IsoRay Inc. (ISR, Financial) filed Quarterly Report for the period ended 2010-03-31.
Isoray Inc. has a market cap of $29.9 million; its shares were traded at around $1.3 with and P/S ratio of 5.5. ISR is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Research and development expenses. Research and development expenses for the three month period ended March 31, 2010 were $98,964 which represents a decrease of $202,943 or 67% less than the research and development expenses of $301,907 for the three month period ended March 31, 2009. The decrease in cost is primarily due to lower consulting, personnel expenses and protocol expense. Consulting expenses decreased approximately $49,000 as the Company completed several projects related to production automation and bringing delivery methods to treat head and neck, lung and colorectal cancer to market. Protocol expenses decreased approximately $61,000 as the major cost for the monotherapy protocol has been completed. Legal costs were reduced by approximately $90,000 because in the three months ended March 31, 2009, the Company finalized its on-going strategy regarding foreign patents and trademarks and wrote-off $84,671 of previously capitalized costs. The Company had pursued patents and trademarks in various foreign countries including Australia, Japan, and China; however, the Company no longer believes that pursuing patents and trademarks in these foreign countries is fundamental to its current business strategy.
Cost of product sales. Cost of product sales was $3,411,012 for the nine months ended March 31, 2010 compared to cost of product sales of $4,523,705 during the nine months ended March 31, 2009. The cost reduction of $1,112,693 or 25% for the nine months ended March 31, 2010 were the result of both the reduction in sales and continued production efficiency improvements. Depreciation and amortization cost was reduced by approximately $164,000. Personnel expenses, including payroll, benefits, and related taxes, decreased approximately $170,000 due to a reduction in the average production headcount levels. Preload expenses decreased approximately $183,000 due to lower sales volumes and increased in-house loading. Occupancy costs were reduced by approximately $64,000 as the Company continues to evaluate and reconfigure leased space that has resulted in a reduced facility rent. In addition, the Company continues to monitor its utility consumption and more efficient consumption of utilities in combination with a very mild winter has created a significant savings of approximately $43,000 in utility costs that is included in occupancy cost for the nine months ended March 31, 2010 as compared to the nine months ended March 31, 2009. Other expenses were reduced by approximately $435,000, primarily resulting from the impairment charge for the IBt license of approximately $425,000 that was recorded in the nine months ended March 31, 2009.
Research and development expenses. Research and development expenses for the nine months ended March 31, 2010 were $226,924 which represents a decrease of $599,589 or 73% less than the research and development expenses of $826,513 for the nine months ended March 31, 2009. Consulting expenses decreased approximately $88,000 as several production projects were completed related to both production automation and delivery methods to treat head and neck, lung, and colorectal cancers. These decreases were partially offset by the transition of a former R&D employee to a consulting role. Legal expenses were reduced by approximately $125,000 in the nine months ended March 31, 2010 due to the Company finalizing its on-going strategy regarding foreign patents and trademarks and wrote-off $84,671 of previously capitalized costs and the resulting reduction in continuing activities as a result during the nine months ended March 31, 2009. Personnel expenses, including payroll, benefits, and related taxes, decreased approximately $72,000 due to lower headcount. Protocol expense was reduced by approximately $255,000 for the nine month period ended March 31, 2010 as the major cost for the monotherapy protocol has been completed.
General and administrative expenses. General and administrative expenses for the nine months ended March 31, 2010 were $1,748,664 compared to general and administrative expenses of $2,205,616 for the nine months ended March 31, 2009. This represents a decrease of $456,952 or 21%. Personnel costs including payroll, benefits, related taxes, and share-based compensation decreased approximately $222,000 as a result of the CEO becoming an employee, the resignation of the CFO, an overall reduction in headcount and the related forfeiture of option grants and option grants that have been fully amortized. Public company expenses decreased approximately $59,000 due to the CEO no longer being paid fees for service on the Board of Directors upon becoming an employee. Legal expenses decreased by approximately $126,000 in the nine months ended March 31, 2010 as the Company incurred legal fees related to settling a lawsuit with a former employee during the nine months ended March 31, 2009.
Cash used in financing activities was approximately $180,000 and $77,000 for the nine months ended March 31, 2010 and 2009, respectively. $146,000 and $72,000 was used mainly for payments of debt and capital leases in the nine months ended March 31, 2010 and 2009 respectively. Approximately $108,000 of the $146,000 in cash that was used for payments of debt and capital leases in the nine months ended March 31, 2010 was to retire the loan facility with Benton-Franklin Council of Governments (BFEDD). Approximately $37,000 of the remaining cash consumed in financing activities was related to the payment of preferred dividends which was partially offset by the exercise of stock options.
