Aytu BioPharma (AYTU) 10-Q 14 May 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2019	May 01, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	AYTU BIOSCIENCE, INC
Entity Central Index Key	0001385818
Trading Symbol	AYTU
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		16,660,395

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2019	Jun. 30, 2018
Current assets
Cash and cash equivalents	$ 14,647,402	$ 7,012,527
Restricted cash	100,296	100,000
Accounts receivable, net	1,376,358	578,782
Inventory, net	1,530,083	1,338,973
Prepaid expenses and other	804,840	440,009
Total current assets	18,458,979	9,470,291
Fixed assets, net	219,177	218,684
Licensed assets, net	19,430,767	11,120,086
Patents, net	226,944	245,944
Deposits	2,200	5,088
Total long-term assets	19,879,088	11,589,802
Total assets	38,338,067	21,060,093
Current liabilities
Accounts payable and other	2,131,251	2,119,672
Accrued liabilities	772,140	185,882
Accrued compensation	791,586	540,674
Current deferred rent	0	1,450
Current contingent consideration	808,779	547,100
Total current liabilities	4,503,756	3,394,778
Long-term contingent consideration	12,633,824	4,146,829
Long-term debt - related party (Note 11)	5,134,795	0
Warrant derivative liability	28,513	93,981
Total liabilities	22,300,888	7,635,588
Commitments and contingencies (Note 7)
Stockholders' equity
Preferred Stock, par value $.0001; 50,000,000 shares authorized; shares issued and outstanding 2,335,665 and 0, respectively as of March 31, 2019 and June 30, 2018	234	0
Common Stock, par value $.0001; 100,000,000 shares authorized; shares issued and outstanding 12,848,499 and 1,794,762, respectively as of March 31, 2019 and June 30, 2018	1,285	179
Additional paid-in capital	107,893,259	92,681,918
Accumulated deficit	(91,857,599)	(79,257,592)
Total stockholders' equity	16,037,179	13,424,505
Total liabilities and stockholders' equity	$ 38,338,067	$ 21,060,093

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Jun. 30, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value	$ .0001	$ .0001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	2,335,665	0
Preferred stock, shares outstanding	2,335,665	0
Common stock, par value	$ .0001	$ .0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	12,848,499	1,794,762
Common stock, shares outstanding	12,848,499	1,794,762

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Product revenue, net	$ 2,372,016	$ 607,473	$ 5,598,836	$ 2,734,995
License revenue, net	5,776	0	5,776	0
Total revenue	2,377,792	607,473	5,604,612	2,734,995
Operating expenses
Cost of sales	616,853	1,136,833	1,552,950	1,809,445
Research and development	108,901	114,141	413,808	(22,391)
Sales, general and administrative	5,368,762	4,637,495	13,991,516	13,809,264
Sales, general and administrative - related party (Note 11)	6,797	0	351,843	0
Impairment of intangible assets	0	1,856,020	0	1,856,020
Amortization of intangible assets	575,117	387,606	1,561,137	1,156,258
Total operating expenses	6,676,430	8,132,095	17,871,254	18,608,596
Loss from operations	(4,298,638)	(7,524,622)	(12,266,642)	(15,873,601)
Other (expense) income
Other expense, net	(194,703)	(186,629)	(398,833)	(572,155)
Derivative (expense) income	(2,521)	3,139,971	65,468	3,957,756
Other gain	0	1,753,568	0	1,753,568
Total other (expense) income	(197,224)	4,706,910	(333,365)	5,139,169
Net loss	$ (4,495,862)	$ (2,817,712)	$ (12,600,007)	$ (10,734,432)
Weighted average number of common shares outstanding	9,061,023	592,771	5,785,669	250,478
Basic and diluted net loss per common share	$ (0.50)	$ (4.75)	$ (2.18)	$ (42.86)

