Full Press Release Details
Inc. reports Second QUARTER RESULTS
Revenue Growth 2013 Quarter Over 2012 Quarter
Washington (February 18, 2014) - IsoRay,
Inc. (NYSE MKT: ISR), a
medical technology company and innovator in seed brachytherapy and medical radioisotope applications
for the treatment of cancers of the brain, lung, head and neck, prostate and gynecological, announced its financial results for
the quarter ended December 31, 2013.
The 2013 quarter over 2012 quarter growth of 11% in revenues
comes from 3 general areas:
As most recently demonstrated with our just announced Liquid
Cesium-131 being FDA cleared and used with the GliaSite balloon catheter, management continues to promote and diversify
IsoRay's treatment options and resulting revenues by offering Cesium-131 as the alternative for treating recurrent and difficult
cancers located throughout the body. Management routinely hears from potential new adopters considering Cesium-131 in the coming
year based on the abstracts being presented at various conventions showing the early successes of utilizing Cesium-131 to fight
difficult cancers, and we expect results from additional studies to be presented in the remainder of 2014, with many studies approaching
time frames where peer reviewed articles can be expected to be published in the coming quarters. Management is extremely pleased
with the effectiveness of Cesium-131 as a treatment solution for brain cancer, head and neck cancer, lung cancer, prostate cancer
and gynecological cancers while providing far better quality of life for the patient than other
The new medical device tax created by the Affordable Care Act
has continued to impact IsoRay's financial results. IsoRay has continued to invest in R&D data protocols to support our future
sales efforts for each new body site. In addition we have participated in more neurological, thoracic and radiation oncology national
conferences than ever before as our product portfolio expands. IsoRay Chairman and CEO Dwight Babcock commented, "Clinical
evidence provided through protocols performed by major medical centers that prove successful with a significant improvement is
the key to getting general adoption by community hospitals/physicians which will drive consumers to our product offerings. Physicians
and institutions through oral presentations, posters and abstracts are reporting outstanding results in the use of Cesium-131 seeds
for the treatment of cancers of the brain, head and neck, prostate, gynecological, colon and
lung. Given this growing acceptance and interest, we remain committed to our strategic sales and marketing objectives, which we
believe will contribute to long term growth and achieving profitability."
IsoRay, Inc. and Subsidiaries
Consolidated Statements of Operations
| For the three months ended | For the six months ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Product sales | $ | 1,085,408 | $ | 975,457 | $ | 2,135,323 | $ | 2,031,689 | ||||||||
| Cost of product sales | 1,119,314 | 1,134,083 | 2,246,537 | 2,210,740 | ||||||||||||
| Gross loss | (33,906 | ) | (158,626 | ) | (111,214 | ) | (179,051 | ) | ||||||||
| Operating expenses: | ||||||||||||||||
| Research and development expenses | 170,030 | 149,176 | 317,020 | 290,648 | ||||||||||||
| Sales and marketing expenses | 326,467 | 322,094 | 685,652 | 638,150 | ||||||||||||
| General and administrative expenses | 513,964 | 469,559 | 1,165,000 | 1,114,412 | ||||||||||||
| Total operating expenses | 1,010,461 | 940,829 | 2,167,672 | 2,043,210 | ||||||||||||
| Operating loss | (1,044,367 | ) | (1,099,455 | ) | (2,278,886 | ) | (2,222,261 | ) | ||||||||
| Non-operating income (expense): | ||||||||||||||||
| Interest income | 481 | 128 | 835 | 272 | ||||||||||||
| Change in fair value of warrant derivative liability | 117,000 | (55,000 | ) | 81,000 | 74,000 | |||||||||||
| Financing and interest expense | (86 | ) | - | (827 | ) | (6 | ) | |||||||||
| Non-operating income/( expense), net | 117,395 | (54,872 | ) | 81,008 | 74,266 | |||||||||||
| Net loss | (926,972 | ) | (1,154,327 | ) | (2,197,878 | ) | (2,147,995 | ) | ||||||||
| Preferred stock deemed dividends (Note 9) | - | - | (726,378 | ) | - | |||||||||||
| Preferred stock dividends | (2,658 | ) | (2,658 | ) | (5,316 | ) | (5,316 | ) | ||||||||
| Net loss applicable to common shareholders | $ | (929,630 | ) | $ | (1,156,985 | ) | $ | (2,929,572 | ) | $ | (2,153,311 | ) | ||||
| Basic and diluted loss per share | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.08 | ) | $ | (0.06 | ) | ||||
| Weighted average shares used in computing net loss per share: | ||||||||||||||||
| Basic and diluted | 38,419,502 | 34,604,605 | 37,133,875 | 34,238,401 |
IsoRay, Inc., through its subsidiary, IsoRay Medical, Inc.
is the sole producer of Cesium-131 brachytherapy seeds, which is expanding brachytherapy options throughout the body. Learn more
about this innovative Richland, Washington company and explore the many benefits and uses of GliaSite and Cesium-131 by visiting
Safe Harbor Statement
news release about IsoRay's future expectations, including: the advantages of our products, future demand for IsoRay's existing
and planned products, whether revenue and other financial metrics will improve in future periods, whether IsoRay will be able to
continue to expand its base beyond prostate cancer, whether IsoRay will be able to generate sales, whether additional medical centers/community
hospitals/physicians will begin using our products, whether additional studies will be published or presented with favorable outcomes
from treatment with our products, and all other statements in this release, other than historical facts, are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). This statement
is included for the express purpose of availing IsoRay, Inc. of the protections of the safe harbor provisions of the PSLRA.
It is important to note that actual results and ultimate corporate actions could differ materially from those in such forward-looking
statements based on such factors as physician acceptance, training and use of IsoRay's products, changing levels of demand for
IsoRay's current and proposed future products, IsoRay's ability to reduce or maintain expenses while increasing sales, whether
later studies and protocols support the findings of the initial studies, patient results achieved using our products in both the
short and long term, success of future research and development activities, patient results achieved when Cesium-131 is used for
the treatment of cancers and malignant diseases beyond prostate cancer, IsoRay's ability to successfully manufacture, market and
sell its products, IsoRay's ability to manufacture its products in sufficient quantities to meet demand within required delivery
time periods while meeting its quality control standards, the success of our sales and marketing efforts, IsoRay's ability to enforce
its intellectual property rights, changes in reimbursement rates, changes in laws and regulations applicable to our product, and
other risks detailed from time to time in IsoRay's reports filed with the SEC.