Good day, ladies and gentlemen, and welcome to IsoRay Fourth Quarter 2020 Earnings Conference Call. All lines have been placed on a listen-only mode and the floor will be open for your questions and comments following the presentation. [Operator Instructions] At this time, it is my pleasure to turn the floor over to Mark Levin with IsoRay Investor Relations. Sir, the floor is yours.

Thank you, operator. Good afternoon and thank you for joining us today for the IsoRay fiscal fourth quarter and fiscal 2020 full year earnings call for the quarter and year ended June 30, 2020. 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 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 of today, September 17, 2020. 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. We will begin today's call with Lori Woods, IsoRay's Chief Executive Officer; and then Jonathan Hunt, IsoRay’s Chief Financial Officer, who will discuss the fiscal fourth quarter and fiscal 2020 full year financial results. Following their prepared remarks, we will take questions from our analysts and institutional investors. I will now turn the call over to Lori Woods.

Thank you, Mark. Good afternoon and thank you for joining us today for IsoRay's fiscal fourth quarter and full year 2020 earnings conference call for the quarter ended June 30, 2020. Following my comments, our Chief Financial Officer, Jonathan Hunt will provide a more detailed review of fiscal fourth quarter and full year 2020 financial results. I am very pleased to announce record full year fiscal 2020 financial results as well as fiscal fourth quarter 2020 financial results which illustrate improving trends in the wake of the start of the COVID-19 pandemic. Revenue for the fourth quarter increased 18% over the year ago quarter to $2.28 million. Prostate brachytherapy revenue increased 11% versus the fiscal fourth quarter of 2019. Procedure volumes and sales improved sequentially and substantially throughout the fiscal fourth quarter after beginning the quarter with April sales down 20% versus the prior year period. For the first quarter of fiscal year 2021, which ends September 30th, we expect revenue to be between $2.3 million and $2.5 million and gross margin between 48% and 53%. For the full year fiscal 2020, total revenue growth accelerated to 32% compared to 23% growth we experienced in the prior full year fiscal 2019. Gross profit increased 68%, with gross margin expanding by over 11 percentage points to a record 52.9%. When combined with a modest 4% increase in total operating expenses, our net loss declined by 33%. Continued improvement in each of these key metrics remains a paramount focus of mine and serves as evidence that our strategies to grow the company and expand the usage of our proprietary Cesium-131 isotope are working. Within our core prostate business, we continue to see growth that demonstrates that we are not only taking market share, but we are leading the growth of the prostate…

Thank you, Lori. I'm going to discuss some of the financial information that was contained in our press release for the fiscal fourth quarter and fiscal year ended June 30, 2020, that was released a short while ago. We anticipate that our Form 10-K will be filed with the SEC on or around September 21. Revenue for the fourth quarter ended June 30, 2020, grew 18% to $2.28 million versus $1.92 million for the same period last year. Fourth quarter revenue was comprised of 84% for prostate brachytherapy with the balance or 60% of revenue attributed to other brachytherapy, primarily sales to treat brain, which included revenue from GammaTile and GT Medical Technologies. Gross profit as a percentage of revenues for the fourth quarter ended June 30, 2020, increased to 47% compared to 45.7% for the quarter ended June 30, 2019. The gross margin increase was primarily driven by higher sales, which were partially offset by higher isotope unit costs resulting from increased transit costs due to the COVID-19 pandemic's impacts on international commercial flight capacity as well as increased payroll and benefits expense due to an increased headcount. Fourth quarter gross profit dollars of $1.07 million increased 22% when compared to the same period last year. Total operating expenses, consisting of research and development, sales and marketing, and general and administrative increased 12% to $2.26 million in the quarter versus $2.02 million in the fiscal fourth quarter 2019. Total R&D expense decreased 6% versus the comparable prior year quarter to $322,000. The year-over-year decrease in total research and development expenses was primarily the result of reduced expenses related to the development of the Blu Build delivery system during fiscal year 2019, which were partially offset by increased incentive compensation related to the increase in revenue and company financial performance.…

[Operator Instructions] We'll take our first question from Ed Woo with Ascendiant Capital.

