US NUCLEAR CORP. SEC 10-K Report

US Nuclear Corp., a company specializing in radiation detection and monitoring systems, has released its annual 10-K report. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces in the highly competitive nuclear technology industry.

Financial Highlights

Sales: $2.19 million, a decrease of 1.8% from the previous year, attributed to political and economic uncertainties.

Gross Profit: $1.02 million, representing a gross margin of 46.37%, an increase from 41.43% in the prior year due to a favorable mix of products sold.

Loss from Operations: $(1.54) million, an improvement of 6.5% compared to the previous year.

Net Income (Loss): $(1.74) million, a significant improvement from a loss of $(3.43) million in the previous year, driven by a substantial decrease in other expenses.

Loss per Share – Basic and Diluted: $(0.04), compared to $(0.10) in the previous year, reflecting the improved net loss.

Business Highlights

Corporate History and Structure: US Nuclear Corp, originally incorporated as APEX 3 Inc. in Delaware in 2012, focuses on radiation detection and monitoring systems through its divisions: Optron Scientific Company, Inc. (DBA Technical Associates), Overhoff Technology Corporation, Electronic Control Concepts, and Cali From Above.

Product Lines and Technologies: The company offers over 200 products, including radiation detection equipment, tritium monitors, air and water monitors, and UAV-mounted sensors for radiation and chemical detection. It leverages technologies like x-ray, trace detection, and tritium detection.

Geographical Performance: In 2024, 76.18% of revenue was generated from North America, with Asia (including Japan) contributing 18.10%. The company anticipates growth in South Korea and China due to increasing demand for nuclear technology and clean energy solutions.

Customer Segments: Key customers include Homeland Security, national labs, the Department of Defense, and various universities and hospitals. The Overhoff Technology division is a significant revenue driver, contributing 50.49% of total revenues in 2024.

Future Outlook: The company expects growth from the development of Molten Salt Reactors (MSR) and Liquid-Fluoride Thorium Reactors (LFTR), which require tritium detection and monitoring products. It also plans to diversify its product line and expand its international customer base.

New Product and Production Developments: The company has integrated UAV technology with radiation and chemical sensors, enhancing its product offerings for aerial detection. This innovation allows for efficient surveying of large areas, reducing human risk.

Operational Challenges and Strategy: The company faces intense competition and relies heavily on its Overhoff Technology division. It aims to diversify its client base and product offerings to mitigate this reliance and enhance competitiveness.

Management Insights: The management is focused on expanding the product range and increasing international sales, particularly in Asia, to capitalize on the growing demand for nuclear safety and detection equipment.

Strategic Initiatives

Diversification and International Expansion: US Nuclear Corp is actively pursuing diversification of its product line to reduce reliance on its Overhoff Technology division, which currently accounts for over 50% of total revenues. The company is also focusing on expanding its international presence, particularly in South Korea and China, to capitalize on the growing demand for nuclear technology and clean energy solutions.

Capital Management: The company has been managing its capital through a combination of shareholder loans and equity transactions. In 2024, the majority shareholder loaned $531,100 to the company, with $155,868 repaid. The company also issued 9,589,000 shares of common stock to satisfy convertible debt and interest, and 1,950,000 shares to consultants for services. Furthermore, the company authorized Series A Convertible Preferred Stock, converting $1,203,000 in shareholder advances and $675,000 in accrued liabilities into preferred shares. The company has not paid any dividends on common stock and does not plan to do so in the near future, focusing instead on reinvesting surplus income into growth.

Future Outlook: US Nuclear Corp plans to continue its strategy of diversifying its product offerings and expanding its international market presence. The company anticipates increased revenue contributions from international markets as nuclear technology and clean energy initiatives gain traction globally. Additionally, the company aims to improve its financial position by reducing liabilities and exploring opportunities for capital investment to support sustainable growth.

Challenges and Risks

International Market Dependence: US Nuclear Corp faces significant challenges due to its reliance on international customers, which accounted for 23.82% of total revenue in 2024. This dependence on international markets introduces risks related to geopolitical instability, currency fluctuations, and changes in foreign regulations.

Competitive Industry: The company operates in a highly competitive industry with formidable competitors such as Thermo Fisher Scientific and Mirion Technologies, which have greater resources and capabilities. This intense competition, coupled with the unpredictability of revenues due to the company's small size, poses a significant risk to its financial stability.

Regulatory Risks: The nuclear power industry, a key market for the company, is subject to stringent regulations by the Nuclear Regulatory Commission (NRC) and other foreign regulatory bodies. Any negative regulatory decisions could adversely impact the company's operations.

Technological Advancements: Technological advancements in nuclear power, such as Small Modular Reactors (SMR) and fusion reactors, present both opportunities and risks. While these technologies could drive demand for the company's products, they also require the company to keep pace with rapid technological changes.

Intellectual Property Risks: The company is also exposed to risks related to its intellectual property, as it currently holds no patents on its products and relies on trade secrets and proprietary know-how. This lack of patent protection could make it vulnerable to competitors reverse engineering its products.

Revenue Decline: The company reported a decrease in revenue for the year ended December 31, 2024, attributed to political and economic uncertainties. The management acknowledges the need to diversify its client base and product offerings to mitigate risks associated with reliance on a few key customers and products.

Acquisition Risks: The company plans to pursue acquisitions to expand its product line and customer base. However, the integration of acquired assets poses risks of unforeseen operating difficulties and expenditures, which could strain management resources and affect financial performance.

Market Risks: US Nuclear Corp is exposed to market risks, including interest rate fluctuations and foreign currency exchange rate changes, although it currently settles all sales in US currency. The company believes its exposure to these risks is not material to its financial condition, but it continues to monitor these factors closely.

SEC Filing: US NUCLEAR CORP. [ UCLE ] - 10-K - Jun. 25, 2025