Itronics' financing charges cause quarterly loss to widen

Reno-based Itronics Inc. lost $3.1 million in the third quarter, and charges related to securities offerings accounted for much of the loss.

The company, which recycles photochemical wastes into fertilizer and silver bars, reported an operating loss of $583,549 on revenues of $298,149 for the quarter.

A year earlier, it posted an operating loss of $605,601 on revenues of $243,396.

A $2.22 million charge associated with convertible debt it issued in 2005 and mid-2006 was the biggest contributor to Itronics' third-quarter loss.

In last week's filing with the Securities and Exchange Commission, Itronics said it needs to raise more capital if it hopes to stay in business. It had a working capital deficit of $10.4 million on Sept. 30.

It raised $500,000 through the sale of notes to private investors in July and raised another $500,000 through a debt offering this month. The November financing will meet its needs until December or January, the company said.

In the meantime, Itronics said it's been in default since early this year on $3.2 million in promissory notes that it issued in 2000. It plans to seek an extension on the notes.

The company also said it's in default on four leases, but it said no collection action has been taken.

Itronics said it sold $294,849 in fertilizer during the third quarter compared with sales of $231,166 a year earlier.

It said in its filing with the SEC that it's trying to expand fertilizer sales to cover more crops, plans to expand sales into the Northeast and is working to develop new fertilizer products.

The company also is developing a process to convert photochemical wastes into a glass and tile project. It said "much more work" is necessary to bring that process to market.

Two large producers of photochemical wastes signed on with Itronics in August and November, and the company said it now has enough raw material to support production levels 50 percent higher than those it reached in 2004. It lost a contract with a major supplier of photochemical wastes at the end of 2004.