Aytu BioPharma(AYTU) - 2026 Q2 - Quarterly Report

Revenue Performance - Net revenue for the three months ended December 31, 2025, decreased by $1.1 million, or 7%, compared to the same period in 2024, primarily due to a shift in marketing focus towards EXXUA[136]. - Net revenue for the six months ended December 31, 2025, decreased by $3.7 million, or 11%, compared to the same period in 2024, largely due to a $3.3 million increase in the first quarter of fiscal 2025 from successful vendor negotiations[137]. - EXXUA generated $241,000 in net revenue during the three months ended December 31, 2025, marking its successful launch as a key product[135]. - The ADHD Portfolio net revenue decreased by $600,000, or approximately 4%, during the three months ended December 31, 2025, compared to the same period in 2024[135]. - The Pediatric Portfolio net revenue decreased by $711,000, or approximately 30%, during the three months ended December 31, 2025, compared to the same period in 2024[135]. Operating Expenses and Profitability - Total operating expenses for the three months ended December 31, 2025, were $11.6 million, a decrease of $887,000 compared to the same period in 2024[134]. - Loss from operations for the three months ended December 31, 2025, was $1.97 million, compared to a loss of $1.70 million in the same period in 2024[134]. - Gross profit for the three months ended December 31, 2025, decreased by $1.2 million, or 11%, to $9.6 million, with a gross profit percentage of 63%, down from 66% in the same period of 2024[138]. - For the six months ended December 31, 2025, gross profit decreased by $4.0 million, or 17%, to $18.8 million, with a gross profit percentage of 65%, down from 69% in the same period of 2024[139]. Expenses Breakdown - Selling and marketing expenses increased by $0.7 million, or 14%, for the three months ended December 31, 2025, and by $0.4 million, or 4%, for the six months ended December 31, 2025, primarily due to labor and EXXUA launch costs[140]. - General and administrative expenses rose by $0.6 million, or 14%, for the three months ended December 31, 2025, and by $0.4 million, or 4%, for the six months ended December 31, 2025, driven by labor and service costs[141]. - Research and development expenses were zero for the three and six months ended December 31, 2025, compared to $0.5 million and $0.9 million for the same periods in 2024, due to a focus shift to commercial operations[142]. Interest and Financing - Interest expense decreased by $519,000, or approximately 48%, for the three months ended December 31, 2025, compared to the same period in 2024[134]. - Interest expense decreased by $0.5 million, or 48%, for the three months ended December 31, 2025, and by $1.0 million, or 48%, for the six months ended December 31, 2025, primarily due to paydowns of fixed payment arrangements[146]. - Net cash used in financing activities was $4.0 million for the six months ended December 31, 2025, primarily due to payments for fixed payment arrangements and the Eclipse Term Loan[160]. Cash Flow and Capital - Net cash provided by operating activities for the six months ended December 31, 2025, totaled $3.1 million, an increase of $1.3 million compared to $1.7 million in 2024[157]. - The company raised gross proceeds of $16.6 million in June 2025 from the issuance of common stock and prefunded warrants, intending to use the net proceeds for working capital and to commercialize EXXUA[153]. Strategic Focus - The company has indefinitely suspended active development of clinical programs and divested unprofitable operations to focus on core pharmaceutical products[127]. - The company expects EXXUA to serve as a major growth catalyst, targeting the over $22 billion U.S. prescription MDD market[126]. Financial Reporting and Compliance - The company has prepared its financial statements in accordance with U.S. GAAP, requiring estimates and judgments that affect assets, liabilities, revenue, and expenses[166]. - There are no off-balance sheet arrangements that could materially affect the company's financial condition or results of operations[167]. - The company is classified as a smaller reporting company and is not required to provide additional market risk information[168].