in capital by
$45,163.
|
|
·
|
Increased
stock based consulting fee payable by $117,344, increased common stock by
$241, and increased paid in capital by
$117,103.
|
|
·
|
Decreased
accounts payable $22,060, and increased common stock $130, and increased
paid in capital $21,930.
|
|
·
|
Decreased
common stock subscriptions by $202,500, increased common stock by $919,
increased paid in capital by
$201,581.
|
|
·
|
Increased
prepaid expense paid with stock by $561,000, increased common stock by
$867, and increased paid in capital by
$560,133.
|
|
·
|
Increased
patent license fee by $75,000, increased common stock by $250, and
increased paid in capital by
$74,750.
|
|
·
|
Increased
common stock by $160, increased paid in capital by $119,840, decreased
note payable – related party by $80,000, and increased loss on debt
extinguishment by $40,000.
|
|
·
|
Increased
common stock by $300, increased paid in capital by $167,200, decreased
preferred stock redeemable as common by $167,495, and decreased
convertible preferred stock by $5.
|
|
·
|
Increased
prepaid consulting by $165,000, increased common stock by $850, and
increased paid in capital by
$164,150.
|
|
·
|
Increased
preferred stock redeemable as common by $3,207,525, increased convertible
preferred stock by $100, and increased license fees by
$2,897,625.
|
|
·
|
Increased
common stock subscription payable and paid in capital by
$30,000.
|
Advanced
Medical Isotope Corporation
|
||||||||
(A
Development Stage Company)
|
||||||||
Balance
Sheets
|
||||||||
March
31,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
(unaudited)
|
||||||||
ASSETS
|
||||||||
Current
Assets:
|
||||||||
Cash
and cash equivalents
|
$
|
221,170
|
$
|
86,631
|
||||
Accounts
receivable
|
12,600
|
35,747
|
||||||
Prepaid
expenses
|
4,042
|
3,000
|
||||||
Prepaid
expenses paid with stock, current portion
|
73,969
|
140,579
|
||||||
Inventory
|
888
|
7,100
|
||||||
Total
current assets
|
312,669
|
273,057
|
||||||
Fixed
assets, net of accumulated depreciation
|
2,138,366
|
2,272,784
|
||||||
Other
assets:
|
||||||||
License
fees, net of amortization
|
20,833
|
27,083
|
||||||
Patents
|
25,192
|
24,594
|
||||||
Prepaid
expenses paid with stock, long-term portion
|
87,500
|
96,875
|
||||||
Deposits
|
180,406
|
155,406
|
||||||
Total
other assets
|
313,931
|
303,958
|
||||||
Total
assets
|
$
|
2,764,966
|
2,849,799
|
|||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
(DEFICIT)
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$
|
491,447
|
$
|
580,258
|
||||
Accrued
interest payable
|
35,418
|
188,956
|
||||||
Payroll
liabilities payable
|
5,900
|
9,098
|
||||||
Preferred
stock redeemable as common
|
-
|
3,182,405
|
||||||
Loans
from shareholder
|
204,335
|
194,599
|
||||||
Convertible
notes payable
|
447,322
|
257,481
|
||||||
Current
portion of capital lease obligations
|
2,097,934
|
2,138,853
|
||||||
Total
current liabilities
|
3,282,356
|
6,551,650
|
||||||
Long
term liabilities:
|
||||||||
Capital
lease obligations, net of current portion
|
-
|
-
|
||||||
Total
liabilities
|
3,282,356
|
6,551,650
|
||||||
Shareholders’
Equity (Deficit):
|
||||||||
Preferred
stock, $.001 par value; 100,000 authorized;
|
||||||||
0
and 95,000 shares issued and outstanding, respectively
|
-
|
95
|
||||||
Common
stock, $.001 par value; 100,000,000 shares authorized;
|
||||||||
49,691,124
and 36,778,612 shares issued and outstanding,
|
||||||||
respectively
|
49,691
|
36,779
|
||||||
Subscriptions
receivable
|
-
|
|||||||
Paid
in capital
|
14,078,230
|
9,546,087
|
||||||
Accumulated
deficit prior to the development stage
|
(2,884,043
|
)
|
(2,884,043
|
)
|
||||
Deficit
accumulated during the development stage
|
(11,761,268
|
)
|
(10,400,769
|
)
|
||||
Total
shareholders’ equity (deficit)
|
(517,390
|
)
|
(3,701,851
|
)
|
||||
Total
liabilities and shareholders’ equity
(deficit)
|
$
|
2,764,966
|
)
|
$
|
2,849,799
|
)
|
Advanced
Medical Isotope Corporation
|
||||||||||||
(A
Development Stage Company)
|
||||||||||||
Statements
of Operations
|
||||||||||||
(unaudited)
|
||||||||||||
Three
months ended
March
31,
|
From
inception of development stage on January 1, 2006 through March
31,
|
|||||||||||
2009
|
2008
|
2009
|
||||||||||
Revenues
|
$
|
60,975
|
$
|
32,335
|
$
|
459,272
|
||||||
Cost
of goods sold
|
21,836
|
17,537
|
233,134
|
|||||||||
Gross
profit
|
39,139
|
14,798
|
226,138
|
|||||||||
Operating
expenses
|
||||||||||||
Sales
and marketing expenses
|
165
|
7,698
|
51,898
|
|||||||||
Start
up costs
|
-
|
-
|
62,510
|
|||||||||
Depreciation
and amortization
|
140,668
|
320,302
|
3,129,681
|
|||||||||
Impairment
expense
|
-
|
-
|
903,535
|
|||||||||
Professional
fees
|
169,687
|
252,433
|
2,637,831
|
|||||||||
Stock
options granted
|
87,236
|
638,628
|
2,031,075
|
|||||||||
Payroll
expenses
|
100,129
|
140,924
|
871,915
|
|||||||||
General
and administrative
|
||||||||||||
expenses
|
112,939
|
106,753
|
860,689
|
|||||||||
Total
operating expenses
|
610,824
|
1,466,738
|
10,549,134
|
|||||||||
Operating
loss
|
(571,685
|
)
|
(1,451,940
|
)
|
(10,322,996
|
)
|
||||||
Non-operating
income (expense):
|
||||||||||||
Interest
expense
|
(181,870
|
)
|
(16,076
|
)
|
(733,828
|
)
|
||||||
Investment
loss
|
-
|
-
|
(28,500
|
)
|
||||||||
Loss
on settlement of debt
|
(606,944
|
)
|
-
|
(675,944
|
)
|
|||||||
Non-operating
income (expense), net
|
(788,814
|
)
|
(16,076
|
)
|
(1,438,272
|
)
|
||||||
Loss
before Income Taxes
|
(1,360,499
|
)
|
(1,468,016
|
)
|
(11,761,268
|
)
|
||||||
Income
Tax Provision
|
-
|
-
|
-
|
|||||||||
Net
loss
|
$
|
(1,360,499
|
)
|
$
|
(1,468,016
|
)
|
$
|
(11,761,268
|
)
|
|||
Loss
per common share
|
$
|
(0.03
|
)
|
$
|
(0.04
|
)
|
||||||
Weighted
average common shares
|
||||||||||||
outstanding
|
39,334,865
|
33,025,124
|
Advanced
Medical Isotope Corporation
|
||||||||||||||||||||||||||||||||||||
(A
Development Stage Company)
|
||||||||||||||||||||||||||||||||||||
Statement
