Q2 2022 IsoRay Inc Earnings Call
Speaker 1: Good afternoon ladies and gentlemen, and welcome to the ISOL-RAE fiscal second quarter 2022 earnings call for the quarter ended December 31, 2021. At this time, all participants have been placed on all listen-only mode, and we will open the floor for your questions and comments after the presentation.
Good afternoon, ladies and gentlemen, and welcome to the ISO rate fiscal second quarter 2022 earnings call for the quarter ended December 31, 2021 at this time all participants have been placed on a listen only mode and we will open the floor for your questions and car.
After the presentation.
Speaker 1: Now my pleasure to turn the floor over to your host, Mark Lemon. Sir, the floor is yours.
My pleasure to turn the floor over to your host Mark Levin, Sir the floor is yours.
Thank you operator.
Speaker 2: Good afternoon and thank you for joining us today for the ISA-RA fiscal second quarter 2022 earnings call for the quarter ended December 31st, 2021.
Good afternoon, and thank you for joining us today for the ISO Ray fiscal second quarter 2022 earnings call for the quarter ended December 31 2021.
Speaker 2: Before we get started, I will take a few minutes to read the forward-looking statement.
Before we get started I will take a few minutes to read the forward looking statement.
Certain statements in this conference call constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 as amended.
Speaker 2: Certain statements in this conference call constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended.
Speaker 2: 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.
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.
<unk> within the meaning of the private Securities Litigation Reform Act of $19 95.
These forward looking statements are based on management's current expectations and beliefs about future events as of today February eight 2022.
Speaker 2: These forward-looking statements are based on management's current expectations and beliefs about future events as of today, February 8, 2020.
Speaker 2: As with any projection or forecast, they are inherently susceptible to uncertainty and changes in circumstance.
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.
Speaker 2: and the company undertakes no obligation to, and expressly disclaims, any obligation to update or alter its forward-looking statement.
Speaker 2: whether resulting from such changes, new information, subsequent events, or other...
Lies.
Speaker 2: Additional information concerning forward-looking statements is contained under the headings of safe harbor statement and risk facts.
Additional information concerning forward looking statements is contained under the headings of Safe Harbor statement and risk factors.
Speaker 2: Listed from time to time in the company's filings with the Securities and Exchange Commission.
<unk> from time to time in the company's filings with the Securities and Exchange Commission.
Speaker 2: We will begin today's call with Lori Woods, Ize Rae's chief executive officer.
We will begin today's call with Lori Woods, <unk>, Chief Executive Officer, and then Jonathan Hunt <unk>, Chief Financial Officer, who will discuss the fiscal second quarter 2022 financial results.
Speaker 2: And then Jonathan Hunt, I Surrays Chief Financial Officer, who will discuss the fiscal second quarter 2022 financial results.
Speaker 2: Following their prepared remarks, we will take questions from our analysts and institutional investors. I will now turn the call over.
Following their prepared remarks, we will take questions from our analysts and institutional investors.
I'll now turn the call over to Lori Woods.
Speaker 3: Thank you, Mark. Good afternoon, and thank you for joining us today for ICE RAIS fiscal second quarter, 2022 earnings conference call for the quarter into December 31st, 2021.
Thank you Mark good afternoon, and thank you for joining us today for ice rates fiscal second quarter 2022 earnings conference call for the quarter ended December 31 2021.
Speaker 3: Following my prepared remarks, our Chief Financial Officer, Jonathan Hunt, will provide a more detailed review of our fiscal second quarter financial result.
Following my prepared remarks, our Chief Financial Officer, Jonathan Hunt will provide a more detailed review of our fiscal second quarter financial results.
Speaker 3: I am pleased to share with you the continued growth we experienced in our fiscal second quarter.
I am pleased to share with you the continued growth we experienced in our fiscal second quarter.
Speaker 3: Tone revenue for the fiscal second quarter increased 19% versus the year ago quarter to $2.82 million. This represented the third straight quarter of year over year growth for our core prostate business as well as total company revenue.
Total revenue for the fiscal second quarter increased 19% versus the year ago quarter to $282 million. This represented the third straight quarter of year over year growth for our core prostate business as well as total company revenue.
I believe there are encouraging trends in our business.
Speaker 3: I believe they're encouraging trends in our business. In fact, this quarter is the second highest revenue quarter in the company's history. Right behind the quarter ended March 31st, 2020 at the very beginning of COVID.
In fact this quarter is the second highest revenue quarter in the company's history right behind the quarter ended March 31, 2020 at the very beginning of Covid.
Speaker 3: The second quarter marked a return to a more normal pace of business for us. Access to clinicians and hospitals increased as COVID seemed to settle down and patients increasingly worked through the referral process.
The second quarter marked a return to a more normal pace of business for us.
Access to clinicians and hospitals increased as COVID-19 seem to settle down and patients increasingly worked through the referral process.
Speaker 3: I remain confident that the steps we are taking will benefit us even more as our end markets rebound further from the impact we have been experiencing due to the pandemic.
I remain confident that the steps we are taking will benefit us even more as our end markets rebound further from the impact we have been experiencing due to the pandemic.
Speaker 3: In addition to growth in our core prostate business, our non-prostate breaking therapy business, which is about 25% of our total revenues now, grew 46% year over year.
In addition to growth in our core prostate business, our non prostate brachytherapy business, which is about 25% of our total revenues now grew 46% year over year.
Speaker 3: This was largely driven by continued expansions of tree myths for brain cancer, notably gametyle therapy.
This was largely driven by continued expansions treatments for brain cancer, notably gamma tile therapy.
Speaker 3: We're happy to report that GT Medical Technology continues to make progress in increasing awareness of the value of gamutile to both patients and clinicians. We look forward to sharing more information with you regarding their ongoing clinical trials and the benefit of this therapy later this year.
We're happy to report that GT medical technology continues to make progress in increasing awareness of the value of gamut, Chile to both patients and clinicians we look forward to sharing more information with you regarding their ongoing clinical trials and the benefit of this therapy later this year.
The growth we've been experiencing over the past few quarters in our prostate business reinforces our confidence in this market opportunity.
Speaker 3: The growth we've been experiencing over the past few quarters in our prostate business reinforces our confidence in this market opportunity. This is especially true when we look at this growth in context of the ongoing pandemic.
This is especially true when we look at this growth in context of the ongoing pandemic.
Speaker 3: I believe the pandemic-related headwinds to our prostate business will persist, but with diminishing magnitude moving forward. Ultimately, I believe that what we have been saying repeatedly over the last two years remains accurate. Cancer does not stop due to the pandemic. Consequently, we believe the number of men diagnosed with prostate cancer is going to grow at a historically high rate.
I believe the pandemic related headwinds to our prostate business will persist, but with diminishing magnitude moving forward.
Ultimately I believe that what we have been saying repeatedly over the last two years remains accurate cans.
Cancer does not stop due to the pandemic. Consequently, we believe the number of men diagnosed with prostate cancer is going to grow at a historically high rate.
Speaker 3: Data such as that highlighted in the American Cancer Society's 2022 Cancer Facts and Figures Report that was published in January support this position.