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, shares at Jun. 30, 2017	0	824,831
Beginning balance, amount at Jun. 30, 2017	$ 0	$ 82	$ 73,069,463	$ (69,069,729)	$ 3,999,816
Stock-based compensation			195,105		195,105
Issuance of restricted stock, shares		200,000
Issuance of restricted stock, amount		$ 20	72,286		72,306
Earn-out payment to Nuelle shareholders, shares		3,018
Earn-out payment to Nuelle shareholders, amount			11,589		11,589
Issuance of preferred and common stock, net of cash issuance costs, shares	2,250	3,196,665
Issuance of preferred and common stock, net of cash issuance costs, amount	$ 1	$ 320	6,318,846		6,319,167
Adjustment for rounding of shares due to stock split, shares		326
Adjustment for rounding of shares due to stock split, amount					0
Net loss				(4,245,042)	(4,245,042)
Ending balance, shares at Sep. 30, 2017	2,250	4,224,840
Ending balance, amount at Sep. 30, 2017	$ 1	$ 422	79,667,289	(73,314,771)	6,352,941
Beginning balance, shares at Jun. 30, 2017	0	824,831
Beginning balance, amount at Jun. 30, 2017	$ 0	$ 82	73,069,463	(69,069,729)	3,999,816
Net loss					(10,734,432)
Ending balance, shares at Mar. 31, 2018	0	35,820,069
Ending balance, amount at Mar. 31, 2018	$ 0	$ 3,582	92,551,906	(79,805,161)	12,750,327
Beginning balance, shares at Sep. 30, 2017	2,250	4,224,840
Beginning balance, amount at Sep. 30, 2017	$ 1	$ 422	79,667,289	(73,314,771)	6,352,941
Stock-based compensation			80,583		80,583
Issuance of restricted stock, shares		492,000
Issuance of restricted stock, amount		$ 49	31,280		31,329
Earn-out payment to Nuelle shareholders, shares		61,132
Earn-out payment to Nuelle shareholders, amount		$ 6	238,405		238,411
Preferred stocks converted into common stock, shares	(350)	116,666
Preferred stocks converted into common stock, amount		$ 12	(12)		0
Net loss				(3,672,678)	(3,672,678)
Ending balance, shares at Dec. 31, 2017	1,900	4,894,638
Ending balance, amount at Dec. 31, 2017	$ 1	$ 489	80,017,545	(76,987,449)	3,030,586
Stock-based compensation			12,322		12,322
Issuance of restricted stock, shares		75,000
Issuance of restricted stock, amount		$ 8	54,942		54,950
Issuance of preferred stock and common stock, net of cash issuance costs, shares	3,216	21,520,000
Issuance of preferred stock and common stock, net of cash issuance costs, amount	$ 1	$ 2,152	9,164,272		9,166,425
Warrants issued in connection with registered offering			2,439,360		2,439,360
Preferred stocks converted into common stock, shares	(5,116)	7,780,000
Preferred stocks converted into common stock, amount	$ (2)	$ 778	(776)		0
Warrant exercises, shares		1,547,000
Warrant exercises, amount		$ 155	640,225		640,380
Issuance of warrants			179,287		179,287
Warrant amendment			4,633		4,633
Warrant exercise of derivative warrants			40,096		40,096
Adjustment for rounding of shares due to stock split, shares		3,431
Adjustment for rounding of shares due to stock split, amount					0
Net loss				(2,817,712)	(2,817,712)
Ending balance, shares at Mar. 31, 2018	0	35,820,069
Ending balance, amount at Mar. 31, 2018	$ 0	$ 3,582	92,551,906	(79,805,161)	12,750,327
Beginning balance, shares at Jun. 30, 2018	0	1,794,762
Beginning balance, amount at Jun. 30, 2018	$ 0	$ 179	92,681,918	(79,257,592)	13,424,505
Stock-based compensation			65,563		65,563
Issuance of restricted stock, amount			86,551		86,551
Adjustment for rounding of shares due to stock split, shares		6,649
Adjustment for rounding of shares due to stock split, amount		$ 1	(1)		0
Net loss				(3,446,483)	(3,446,483)
Ending balance, shares at Sep. 30, 2018	0	1,801,411
Ending balance, amount at Sep. 30, 2018	$ 0	$ 180	92,834,031	(82,704,075)	10,130,136
Beginning balance, shares at Jun. 30, 2018	0	1,794,762
Beginning balance, amount at Jun. 30, 2018	$ 0	$ 179	92,681,918	(79,257,592)	13,424,505
Net loss					(12,600,007)
Ending balance, shares at Mar. 31, 2019	2,335,665	12,848,499
Ending balance, amount at Mar. 31, 2019	$ 234	$ 1,285	107,893,259	(91,857,599)	16,037,179
Beginning balance, shares at Sep. 30, 2018	0	1,801,411
Beginning balance, amount at Sep. 30, 2018	$ 0	$ 180	92,834,031	(82,704,075)	10,130,136
Stock-based compensation			41,108		41,108
Issuance of restricted stock, shares		2,707,022
Issuance of restricted stock, amount		$ 271	152,683		152,954
Common stock issued to employee, shares		9,000
Common stock issued to employee, amount		$ 1	11,689		11,690
Issuance of preferred and common stock, net of cash issuance costs, shares	8,342,993	1,777,007
Issuance of preferred and common stock, net of cash issuance costs, amount	$ 834	$ 178	11,810,373		11,811,385
Warrants issued in connection with registered offering			1,827,628		1,827,628
Warrants issued in connection with the registered offering to the placement agents, non-cash issuance costs			61,024		61,024
Preferred stocks issued in connection with the purchase of assets, shares	400,000
Preferred stocks issued in connection with the purchase of assets, amount	$ 40		519,560		519,600
Preferred stocks converted into common stock, shares	(4,210,329)	4,210,329
Preferred stocks converted into common stock, amount	$ (421)	$ 421			0
Net loss				(4,657,662)	(4,657,662)
Ending balance, shares at Dec. 31, 2018	4,532,664	10,504,769
Ending balance, amount at Dec. 31, 2018	$ 453	$ 1,051	107,258,096	(87,361,737)	19,897,863
Stock-based compensation			15,308		15,308
Issuance of restricted stock, shares		(25,600)
Issuance of restricted stock, amount		$ (2)	361,360		361,358
Preferred stocks converted into common stock, shares	(2,196,999)	2,196,999
Preferred stocks converted into common stock, amount	$ (219)	$ 219			0
Warrant exercises, shares		172,331
Warrant exercises, amount		$ 17	258,495		258,512
Net loss				(4,495,862)	(4,495,862)
Ending balance, shares at Mar. 31, 2019	2,335,665	12,848,499
Ending balance, amount at Mar. 31, 2019	$ 234	$ 1,285	$ 107,893,259	$ (91,857,599)	$ 16,037,179