Yes. Congratulations on the quarter and the annual results. My question is, has -- the physicians that you've been interacting with making sales calls, have they said that things are pretty much back on track? Or are there still significant delays from the pandemic?

Hi, Ed Woo. And thank you for your question today. We are communicating a lot with our physicians currently. And what we're seeing is that certainly, the biggest impact to date we experienced was at the end of March and into April. And after that, both our numbers as well as our physicians saw an increase back -- trending back toward normal patterns. We have seen a little bit of fluctuation in that. Just based on some of the public health concerns, and that's had kind of a near-term effect on patient volumes from one market to another, but by and large, we're seeing the trend heading in the right direction.

Great. And then my next question is trade shows were such a big part of your marketing program now that it doesn't seem to be happening anytime soon. How have you been able to do your outreach and marketing?

That's a really great question. So yes, trade shows or -- and professional society meetings really haven't been happening and probably won't happen this fall as well. What we have found to be very effective, I think, like a lot of other people, is working with Zoom and Microsoft Teams and other platforms to communicate directly with our customers, and our sales team has done some training on that and has really found that, that has been an effective way to continue and reach out and talk to our customers. It certainly isn't the same as being with them face-to-face, but as things have eased up over the summer, our salesforce chose back in the field. We continue to ask them to be very careful for themselves as well as follow all the rules in the institutions that they're visiting, but we are seeing more opening up of that type of activity as well.

[Operator Instructions]. We'll take our next question from RK Ramakanth. Please go ahead.

Blu Build is expected to be the driver of growth, as you just stated in your opening remarks. So in terms of trying to maintain that, how confident are you about your manufacturer's ability not to be overrun by the requirements of COVID-19 and also to maintain the inventory that you need for keeping up with your sales because it looks like the sales are growing very good as well?

Absolutely. So our Blu Build manufacturer is back to manufacturing medical devices, and we expect no interruptions nor concerns in terms of capacity for them to provide us with what we need. I'm super excited about Blu Build because our sales team has a lot of -- it took us a little longer to get it out because of what happened with COVID and our manufacturer converting to PPE manufacturing. However, there were a lot of doctors that were interested in it and who have stayed interested in it. So our sales team is very busy doing virtual presentations of Blu Build and how to use it, and that's been going very well. So we are very excited about that. In terms of the overall manufacturing of our seed, we, during COVID, didn't see any supplier issues with our isotope or any other components of our manufacturing and have really stayed very stable in that area as well. So we're feeling very good about all of our suppliers and manufacturers that support us.

Yes. Talking about suppliers. So can you talk a little bit more about the quality of the supplier and assurance that if there is an issue with your current supplier that you have a secondary supplier to go to for Cesium?

Absolutely. So speaking of the isotope specifically, we, in our 15 years of working to get isotope from our partners in Russia, have never had a problem or a missed delivery. During COVID specifically, they made every single weekly order that we put in and got it to us, we saw more issues actually with the -- getting it to us in the United States. So the actual carriers, and we had to move from commercial flights to cargo flights, which were a little bit more expensive, but again, now that we're seeing things lighten up a bit, we're back to using commercial carriers and we're out of cargo. And so it has all worked very seamlessly. As you can imagine, we watch that very, very closely, but it has worked out very well. We're very pleased with it.

Okay. So the last question from me is on GammaTile. Obviously, the GammaTile seems to be growing strong with making up 16% of your sales in the year. So what are the tricks that you need to continue to play to make sure that part of that segment of the business continues to grow beyond 16% in the coming year?

So just a note of clarification, they're less than 10% of our overall revenue, but you're absolutely right. They have grown a lot this year. We are very excited for them about that, and we are looking forward to their continued growth and we work really closely with them to make sure that we understand what they're forecasting their business to look like so that we have all of the components that we need to supply them, that we have everything in place in our manufacturing facility to make sure that there's no hiccups because we want to continue to support them, and it makes a lot of sense for us to be in a position where we can meet absolutely every single order they give us at any point in time that they give it to us.

[Operator Instructions] And there appear to be no more questions at this time. Ladies and gentlemen, this does conclude today's teleconference. We thank you for your participation. You may disconnect your lines at this time and have a great day.