Data such as that highlighted in the American cancer Society, 2022 cancer facts and figures report that was published in January support this position.
Speaker 3: This report estimates that nearly 270,000 men will be diagnosed with prostate cancer this year, which is almost 50 percent more than the number of men diagnosed annually in the years just prior to the pandemic.
This report estimates that nearly 270000 men will be diagnosed with prostate cancer. This year, which is almost 50% more than the number of men diagnosed annually in the years just prior to the pandemic.
Speaker 3: This also reflects a higher number than the estimated 250,000 diagnosis published in the 2021 report.
This also reflects a higher number than the estimated 250000 diagnosis published in the 2021 report.
Speaker 3: Despite these historic challenges driven by the pandemic, we continue to believe ICE ICE array is well positioned to accelerate our growth and expand our share of the prostate breaking therapy mark.
Despite these historic challenges driven by the pandemic, we continue to believe ice ray is well positioned to accelerate our growth and expand our share of the prostate brachytherapy market.
Speaker 3: Certainly the compelling long-term data we have continued to accumulate over the past few years speaks to cesium's efficacy.
Certainly the compelling long term data we have continued to accumulate over the past few years speaks to ccm's efficacy.
Speaker 3: This combination of increasing clinical evidence of CESUM 131 as a powerful option for the treatment of prostate cancer and the likely growing market opportunity points to now as the time to accelerate our sales and marketing efforts.
This combination of increasing clinical evidence of cesium 131, as a powerful option for the treatment of prostate cancer and the likely growing market opportunity to now is the time to accelerate our sales and marketing effort.
Speaker 3: With that in mind, we recently engaged in a thorough review of the prostate market opportunity and how our sales and marketing strategy should be aligned.
With that in mind, we recently engaged in a thorough review of the prostate market opportunity and how our sales and marketing strategy should be aligned.
Speaker 3: One of the facets of the review was focused on identifying the programs that were most beneficial to promoting CESU-131 as the isotope of choice for intermediate and high-risk prostate cancer.
One of the facets of the review was focused on identifying the programs that we're most beneficial to promoting cesium 131, as the isotope of choice for intermediate and high risk prostate cancers.
Speaker 3: Sales supported by marketing will be tasked with implementing changes to reflect what we have learned from this internal review to advance our efforts to broaden awareness with clinicians as well as patients.
Sales supported by marketing will be tasked with implementing changes to reflect what we have learned from this internal review to advance our efforts to broaden awareness with clinicians as well as patients.
Speaker 3: One component aimed at achieving broadened awareness, as well as increasing market penetration, is our plan to increase our head count in sales.
One component aimed at achieving broadened awareness as well as increasing market penetration is our plan to increase our head count in sales.
Speaker 3: We expect to increase the number of territory managers from 7 to 10 over the next 12 months.
We expect to increase the number of territory managers from seven to 10 over the next 12 months.
We believe this combined with our increasing clinical evidence will accelerate new clinician adoption of cesium 131 in our core prostate market.
Speaker 3: We believe this, combined with our increasing clinical evidence, will accelerate new clinician adoption of CESUM 131 in our core prostate marks.
Speaker 3: It is our expectation that it will also increase the utilization of complementary value-added products such as the C4 Sures MRI markers.
It is our expectation that it will also increase the utilization of complementary value added products such as the sea for serious MRI markers.
We will also be dedicating more marketing resources to both clinicians and patients.
Speaker 3: We will also be dedicating more marketing resources to both clinicians and patients.
Speaker 3: Our market research has reinforced the notion that although radiation oncologists and urologists generally are receptive to the clinical data on CZM-131, their awareness of the product is relatively low, and they are more likely to use the isotope they were originally trained on.
Our market research has reinforced the notion that all know radiation oncologists and neurologists generally are receptive to the clinical data on <unk> 131, their awareness of the product is relatively low and they are more likely to use the isotope. They were originally trained on.
Speaker 3: To that end, we are going to have more frequent company spots or training.
To that end, we're going to have more frequent company sponsored trainings.
Speaker 3: Important to our training plans is the implementation of ProxME as a virtual tool for those clinicians and their teams that don't have the time or the desire to travel.
Important to our training plans, it's the implementation of proxy me as a virtual tool for those clinicians and their teams that don't have the time or the desire to travel.
Additionally, we are receiving renewed interest in in person training once again, which we have reinstated for those who are ready to return to that training setting.
Speaker 3: Additionally, we are receiving renewed interest in in-person training once again, which we have reinstated for those who are ready to return to that training setting.
Speaker 3: Another aspect of this effort is tied to our work with the CZM Advisory Group or CAG to update the guidelines on how to successfully implant the prostate using CZM 131.
Another aspect of this effort is tied to our work with the Cesium Advisory group or CAG to update the guidelines on how to successfully implant the prostate using cesium 131.
Speaker 3: This group is comprised of experienced clinicians who are eager to share growth practices in planning and executing CESU-131 prostate implant procedures.
This group is comprised of experienced clinicians who are eager to share best practices in planning and executing cesium 131 prostate implant procedures.
Speaker 3: We will then add this information to our company sponsored clinician training program.
We will then add this information to our company sponsored clinician training programs.
Speaker 3: We believe the CAG recommendations will empower clinicians to use our isotope by following the guidelines and encourage those who have not used this isotope previously.
We believe the CAG recommendations will empower clinicians to use our isotope by following the guidelines and encourage those who have not used this isotope previously.
We believe this will accelerate adoption of cesium 131 in new centers.
Speaker 3: We believe this will accelerate adoption of CZ131 in new centers.
Speaker 3: This emphasis on clinician engagement and training extends to our plans to deepen our engagement with ABS. The American Brickie Therapy Society.
This emphasis on clinician engagement and training expense to our plans to deepen our engagement with a b S. The American brake heat therapy Society.
Speaker 3: Most recently we have seen a change that is of great interest.
Most recently, we have seen a change that is of great interest.
Speaker 3: ABS and Grand Rounds in Urology are collaborating.
<unk> and Grand rounds in neurology are collaborating.
Speaker 3: Grand Rounds in Eurology is a leading network of clinicians who provide best practices and current clinical updates for the treatment of urologic disease and conditions, including prostate cancer.
Grand rounds in urology is a leading network of clinicians who provide best practices and current clinical updates for the treatment of urologic diseases and conditions, including prostate cancer.
Speaker 3: They are building on their strengths to bring expanded programs in training opportunities on breaking therapy to radiation oncologists, urologists, and physicists.
They're building on their strengths to bring expanded programs and training opportunities on breakthrough therapy to radiation oncologist urologists and businesses.
Speaker 3: We are looking forward to attending an event in early March, where these clinicians will be on hand, as well as the number of ABS senior executives. The program is an outgrowth of the International Prostate Cancer Update, or IPCU. One of Grand Rounds and Eurologies' program offering.
We are looking forward to attending an event in early March where these clinicians will be on hand, as well as a number of a b S senior executives.
The program is an outgrowth of the international prostate cancer update.
IPC you one grand rounds in neurology program offerings.
Speaker 3: It includes a multi-day CME accredited conference focused on prostate cancer treatment updates.
It includes a multi day CME accredited conference focused on prostate cancer treatment updates.
