Itronics Inc., a Reno company that processes used photochemicals into fertilizer, posted an operating loss of $874,173 on revenues of $493,908 in the third quarter.
This compares with an operating loss of $875,270 on revenues of $541,953 for the publicly held company a year earlier.
The company's net loss for the quarter, however, was $5.1 million as it took a $4.6 million accounting hit associated with a debt offering that's convertible into the company's stock. A year ago, the accounting for the convertible debt boosted Itronics' reported earnings by $1.8 million.
The company said in a filing with the Securities and Exchange Commission last week that a group of investors who claim that Itronics defaulted on the terms of borrowing have filed a lawsuit seeking more than $5 million in damages.
Itronics said it plans to "vigorously defend these allegations" and also will raise counter-claims against the investors.
Itronics raised $500,000 from the investors, a group of companies in New York City, in mid-2006.
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