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities
Net loss	$ (12,600,007)	$ (10,734,432)
Adjustments to reconcile net loss to cash used in operating activities
Depreciation, amortization and accretion	1,974,213	1,975,448
Stock-based compensation expense	121,979	288,010
Issuance of restricted stock	600,863	158,585
Issuance of common stock to employee	11,690	0
Derivative (income)	(65,468)	(3,957,756)
Impairment of intangible assets	0	1,856,020
Other gain	0	(1,753,568)
Issuance of warrants	0	179,287
Warrant amendment	0	4,633
Changes in operating assets and liabilities:
(Increase) in accounts receivable	(797,576)	(204,437)
(Increase) decrease in inventory	(191,110)	428,401
(Increase) in prepaid expenses and other	(364,831)	(586,139)
(Decrease) increase in accounts payable and other	(17,769)	967,641
Increase (decrease) in accrued liabilities	586,258	(571,121)
Increase in accrued compensation	250,912	558,451
Increase in interest payable - related party	134,795	0
(Decrease) in deferred rent	(1,450)	(5,005)
Net cash used in operating activities	(10,357,501)	(11,396,982)
Cash flows used in investing activities
Deposits	2,888	0
Purchases of property and equipment	(59,848)	(74,707)
Contingent consideration payment	(408,917)	(7,385)
Purchase of assets	(500,000)	0
Net cash used in investing activities	(965,877)	(82,092)
Cash flows from financing activities
Issuance of preferred, common stock and warrants	15,180,000	24,740,015
Issuance costs related to preferred, common stock and warrants	(1,479,963)	(2,697,066)
Warrant exercises	258,512	640,380
Issuance of debt - related party	5,000,000	0
Net cash provided by financing activities	18,958,549	22,683,329
Net change in cash, cash equivalents and restricted cash	7,635,171	11,204,255
Cash, cash equivalents and restricted cash at beginning of period	7,112,527	877,542
Cash, cash equivalents and restricted cash at end of period	14,747,698	12,081,797
Fair value of warrants issued to investors and underwriters	1,888,652	0
Issuance of preferred stock related to purchase of asset	519,600	0
Contingent consideration (see Note 6)	8,833,219	0
Contingent consideration included in accounts payable	29,348	11,283
Warrants issued to investors and underwriters	0	4,117,997
Earn-out payment to Nuelle Shareholders in common stock	0	250,000
Warrant exercise of derivative warrants	$ 0	$ 40,096