I saw ray will be exhibiting at this conference and I, along with several senior ice rink executives will be there to assure a strong brand presence and take full advantage of some key networking opportunities.
Speaker 3: Isare will be exhibiting at this conference and I, along with several senior Isare executives, will be there to assure a strong brand presence and take full advantage of some key networking opportunities.
We continue to make progress towards the launch of the seed for serious MRI markers in combination with our cesium 131 seats for treating prostate cancer.
Speaker 3: We continue to make progress towards a launch of the C4 Series MRI markers in combination with our CZM-131 seeds for treating prostate cancer.
Speaker 3: We believe that in the immediate future, the incorporation of MRI will offer a significant improvement in the planning, execution, and evaluation of prostate-breaking therapy.
We believe that in the immediate future the incorporation of MRI will offer a significant improvement in the planning execution and the valuation of prostate brachytherapy.
Speaker 3: The benefit from the integration of MRI extends to both patients and clinicians in offering higher quality implants than possible with currently available imaging technology.
The benefit from the integration of MRI extends to both patients and clinicians in offering higher quality implants than possible with currently available imaging technologies.
Speaker 3: The FTA cleared prostate treatment we developed in partnership with C4 brings together MRI-assisted radiotherapy with CZU-131.
The FTA cleared prostate treatment, we developed in partnership with C. Four brings together MRI assisted radiotherapy with cesium 131.
This represents a step forward as it advances imaging technologies that had been in place for over 30 years with little or no innovation during that time.
Speaker 3: This represents a step forward as it advances imaging technologies that have been in place for over 30 years with little or no innovation during that time.
Speaker 3: At the end of February , we will be conducting an internal launch preparation meeting regarding this new prostate treatment opportunity, which will train our sales team so they will be better able to engage with key institutions and providers.
At the end of February we will be conducting an internal launch preparation meeting regarding this new prostate treatment opportunity, which will train our sales teams. So they will be better able to engage with key institutions and providers.
Speaker 3: To promote greater awareness amongst patients, we will be growing our direct to consumer advertising and marketing programs.
To promote greater awareness amongst patients, we will be growing our direct to consumer advertising and marketing programs increasingly.
Speaker 3: Increasingly, patients have more influence on treatment decisions in many health care settings.
Increasingly patients have more influence on treatment decisions in many health care settings.
Speaker 3: We believe this is also very true for the prostate cancer mark.
We believe this is also very true for the prostate cancer market.
Speaker 3: It is our sense that the value proposition of cesium for the treatment of prostate cancer is compelling and easy to understand.
It is our sense that the value proposition of cesium for the treatment of prostate cancer is compelling and easy to understand.
Speaker 3: As a result, we feel it should be well received by many of a growing number of men facing prostate cancer.
As a result, we feel it should be well received by many of the growing number of men facing prostate cancer.
Speaker 3: Patient engagement is also behind our intent to increase our presence with the key advocacy groups zero cancer.
Patient engagement is also behind our intent to increase our presence with key advocacy groups zero cancer.
Speaker 3: Given their established position as a leading patient advocacy group, we believe it will contribute to our drive to further recognition of cesium amongst patients.
Given their established position as a leading patient advocacy group, we believe it will contribute to our drive to further recognition of cesium amongst patients.
Speaker 3: Underpinning all of these programs will be our continued concentration on refining cesium-blue's brand image and related messaging across our website, collateral, and outreach to patients.
Underpinning all of these programs will be our continued concentration on refining cesium Blu brand image and related messaging across our website collateral and outreach to patients.
I am equally excited about the growing opportunities for our proprietary isotope in treatment areas like brain head and neck and lung.
Speaker 3: I am equally excited about the growing opportunities for our proprietary isotope in treatment areas like brain, head, neck, and lungs.
Speaker 3: In fact, we are currently awaiting a response from CMS on a reimbursement code for high activity seeds that support our surgical application.
In fact, we are currently awaiting a response from CMS on a reimbursement code for high activity sees that support our surgical applications.
Speaker 3: This is important because there are certain types of lung cancers that may benefit from a high level
This is important because there are certain types of lung cancers.
That may benefit from a high level of activity.
Speaker 3: For example, seeds with a higher isotope activity may be more effective for non-surgical treatment of certain lung cancer.
For example, seeds with a higher isotope activity may be more effective for non surgical treatment of certain lung cancers.
Speaker 3: And finally, I am happy to report that our immunos oncology study combining CESU-131 with ketruda for the treatment of recurrent head and neck cancers continues to gain momentum with recent additional patient enrollments as we move beyond COVID-related hospital restrictions that have been a headwind to the study thus far.
And finally, I am happy to report that our immuno oncology study combining cesium 131 with Keytruda for the treatment of recurrent head and neck cancers continues to gain momentum with recent additional patient enrollment as we move beyond Covid related hospital restrictions that.
It had been a headwind to the study thus far.
Speaker 3: Additionally, we continue to have ongoing discussions with underleading institutions interested in potentially collaborating with the University of Cincinnati to potentially make this a multi-center study.
Additionally, we continue to have ongoing discussions with other leading institutions interested in potentially collaborating with the university of Cincinnati to potentially make this a multi center study.
Speaker 3: We are hopeful that enrollment will continue to accelerate and that we will have enrollment completed in the coming months.
We are hopeful that enrollment will continue to accelerate and that we will have enrollment completed in the coming months.
Speaker 3: I do want to share with you that we have made significant inroads towards the space one and phase two clinical trials. We will keep you updated as progress is made.
I do want to share with you that we have made significant inroads towards these phase one and phase two clinical trials, we will keep you updated as progress is made.
Our clinical trial strategy is ongoing and will continue to represent a significant portion of the R&D expenditures going forward.
Speaker 3: Our clinical trial strategy is ongoing and will continue to represent a significant portion of the R&D expenditures going forward.
Speaker 3: In closing, we are increasing our activities on a number of fronts.
In closing, we are increasing our activities on a number of fronts.
Speaker 3: We believe that our multi-pronged undertakings aimed at our core prostate business surrounding training, sales, and marketing at this time, when we expect the overall market to expand is essential. We feel it will support ISRAE returning to the growth rates our prostate business was experiencing prior to the pandemic.
We believe that our multi pronged undertakings aimed at our core prostate business surrounding training sales and marketing at this time when we expect the overall market to expand is essential.
We feel it will support ice ray returning to the growth rates, our prostate business was experiencing prior to the pandemic.
Speaker 3: At the same time, we see strong progress in the developing opportunities to treat applications for brain, head and neck, lung and other cancer.
At the same time, we see strong progress in the developing opportunities to treat applications for brain head and neck lung and other cancers.
Speaker 3: Lastly, we continue to make progress with respect to a number of strategic collaborations and investments, which we will share with you once we have more details, barring any unpersuined circumstance.
Lastly, we continue to make progress with respect to a number of strategic collaborations and investments, which we will share with you. Once we have more details barring any unforeseen circumstances.
Speaker 3: I am encouraged by the recent growth and future opportunities for ice array.
I am encouraged by the recent growth and future opportunities for ice raids.
Now I will turn the call over to Jonathan to review the results of our fiscal second quarter in more detail.
