Aytu BioPharma, Inc. (NASDAQ:AYTU) Q4 2022 Earnings Conference Call September 27, 2022 4:30 PM ET Company Participants Robert Blum - Managing Partner, Lytham Partners Josh Disbrow - Chairman and CEO Mark Oki - CFO Conference Call Participants Vernon Bernardino - H.C. Wainwright Sumant Kulkarni - Canaccord Operator Good afternoon, everyone, and welcome to Aytu BioPharma's Fourth Quarter and Fiscal Year 2022 Financial Results Conference Call. At this time, all participants have been placed on a listen-only mo ...

Aytu Biopharma, Inc. (NASDAQ:AYTU) Q1 2022 Earnings Conference Call November 16, 2021 4:30 PM ET Company Participants Josh Disbrow – Chairman and Chief Executive Officer Richard Eisenstadt – Chief Financial Officer Conference Call Participants Jennifer Kim – Cantor Fitzgerald Operator Good afternoon and thank you for joining us for the Aytu BioPharma First Quarter Fiscal 2022 Financial Results Call. With me this afternoon, our Aytu's Chairman and Chief Executive Officer, Josh Disbrow, and Chief Financial Of ...

Financial Performance - Total net product revenue for the three months ended September 30, 2021, was $21.9 million, an increase of approximately $8.4 million, or 62%, compared to $13.5 million for the same period in 2020[165] - Net loss for the three months ended September 30, 2021, was $27.9 million, compared to a net loss of $4.3 million for the same period in 2020, representing an increase of 547%[158] - As of September 30, 2021, the company had an accumulated deficit of approximately $206.2 million[158] Expenses - The cost of sales increased to $9.4 million, a rise of $5.3 million, or 132%, compared to $4.1 million in the prior year[166] - Research and development expenses surged to $2.1 million, an increase of $1.9 million, or 1,045%, compared to $0.2 million for the same period in 2020[167] - Total operating expenses reached $40.2 million, an increase of $27.1 million, or 209%, compared to $13.0 million in the prior year[170] Asset and Financing Activities - The company signed an Asset Purchase Agreement with UAB "Caerus Biotechnologies" for the divestiture of MiOXSYS, receiving approximately $0.5 million and a 5% royalty on global net revenue for five years[162] - The company has approximately $48.0 million available for sale under the 2020 Shelf registration statement as of September 30, 2021[177] - A new shelf registration statement was filed on September 28, 2021, allowing for the offering of up to $100.0 million of various securities, effective October 7, 2021[177] - As of September 30, 2021, the company issued a total of 3,155,039 shares of common stock for aggregate proceeds of $23.4 million from its at-the-market offering program[178] Cash Flow - During the three months ended September 30, 2021, net operating cash outflows totaled $3.8 million, with cash usage approximately $24.1 million less than the net loss due to non-cash charges[181] - Net cash used in operating activities for the three months ended September 30, 2020, was $8.0 million, which was greater than the net loss of $4.3 million[185] - Net cash used in investing activities during the three months ended September 30, 2021, was $0.1 million, primarily due to payment of contingent considerations and capital expenditure[186] - Net cash used in financing activities during the three months ended September 30, 2021, was $5.5 million, primarily from a $3.4 million paydown on the revolving loan[187] Debt Obligations - The company has obligations related to its loan and credit facilities, including $16.0 million outstanding under the Deerfield facility with a 12.95% annual interest rate[189] - The company is contractually obligated to make fixed payments of $3.1 million in fiscal year 2022 and $3.0 million in milestone payments upon certain events[192] - The company has a loan agreement with Encina providing up to $25.0 million in revolving loans, with interest payable monthly at a variable rate[190] Stock-Based Compensation - The company recognized stock-based compensation expense based on fair values on the date of grant, with costs recognized ratably over the service period[207] - The fair value of employee stock-based awards is determined using the Black Scholes option pricing model, which involves subjective assumptions such as stock price volatility and expected life of stock options[208] - The average expected life of stock options was determined using the "simplified method," which is the midpoint between the vesting date and the end of the contractual term[208] - The company has not paid and does not anticipate paying cash dividends, assuming an expected dividend rate of 0%[208] Impairment and Fair Value Assessments - The company recognized an impairment loss of $19.5 million related to the Aytu BioPharma segment during the three months ended September 30, 2021[170] - As of September 30, 2021, the company recognized an impairment loss of $19.5 million related to the Aytu BioPharma segment due to a decline in stock price, indicating that the fair value of this segment is less than its carrying value[212] - The quantitative test indicated no impairment at Aytu Consumer Health segment, as it resulted in an implied fair value greater than the carrying value as of September 30, 2021[212] - Contingent consideration liabilities related to business acquisitions are classified within Level 3, with fair value estimated based on projected payment dates, discount rates, probabilities of payment, and projected revenues[213] - Fixed payment arrangements related to business acquisitions are recognized at their amortized cost basis and are accreted up to their ultimate face value over time[215] - The fair value of contingent value rights is based on a model that discounts each obligation at a 30% discount rate to reflect the overall risk to future payouts[214] - Changes in the fair value of liability classified derivative financial instruments are recorded as derivative income or expense and reported as a component of cash flows from operations[218] Revenue Recognition - The company’s revenue recognition involves significant judgment and estimates of the net sales price, including variable considerations such as discounts and rebates[197] - The principal estimates and assumptions used in impairment assessments include revenue growth, operating margins, and capital expenditures[212]

