Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☐ Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ___________ ...

PART I [Business](index=4&type=section&id=ITEM%201%20%E2%80%93%20BUSINESS) The company develops and sells Cesium-131 brachytherapy seeds, primarily for prostate cancer, while expanding into other treatments like brain cancer - Isoray's core business is the development, manufacture, and sale of Cesium-131 brachytherapy seeds for treating malignant tumors; prostate cancer treatment represents approximately **75%** of the company's business[16](index=16&type=chunk)[21](index=21&type=chunk)[26](index=26&type=chunk) - The company collaborates with GT Medical Technologies, Inc ("GT Med Tech") to supply Cesium-131 seeds for GammaTile™ Therapy, a treatment for brain cancer that received FDA clearance in July 2018 and launched a full market release in January 2020[40](index=40&type=chunk)[48](index=48&type=chunk)[95](index=95&type=chunk) - Isoray's strategy for fiscal year 2022 includes investing in sales and marketing for its core prostate business, commercializing the Blu Build™ loader for intra-operative customization, supporting GT Med Tech's GammaTile™ launch, and expanding the use of Cesium-131 for other cancers[113](index=113&type=chunk)[116](index=116&type=chunk)[119](index=119&type=chunk) - The company is **solely reliant on a Russian supplier**, JSC Isotope, for its Cesium-131 isotope, with a supply contract extending through March 31, 2023; the company has no domestic suppliers[148](index=148&type=chunk)[153](index=153&type=chunk)[155](index=155&type=chunk) Top Customers as a Percentage of Total Sales (FY 2021) | Facility/Customer | Location | % of Revenue | | :--- | :--- | :--- | | El Camino, Los Gatos, and other facilities | Northern CA | 25.3% | | GT Medical Technologies | Arizona | 11.3% | | **Total Top Two** | | **36.6%** | [Risk Factors](index=38&type=section&id=ITEM%201A%20%E2%80%93%20RISK%20FACTORS) The company faces significant risks from its single-product focus, sole Russian supplier dependency, customer concentration, and regulatory uncertainties - The COVID-19 pandemic and its variants pose a material risk to the company's financial condition, potentially impacting its Russian supply chain, product sales due to postponed surgeries, and ability to obtain licensure at new locations[234](index=234&type=chunk)[236](index=236&type=chunk) - The company's revenue depends entirely on its single product, the Cesium-131 brachytherapy seed, making it vulnerable to shifts in market acceptance, pricing pressures, and regulatory changes[239](index=239&type=chunk) - Isoray is **heavily reliant on a single Russian supplier** (JSC Isotope) and its two nuclear reactors for Cesium-131, with no domestic supply capabilities; this concentration poses significant risks of supply interruption due to potential shutdowns, political instability, or sanctions[240](index=240&type=chunk)[241](index=241&type=chunk)[242](index=242&type=chunk) - Approximately **42% of the company's revenue is dependent on three customers**, with one customer accounting for 25%; the loss of any of these customers would have a material adverse effect on revenues[264](index=264&type=chunk) - The company faces uncertainty regarding reimbursement from third-party payers like Medicare; proposed changes such as the Radiation Oncology Alternative Payment Model (RO APM) could impact payment structures, although a recent proposal suggests excluding brachytherapy, which would be favorable[250](index=250&type=chunk)[251](index=251&type=chunk)[253](index=253&type=chunk) [Unresolved Staff Comments](index=59&type=section&id=ITEM%201B%20%E2%80%93%20UNRESOLVED%20STAFF%20COMMENTS) The company reports no unresolved comments from SEC staff - Not applicable[334](index=334&type=chunk) [Properties](index=59&type=section&id=ITEM%202%20%E2%80%93%20PROPERTIES) The company leases its main facility in Richland, WA, and has paused plans for constructing a new facility on an adjacent owned property - The company leases its executive office and production facility space of approximately 15,300 square feet in Richland, WA; the lease was modified in July 2019 to extend the term to April 30, 2026[335](index=335&type=chunk) - Isoray purchased a 4.2-acre property in 2017 for a future production, lab, and administrative facility; while the design is complete, construction is on hold as the company focuses resources on revenue growth[336](index=336&type=chunk) [Legal Proceedings](index=59&type=section&id=ITEM%203%20%E2%80%93%20LEGAL%20PROCEEDINGS) The