Speaker 3: Now I will turn the call over to Jonathan to review the results of our fiscal second order in more detail.
Speaker 1: Thank you, Laurie. I am going to discuss some of the financial information that was contained in our press release for the fiscal second quarter and the December 31, 2021 that we released a short while ago.
Thank you Laurie.
I'm going to discuss some of the financial.
Information that was contained in our press release for the fiscal second quarter ended December 31, 2021 that we really short while ago.
Speaker 1: We anticipate that our form 10Q will be filed with the SEC on 1 or before February 14.
We anticipate that our Form 10-Q will be filed with SEC on.
For February .
Revenue for the second quarter.
Speaker 1: revenue for the second quarter and a December 31, 2021, who made 10% the $2.82 million versus $2.36 million for the same grade last year.
And as December 31st 2021 grew 19% with $2.2 million.
$2 three $6 million for the same periods last year.
Speaker 1: hire sex Russell 2020 2021
Prostate brachytherapy revenue increased 13% versus the second quarter of fiscal 2021.
Speaker 1: Second-corner revenue was comprised of 76% for prostate-principularity, with the balance for 24% of revenue attributed to other gricky parodies.
Second quarter revenue was comprised of 76% for prostate brachytherapy with the balance were 24% of revenue attributed to other brachytherapy.
Speaker 1: Driven primarily by seed and services revenue from G2 Medical Technologies, other BK therapy revenues increased 46%, versus the second quarter of fiscal 2021.
Driven primarily by feed in services revenue due to medical technologies.
The breakthrough therapy revenue increased 46% versus the second quarter fiscal 2021.
Okay.
Speaker 1: Gross profit as a percentage of revenues for the second quarter ended December 31st, 2021, was 43.3%. Compared to 49.5% for the quarter ended good for the 31st, 2020.
Gross profit as a percentage of revenue for the second quarter ended December 31st 2021 was 43, 3% compared to 49, 5% for the quarter ended December 31 2020.
Speaker 1: Regress margin decline was primarily the result of the 34% increase in cost of product cells when compared to a year or a quarter.
The gross margin decline was primarily the result of the 34% increase cost of products sold when compared to the year ago quarter.
Speaker 1: The primary driver was ordering a additional isotope during the initial setup phase of an additional reactor coming online to support future growth at the company.
The primary driver was ordering of additional isotopes. During the initial set up phase of an additional reactor coming online to support future growth of the company.
Additionally.
And benefits expense increased as a result of greater head count versus the comparable year ago cleanup.
Speaker 1: Second quarter goes profit dollars of $1.2 million, increased by a percent when compared to the same period last.
Second quarter gross profit dollars of $1 $2 million increased 5% when compared to the same period last year.
Total operating expenses, consisting of research and development sales and marketing and general and administrative increased 40% to $2 6 million versus 2.0.
Speaker 1: total operating extent, who's consisting of research and development, thousand marketing, and general and administrative increased 40% to $2.86 million versus $2.0 for million in the second quarter of 2021.
In the second quarter of 2021.
Speaker 1: 28% versus the comparable priorier quarter to $535,000.
Total R&D expenses increased 88% versus the comparable prior year quarter to $535000.
Speaker 1: The increase in total research and development expenses was primarily the result of increased payroll and benefit.
The increase in total research and development expenses was primarily the result of increased payroll and benefits expense due to greater head count versus the prior year comparable period and higher market research expenses versus the prior year comparable period.
Speaker 1: Due to greater headcount, which is the prior year comparable to it, and higher market research expenses versus the prior year of compil.
Speaker 1: 1000 marketing expenses increased 13% versus the comparable prior year quarter to $722,000.
Sales and marketing expenses increased 13% or so.
The comparable prior year quarter to $702000.
Speaker 1: The increase in sales and marketing expenses was driven primarily by increases in travel and trade show costs and increased in payroll and benefits expense due to merit increases in higher and increased incentives compensation versus the priority of comparable periods.
The increase in sales and marketing expenses.
It was driven primarily by increases in travel and trade show costs.
An increase in payroll and benefits expenses due to merit increases and new hires.
Incentive compensation versus the prior year comparable period.
Speaker 1: GNA expenses of $1.62 million represented an increase of 43% versus the fiscal second quarter 2021.
G&A expenses of $162 million represented an increase of 43% versus the second.
Second quarter 2021.
The year over year increase was primarily due to increases in payroll and benefits expense.
Speaker 1: The year over year increase was primarily due to increases in fuel and benefit success due to annual merit increases and greater head count.
No merit increases and greater head count.
Speaker 1: employment hiring expenses, IT consulting expenses, DNO insurance premiums, public company expenses, audit and legal fees, and travel expenses, firstly, supplier year compared.
Employment hiring expenses.
Consulting expenses.
Insurance premiums.
Hmm.
Hum.
And travel expenses versus the prior year comparable period.
Speaker 1: The second quarter net loss was $1.6 million versus a net loss of $868,000 during the same prior year period.
The second quarter net loss was $1 $6 million versus a net loss.
Third $68000 during the same prior year period.
Speaker 1: And that loss for basic and diluted share was one cent versus been that loss of one cent for the prior.
Our net loss per basic and diluted share was one versus the net loss of one for them to the prior year second quarter.
Speaker 1: Basic and diluted share levels are based on weighted average shares outstanding of approximately 142 million at fiscal second quarter
Basic and diluted share levels are based on weighted average shares outstanding.
$142 million fiscal second quarter 2022.
Versus approximately $83 million from the prior year period.
Speaker 1: versus approximately 80 trillion for the prior year period.
As of December 31, 2021, the company had cash cash equivalents and certificates of deposit and totaled $64 million or approximately 42 cents per share compared to $63 8 million at the end of the.
Speaker 1: As of December 31, 2021, the company had cash, cash equivalents, and certificates of deposit. They told us $60.4 million or approximately 42 cents per share. Compared to $63.8 million at the end of the fiscal year, 2021 ended June 30, 2021. The company has-
Fiscal year 2021 ended June 32021.
The company has zero long term debt.
Speaker 1: Chair holders of equity at the end of the fifth or second quarter of 2022 totaled $64.4 million. This is $57.4 million at the end of the fiscal year 2021.
Shareholders' equity at the end of fiscal second quarter, 2022 totaled $64 $4 million.
Seven 4 million at the end.
Full year 2021.
I will now turn the call over to the operator to take questions from our analysts and institutional investors.
Speaker 1: I will now turn the call over to the operator to take questions that are analysts and institutional investors.
Speaker 1: Thank you. Ladies and gentlemen, the floor is now open for questions. If you have any questions or comments, please indicate so now by pressing star one on your touchtone phone.
Thank you ladies and gentlemen, the floor is now opened for questions. If you have any questions or comments. Please indicate so now by pressing star one on your Touchtone phone.
Speaker 1: Pressing star 2 will remove you from the cue, should your question be answered. And lastly, while closing your question, please pick up your handset if listening on speaker phone to provide optimum sound quality. Please hold while...
Things start to remove you from the queue should your question be answered and lastly, while posing your question. Please pickup your handset if listening on speaker phone to provide optimal sound quality. Please hold while we poll for questions. Once again Thats star one if you have a question or comment.
