IsoRay, Inc. (NYSE MKT:ISR) Q3 2020 Earnings Conference Call - Final Transcript

May 12, 2020 • 04:30 pm ET

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IsoRay, Inc. (NYSE MKT:ISR) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Executive
Jonathan Hunt

profit dollars of $1.7 million increased 94% when compared to the same period last year.

Total operating expenses consisting of research and development, sales and marketing, and general and administrative increased 10% from the prior year comparable period to $2.3 million from third quarter 2020 revenue growth 50%.

Total R&D expense decreased slightly to $294,000 compared to $299,000 in the comparable prior year quarter. Going forward, we continue to expect proprietary R&D expense to increase back to or above levels in prior recent quarters or to roughly $300,000 to $400,000 per quarter as we are continuing to have discussions with institutions looking at the expanded use of Cesium-131.

Sales and marketing expenses increased 25% versus the comparable prior year quarter to $805,000. The increase in sales and marketing expenses was driven primarily by increased incentive compensation related to the 50% increase in revenue as well as an increase in physician-led training expenses. These increases were partially offset by a decrease in travel costs due to COVID-19.

G&A expenses of $1.16 million represented an increase of 5% versus $1.1 million in the fiscal third quarter 2019. Year-over-year increase was driven primarily by increased incentive compensation related to the 50% year-over-year increase in revenue in company's financial performance, headcount insurance premium, and public company related expenses. These increases were partially offset by a decrease in our Washington State hazardous substance pack and reduced legal, travel, and employee hiring expenses.

IsoRay posted a net loss of $545,000 for the third quarter ended March 31st, 2020, a significant improvement compared to a net loss of $1.1 million for the quarter ended March 31st, 2019. The net loss per basic and diluted share was $0.01 versus a net loss of $0.02 for the quarter ended March 31st, 2019. Basic and diluted shares results are based on weighted average shares outstanding of approximately 67.6 million at fiscal third quarter 2020 versus 67.3 million for the prior year period.

As of March 31 2020, the company had cash, cash equivalents, and certificates of deposits that totaled $2.4 million compared to $5.3 million at the end of fiscal 2019 ended June 30th, 2019. The company has zero long-term debt. Shareholders' equity at the end of fiscal third quarter 2020 totaled $5.8 million versus $7.7 million at the end of fiscal 2019.

I will now turn the call over to the operator to take questions from our analysts and institutional investors.