Business, Basis of Presentation

Business, Basis of Presentation, License and Supply Agreements	9 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Business, Basis of Presentation, License and Supply Agreements	Business Aytu BioScience, Inc. (“Aytu”, the “Company” or “we”) was incorporated as Rosewind Corporation on August 9, 2002 in the State of Colorado. Aytu was re-incorporated in the state of Delaware on June 8, 2015. Aytu is a specialty pharmaceutical company focused on global commercialization of novel products addressing significant medical needs such as hypogonadism (low testosterone) and plans to expand opportunistically into other therapeutic areas. Basis of Presentation The unaudited consolidated financial statements contained in this report represent the financial statements of Aytu and its wholly-owned subsidiary, Aytu Women’s Health, LLC. The unaudited consolidated financial statements should be read in conjunction with Aytu’s Annual Report on Form 10-K for the year ended June 30, 2018, which included all disclosures required by generally accepted accounting principles in the United States (“GAAP”). In the opinion of management, these unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position of Aytu and the results of operations and cash flows for the interim periods presented. The results of operations for the period ended March 31, 2019 are not necessarily indicative of expected operating results for the full year. The information presented throughout this report, as of and for the periods ended March 31, 2019, and 2018, is unaudited. The accompanying consolidated financial statements of the Company have been prepared in accordance with GAAP. On August 10, 2018, Aytu effected a reverse stock split in which each common stockholder received one share of common stock for every 20 shares held (herein referred to collectively as the “Reverse Stock Split”). All share and per share amounts in this report have been adjusted to reflect the effect of the Reverse Stock Split. License and Supply Agreement—Natesto In April 2016, Aytu entered into a license and supply agreement to acquire the exclusive U.S. rights to commercialize Natesto® (testosterone) nasal gel from Acerus Pharmaceuticals Corporation, or Acerus. We acquired the rights effective upon the expiration of the former licensee’s rights, which occurred on June 30, 2016. The term of the license runs for the greater of eight years or until the expiry of the latest to expire patent, including claims covering Natesto or until the entry on the market of at least one AB-rated generic product. In addition to the previously disclosed upfront payments made to Acerus, we agreed to make one-time, non-refundable milestone payments to Acerus within 45 days of the occurrence of certain agreed upon milestones. The maximum aggregate amount payable under such milestone payments is $37.5 million. The fair value of the net identifiable Natesto asset acquired was determined to be $10.5 million, which is being amortized over eight years. The aggregate amortization expense for each of the three-month periods ended March 31, 2019 and 2018 was $330,000. The aggregate amortization expense for each of the nine-month periods ended March 31, 2019 and 2018 was $989,000. The contingent consideration was initially valued at $3.2 million using a Monte Carlo simulation, as of June 30, 2016. As of June 30, 2018, the contingent consideration was revalued at $1.8 million using the same Monte Carlo simulation methodology, and based on current interest rates, expected sales potential, and Aytu stock trading variables. The contingent consideration accretion expense for each of the three-month periods ended March 31, 2019 and 2018 was $17,000, and $178,000, respectively. The contingent consideration accretion expense for each of the nine-month periods ended March 31, 2019 and 2018 was $48,000, and $508,000, respectively. As of March 31, 2019, no milestone payments have been made. License Agreement—ZolpiMist In June 2018, Aytu signed an exclusive license agreement for ZolpiMist™ (zolpidem tartrate oral spray) from Magna Pharmaceuticals, Inc., (“Magna”). This agreement allows for Aytu’s exclusive commercialization of ZolpiMist in the U.S. and Canada. Aytu made an upfront payment of $400,000 to Magna upon execution of the agreement. In July 2018, we paid an additional $300,000, of which, $297,000 was included in current contingent consideration at June 30, 2018. The ZolpiMist license agreement was valued at $3.2 million and will be amortized over the life of the license agreement up to seven years. The amortization expense for each of the three months ended March 31, 2019 and 2018 was $116,000 and $0, respectively. The amortization expense for each of the nine months ended March 31, 2019 and 2018 was $348,000 and $0, respectively. We also agreed to make certain royalty payments to Magna which will be calculated as a percentage of ZolpiMist net sales and are payable within 45 days of the end of the quarter during which the applicable net sales occur. The contingent consideration related to these royalty payments was valued at $2.6 million using a Monte Carlo simulation, as of June 11, 2018. The contingent consideration accretion expense for the three months ended March 31, 2019 and 2018 was $64,000, and $0, respectively. The contingent consideration accretion expense for the nine months ended March 31, 2019 and 2018 was $184,000, and $0, respectively. License, Development, Manufacturing and Supply Agreement—Tuzistra XR On November 2, 2018, the Company entered into a License, Development, Manufacturing and Supply Agreement (the “Tris License Agreement”) with TRIS Pharma, Inc. (“TRIS”). Pursuant to the Tris License Agreement, TRIS granted the Company an exclusive license in the United States to commercialize Tuzistra XR. In addition, TRIS granted