Aytu BioPharma(AYTU) - 2019 Q3 - Quarterly Report

Financial Performance - Aytu BioScience reported a net revenue of $2.4 million for the three months ended March 31, 2019, compared to $607,000 for the same period in 2018, representing a significant increase [109]. - For the nine months ended March 31, 2019, net revenue reached $5.6 million, up from $2.7 million in the prior year, indicating a growth of 106% [109]. - The company experienced a net loss of approximately $12.6 million for the nine months ended March 31, 2019, compared to a loss of $10.7 million for the same period in 2018 [107]. - Aytu BioScience's accumulated deficit stood at $91.9 million as of March 31, 2019 [99]. - The cost of sales for the three months ended March 31, 2019, was $617,000, down from $1.1 million in the same period in 2018 [113]. - Aytu BioScience's gross product revenue for the three months ended March 31, 2019, was $3.36 million, with net product revenue of $2.37 million after deductions [111]. Expenses and Cash Flow - Research and development expenses increased by $436,000, or 1,981.8%, for the nine months ended March 31, 2019, compared to the same period in 2018 [114]. - Selling, general and administrative costs increased by $738,000, or 15.9%, for the three months ended March 31, 2019, compared to the same period in 2018 [116]. - The company used $10.4 million in cash for operating activities during the nine months ended March 31, 2019, which was less than the reported net loss of $12.6 million [118]. - Cash used in investing activities was $860,000 during the nine months ended March 31, 2019, for purchasing fixed and operating assets [120]. - Cash use in operating activities during the nine months ended March 31, 2018, was $11.4 million [119]. Financing Activities - The company raised gross proceeds of $15.2 million from a public offering completed on October 9, 2018 [95]. - Net cash provided by financing activities was $19.0 million for the nine months ended March 31, 2019, primarily due to a public offering of $15.2 million [122]. - The company received proceeds of $259,000 from warrant exercises during the nine months ended March 31, 2019 [122]. Strategic Plans - The company plans to expand into other therapeutic areas as part of its growth strategy [94]. - 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 [116]. Asset Management - Amortization of intangible assets increased to $575,000 for the three months ended March 31, 2019, compared to $388,000 for the same period in 2018 [117]. - The impairment expense recognized in the three and nine months ended March 31, 2018, was $1,856,000 related to Aytu Women's Health assets [116]. - The company does not have off-balance sheet arrangements or material market risk exposure from financial instruments [124]. Product Portfolio - Aytu BioScience's product portfolio includes Natesto, Tuzistra XR, ZolpiMist, and MiOXSYS, with Natesto being the primary revenue driver [109].