of Changes in Shareholders' Equity (Deficit)
(unaudited)
|
||||||||||||||||||||||||||||||||||||
Accumulated
|
Deficit
|
|||||||||||||||||||||||||||||||||||
Deficit
|
Accumulated
|
|||||||||||||||||||||||||||||||||||
Series
A Preferred
|
Prior
to
|
During
|
||||||||||||||||||||||||||||||||||
Stock
|
Common
Stock
|
Paid
in
|
Subscriptions
|
Development
|
Development
|
|||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Receivable
|
Stage
|
Stage
|
Total
|
||||||||||||||||||||||||||||
Balances
at December 31,
|
||||||||||||||||||||||||||||||||||||
2008
|
95,000
|
$
|
95
|
36,778,612
|
$
|
36,779
|
$
|
9,546,087
|
$
|
-
|
$
|
(2,884,043
|
)
|
$
|
(10,400,769
|
)
|
$
|
(3,701,851
|
)
|
|||||||||||||||||
Common
stock issued for:
|
||||||||||||||||||||||||||||||||||||
Debt
settlement January
|
||||||||||||||||||||||||||||||||||||
2009
($.27 per share)
|
-
|
-
|
190,000
|
190
|
51,110
|
-
|
-
|
-
|
51,300
|
|||||||||||||||||||||||||||
Services
February 2009
|
||||||||||||||||||||||||||||||||||||
($.42
per share)
|
-
|
-
|
80,000
|
80
|
33,520
|
-
|
-
|
-
|
33,600
|
|||||||||||||||||||||||||||
Debt
settlement March
|
||||||||||||||||||||||||||||||||||||
2009
($.35 per share)
|
-
|
-
|
150,000
|
150
|
52,350
|
-
|
-
|
-
|
52,500
|
|||||||||||||||||||||||||||
Debt
settlement March
|
||||||||||||||||||||||||||||||||||||
2009
($.35 per share)
|
-
|
-
|
33,333
|
33
|
11,633
|
-
|
-
|
-
|
11,666
|
|||||||||||||||||||||||||||
Services
March 2009
|
||||||||||||||||||||||||||||||||||||
($.35
per share)
|
-
|
-
|
25,000
|
25
|
8,725
|
-
|
-
|
-
|
8,750
|
|||||||||||||||||||||||||||
Loan
fee March 2009
|
-
|
-
|
||||||||||||||||||||||||||||||||||
($.28
per share)
|
40,000
|
40
|
10,992
|
-
|
-
|
-
|
11,032
|
|||||||||||||||||||||||||||||
Cash
March 2009
|
||||||||||||||||||||||||||||||||||||
($.27
per share)
|
-
|
-
|
37,037
|
37
|
9,963
|
-
|
-
|
-
|
10,000
|
|||||||||||||||||||||||||||
Cash
March 2009
|
||||||||||||||||||||||||||||||||||||
($.15
per share)
|
-
|
-
|
1,500,000
|
1,500
|
223,500
|
-
|
-
|
-
|
225,000
|
|||||||||||||||||||||||||||
Convert
95,000 convertible
|
||||||||||||||||||||||||||||||||||||
preferred
shares ($.351
|
||||||||||||||||||||||||||||||||||||
per
share)
|
(95,000
|
)
|
(95
|
)
|
10,857,142
|
10,857
|
3,800,095
|
-
|
-
|
-
|
(3,810,857
|
)
|
||||||||||||||||||||||||
Debt
settlement January
|
||||||||||||||||||||||||||||||||||||
2009
through issuance
|
||||||||||||||||||||||||||||||||||||
of
500,000, 3 year, stock
|
||||||||||||||||||||||||||||||||||||
options
exercisable at
|
||||||||||||||||||||||||||||||||||||
$.50
per share
|
-
|
-
|
-
|
-
|
228,654
|
-
|
-
|
-
|
228,654
|
|||||||||||||||||||||||||||
Intrinsic
value of convertible
|
||||||||||||||||||||||||||||||||||||
debt
issued March 2009
|
-
|
-
|
-
|
-
|
14,365
|
-
|
-
|
-
|
14,365
|
|||||||||||||||||||||||||||
Vesting
of stock options
|
||||||||||||||||||||||||||||||||||||
March
2009
|
-
|
-
|
-
|
-
|
87,236
|
-
|
-
|
-
|
87,236
|
