Greetings and welcome to the IsoRay Incorporated Q2 [ph] Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. [Operator Instructions]. As a reminder this conference is being recorded. I now would like to turn the conference over to your host, Mark Levin, Investor Relations.

Thank you, operator. Good afternoon and thank you for joining us today for the IsoRay Fiscal Fourth Quarter and Year End 2018 Earnings Call. Before we get started, I will take a few minutes to read the forward-looking statements. Certain statements in this conference call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended. When used in this conference call words such as, will, believe, expect, anticipate, encourage, and similar expressions as they relate to the company or its management as well as assumptions made by and information currently used – currently available to the company’s management identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and beliefs about future events. As with any projection or forecast they are inherently susceptible to uncertainty and changes in circumstances and the company undertakes no obligation to and expressly disclaims any obligation to update or alter its forward-looking statements whether resulting from such changes, new information, subsequent events or otherwise. Additional information concerning forward-looking statements is contained under the headings of Safe Harbor Statement and Risk Factors listed from time to time in the company’s filings with the Securities and Exchange Commission. Statements made on today’s call are as of today, September 25, 2018. Momentarily, I will turn the call over to IsoRay’s Interim CEO, Lori Woods, who will review the fourth quarter and full year financial results. Following her prepared remarks, we will take questions from our analysts and institutional investors. I will now turn the call over to Lori.

Thank you, Mark. Welcome everyone to IsoRay’s fiscal fourth quarter and year-end earnings conference call. I will begin our call with an overview of our financial results and then I will give some updates on several developments that have occurred over the past few months since we reported our Q3 results. We anticipate that our Form 10-K will be filed with the SEC on or around September 26th. I will begin with our fourth quarter results that marks the sixth consecutive quarter of revenue growth for the company. Revenue for the fourth quarter ended June 30, 2018 grew 17% to $1.60 million versus $1.37 million for the period last year. Fourth quarter revenue was comprised of 87% for the prostate brachytherapy with the balance or 13% of revenue attributed to other brachytherapy that includes brain, gynecological, head and neck, lung, and pelvis. Gross profit as a percentage of revenues for the fourth quarter ended June 30, 2018 declined to 27.3% compared to 36.4% for the quarter ended June 30 2017. Although overall gross margins have been expanding over the last several quarters, increased production costs related to increased purchase of raw materials to support sales growth negatively impacted our gross margins this quarter versus fiscal fourth quarter 2017. Total operating expenses consisting of sales and marketing and general and administrative and research and development were $2.81 million in the quarter versus $2.36 million in the fiscal quarter 2017. R&D and G&A expenses each grew by over $200,000 versus fiscal fourth quarter 2017 and were partially offset by a modest decline in sales and marketing expenses. G&A expenses included $360,000 attributable to the executive severance agreement of the former CEO during the quarter. The year-over-year increase in R&D is primarily due to expenses related to upcoming product launches later this calendar…

[Operator Instructions] Our first question comes from the line of Jason Kolbert from H.C. Wainwright. Please proceed with your question.

Hi, Lori and congratulations on your debut. I’d like to dive a little bit into GT Medical and kind of understand the relationship between IsoRay and GT Medical. When will GT Medical, in your best guess, actually be launching GammaTile? How will that work? And IsoRay has their own sales force, clearly your expertise is more aligned in the prostate cancer market. Will that sales force be utilized for GT Medical and in what capacity? Where do you see the growth going forward? Is it to continue to drive into the prostate cancer market or is it prostate cancer and then layering in brain? And you talked a little bit about Blu-Build. How will Blu-Build change things? I know that’s a lot of questions. But if we could go into a little bit more detail in each area, that would be very helpful. Thank you.

Hi, Jason. Thank you for your questions this afternoon. Starting with GammaTile and when we might recognize some revenue, GT Medical Technologies has stated that they are expecting to do a limited market launch in the late calendar quarter, fourth quarter 2018, with a broader launch by mid-2019. So, based on what they’ve stated, that’s how we are working to move forward in that area. I believe your second question was related to how our relationship stands with GammaTile. And I would like to say that, I think, as everyone is aware of, we have a ten-year manufacturing agreement with GT Medical Technologies where we supply Cesium-131 seeds for them. We are currently working with them to be ready for the launch, and as far as other aspects of our relationship, we will be speaking to them at a later time and an appropriate time going forward. Can you repeat your next question? I believe it was related to core business GammaTile and Build-Blu.

Well, I wanted to talk a little bit about where the growth is going to come from. So clearly, congratulations, there has been six quarters of growth and I am assuming the majority of that’s been driven in prostate cancer. So, if I kind of take GammaTile out of the picture, help me understand what the potential is going to be to penetrate prostate cancer and how will Blu-Build help you in that? And will Blu-Build require regulatory approval? Blu-Build is a loader. So, help me understand the relationship of those two things.

Absolutely. So, as you know, we’ve grown last year 24% in our core business, and we are going to remain really focused on our core business. We are excited about what GammaTile can bring and we are looking to the future. But right now, we are going to stay focused on our core business, and that’s where Blu-Build comes in and we are really excited about that, because, in the prostate brachytherapy market, we have about 25% of that market that uses some form of intra-operative real-time planning. And that’s a part of the market that we haven’t had much – any access to in the past, because we didn’t have a product that met that need. So having Blu-Build is really exciting for us because we really see that moving forward. We have a good portion of the prostate brachytherapy market that we can address and most of that business will be incremental business to us.

So, if 25% of the market uses the dynamic intra-operative approach, what do you estimate that market opportunity is? And when will Blu-Build kind of come online so that you’ll be able to capture your piece of that market?

So, we are looking to have the launch of Blu-Build in the next 30 to 45 days, and as far as the other question, we are not providing guidance on that at this time.

Okay. Okay, thank you so much. I’ll come back in the queue.

Our next question comes from the line of Ed Woo from Ascendant Capital. Please proceed with your question.

Yes, also congratulations Lori. My question is, is there any update on the CEO search? And would you be considered a candidate for it?

So, at this point in time, as you all are aware, I am considered the Interim CEO, and I have to say, I am very comfortable and confident in working in my current position and in my relationship with the Board of Directors. And at this point in time, that is the comments that I will make.

Great. And, do you anticipate, I know you said you are doing some new organization for patient safety. Do you anticipate any other major changes until there is a permanent CEO announced?

I think, at this point in time, we have a really good solid team which I gave a little bit of color on in my remarks, and I am excited to be working with them going forward.

Great. And going back to GammaTile, have you guys disclosed how the economics will work on that or the product sales?

No, we haven’t. We have the manufacturing agreement with GammaTile, and I think probably the best way I could answer that is to say, for those types of questions you might consider speaking with Matt Likens at GT Medical Technologies, because it really is their business and that’s something they would have to speak to.

Great. Well, thanks for answering my question and good luck. Thank you.

Thank you.

Ladies and gentlemen, we have reached the end of the question and answer session and I would like to turn the call back to management for closing remarks.

Thank you everybody. We appreciate you joining our call today and we hope you have a great evening.