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Isoray Inc. has a market cap of $29.9 million; its shares were traded at around $1.3 with and P/S ratio of 5.5. ISR is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Cost of product sales. Cost of product sales was $1,150,730 for the three months ended March 31, 2010 compared to cost of product sales of $1,351,044 during the three months ended March 31, 2009. The decrease in cost of $200,314 or 15% correlates with the reduced sales. The major components of the decrease were personnel costs, materials, preload expenses, occupancy costs and depreciation and amortization expense. Personnel costs, including payroll, benefits, and related taxes, decreased approximately $31,000 as the number of production personnel decreased for the three months ended March 31, 2010 compared to March 31, 2009. Materials decreased approximately $66,000 mainly due to decreased rate of consumption of inventory materials as a result of changes in sales in the three months ended March 31, 2010 compared to March 31, 2009. Preload expenses decreased by approximately $14,000 mainly due to the lower volume of sales and increased in-house loading for the three months ended March 31, 2010 compared to March 31, 2009. Occupancy costs were reduced by approximate $17,000 for the three months ended March 31, 2010 compared to March 31, 2009 as a result of reduced rent and related utility consumption. Depreciation and amortization was reduced by approximately $53,000 for the three months ended March 31, 2010 compared to March 31, 2009.Research and development expenses. Research and development expenses for the three month period ended March 31, 2010 were $98,964 which represents a decrease of $202,943 or 67% less than the research and development expenses of $301,907 for the three month period ended March 31, 2009. The decrease in cost is primarily due to lower consulting, personnel expenses and protocol expense. Consulting expenses decreased approximately $49,000 as the Company completed several projects related to production automation and bringing delivery methods to treat head and neck, lung and colorectal cancer to market. Protocol expenses decreased approximately $61,000 as the major cost for the monotherapy protocol has been completed. Legal costs were reduced by approximately $90,000 because in the three months ended March 31, 2009, the Company finalized its on-going strategy regarding foreign patents and trademarks and wrote-off $84,671 of previously capitalized costs. The Company had pursued patents and trademarks in various foreign countries including Australia, Japan, and China; however, the Company no longer believes that pursuing patents and trademarks in these foreign countries is fundamental to its current business strategy.
Cost of product sales. Cost of product sales was $3,411,012 for the nine months ended March 31, 2010 compared to cost of product sales of $4,523,705 during the nine months ended March 31, 2009. The cost reduction of $1,112,693 or 25% for the nine months ended March 31, 2010 were the result of both the reduction in sales and continued production efficiency improvements. Depreciation and amortization cost was reduced by approximately $164,000. Personnel expenses, including payroll, benefits, and related taxes, decreased approximately $170,000 due to a reduction in the average production headcount levels. Preload expenses decreased approximately $183,000 due to lower sales volumes and increased in-house loading. Occupancy costs were reduced by approximately $64,000 as the Company continues to evaluate and reconfigure leased space that has resulted in a reduced facility rent. In addition, the Company continues to monitor its utility consumption and more efficient consumption of utilities in combination with a very mild winter has created a significant savings of approximately $43,000 in utility costs that is included in occupancy cost for the nine months ended March 31, 2010 as compared to the nine months ended March 31, 2009. Other expenses were reduced by approximately $435,000, primarily resulting from the impairment charge for the IBt license of approximately $425,000 that was recorded in the nine months ended March 31, 2009.
Research and development expenses. Research and development expenses for the nine months ended March 31, 2010 were $226,924 which represents a decrease of $599,589 or 73% less than the research and development expenses of $826,513 for the nine months ended March 31, 2009. Consulting expenses decreased approximately $88,000 as several production projects were completed related to both production automation and delivery methods to treat head and neck, lung, and colorectal cancers. These decreases were partially offset by the transition of a former R&D employee to a consulting role. Legal expenses were reduced by approximately $125,000 in the nine months ended March 31, 2010 due to the Company finalizing its on-going strategy regarding foreign patents and trademarks and wrote-off $84,671 of previously capitalized costs and the resulting reduction in continuing activities as a result during the nine months ended March 31, 2009. Personnel expenses, including payroll, benefits, and related taxes, decreased approximately $72,000 due to lower headcount. Protocol expense was reduced by approximately $255,000 for the nine month period ended March 31, 2010 as the major cost for the monotherapy protocol has been completed.
General and administrative expenses. General and administrative expenses for the nine months ended March 31, 2010 were $1,748,664 compared to general and administrative expenses of $2,205,616 for the nine months ended March 31, 2009. This represents a decrease of $456,952 or 21%. Personnel costs including payroll, benefits, related taxes, and share-based compensation decreased approximately $222,000 as a result of the CEO becoming an employee, the resignation of the CFO, an overall reduction in headcount and the related forfeiture of option grants and option grants that have been fully amortized. Public company expenses decreased approximately $59,000 due to the CEO no longer being paid fees for service on the Board of Directors upon becoming an employee. Legal expenses decreased by approximately $126,000 in the nine months ended March 31, 2010 as the Company incurred legal fees related to settling a lawsuit with a former employee during the nine months ended March 31, 2009.
Cash used in financing activities was approximately $180,000 and $77,000 for the nine months ended March 31, 2010 and 2009, respectively. $146,000 and $72,000 was used mainly for payments of debt and capital leases in the nine months ended March 31, 2010 and 2009 respectively. Approximately $108,000 of the $146,000 in cash that was used for payments of debt and capital leases in the nine months ended March 31, 2010 was to retire the loan facility with Benton-Franklin Council of Governments (BFEDD). Approximately $37,000 of the remaining cash consumed in financing activities was related to the payment of preferred dividends which was partially offset by the exercise of stock options.
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