|||||||||||||||||||||||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,360,499
|
)
|
(1,360,499
|
)
|
|||||||||||||||||||||||||
Balances
at March 31,
|
||||||||||||||||||||||||||||||||||||
2009
(unaudited)
|
-
|
$
|
-
|
49,691,124
|
$
|
49,691
|
$
|
14,078,230
|
$
|
-
|
$
|
(2,884,043
|
)
|
$
|
(11,761,268
|
)
|
$
|
(517,390
|
)
|
Advanced
Medical Isotope Corporation
|
||||||||||||
(A
Development Stage Company)
|
||||||||||||
Statements
of Cash Flows
|
||||||||||||
From
inception of
|
||||||||||||
development
stage on
|
||||||||||||
Three
months ended
|
Three
months ended
|
January
1, 2006 through
|
||||||||||
March
31, 2009
|
March
31, 2008
|
March
31, 2009
|
||||||||||
CASH
FLOW FROM OPERATING ACTIVITIES:
|
||||||||||||
Net
Loss
|
$
|
(1,360,499
|
)
|
$
|
(1,468,016
|
)
|
$
|
(11,761,268
|
)
|
|||
Adjustments
to reconcile net loss to net cash
|
||||||||||||
used
by operating activities:
|
||||||||||||
Depreciation
of fixed assets
|
134,418
|
9,562
|
444,987
|
|||||||||
Amortization
of licenses and intangible assets
|
6,250
|
310,740
|
2,707,007
|
|||||||||
Amortization
of convertible debt discount
|
115,238
|
-
|
154,436
|
|||||||||
Amortization
of prepaid expenses paid with stock
|
75,985
|
87,075
|
609,782
|
|||||||||
Impairment
of intangible assets
|
-
|
-
|
903,535
|
|||||||||
Common
stock issued for services
|
33,600
|
-
|
1,777,312
|
|||||||||
Stock
options issued for services
|
87,236
|
638,628
|
1,167,105
|
|||||||||
Stock
issued for repairs and maintenance
|
-
|
-
|
7,875
|
|||||||||
Loss
on settlement of debt
|
606,944
|
-
|
606,944
|
|||||||||
Loss
on conversion of shareholder loan
|
-
|
-
|
40,000
|
|||||||||
Changes
in operating assets and liabilities:
|
||||||||||||
Accounts
receivable
|
23,147
|
7,275
|
(12,600
|
)
|
||||||||
Inventory
|
6,212
|
15,975
|
(888
|
)
|
||||||||
Prepaid
expenses
|
(1,042
|
)
|
(28,750
|
)
|
(4,042
|
)
|
||||||
Deposits
|
(25,000
|
)
|
-
|
(180,408
|
)
|
|||||||
Accounts
payable
|
144,789
|
26,420
|
651,808
|
|||||||||
Payroll
liabilities
|
(3,198
|
)
|
(36,579
|
)
|
5,900
|
|||||||
Stock
based consulting fees payable
|
(30,850
|
)
|
66,048
|
181,794
|
||||||||
Accrued
interest rolled into notes payable
|
-
|
-
|
142,375
|
|||||||||
Accrued
interest
|
18,090
|
-
|
207,046
|
|||||||||
Net
cash used by operating activities
|
(168,680
|
)
|
(371,622
|
)
|
(2,351,300
|
)
|
||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Cash
acquired from investment
|
-
|
-
|
310,000
|
|||||||||
Cash
used to acquire equipment
|
-
|
(1,203,427
|
)
|
(2,583,353
|
)
|
|||||||
Cash
used to acquire patents
|
(598
|
)
|
-
|
(25,192
|
)
|
|||||||
Cash
used to acquire intangible assets
|
-
|
-
|
(658,750
|
)
|
||||||||
Net
cash used in investing activities
|
(598
|
)
|
(1,203,427
|
)
|
(2,957,295
|
)
|
||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Proceeds
received from bank line of credit
|
-
|
-
|
219,908
|
|||||||||
Payments
on line of credit
|
-
|
(20,000
|
)
|
