Business Description

NOTE 1 – DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Description of business – Radnostix Inc. (the “Company” or “RNX”) was incorporated in Texas in November 1995. The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include all operations and balances of the Company and its wholly owned subsidiaries, International Isotopes Idaho Inc., International Isotopes Fluorine Products, Inc., International Isotopes Transportation Services, Inc., and RadVent, LLC. The consolidated financial statements also include the accounts of wholly owned subsidiaries TI Services, LLC, (“TI Services”), and RadQual, LLC (RadQual). TI Services is headquartered in Youngstown, Ohio and was formed with RadQual in December 2010 to distribute products and services for nuclear medicine, nuclear cardiology and Positron Emission Tomography (PET) imaging. RadQual is a global supplier of molecular imaging quality control devices, and is now headquartered in Idaho Falls, Idaho. Nature of Operations – RNX and its subsidiaries, (collectively, the “Company,” “we,” “our” or “us”) manufacture a full range of nuclear medicine calibration and reference standards, a wide range of products, including cobalt teletherapy sources, and an FDA-approved radiopharmaceutical drug product. The Company also holds several patents for a fluorine extraction process that would be used in conjunction with a proposed commercial depleted uranium de-conversion facility which would be located in Lea County, New Mexico (the “De-Conversion Facility”). The Company’s business consists of five major business segments: Theranostics Products, Cobalt Products, Calibration & Reference Products, Medical Devices, and Fluorine Products. The Company’s headquarters and all operations, with the exception of TI Services, are located in Idaho Falls, Idaho. With the exception of certain unique products, the Company’s normal operating cycle is considered to be one year. Due to the time required to produce some Cobalt Products, the Company’s operating cycle for those products is considered to be two to three years. Accordingly, preliminary payments received on cobalt- 60 contracts, where shipment will not take place for greater than the operating cycle, have been recorded as unearned revenue and, depending upon estimated ship dates, classified under current or long-term liabilities on the Company’s consolidated balance sheets. These unearned revenues will be recognized as revenue in the future period during when the cobalt- 60 shipment takes place. All assets expected to be realized in cash or sold during the normal operating cycle of the business are classified as current assets. Principles of Consolidation – The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, including RadQual and TI Services. All significant intercompany accounts and transactions have been eliminated during consolidation. Significant accounting policies a) Financial instruments and cash equivalents The carrying value of notes payable approximates fair value because they bear interest at rates which approximate market rates. Cash and cash equivalents, totaling $1,695,158 and $1,945,523 at December 31, 2025 and 2024 , respectively, consist of operating accounts and money market accounts. For purposes of the consolidated statements of cash flows, the Company considers all highly-liquid financial instruments with original maturities of three months or less at date of purchase to be cash equivalents. At December 31, 2025 and 2024 , the Company had pledged cash on deposit in a money market account valued at $1,492,227 and $1,431,710 respectively, as security for a surety bond. The surety bond is required as part of the Company’s operating license agreement with the Nuclear Regulatory Commission (“NRC”). The Company maintains its cash accounts in various deposit accounts, the balances of which are periodically in excess of federally insured limits. b) Accounts receivable The Company sells products mainly to recurring customers, wherein the customer’s ability to pay has previously been evaluated. The Company generally does not require collateral. The Company periodically reviews accounts receivable for amounts considered uncollectible and allowances are provided for uncollectible accounts when deemed necessary.…