Speaker 1: Once again, that's Star One if you have a question or comment. And the first question is coming from Frank Takenin from Lake Street Capital Markets, your line is live.
First question is coming from Frank <unk> from Lake Street Capital markets. Your line is live.
Hey, Jonathan Thanks for taking my questions. Two for me today I wanted to start with the commentary around internal investments it sounds like.
Speaker 4: I wanted to start with the commentary around internal investments. It sounds like relatively significant step up in the internal investment side sales, marketing, DTC, those types of things.
Relatively significant step up in the internal investment side sales marketing DTC those types of things. So my my first part of question.
Speaker 4: So my first part question is, one, what is triggering this? Is it improving clarity into the end market? Is it something else? And then two, is there anything to read into what feels like to me an increased focus on internal investments rather than what felt like a focus on external investments in previous companies?
One what is triggering this is it improving clarity into the end market is it something else and then two was there anything to read into what feels like to me an increased focus on internal investments rather than what felt like a focus on external investments of previous conference calls.
Speaker 3: Hi, good afternoon, Frank. Yes, let me start by talking about our investment in sales and marketing.
Hi, good afternoon, Frank Yes.
Yes, let me start by talking about our investment in sales and marketing, we're really starting to feel like we're seeing access to hospitals improve and some of the COVID-19 restrictions starting to come down and where for the last couple of years, we've had the ups and downs of that happening we do believe and we are certainly.
Speaker 3: We're really starting to feel like we're seeing access to hospitals, improved, and some of the COVID restrictions starting to come down. And where for the last couple of years, we've had the ups and downs of that happening. We do believe in we are certainly hoping that going forward will have better access and things will ease a bit.
Hoping that going forward, we will have better access and things will ease a bit so that was a very good time for us to focus on the breakout in our territories and the access that our sales team has to get in front of customers on a regular basis and we feel like there are <unk>.
Speaker 3: So that was a very good time for us to focus on the breakout in our territories and the access that our sales team has to get in front of customers on a regular basis. And we feel like there are territories in which we could do a better job than that. And therefore, we're looking at this time at adding additional...
Territories in which we could do a better job on that and therefore, we're looking at this time at adding additional.
Speaker 3: sales people in those different territories to be able to increase access to these hospitals that are opening up. So, I'm excited about that. When it comes to increased
Sales people in that those different territories to be able to increase access to these hospitals are opening up. So we're excited about that when it comes to increased folks in other areas certainly over the last few earnings calls we've been talking about are.
Speaker 3: folks in other areas, certainly over the last few earnings calls we've been talking about are, are sureing up internal resources to support additional growth. And what you're seeing here is definitely looking at our R&D resources and other resources as well to make sure that we can continue to focus on some of these external things. We certainly have a lot of focus on these external things. We continue to...
Our shoring up internal resources to support additional growth.
And what Youre seeing here is definitely looking at our R&D and <unk>.
Resources and other resources as well to make sure that we can continue to focus on some of these external things. We certainly haven't lost focus on these external things we continue to.
Speaker 3: Look at opportunities and refine our opportunities and then once it gets to the due diligence phase work on our due diligence, but that does take resources to do all that.
Look at opportunities and refine our opportunities and then once it get to the due diligence phase work on our due diligence, but that does take resources to do all of that.
Okay. That's helpful. I wanted to ask one on the seasonality obviously.
Speaker 4: Okay, that's helpful. I wanted to ask one on seasonality. Obviously it's a little bit less clear with the different COVID impacts that have been occurring, but can you provide any thoughts around seasonality of the December and the quarter versus what might impact the March and the quarter?
A little bit less clear with the different COVID-19 impacts that have been occurring but could you provide any thoughts around seasonality of the December ended quarter versus what might impact be March ended the quarter.
Speaker 3: So it's interesting if it was a non-COVID year, I would say that typically our seasonality can be found during the summertime when people go on vacation and around the holidays as well. But what we saw more this year than past years was the impact of COVID on the...
So it's interesting if it was a non COVID-19 year I would say that typically our seasonality can be found during the summertime when people go on vacation and around the holidays as well, but what we saw more this year than past years was the impact of Covid on on the season, so to speak we saw <unk>.
Speaker 3: season, so to speak. We saw COVID, when COVID went up, we have been seeing the reduction in access to hospitals and patients getting in the system and it hasn't necessarily lined up with the holidays or vacation times this year. So as we look into this first quarter here, my hope is that on the front really does go down as people say it may.
When Covid went up we have been seeing the reduction in access to hospitals and patients getting in the system and it hasn't necessarily lined up with the holidays or vacation times this year.
So as we look into this first quarter here My hope is that.
Omicron really does go down as people say it may.
Speaker 3: and fall off quickly and we get back more into that summer environment that we've seen with COVID the last couple of years. And so as we look forward, that's what we're hoping to see, but we just don't know if another variant's going to pop up and put us back in the same position where we were in with Delta, where we thought we were moving forward and then on a cron hit. So we continue to watch it. We continue to work at ways to engage with hospitals and clinicians around all of this.
And fall off quickly and we get back more into that summer environment that we've seen with Covid. The last couple of years and so as we look forward. That's what we're hoping to see but we just don't know if another variance going to pop up and put us back in the same position, where we were in with Delta, where we thought we were moving forward and then omicron hit so we can.
To watch it we continue to work at ways to engage with hospitals and clinicians around all of this going on.
Speaker 4: Okay, last one for me, really you're in the process of adding another reactor at a time where supply chain and increasing material costs have been...
Okay last one for me I realize you're in the process of adding another reactor at a time where supply chain.
Increasing material costs have been.
Speaker 4: very common out there. Can you kind of peel apart the impacts of those? I thought the gross margin was a little bit better than anticipated for the quarter. So maybe just talk about the different material cost increase as well as the reactor impact. One, we could see something back towards your 50% plus gross margins experienced in previous years.
Very common out there could you kind of Peel apart the impacts of those two honestly I thought the gross margin was a little bit better than anticipated.
For the quarter. So maybe just talk about the different material cost increase as well as the reactor impact and when we could see something back towards your call. It 50% plus gross margins experienced in previous years.
Speaker 1: Yeah, thank you. We did experience some additional cost, disease, starting up the additional reactor. We felt that was very beneficial for us, giving
Yes.
Did experience.
Additional costs due to starting up.
We ought to be felt.
That was very beneficial for us.
Sure.
Speaker 1: where we're at kind of in the marketplace, and particularly as we look forward and anticipate additional growth.
Where we're at.
Marketplace, particularly as we look forward to.
Maybe additional growth.
We expect to be able to balance those two reactors out over the coming quarters.
Speaker 1: We expect to be able to balance those two reactors out over the coming quarter and to, especially, you know, margin can really start to improve and get back into those.
Especially.
Margin is going to really start to improve.
Get back into those.
Speaker 1: Got that 50% range as we see the cells continue to improve.
Kind of that 50% range as we see themselves continue to improve.
Speaker 1: really when the cells start to improve that's when it allows to be more efficient with our use of isotope, which is one of the main cost drivers. In terms of other supplies, we have seen some increases there, but we have not had any supply chain disruption.
