Aytu BioPharma(AYTU) - 2019 Q2 - Quarterly Report

Financial Performance - Aytu BioScience reported a net revenue of $1.8 million for the three months ended December 31, 2018, compared to$1.1 million for the same period in 2017, reflecting a growth of 63.6%[101] - The company achieved a net revenue of $3.2 million for the six months ended December 31, 2018, up from$2.1 million in the prior year, representing a growth of 52.4%[101] - Aytu incurred a net loss of approximately $4.7 million for the three months ended December 31, 2018, compared to a loss of$3.7 million for the same period in 2017[98] - The accumulated deficit as of December 31, 2018, was $87.4 million, indicating ongoing financial challenges since inception[92] - Aytu's gross product revenue for the three months ended December 31, 2018, was$3.37 million, with a net product revenue of $1.8 million after deductions[103] Expenses and Costs - Research and development expenses increased by$426,000, or 153.8%, for the three months ended December 31, 2018, compared to the same period in 2017[105] - The company anticipates an increase in operating expenses due to start-up costs related to the launch of Tuzistra XR and expansion of its sales team[95] - Selling, general and administrative costs increased by $585,000, or 12.8$204,000, or 2.2%, for the six months ended December 31, 2018, compared to the same period in 2017[107] - The company expects selling, general and administrative expenses to increase slightly in the remainder of fiscal 2019 due to expanding the sales team and launching Tuzistra XR[107] - Professional fees decreased due to reduced use of outside accounting firms, contributing to the overall decrease in selling, general and administrative costs[107] Cash Flow and Financing - Net cash used in operating activities during the six months ended December 31, 2018 was $7.0 million, lower than the reported net loss of$8.1 million[109] - Net cash provided by financing activities in the six months ended December 31, 2018 was $18.7 million, primarily from a public offering of$15.2 million[113] - The company raised gross proceeds of $15.2 million from a public offering in October 2018, which is expected to support its operational needs[88] - The company closed on a debt agreement for$5.0 million during the six months ended December 31, 2018[113] Cash Position - Aytu's cash, cash equivalents, and restricted cash totaled $17.9 million as of December 31, 2018, providing a buffer for operational expenses[92] - Cash used for investing activities during the six months ended December 31, 2018 was$860,000, primarily for purchasing fixed and operating assets[111] Other Information - The company does not have off-balance sheet arrangements or material market risk exposure from financial instruments[115][116] - Amortization of intangible assets increased to $534,000 for the three months ended December 31, 2018, compared to$384,000 for the same period in 2017[108] - The company plans to expand into other therapeutic areas as part of its growth strategy, focusing on significant patient needs[87]