company reports no material pending legal proceedings - Nothing to disclose[338](index=338&type=chunk) [Mine Safety Disclosures](index=60&type=section&id=ITEM%204%20%E2%80%93%20MINE%20SAFETY%20DISCLOSURES) This section is not applicable to the company's operations - Not applicable[340](index=340&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=60&type=section&id=ITEM%205%20%E2%80%93%20MARKET%20FOR%20REGISTRANT'S%20COMMON%20EQUITY,%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The company's common stock trades on the NYSE American; no cash dividends have been paid, and equity plans authorize future share issuance - The company's common stock trades on the NYSE American under the symbol "ISR"; as of September 23, 2021, there were **141,915,266 shares outstanding**[341](index=341&type=chunk) - The company has **never paid cash dividends** and does not plan to in the foreseeable future, anticipating that any earnings will be retained to finance operations[343](index=343&type=chunk) - The 2020 Equity Incentive Plan allows for the grant of up to 6,000,000 shares, and the 2017 plan allows for up to 4,000,000 shares; as of June 30, 2021, **4,593,125 securities remained available for future issuance** under equity compensation plans approved by security holders[346](index=346&type=chunk)[347](index=347&type=chunk)[351](index=351&type=chunk) Quarterly Stock Price (Fiscal 2021) | Quarter | High ($) | Low ($) | | :--- | :--- | :--- | | Q1 | 0.78 | 0.54 | | Q2 | 0.58 | 0.36 | | Q3 | 2.47 | 0.53 | | Q4 | 1.15 | 0.75 | [Selected Financial Data](index=62&type=section&id=ITEM%206%20%E2%80%93%20SELECTED%20FINANCIAL%20DATA) Disclosure is not required as the company qualifies as a smaller reporting company - Disclosure is not required as the company is a smaller reporting company[355](index=355&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=63&type=section&id=ITEM%207%20%E2%80%93%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Fiscal 2021 sales grew 4% driven by non-prostate treatments, while gross margin slightly declined and liquidity significantly improved via equity offerings - The company's cash position increased significantly, ending FY 2021 with **$63.8 million in cash and cash equivalents**, up from $2.4 million in FY 2020; this was primarily due to raising **$56.4 million from two underwritten offerings** and $7.8 million from warrant exercises[392](index=392&type=chunk)[401](index=401&type=chunk)[513](index=513&type=chunk) - Management projects that current cash and cash equivalents are sufficient to meet operating needs for the next twelve months; the company anticipates reaching cash flow break-even in three to four years, assuming annual revenue growth of twenty-five percent[402](index=402&type=chunk) Results of Operations (in thousands) | Metric | FY 2021 | FY 2020 | % Change | | :--- | :--- | :--- | :--- | | Sales, net | $10,053 | $9,680 | 4% | | Gross profit | $5,121 | $5,124 | 0% | | Gross Margin | 51% | 53% | -2 p.p. | | Operating loss | ($3,446) | ($3,476) | 1% | | Net loss | ($3,387) | ($3,446) | -2% | Sales by Treatment Type (in thousands) | Treatment | FY 2021 | FY 2020 | % Change | | :--- | :--- | :--- | :--- | | Prostate Brachytherapy | $7,824 | $8,356 | (6%) | | Other sales | $2,229 | $1,324 | 68% | | **Total Sales, net** | **$10,053** | **$9,680** | **4%** | [Quantitative and Qualitative Disclosures About Market Risk](index=73&type=section&id=ITEM%207A%20%E2%80%93%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Disclosure is not required as the company qualifies as a smaller reporting company - Disclosure is not required as the company is a smaller reporting company[419](index=419&type=chunk) [Financial Statements and Supplementary Data](index=73&type=section&id=ITEM%208%20%E2%80%93%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section presents the company's audited consolidated financial statements and the independent auditor's unqualified opinion for the past three fiscal years Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2021 | June 30, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $63,828 | $2,392 | | Total current assets | $67,302 | $5,507 | | Total assets | $70,416 | $8,699 | | **Liabilities & Equity** | | | | Total current liabilities | $1,801 | $1,575 | | Total liabilities | $3,010 | $2,976 | | Total stockholders' equity | $67,406 | $5,723 | Consolidated Statement of Operations Highlights (in thousands) | Metric | FY 2021 | FY 2020 | FY 2019 | | :--- | :--- | :--- | :--- | | Sales, net | $10,053 | $9,680 | $7,314 | | Gross profit | $5,121 | $5,124 | $3,047 | | Operating loss | ($3,446) | ($3,476) | ($5,254) | | Net loss | ($3,387) | ($3,446) | ($5,144) | | Net loss per share | ($0.03) | ($0.05) | ($0.08) | Consolidated Statement of Cash Flows Highlights (in thousands) | Metric | FY 2021 | FY 2020 | FY 2019 | | :--- | :--- | :--- | :--- | | Net cash used by operating activities | ($2,837) | ($3,641) | ($5,049) | | Net cash provided by (used in) investing activities | ($410) | ($287) | $401 | | Net cash provided by financing activities | $64,684 | $994 | $7,374 | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=73&type=section&id=ITEM%209%20%E2%80%93%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company reports no disagreements with its independent registered public accounting firm - There were no disagreements with the company's accountants[423](index=423&type=chunk) [Controls and Procedures](index=73&type=section&id=ITEM%209A%20%E2%80%93%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls, procedures, and internal control over financial reporting were effective as of June 30, 2021 - Management, including the CEO and co-principal financial officers, concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2021[420](index=420&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of June 30, 2021, based on the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in its 2013 framework[421](index=421&type=chunk)[422](index=422&type=chunk) - There were **no changes in internal control** over financial reporting during the fourth fiscal quarter that materially affected, or are reasonably likely to materially affect, these controls[425](index=425&type=chunk) [Other Information](index=74&type=section&id=ITEM%209B%20%E2%80%93%20OTHER%20INFORMATION) This section is not applicable - Not applicable[426](index=426&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=74&type=section&id=ITEM%2010%20%E2%80%93%20DIRECTORS,%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) This section details the composition of the board and executive team, committee structures, and discloses late Form 4 filings by insiders - The Board of Directors as of June 30, 2021, consisted of Michael McCormick (Chairman), Lori Woods (CEO), Philip Vitale, MD, and Alan Hoffmann[427](index=427&type=chunk)[429](index=429&type=chunk) - The company's executive officers include Lori Woods (CEO), Jonathan Hunt (CFO), Mark Austin (VP of Finance and Corporate Controller), William Cavanagh III (Chief R&D Officer), and Jennifer Streeter (COO)[436](index=436&type=chunk) - Several executive officers and directors **filed late Form 4s** during the fiscal year ended June 30, 2021, including Lori Woods, Michael McCormick, Alan Hoffmann, and Philip Vitale[444](index=444&type=chunk) - The Board has determined that Alan Hoffmann qualifies as an **"audit committee financial expert,"** and that he, along with Michael McCormick and Dr Philip Vitale, are independent directors[451](index=451&type=chunk)[491](index=491&type=chunk) [Executive Compensation](index=78&type=section&id=ITEM%2011%20%E2%80%93%20EXECUTIVE%20COMPENSATION) Executive compensation is performance-based, with significant base salary increases approved in May 2021 to align with market rates - In May 2021, the Compensation Committee **significantly increased annual base salaries** for key executives: Lori Woods to $439,810 (26.7% increase), William Cavanagh to $300,000 (25.0% increase), and Jennifer Streeter to $337,840 (34.7% increase)[464](index=464&type=chunk) - The fiscal 2021 bonus plan was based on quarterly and annual performance metrics for revenue growth, gross margin, and net loss margin; the company **achieved 12.5% of the target metrics**, resulting in bonuses being paid out[472](index=472&type=chunk)[473](index=473&type=chunk) - Independent directors received $3,000 per month plus meeting fees in fiscal 2021; beginning in fiscal 2022, this was changed to a flat $5,000 per month with no per-meeting fees[469](index=469&type=chunk) Summary Compensation Table (FY 2021 vs. FY 2020) | Name and Position | Year | Salary ($) | Option Awards ($) | Non-Equity Incentive ($) | Total ($) | | :--- | :--- | :--- | :--- | :--- | :--- | | **Lori Woods** (CEO) | 2021 | 353,450 | - | 17,745 | 371,195 | | | 2020 | 315,612 | 98,700 | 77,325 | 491,637 | | **William Cavanagh** (CRDO) | 2021 | 244,149 | - | 9,190 | 253,339 | | | 2020 | 220,256 | 59,220 | 38,545 | 318,021 | | **Jennifer Streeter** (COO) | 2021 | 256,672 | - | 9,677 | 266,349 | | | 2020 | 214,565 | 59,220 | 38,500 | 312,285 | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=84&type=section&id=ITEM%2012%20%E2%80%93%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Directors and executive officers as a group beneficially owned approximately 2.39% of common stock as of September 23, 2021 - As of September 23, 2021, directors and executive officers as a group beneficially owned **2.39%** of the company's 141,915,266 outstanding common shares[481](index=481&type=chunk)[482](index=482&type=chunk) - CEO Lori Woods is the largest beneficial owner among the executive officers and directors, holding **0.76%** of the class[482](index=482&type=chunk) - All outstanding Series B preferred stock (59,065 shares) was automatically converted into common stock as a result of the October 22, 2020 offering; as of June 30, 2021, **no preferred stock was outstanding**[486](index=486&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=85&type=section&id=ITEM%2013%20%E2%80%93%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS,%20AND%20DIRECTOR%20INDEPENDENCE) The company reports no related party transactions and confirms the independence of three board members - There were **no related party transactions** requiring disclosure under Regulation S-K Item 404 during the fiscal year[488](index=488&type=chunk)[490](index=490&type=chunk) - The Board of Directors has determined that three of its members—Mr Hoffmann, Mr McCormick, and Dr Vitale—qualify as **independent directors** under NYSE American standards[491](index=491&type=chunk) [Principal Accountant Fees and Services](index=86&type=section&id=ITEM%2014%20%E2%80%93%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) Total fees paid to the principal accountant, Assure CPA, LLC, were $104,000 for fiscal year 2021 - The Audit Committee has a pre-approval policy for all audit and permitted non-audit services provided by the independent registered public accountants; all services provided by Assure CPA, LLC were approved by the Audit Committee[495](index=495&type=chunk) Accountant Fees (in thousands) | Fee Type | FY 2021 ($) | FY 2020 ($) | | :--- | :--- | :--- | | Audit Fees | 67 | 74 | | Tax Fees | 11 | 12 | | All other Fees | 26 | 13 | | **Total** | **104** | **99** | PART IV [Exhibits and Financial Statement Schedules](index=87&type=section&id=ITEM%2015%20%E2%80%93%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section provides an index to the financial statements and a list of all exhibits filed with the Form 10-K - This item contains the index to the Consolidated Financial Statements and the Exhibit Index, which lists all documents filed with the report[499](index=499&type=chunk)[501](index=501&type=chunk) [Form 10-K Summary](index=120&type=section&id=ITEM%2016%20%E2%80%93%20FORM%2010-K%20SUMMARY) The company has opted not to provide a Form 10-K summary - None[650](index=650&type=chunk)

IsoRay, Inc. (ISR) Q4 2021 Earnings Conference Call September 21, 2021 4:30 PM ET Company Participants Mark Levin - IR Lori Woods - CEO Jonathan Hunt - CFO Conference Call Participants Frank Takkinen - Lake Street Tim Chiang - Northland Capital Mike Ott - Oppenheimer Operator Good day, ladies and gentlemen, and welcome to your IsoRay Fourth Quarter and Fiscal Yearend 2021 Financial Results Call. All lines have been placed on a listen-only mode and the floor will be opened for your questions and comments fol ...

Call Start: 16:00 January 1, 0000 4:27 PM ET CrossAmerica Partners LP (CAPL) Q3 2021 Earnings Conference Call May 13, 2021, 16:00 PM ET Company Participants Mark Levin - IR Lori Woods - CEO Jonathan Hunt - CFO Conference Call Participants Frank Takkinen - Lake Street Mike Ott - Oppenheimer Operator Greetings, welcome to the IsoRay Inc.'s Q3 Fiscal Year 2021 Call. At this time, all participants will be in a listen-only mode. And the question-and-answer session will follow the formal presentation. [Operator I ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ____________ Commission File No. 001-33407 ISORAY, INC. (Exact name of registrant as specified in its charter) Delaware 41-1458152 (State ...

An Emerging Leader in Targeted Internal Radiation Therapy March 2021 Investor Presentation NYSE American: ISR ©2021 Isoray Inc. Safe Harbor Statement Statements in this presentation about Isoray's future expectations, including: the anticipated continued growth in revenues in fiscal year 2021, the impact of COVID-19 on our financial results and the timing of recovery in our brachytherapy procedures, suppliers, scheduling of procedures, and employees, advantages of our products including Blu Build and the Ga ...

