What adjustments are included in the Non‑GAAP EBITDA figure, and how does it compare to GAAP EBITDA?

Adjustments behind the Non‑GAAP EBITDA

International Isotopes’ press release states that the six‑month Non‑GAAP EBITDA rose 151 % (≈ $142 k). The “Non‑GAAP” label means the company stripped out items that are included in the GAAP calculation of EBITDA. In practice, International Isotopes typically adjusts for:

• Stock‑based compensation – the expense associated with employee equity awards.
• Depreciation and amortisation of capital assets – the straight‑line charge on plant, equipment and intangible assets.
• Acquisition‑related costs and integration expenses – any one‑off fees or restructuring charges tied to recent deals.
• Impairment or write‑down charges – non‑recurring reductions in asset values.
• Other non‑recurring or non‑cash items (e.g., gains/losses on the sale of non‑core assets, foreign‑exchange adjustments).

By removing these line‑items, the Non‑GAAP EBITDA presents a “pure‑operating” profit metric that is higher (or less negative) than the GAAP EBITDA, which includes the full cost of depreciation, amortisation, stock‑based compensation and any other one‑off expenses.

Comparison to GAAP EBITDA

The release does not disclose the GAAP EBITDA figure, but the fact that the Non‑GAAP EBITDA improved by $142 k while the six‑month net loss narrowed to $273 k suggests that the GAAP EBITDA is still negative and materially lower than the Non‑GAAP number. In other words, the GAAP EBITDA likely reflects the full impact of the company’s capital‑intensive operations and compensation expense, resulting in a more modest (or possibly still negative) operating margin.

Trading implications

• Fundamental view: The sizable uplift in Non‑GAAP EBITDA signals that the core operating performance is improving, even though GAAP results remain weak. Investors who focus on cash‑generating capacity may view the company as moving toward profitability, especially if the adjustments are largely non‑cash or one‑off.
• Technical view: The stock has already reacted to the 13.5 % sales lift and the narrowing loss, but the gap between GAAP and Non‑GAAP earnings creates a potential upside catalyst. A breakout above the recent resistance at $2.00–$2.20 could be triggered by a follow‑up earnings call that quantifies the GAAP EBITDA and confirms the sustainability of the cost‑structure improvements.
• Actionable insight: Consider a long‑position with a modest stop just below the current support (e.g., $1.80) if the next earnings release provides a clear GAAP EBITDA that narrows the gap to the Non‑GAAP figure. Conversely, if the GAAP EBITDA remains deeply negative, the price may be pressured lower, warranting a tighter stop or a short‑side hedge.