Really when the sales start to improve that.
It allows us to be more efficient with our use of isotopes.
<unk>.
One of them.
Cost drivers.
Yeah in terms of other suppliers.
We have seen some increases there, but we have not had any supply chain disruptions.
Speaker 1: that we enable to maintain our supply chains, sometimes going out to other vendors at times, that nonetheless being able to acquire the supplies that we need throughout this time.
We've been able to maintain our supply chains.
Sometimes going out to other vendors.
Times, but nonetheless being able to acquire the supplies.
Throughout this time.
Perfect. Thanks for taking my questions.
Yes.
Okay.
The next question is coming from Mike <unk> from Oppenheimer. Your line is live.
Speaker 1: The next question is coming from Mike Atte from Oppenheimer. Mike should run his life.
Good afternoon, Laurie and Jonathan Thanks for taking my question.
Speaker 5: Could I have to do more in Jonathan, thanks for taking my question. You know, really nice 13% year over year growth in core prostate last quarter, you know, not back above December 19 levels. I mean, as a Ferris and Ops, this is just a bit of, you know, post-Delta pre-Amacron recovery coupled lists, you know, more of the better access that you mentioned and possibly some of the ABS. Guideline inclusion that I believe was effective September 21.
A really nice 13% year over year growth in core prostate last quarter now back above December 19 levels. I mean is it fair synopsis. This is just a bit of post delta pre omicron recovery, coupled with Lori the better access that you mentioned and possibly some ABS guideline inclusion that I believe was effective September 21.
Speaker 3: Yeah, I think it's fair to categorize certainly that we had a quarter where we had better access when we felt like we were getting in front of physicians. Physicians were seeing these patients come in and through the system and that certainly helped.
Yeah, I think it's fair to categorize certainly that we had a quarter, where we had better access when we felt like we were getting in front of physicians physicians. We're seeing these patients come in and through the system and that certainly helped.
Speaker 3: We have also been working as we talked about getting our training programs up and going again, getting clinicians involved in understanding how to do a great cesium implant so they feel really comfortable. And I think all those things are helping to support the growth that you're seeing.
Have also been working as we talked about.
Getting our training programs up and going again getting clinicians involved in understanding how to do a great cesium implants. So they feel really comfortable and I think all those things are helping to support.
The growth that Youre seeing.
Speaker 5: Okay, that's great to hear. And then pivoting over to the other non-prostate side, seems like we've observed an increase in customers maybe trying gamutile or at least an increase in talking about it.
Okay, that's great to hear and then pivoting over to the other non prostate side.
Seems like we've observed an increase in customers, maybe trying gamba tile or at least could decrease of talking about it.
Speaker 5: you know, realizing that GT is a separate company, are you aware of any, you know, increased marketing efforts on there?
GT as a separate company are you aware of any increased marketing efforts on their behalf.
Speaker 5: behalf and related to that has the new arrangement I believe where you're providing GT with the seats as opposed to the finished tiles.
<unk> and related to that has the new arrangement I believe where you're providing GT with the seat as opposed to the finished tiles.
Speaker 5: Is that played any role? It just seems in our model, obviously, it's really big growth numbers that we saw in your fiscal 21. And you know, we're just seeing it slow to some more, you know, still respectable numbers on the known prostate.
That played any role.
Seems that our model obviously, there are some really big growth numbers that we saw in your fiscal 'twenty one.
It slowed as more still respectable numbers have been on prostate.
Speaker 3: Yeah, absolutely. No, we're excited about what Damatile is doing. And I think they're working as hard as we are toward getting access to clinicians and broadening the numbers of clinicians and institutions that are aware of Damatile. I think we, in terms of what we see from our perspective, feel like they're making...
Yeah, absolutely no. We're excited about what <unk> doing and I think they're working as hard as we are toward getting access to clinicians and broadening the numbers of clinicians and institutions that are aware of gamma trial I think we in terms of what we see from our perspective feel like Theyre, making.
Speaker 3: Good progress on this front and we're very excited to be able to support them. When it comes to selling them seeds and then loading their own tiles, I think it's been very beneficial for both companies. We are excited to be helpful and support them in any way that we possibly can and feel like that's going really well.
Good progress on this front and were very excited to be able to support them. When it comes to us selling them seeds and unloading their own trials that I think has been very beneficial for both companies. We are excited to be helpful and support them in any way that we possibly can and feel like that's going really well.
Speaker 5: That's great. And then one last topic, you know, realizing that breaking therapy is no longer part of it. Curious, Laura, if you have any thoughts on the one year, the latest one year delay to the ROAPM to now, not before I believe January of 2023.
That's great and then one last topic.
Breakthrough therapy is no longer part of it curious Laurie if you have any thoughts on when you're the latest one year delay to the Ro APM to know that before I believe January of 2023.
Speaker 3: Yeah, absolutely. So, you know, we continue to see this get pushed back a bit. And I have to give a lot of credit to Astro because I think they've been working really hard with CMS to get CMS to understand.
Yeah, absolutely. So we continue to see this get pushed back a bit and I have to give a lot of credit to our stroke, because I think they've been working really hard with CMS to get CMS to understand the kinds of issues that are related to the complexity of providing radiation treatment to patients and I think this year pushback is going.
Speaker 3: the kinds of issues that are related to the complexity of providing radiation treatment to patients. And I think this year pushback is gonna give us the opportunity to look at some of the things that could be better in that language to help make sure that patients have access to the care that they need. And so from that perspective, although we continue to...
Give us the opportunity to look at some of the things that could be better than that language to help make sure that patients have access to the care that they need and so from that perspective, although we continue to be hopeful that they will engage in the Ro APM model at some point now that <unk>.
Speaker 3: be hopeful that they will engage in the ROAPM model at some point. Now that seeds have been removed from it, it doesn't impact us as directly.
It had been removed from it it doesn't impact us as directly and yet patients who have high risk prostate cancers are likely to get external beam radiation and breakthrough therapy. That's been shown in the data to be the best way to treat advanced cancers, and so we have a vested interest in wanting to make sure that that.
Speaker 3: and yet patients who have high risk prostate cancers.
Speaker 3: are likely to get external beam radiation and bright heat therapy. That's been shown in the data to be the best way to treat advanced cancers. And so, you know, we have a vested interest in wanting to make sure that that patients have access. And I'm excited about what Astros looking at to work with CMS and fix some of the last remaining issues. Great.
<unk> have access and I'm excited about what Astro is looking out to two work with CMS and fix some of the last remaining issues.
Great that does it for me thanks, so much.
Thank you Mike.
Speaker 5: Once again, if there are any remaining questions or comments, please indicate so by pressing star one. The next question is coming from Tim Chang from Noidlin Capital. Your line is live.
Once again, if there are any remaining questions or comments. Please indicate so by pressing star one that the next question is coming from Timna Chang from Northland Capital. Your line is live.
Speaker 6: All right, thanks, Larry. Larry, you mentioned that you're making some progress on the enrollment for the, I think it's the CCM 131 Catruta study. The only idea when that study will fully enroll, is there any sort of time table for?
Alright, Thanks, Laurie Laurie you mentioned.