IsoRay, Inc. (ISR) Q2 2021 Earnings Conference Call February 9, 2021 4:30 PM ET Company Participants Mark Levin - IR Lori Woods - CEO Jonathan Hunt - CFO Conference Call Participants Mike Ott - Oppenheimer Frank Takkinen - Lake Street Operator Greetings, welcome to the Isoray's Second Quarter Fiscal Year 2021 Call for the quarter ending December 31, 2020. At this time, all participants will be in a listen-only mode. And the question-and-answer session will follow the formal presentation. [Operator Instructi ...

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Consolidated Unaudited Financial Statements](index=3&type=section&id=Item%201%20Consolidated%20Unaudited%20Financial%20Statements) The unaudited consolidated financial statements for December 31, 2020, show increased assets and equity, a narrowed net loss, and significant cash inflow from financing activities [Consolidated Balance Sheets (Unaudited)](index=3&type=section&id=Consolidated%20Balance%20Sheets%20%28Unaudited%29) As of December 31, 2020, total assets and stockholders' equity significantly increased, primarily driven by a rise in cash and cash equivalents Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | Dec 31, 2020 | June 30, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $9,585 | $2,392 | | Total current assets | $12,289 | $5,507 | | Total assets | $15,513 | $8,699 | | **Liabilities & Equity** | | | | Total current liabilities | $1,335 | $1,575 | | Total liabilities | $2,740 | $2,976 | | Total stockholders' equity | $12,773 | $5,723 | | Total liabilities and stockholders' equity | $15,513 | $8,699 | [Consolidated Statements of Operations (Unaudited)](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20%28Unaudited%29) Net sales increased and net loss narrowed for both the three and six months ended December 31, 2020, with improved loss per share Statement of Operations Summary (in thousands, except per-share amounts) | Metric | Three Months Ended Dec 31, 2020 | Three Months Ended Dec 31, 2019 | Six Months Ended Dec 31, 2020 | Six Months Ended Dec 31, 2019 | | :--- | :--- | :--- | :--- | :--- | | Sales, net | $2,359 | $2,206 | $4,743 | $4,521 | | Gross profit | $1,167 | $1,111 | $2,413 | $2,347 | | Operating loss | ($873) | ($903) | ($1,587) | ($1,739) | | Net loss | ($868) | ($897) | ($1,581) | ($1,713) | | Basic and diluted loss per share | ($0.01) | ($0.01) | ($0.02) | ($0.03) | [Consolidated Statements of Cash Flows (Unaudited)](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20%28Unaudited%29) Cash flow from operations improved, while significant financing activities, primarily from stock sales, led to a substantial net increase in cash Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended Dec 31, 2020 | Six Months Ended Dec 31, 2019 | | :--- | :--- | :--- | | Net cash used by operating activities | ($1,098) | ($1,931) | | Net cash used by investing activities | ($173) | ($204) | | Net cash provided (used) by financing activities | $8,465 | ($11) | | Net increase (decrease) in cash | $7,194 | ($2,146) | | Cash, cash equivalents, and restricted cash end of period | $9,767 | $3,361 | [Notes to the Consolidated Unaudited Financial Statements](index=7&type=section&id=Notes%20to%20the%20Consolidated%20Unaudited%20Financial%20Statements) Notes detail accounting policies, share-based compensation, and significant financing events, including major stock sales and warrant exercises - The company signed a new supply contract with The Open Joint Stock Company for Cesium-131, covering the period from August 2020 to December 2021[45](index=45&type=chunk) - In October 2020, the company sold **18,269,230 shares** of common stock at **$0.52 per share**, raising gross proceeds of **$9.5 million**. Warrants to purchase an additional **9,134,615 shares** were also issued[54](index=54&type=chunk) - Subsequent to the quarter end, in January 2021, the company received approximately **$7.9 million** from the exercise of warrants and options[69](index=69&type=chunk)[132](index=132&type=chunk) - On February 8, 2021, the company sold common stock for aggregate gross proceeds of approximately **$45 million**, plus an additional **$6.75 million** from the exercise of an overallotment option[70](index=70&type=chunk) - One group of customers, serviced by the same physician group (which includes the company's Medical Director), accounted for **24.88%** of total revenue for the period[68](index=68&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 5% net sales increase driven by non-prostate applications, improved liquidity from recent stock offerings, and strategic initiatives for future growth [Results of Operations](index=19&type=section&id=Results%20of%20Operations) Net sales increased 5% and operating loss improved 9% for the six months ended December 31, 2020, driven by growth in 'Other sales' Six Months Ended December 31, 2020 vs 2019 (in thousands) | Line Item | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | Sales, net | $4,743 | $4,521 | 5% | | Gross profit | $2,413 | $2,347 | 3% | | Total operating expenses | $4,000 | $4,086 | (2%) | | Operating loss | ($1,587) | ($1,739) | (9%) | Sales Breakdown - Six Months Ended Dec 31 (in thousands) | Sales Category | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | Prostate brachytherapy | $3,784 | $4,037 | (6%) | | Other sales | $959 | $484 | 98% | - The decrease in prostate sales was attributed to procedure delays and cancellations due to COVID-19 stay-at-home orders and hospitals' focus on the pandemic[91](index=91&type=chunk) - The significant growth in 'Other sales' was primarily driven by increased treatments for brain cancer, including GammaTile™[93](index=93&type=chunk) [Impact of COVID-19](index=23&type=section&id=Impact%20of%20COVID-19) COVID-19 negatively impacted prostate brachytherapy sales due to procedure delays, though the company maintained its isotope supply chain - COVID-19 led to the cancellation or postponement of elective procedures, including prostate brachytherapy, causing prostate revenues to remain below pre-pandemic levels[115](index=115&type=chunk) - The company took steps to maintain its isotope supply from Russia despite disruptions to international flights[114](index=114&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20capital%20resources) Significant financing activities in late 2020 and early 2021 substantially strengthened liquidity, increasing working capital and providing sufficient funds for the next fiscal year Key Liquidity Metrics | Metric | As of Dec 31, 2020 | As of June 30, 2020 | | :--- | :--- | :--- | | Working capital | $10,954 thousand | $3,932 thousand | | Current ratio | 9.21 | 3.50 | - Net cash from financing activities was **$8.47 million** for the six months ended Dec 31, 2020, primarily from an underwritten offering of common stock[118](index=118&type=chunk)[123](index=123&type=chunk) - A February 2021 stock sale generated gross proceeds of approximately **$45 million**, plus an additional **$6.75 million** from an overallotment option[133](index=133&type=chunk) - As a result of recent capital raises, the company does not anticipate needing to finance its operations through additional raises for the next fiscal year[133](index=133&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable as per the report's disclosure requirements - Not Applicable[140](index=140&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204%20Controls%20and%20Procedures) As of December 31, 2020, disclosure controls and procedures were deemed effective with no material changes in internal control over financial reporting - Management, including the principal executive and financial officers, concluded that as of December 31, 2020, the company's disclosure controls and procedures were effective[140](index=140&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[141](index=141&type=chunk) [PART II OTHER INFORMATION](index=28&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=28&type=section&id=Item%201%20Legal%20Proceedings) The company reports no legal proceedings requiring disclosure - Nothing to disclose[143](index=143&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A%20Risk%20Factors) Key risks include heavy customer reliance, ongoing COVID-19 supply chain and procedure impacts, and uncertainties regarding CMS reimbursement models - The company relies heavily on three customers, with one group accounting for approximately **25%** of revenues for the six months ended December 31, 2020[144](index=144&type=chunk) - The COVID-19 outbreak could materially affect the company by disrupting the Cesium-131 supply chain from Russia and causing further postponements or cancellations of implant surgeries[145](index=145&type=chunk)[146](index=146&type=chunk) - Uncertainties regarding reimbursement for the company's products pose a significant risk. The CMS Radiation Oncology Alternative Payment Model (RO APM), delayed to January 1, 2022, creates uncertainty as its bundled payment structure could either drive adoption of brachytherapy or lead physicians to choose less costly alternatives like iodine seeds[151](index=151&type=chunk)[155](index=155&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities or use of proceeds - None[162](index=162&type=chunk) [Exhibits](index=31&type=section&id=Item%206%20Exhibits) This section lists exhibits filed with the report, including the Underwriting Agreement, corporate governance documents, and various certifications - Key exhibits filed include the Underwriting Agreement with Oppenheimer & Co. Inc. dated October 20, 2020, and an amendment to the Manufacturing and Supply Agreement with GT Medical Technologies, Inc[166](index=166&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ____________ Commission File No. 001-33407 ISORAY, INC. (Exact name of registrant as specified in its charter) Delaware 41-1458152 (S ...

IsoRay, Inc. (ISR) Q1 2021 Earnings Conference Call November 10, 2020 4:30 PM ET Company Participants Mark Levin - Investor Relations Lori Woods - Chief Executive Officer Jonathan Hunt - Chief Financial Officer Conference Call Participants Operator Greetings and welcome to the Isoray First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this confer ...