Financial Data and Key Metrics Changes - For the fiscal year ended June 30, 2021, net revenue was $65.6 million, up from $27.6 million for the previous year [20] - Fourth quarter revenue reached an all-time high of $23.5 million, compared to $13.5 million in the previous quarter and $14.9 million in the same quarter last year [20][21] - The company ended the quarter with approximately $50 million in cash, providing sufficient capital to reach operating breakeven [7][24] Business Line Data and Key Metrics Changes - The consumer health division generated $8.9 million in revenue for the quarter, an increase from $6.9 million in the same quarter last year [21] - Prescription division revenue was $14.6 million, compared to $7.9 million in the same quarter last year [21] - The ADHD product revenue for the quarter was $10.6 million, reflecting a full three months of revenue from the Neos acquisition [21] Market Data and Key Metrics Changes - The total addressable market for the company's prescription products is approximately $24 billion across five therapeutic categories [7] - The ADHD market is estimated to exceed $70 million annually, with significant growth expected [8][28] Company Strategy and Development Direction - The company aims to focus on becoming a premier pediatric-focused specialty pharmaceutical company, supported by a growing prescription portfolio and consumer health subsidiary [5][27] - Aytu plans to expand its RxConnect pharmacy network to enhance patient access and drive prescription refills [10][11] - The company is pursuing Orphan Drug Designation for AR101 and plans to initiate a pivotal study for VEDS in early 2022 [18][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth of the ADHD market, particularly as children return to school [28] - The company anticipates continued revenue growth from both prescription products and consumer health through new product launches and e-commerce strategies [12][27] - Management highlighted the importance of the RxConnect platform in driving prescription volume and improving patient access [11][48] Other Important Information - The company reported a net loss of $58.3 million for the fiscal year, compared to a loss of $13.6 million the previous year [22] - One-time costs in the fourth quarter included approximately $13.5 million related to asset write-offs and acquisition fees [23] - The company plans to close the Neos manufacturing facility to improve gross profit margins and reduce expenses [26] Q&A Session Summary Question: Can you provide insights on ADHD revenues and back-to-school trends? - Management noted that the market is trending as expected, with a rebound in ADHD prescriptions as the school year begins [31][34] Question: What is the normalized cash burn rate? - The normalized cash burn for the quarter was approximately $3.2 million, excluding one-time costs [40][41] Question: What are the expectations for the Healight study timeline? - Results from the Healight study in Spain are expected to be available in the first half of 2022 [52][53]

Aytu Biopharma, Inc. (NASDAQ:AYTU) Q3 2021 Earnings Conference Call May 17, 2021 4:30 PM ET Company Participants Joshua Disbrow - Chairman and CEO Richard Eisenstadt - CFO Conference Call Participants Jennifer Kim - Cantor Fitzgerald Operator Good afternoon and thank you for joining us today for the Aytu Biopharma Financial Results and Business Update Call for the Fiscal Third Quarter Ended March 31st, 2021. With me this afternoon are Aytu's Chairman and Chief Executive Officer, Josh Disbrow; and Chief Fina ...