(219,908
|
)
|
|||||||
Proceeds
from Washington Trust debt
|
-
|
-
|
199,908
|
|||||||||
Payments
on Washington Trust debt
|
(8,364
|
)
|
-
|
(13,673
|
)
|
|||||||
Proceeds
from capital lease
|
-
|
1,197,611
|
2,445,156
|
|||||||||
Principal
payments on capital lease
|
(40,919
|
)
|
(44,492
|
)
|
(347,222
|
)
|
||||||
Proceeds
from convertible note
|
100,000
|
-
|
775,000
|
|||||||||
Proceeds
from officers related party debt
|
22,800
|
-
|
70,800
|
|||||||||
Payments
on officers related party debt
|
(4,700
|
)
|
-
|
(52,700
|
)
|
|||||||
Proceeds
received from shareholder loan
|
-
|
-
|
80,000
|
|||||||||
Proceeds
from cash sales of common shares
|
235,000
|
655,280
|
2,044,996
|
|||||||||
Proceeds
from exercise of options and warrants
|
-
|
72,500
|
125,000
|
|||||||||
Proceeds
from subscription shares payable
|
-
|
-
|
202,500
|
|||||||||
Net
cash provided by financing activities
|
303,817
|
1,860,899
|
5,529,765
|
Advanced
Medical Isotope Corporation
|
||||||||||||
(A
Development Stage Company)
|
||||||||||||
Statements
of Cash Flows
|
||||||||||||
Statements of Cash Flow
(unaudited) - continued
|
||||||||||||
Net
increase in cash and cash equivalents
|
134,539
|
285,850
|
221,170
|
|||||||||
Cash
and cash equivalents, beginning of period
|
86,631
|
54,508
|
-
|
|||||||||
CASH
AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
221,170
|
$
|
340,358
|
$
|
221,170
|
||||||
Supplemental
disclosures of cash flow information:
|
||||||||||||
Cash
paid for interest
|
$
|
48,542
|
$
|
16,076
|
$
|
92,816
|
||||||
Cash
paid for income taxes
|
$
|
-
|
$
|
-
|
$
|
-
|
March
31, 2009
|
December
31, 2008
|
|||||||
Production
equipment
|
$
|
2,113,218
|
2,113,218
|
|||||
Building
|
446,772
|
446,772
|
||||||
Leasehold
improvements
|
3,235
|
3,235
|
||||||
Office
equipment
|
20,128
|
20,128
|
||||||
2,583,353
|
2,583,353
|
|||||||
Less
accumulated depreciation
|
(444,987
|
)
|
(310,569
|
)
|
||||
$
|
2,138,366
|
2,272,784
|
March
31, 2009
|
December
31, 2008
|
|||||||
Production
equipment
|
$
|
358,420
|
252,759
|
|||||
Building
|
82,060
|
54,707
|
||||||
Office
equipment
|
3,760
|
2,543
|
||||||
Leasehold
improvements
|
747
|
560
|
||||||
$
|
444,987
|
$
|
310,569
|
Intangible
assets consist of the following at March 31, 2009 and December 31,
2008:
|
||||||||
March
31, 2009
|
December
31, 2008
|
|||||||
Intellectual
property
|
$
|
-
|
$
|
250,750
|
||||
Contracts
and agreements
|
-
|
213,000
|
||||||
Customer
lists
|
-
|
195,000
|
||||||
License
Fee
|
75,000
|
2,972,625
|
||||||
Patents
|
25,192
|
24,594
|
||||||
100,192
|
3,655,969
|
|||||||
Less
accumulated amortization
|
(54,167
|
)
|
(2,700,757
|
)
|
||||
Less
Impairment Expense
|
-
|
(903,535
|
)
|
|||||
Intangible
assets net of accumulated amortization
|
$
|
46,025
|
$
|
51,677
|
||||
Amortization
expense for the above intangible assets for the three months ended March
31, 2009 and the three months ended March 31, 2008, respectively, was
$6,250 and $310,740.