the Company an exclusive license in the United States to commercialize a complementary antitussive referred to as “CCP-08” (together with Tuzistra XR, the “Products”) for which marketing approval has been sought by TRIS under a New Drug Application filed with the Food and Drug Administration (“FDA”). As consideration for the Products license, the Company: (i) made an upfront cash payment to TRIS; (ii) issued shares of Series D Convertible preferred stock to TRIS; and (iii) will pay certain royalties to TRIS throughout the license term in accordance with the Tris License Agreement. The Tris License Agreement was valued at $9.9 million and will be amortized over the life of the Tris License Agreement up to twenty years. The amortization expense for each of the three-month periods ended March 31, 2019 and 2018 was $123,000 and $0, respectively. The amortization expense for each of the nine-month periods ended March 31, 2019 and 2018 was $205,000 and $0, respectively. We also agreed to make certain quarterly royalty payments to TRIS which will be calculated as a percentage of our Tuzistra XR net sales, payable within 45 days of the end of the applicable quarter. As of November 2, 2018, the contingent consideration, related to this asset, was valued at $8.8 million using a Monte Carlo simulation. The contingent consideration accretion expense for the three months ended March 31, 2019 and 2018 was $73,000, and $0, respectively. The contingent consideration accretion expense for the nine months ended March 31, 2019 and 2018 was $119,000, and $0, respectively. Liquidity Assessment Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements - Going Concern, requires management to evaluate the company’s ability to continue as a going concern one year beyond the filing date of the financial statements contained herein. This evaluation requires management to perform two steps. First, management must evaluate whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern. Second, if management concludes that substantial doubt is raised, management is required to consider whether it has plans in place to alleviate that doubt. Disclosures in the notes to the financial statements are required if management concludes that substantial doubt exists or that its plans alleviate the substantial doubt that was raised. Prior to the date of this Report, we have financed operations through a combination of private and public debt and equity financings, receipts from the sale of our products, and occasionally through divestures of non-strategic assets. Our financing transactions have included private placements of stock and convertible notes, and public offerings of the Company’s equity securities. Since the formation of Aytu in June 2015, the Company has raised approximately $70.3 million, inclusive of the $15.2 million we raised in October 2018, from the sale of securities to investors, the exercise of warrants by investors and the $5.0 million of debt issued in November 2018. Although it is difficult to predict our liquidity requirements, based upon our current operating plan, as of the date of this Report, we believe we will have sufficient cash to meet our projected operating requirements for the next 12 months. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Topic 606, Revenue from Contracts with Customers Effective July 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers We adopted the new standard through applying the following conclusions (resulting from a thorough analysis of all contract types): (1) The new guidance did not materially change our existing policy and practice for identifying contracts with customers, nor did it give rise to changes to our existing policy and practice or create new concern surrounding the collectability of our receivables from customers, (2) none of our contracts with customers contain multiple performance obligations that are not fulfilled at the same time, (3) the new guidance did not change our existing policy and practice regarding the recording of variable consideration, and (4) we did not identify any customer acquisition costs that are incremental and that are expected to be recovered at a future time. As mentioned above, the modified retrospective method of transition did not result in a cumulative adjustment as of July 1, 2018. Additionally, no other line items in the statement of operations or the balance sheet reflect any changes due to the adoption of the new standard. Adoption of the standards related to revenue recognition had no impact to cash from or used in operating, financing, or investing on our consolidated cash flows statement. Recently Issued Accounting Pronouncements, Not Adopted as of March 31, 2019 In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments in the standard apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. ASU 2018-13 removes, modifies, and adds certain disclosure requirements in ASC 820, Fair Value Measurement. The standard is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of ASU 2018-13. An entity is permitted to early adopt any removed or modified disclosures upon issuance of ASU 2018-13 and delay adoption of the additional disclosures until their effective date. The Company is currently assessing the impact that ASU 2018-13 will have on its financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses” to require the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The standard is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. The Company is currently assessing the impact that ASU 2016-13 will have on its consolidated financial statements but does not anticipate there to be a material impact. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” “Codification Improvements to Topic 842, Leases,” “Leases (Topic 842): Targeted Improvements,” “Leases (Topic 842): Codification Improvements,”