That you are making some progress on the enrollment for the.
As you could see cesium 131 Keytruda study.
Do you have any idea when that study will fully enroll is there any sort of timetable for.
For that.
So typically Tim I would be able to give you a better sense of that unfortunately COVID-19 has been.
Speaker 3: So typically, Tim, I would be able to give you a better sense of that. Unfortunately, COVID has been problematic for enrolling some of these studies.
Been problematic for enrolling some of these studies and what we're trying to do to really speed up enrollment is turn this into a multi center study we have a couple of other institutions, who are through the process of complete enrollment yet hopefully when they are I can talk to everyone about them, but theyre very interest.
Speaker 3: And what we're trying to do to really speed up enrollment is turn this into a multi-center study. We have a couple other institutions who aren't through the process of completing enrollment yet. Hopefully when they are, I can talk to everyone about them, but they're very interested in joining this. And that would make it a lot easier to finish off the enrollment of this.
And enjoying this and that would make it a lot easier to finish off the enrollment of this particular study and the more access we have to patients and giving them. This opportunity for this type of treatment the faster that will go.
Speaker 3: particular study and the more access we have to patients and giving them this opportunity for this type of treatment, the faster that will go.
Speaker 6: Okay, and I think on the call you said you're you're going to hire three more cells reps. Is that right?
Okay, and I think on the call you said that youre.
Higher three more sales reps is that right.
Speaker 3: Yes, so for the next 12 months we're looking at dividing out three additional territories across the country.
Yeah. So over the next 12 months, we're looking at dividing out three additional territories across the country.
Any any thought in terms of.
Speaker 6: How much additional revenue you might be able to generate from adding new territories this year? I mean, is it? I would imagine it's probably pretty sensitive as to each additional territory you add. But, you know, I would imagine that should help you, right?
How much additional.
Revenue you might be able to generate from adding new territories. This year.
I mean is it I would imagine it's probably pretty sensitive.
<unk> two each additional territory you add.
I would imagine that should help you right.
Speaker 3: Yeah, it sure should and it really depends on where we make the finalized cuts for breaking up the territories.
Yeah, sure should and it really depends on where we make the finalized cuts for breaking up the territories. So.
Speaker 3: So it's difficult for me to give you a number at this point in time, but we absolutely do feel like if our salespeople can get in front of more people, more frequently, we can move the process forward faster. And that should result in these additional territories being helpful over time. Remember, it's a process for us. We have to get the radioactive materials licenses for many centers amended. It's a process for people to be fully updated and living in centers.
So it's difficult for me to give you a number at this point in time, but we absolutely do feel like if our salespeople can get in front of more people more frequently we can move the process forward faster and that should result in these additional territories being.
Helpful over time remember, it's a process for us we have to get.
The radioactive materials license for many centers amended and.
Speaker 3: what we're finding is during COVID that takes a little longer than it did before, but where we can get to centers that already have cesium on the license, we're taking advantage of that and then working with these other centers
What we're finding is during COVID-19 that takes a little longer than it did before but where we can get to centers that already have CGM on the license. We're taking advantage of that and then working with these other centers to get them through the process as fast as we can and more feet on the ground more people able to support that will only improve our ability to get that done.
Hmm.
I mean is there any.
So as to where you might put some investment dollars behind.
Speaker 6: I thought that you might put some investment dollars behind training and
Training and.
Speaker 6: involving some of the medical schools in the US so that you know, residents get more education on break-it therapy.
Involving some of the medical schools in the U S.
Rather than.
Get more education on breakthrough therapy.
Speaker 3: You know, that's a really good question to him and something that we had been evaluating and I don't have specific institutions for you at this point in time, but certainly it behooves us to be in teaching institutions where these clinicians are being trained so that they're comfortable with Susan when they come out of these institutions. Herman Reed Foundation
You know that that's a really good question, Tim and something that we had been evaluating and I don't have specific institutions for you at this point in time, but certainly it behooves us to be in teaching institutions, where these clinicians are being trained so that they are comfortable with cesium when they come out of these institutions.
Speaker 3: And some of the ways we're doing that right now without actually being involved
And some of the ways, we're doing that right now without actually being involved with a specific institution. That's when we work with the folks like the American breakthrough therapy Society residence and other people go to these programs to learn more about what's happening in breakthrough therapy and that gives us the opportunity to get in front of them and to talk to them about this unique.
Speaker 3: against the Constitution is when we work with folks like the American Break-it Therapy Society.
Speaker 3: Residents and other people go to these programs to learn more about what's happening in breaking therapy.
Speaker 3: And that gives us the opportunity to get in front of them and to talk to them about this unique treatment that we have and all the benefits to it. And then what we do is we then move them through the training process. So even though they're not getting trained say in medical school for using specifically cesium, we can get to them through areas like IPCU and the ABB.
Treatment that we have and all the benefits to it and then what we do is we we then move them through the training process. So even though theyre not getting train, saying medical school for using specifically cesium, we can get to them through areas like.
IPC U and the ABS to get them in front of or a particular treatment and to get them. The training they need to be very successful in using cesium 131. So we're trying to leverage some other areas, but to your question absolutely.
Speaker 3: to get them in front of our particular treatment and to get them the training they need to be very successful in using season 131. So we're trying to leverage some other areas, but to your question, absolutely.
Speaker 6: Okay, super. So, all right. Yeah, I mean, it looks like you have a, I mean, you did pretty well in the quarter. And, you know, with COVID cases starting to decline, you may have a line of sight to World Rake Therapy procedures as we approach the summer. So, we are certainly helping South.
Okay Super So alright.
Looks like.
It looks like you have a I.
I mean, you did pretty well in the quarter.
Yeah.
With Covid cases, starting to decline.
He may have a line of sight.
More radiotherapy procedures as we approach the summer so.
We are certainly hoping so.
Okay, great Congrats sorry.
Thank you so much.
Speaker 1: Okay, the next question is coming from Kyle Krueger from Apollo Capital. Your line is left.
Okay. The next question is coming from Kyle Krueger from Apollo Capital. Your line is live.
Speaker 1: Yeah, nice quarter. What assurance can you give us as to the CZM131 supply chain not being disrupted with the Russian drama going on?
Yes nice quarter.
What what assurance.
Can you give us as to.
The cesium 131.
Supply chain, not being disrupted with with with the Russian.
Drama going on.
Speaker 3: Oh, that's that's a very good question. So we've had a really long standing relationship with Russian buying isotopes with them going back to the early 2000s and During that time we've had other geopolitical kinds of things happen like Crimea and some of the other
Oh, that's that's a very good question. So we've had a really long standing relationship with Russian buying isotopes with them going back to the early two thousands and during that time, we've had other geopolitical kinds of things happen like Crimea and some of the other.
Speaker 3: you know political situations that have arisen from time to time during that point in time we have never missed an order how to disruption happen
No political situations that have arisen from time to time during that point in time, we have never missed an order had a disruption happened.
And we have spoken with are our friends and partners over there about the situation and about our supply we see at this point in time no complications to that.
Speaker 3: And we have spoken with our friends and partners over there about the situation and about our supply. We see at this point in time no complications to that. It seems to be business as usual. And we appreciate they're going on their way to make sure that we're comfortable with that.