|
Production
|
Corporate
|
|||||||||||
Facility
|
Offices
|
Total
|
||||||||||
Twelve
months ended March 31, 2010
|
$
|
47,779
|
$
|
60,736
|
$
|
108,515
|
||||||
Twelve
months ended March 31, 2010
|
51,602
|
10,123
|
61,725
|
|||||||||
Twelve
months ended March 31, 2012
|
55,730
|
-
|
55,730
|
|||||||||
Twelve
months ended March 31, 2013
|
19,047
|
-
|
19,047
|
|||||||||
Total
|
$
|
174,158
|
$
|
70,859
|
$
|
245,017
|
Three
Months ended March 31, 2009
|
Three
Months ended March 31, 2008
|
|||||||
Office
and warehouse lease effective August 1, 2007
|
||||||||
Monthly
rental payments
|
$
|
11,340
|
$
|
10,500
|
||||
Rental
expense in the form of stock issuance
|
9,375
|
9,375
|
||||||
Corporate
office
|
15,184
|
-
|
||||||
Total
Rental Expense
|
$
|
35,899
|
$
|
19,875
|
For
the twelve month period ending March 31, 2010
|
$
|
73,969
|
||
For
the twelve month period ending March 31, 2011
|
37,500
|
|||
For
the twelve month period ending March 31, 2012
|
37,500
|
|||
For
the twelve month period ending March 31, 2013
|
12,500
|
|||
$
|
161,469
|
Risk-free
interest rate
|
1.37
|
%
|
||
Dividend
yield
|
0.00
|
%
|
||
Volatility
factor
|
211.2
|
%
|
||
Weighted
average expected life
|
3
years
|
Weighted
|
Weighted
|
|||||||||||||||||||
Options Outstanding
|
Average
|
Average
|
||||||||||||||||||
Number
|
Exercise
|
Remaining
|
Aggregate
|
Exercise
|
||||||||||||||||
Of
|
Price
|
Contractual
|
Intrinsic
|
Price
|
||||||||||||||||
Shares
|
Per
Share
|
Life
|
Value
|
Per
Share
|
||||||||||||||||
Balance
at December 31, 2008
|
5,609,021
|
$
|
0.15-1.05
|
1.52
years
|
$
|
424,138
|
$
|
0.75
|
||||||||||||
Options
granted
|
1,250,000
|
0.15-0.50
|
2.34
years
|
150,000
|
0.29
|
|||||||||||||||
Options
exercised
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Options
expired
|
(2,389,986
|
)
|
1.05
|
-
|
-
|
1.05
|
||||||||||||||
Balance
at March 31, 2009
|
4,469,035
|
$
|
0.15-1.05
|
2.32
years
|
$
|
574,138
|
$
|
0.46
|
||||||||||||
Exercisable
at December 31, 2008
|
5,609,021
|
$
|
0.15-1.05
|
1.52
years
|
$
|
424,138
|
$
|
0.75
|
||||||||||||
Exercisable
at March 31, 2009
|
4,469,035
|
$
|
0.15-1.05
|
3.86
years
|
$
|
574,138
|
$
|
0.46
|
·
|
Decreased
Common Stock Subscriptions Payable by $185,688 and increased common stock
by $826 and increased paid in capital by
$184,862.
|
·
|
Decreased
trade accounts payable by $114,500 and increased paid in capital by
$115,093 and increased common stock by $373 and decreased loss on
settlement of debt by $966.
|
·
|
Decreased
Accrued Interest Payable by $171,628 and decreased Preferred Stock
Redeemable by $3,182,405 and decreased Preferred Stock by $95 and
increased Paid In Capital by $3,800,095 and increased Common Stock by
$10,857 and increased loss on settlement of debt by
$456,824.
|
ADVANCED
MEDICAL ISOTOPE CORPORATION
|
|||
Date: June
24 , 2009
|
By:
|
/s/ James
C. Katzaroff
|
|
Name:
James C. Katzaroff
|
|||
Title:
Chief Executive Officer and Chairman
|
|||
Date: June 24, 2009 | By: | /s/ L. Bruce Jolliff | |
Name: L. Bruce Jolliff | |||
Title: Chief Financial Officer and Controller | |||
Date: June 24, 2009 | By: | /s/ Carlton Cadwell | |
Name: Carlton Cadwell | |||
Title: Director | |||