Revenue Recognition

Revenue Recognition	9 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Revenue Recognition	We generate revenues from the sale of products. Revenue is recognized when control of products is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products. The Company determines revenue recognition through the following five-step model: (i) identification of the promised goods or services in the contract; (ii) determination of whether the promised goods or services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when, or as the Company satisfies each performance obligation. Product Revenues, Net The Company sells its products principally to a limited number of wholesale distributors and pharmacies in the United States, which account for the largest portion of our total revenue. International sales are made primarily to specialty distributors, as well as hospitals, laboratories, and clinics, some of which are government owned or supported (collectively, its “Customers”). The Company’s Customers in the United States subsequently resell the products to patients and pharmacies. In accordance with ASC 606, the Company recognizes net revenues from product sales when the Customer obtains control of the Company’s product, which typically occurs upon delivery to the Customer. The Company’s payment terms are between 30 to 60 days in the United States and consistent with prevailing practice in international markets. Revenue from product sales is recorded at the net sales price, or “transaction price,” which includes estimates of variable consideration that result from coupons, discounts, chargebacks and distributor fees, processing fees, as well as allowances for returns and government rebates. Provisions are established for the estimates of variable consideration based on the amounts earned or to be claimed on the related sale. Provision balances related to estimated amounts payable to direct customers are netted against accounts receivable from such customers. Balances related to indirect customers are included in accounts payable and accrued liabilities. Where appropriate, the Company utilizes the expected value method to determine the appropriate amount for estimates of variable consideration based on factors such as the Company’s historical experience and specific known market events and trends. We constrain our estimates by giving consideration to factors that could otherwise lead to a probable reversal of revenue. Revenues by Geographic location The following table reflects our product revenues by geographic location as determined by the billing address of our customers: Three Months Ended March 31, Nine Months Ended March 31, 2019 2018 2019 2018 U.S $ 2,024,000 $ 483,000 $ 5,025,000 $ 2,380,000 Rest-of-the-World 348,000 124,000 574,000 355,000 Total net revenue $ 2,372,000 $ 607,000 $ 5,599,000 $ 2,735,000 License Revenue, Net The license revenue of $6,000 and $0 recognized in the three and nine months ended March 31, 2019 and 2018, respectively, represent the payment received from the Company’s ZolpiMist sublicensing agreement with SUDA Pharmaceuticals. In connection with the ZolpiMist License Agreement, Aytu assumed the SUDA Pharmaceuticals sublicensing agreement for ZolpiMist outside of the United States and Canada. This licensing agreement calls for SUDA to lead commercial development and sublicensing efforts for ZolpiMist in major territories outside the United States and Canada, including Europe, Asia, and Latin America. SUDA has already entered into sublicensing agreements in key markets with large, multi-national pharmaceutical companies and has agreements in place in China, Chile, Brazil, and throughout Southeast Asia.

Inventories

Inventories	9 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Inventories	Inventories consist of raw materials, work in process and finished goods and are recorded at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. Aytu periodically reviews the composition of its inventories to identify obsolete, slow-moving or otherwise unsaleable items. If unsaleable items are observed and there are no alternate uses for the inventory, Aytu will record a write-down to net realizable value in the period that the impairment is first recognized. We currently have a reserve of $10,000 for slow moving inventory as of March 31, 2019 and $0 at June 30, 2018. Inventory balances consist of the following: March 31, 2019 June 30, 2018 Finished goods, net $ 984,000 $ 1,100,000 Raw materials 546,000 239,000 Total inventory $ 1,530,000 $ 1,339,000

Fixed Assets

Fixed Assets	9 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Fixed Assets	Fixed assets are recorded at cost and, once placed in service, are depreciated on a straight-line basis over the estimated useful lives. Leasehold improvements are amortized over the shorter of the estimated economic life or related lease term. Fixed assets consist of the following: Estimated Useful Lives in years As of March 31, 2019 As of June 30, 2018 Manufacturing equipment 2 - 5 $ 83,000 $ 213,000 Leasehold improvements 3 112,000 112,000 Office equipment, furniture and other 2 - 5 315,000 344,000 Lab equipment 3 - 5 90,000 90,000 Less accumulated depreciation and amortization (381,000 ) (540,000 ) Fixed assets, net $ 219,000 $ 219,000 Depreciation and amortization expense was as follows: Three Months Ended March 31, Nine Months Ended March 31, 2019 2018 2019 2018 Depreciation and amortization expense $ 15,000 $ 91,000 $ 59,000 $ 252,000