It seems to be business as usual and we appreciate their going out of their way to make sure that we're comfortable with that.
Speaker 3: When I look at all the different sanctions and we do keep an eye on that, that are being out there, I think the only one that actually I found a little bit humorous.
When I look at all the different sanctions and we do keep an eye on that to better being out there I think the only one that actually I found a little bit humorous.
Speaker 3: was the ones where they were talking about not being able to actually transfer money between banks in and out of russia there was they were looking at sanctioning you know the ability to do that which would mean we would have to you know right a paper check and send it by
Whereas the ones, where they were talking about not being able to actually transfer money between banks in and out of Russia. There was they were looking at sanctioning the ability to do that which would mean, we would have to write a paper check and send it by.
Speaker 3: you know, a DHL or an international courier service to actually make our payment versus any bank transfers. But at this point in time,
Yeah.
Shell or an international carrier service to to actually make our payment versus any bank transfers, but at this point in time.
Speaker 3: That is where we feel that this stands. There might be some inconvenience associated with that kinds of things, but that our isotope supply is not in jup-
That is where we feel that the stance is there might be some inconvenience associated with that kinds of things, but that our isotope supply is not in jeopardy.
Speaker 1: It globally, Laurie, is there a readily available alternative source of the same quality, same pricing? Does it make sense over time to sort of at the margin diversify your supply requirements out of that single relationship or are you not thinking about it that way?
Globally Laurie as there are readily available alternative source of the same quality the same pricing.
Does it make sense over time to sort of the margin diversify your.
Supply requirements out of that single relationship or where you're not thinking about it that way.
Speaker 3: Well, we always think about it and we think about it that way, but I'll give you a couple examples that I think in previous years we've put in our caves and our cues. So we had a US supply for quite some time from the University of Missouri at the Murriak.
Well, we always think about it and when you think about it that way, but I'll give you a couple of examples that I think in previous years, we've put in our case in our Qs. So we had a U S supply for quite some time from the University of Missouri at the mirror reactor.
Speaker 3: And the folks there are great, and they do a great job. Our problem ended up being because they're not a commercial reactor, they're a research reactor. The cost of their isotope was more than double what we could get from Russia. And we then had to have the additional expense of purifying that radio isotope once it got to our manufacturing facilities. So.
And the folks there are are great and they do a great job on our problem ended up being because they're not a commercial reactor their research reactor the cost of their isotope was more than double what we could get from Russia, and we then had to have the additional expense of purifying that radioisotope ones.
It got to our manufacturing facilities. So we are always looking at reactors around the world.
Speaker 3: We are always looking at reactors around the world to your earlier question, to see what opportunities are out there, and to figure out are they the reactor that has the appropriate flux rate to make season one 31? That's one of the criteria. Another one of the criteria would be, how could they get that season to us, and then what state would it be when it gets to us?
To your earlier question to see what opportunities are out there and to figure out are they the reactor that has the appropriate flux right to make cesium 131, that's one of the criteria. Another one of the criteria would be how could they get that CGM to us and what state would it be when it gets to us.
Speaker 3: And then pricing is always a question we look at. But we keep a list of all the reactors, online, offline, coming online, going offline, around the world. And we continue to investigate that on an ongoing basis.
And then pricing is always always a question we look at but we keep a list of all the reactors online offline coming online going offline around the world and we continue to investigate that on an ongoing basis.
Speaker 1: Yeah, okay, final question for me with the dramatic surge in COVID late December , going into January . Did you see the same displacement of your procedures that you've seen in the past in that, you know, albeit short window? Did you see a change in behavior?
Okay final question for me.
With the <unk>.
A dramatic surge in co.
Covid late late December going into January did.
Did you see the same.
Displacement of your procedures that you've seen in the past and that you know, albeit short window did you see a change in behavior.
Speaker 1: Is the backlog out there so overwhelming that there's nothing that can slow it down? You had a dramatic acceleration in revenues, but what do you see in this most recent period with the surge?
As the backlog out there so overwhelming that.
Yes.
Nothing that can slow it down.
A dramatic acceleration in revenues, but what are you what are you seeing it.
In this most recent period with the surge.
Speaker 3: So we do see an impact when it surges most certainly. What happens is hospitals.
So we do see an impact from when it when it searches most certainly what happens is hospitals start shutting down and I always hate when were lumped in with all the other types of surgery that they consider non essential.
Speaker 3: start shutting down and I always hate when we're lumped in with, you know, all the other types of surgery that they consider non-essential. But they, but basically the problems recently have been, they're not enough staff at hospitals to staff for everything. So when they start to be overrun with COVID cases, they back off on everything else. And we certainly have had that impact on us.
But basically the problems recently have been there not enough staff at hospitals to staff for everything so when they start to be overrun with Covid cases, they back off on everything else and we certainly have had that impact us.
Speaker 3: I also think what we're starting to see a bit more as people have gotten vaccinated and boosted and are maybe in some cases just at the TG of COVID is we're starting to see that there's upticks during the downturns of COVID.
Also I think what we're starting to see a bit more as people have gotten vaccinated and boosted in or maybe in some cases, just the fatigue of Covid is we're starting to see that there is uptick during the downturns of Covid. So I think that's what we saw last quarter was part of the quarter was a little slow there was some uptick.
Speaker 3: So I think that's what we saw last quarter. It was part of the quarter was a little slow. There was some uptick going on in COVID, but the rest of the quarter wasn't. And that's where we saw a significant upturn. And I think it is these people who haven't been able to get into the system that are looking to get into the system, knowing they need to.
Going on and covered but the rest of the quarter. It wasn't and that's where we saw significant upturn and I think it is these people who haven't been able to get into the system that are that are looking to get into the system, knowing they need to them and to some.
Speaker 3: To some degree be it either access, they just can't get in any other time. Or, you know, patients actually looking at it and timing it saying, now looks like a good opportunity. They've been getting in the system with a little faster it would seem. As you can see, this improvement screen...
Degree be it either access they just can't get in any other time or patients.
Patients actually looking at timing it saying now looks like a good opportunity they've been getting in the system a little faster it would seem.
Thank you best of luck going forward.
Thank you very much.
Speaker 5: Ladies and gentlemen, once again, if you have a question or a comment, please indicate so now by pressing star one
Ladies and gentlemen, once again, if you have a question or comment. Please indicate so now by pressing star one on your Touchtone phone.
Speaker 7: Okay, there are no more questions at this time. I'd like to turn the call back to Lori Woods for closing remarks.
Okay. There are no more questions at this time I'd like to turn the call back to Lori Woods for closing remarks.
Speaker 3: Thank you everyone for joining us today. We really appreciate it. We hope you have a great afternoon and evening. Bye-bye.
Thank you everyone for joining us today, we really appreciate it and we hope you have a great afternoon and evening Bye bye.
Speaker 7: Thank you ladies and gentlemen, this does conclude today's conference call. You made this connect your phone lines at this time and have a wonderful day. Thank you for your participation.
Thank you ladies and gentlemen, this does conclude today's conference call. You may disconnect. Your phone lines at this time and have a wonderful day. Thank you for your participation.
Okay.