Patents

Patents	9 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Patents	The cost of the oxidation-reduction potential (“ORP”) technology related patents for the RedoxSYS and MiOXSYS Systems was $380,000 when they were acquired and are being amortized over the remaining U.S. patent life of approximately 15 years as of the date, which expires in March 2028. Patents consist of the following: As of March 31, As of June 30, 2019 2018 Patents $ 380,000 $ 380,000 Less accumulated amortization (153,000 ) (134,000 ) Patents, net $ 227,000 $ 246,000 The amortization expense was as follows: Three Months Ended March 31, Nine Months Ended March 31, 2019 2018 2019 2018 Amortization expense $ 6,000 $ 6,000 $ 19,000 $ 19,000

Fair Value Considerations

Fair Value Considerations	9 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value Considerations	Aytu’s financial instruments include cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities, debt, warrant derivative liability, and contingent consideration. The carrying amounts of financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued liabilities approximate their fair value due to their short maturities. The carrying amount of debt approximates its fair value. The fair value of the warrant derivative liability was valued using the lattice valuation methodology. The fair value of acquisition-related contingent consideration is based on a Monte Carlo methodology using estimated discounted future cash flows and periodic assessments of the probability of occurrence of potential future events. The valuation policies are determined by the Chief Financial Officer, and the Company’s Board of Directors is informed of any policy change. Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of Aytu. Unobservable inputs are inputs that reflect Aytu’s assumptions of what market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on reliability of the inputs as follows: Level 1: Inputs that reflect unadjusted quoted prices in active markets that are accessible to Aytu for identical assets or liabilities; Level 2: Inputs that include quoted prices for similar assets and liabilities in active or inactive markets or that are observable for the asset or liability either directly or indirectly; and Level 3: Unobservable inputs that are supported by little or no market activity. Aytu’s assets and liabilities which are measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. Aytu’s policy is to recognize transfers in and/or out of fair value hierarchy as of the date in which the event or change in circumstances caused the transfer. Aytu has consistently applied the valuation techniques discussed below in all periods presented. The following table presents Aytu’s financial liabilities that were accounted for at fair value on a recurring basis as of March 31, 2019 and June 30, 2018, by level within the fair value hierarchy. Fair Value Measurements Using Level 1 Level 2 Level 3 Total March 31, 2019 LIABILITIES Warrant derivative liability $ - $ - $ 29,000 $ 29,000 Contingent consideration $ - $ - $ 13,443,000 $ 13,443,000 June 30, 2018 LIABILITIES Warrant derivative liability $ - $ - $ 94,000 $ 94,000 Contingent consideration $ - $ - $ 4,694,000 $ 4,694,000 The warrant derivative liability was valued using the lattice valuation methodology because that model embodies the relevant assumptions that address the features underlying these instruments. The warrants related to the warrant derivative liability are not actively traded and are, therefore, classified as Level 3 liabilities. Significant assumptions in valuing the warrant derivative liability, based on estimates of the value of Aytu common stock and various factors regarding the warrants, were as follows as of issuance and as of March 31, 2019: March 31, 2019 At Issuance Warrants: Volatility 163.2 % 188.0 % Equivalent term (years) 3.38 5.00 Exercise premium 5 % 20 % Risk-free interest rate 2.21 % 1.83 % Dividend yield 0.00 % 0.00 % The following table sets forth a reconciliation of changes in the fair value of the derivative financial liabilities classified as Level 3 in the fair value hierarchy: Derivative Instruments Balance as of June 30, 2018 $ 94,000 Change in fair value included in earnings (65,000 ) Balance as of March 31, 2019 $ 29,000 We classify our contingent consideration liability in connection with the acquisition and licensing of Natesto, ZolpiMist and Tuzistra XR within Level 3 as factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity. We estimate the fair value of our contingent consideration liability based on projected payment dates, discount rates, probabilities of payment, and projected revenue. Projected contingent payment amounts are discounted back to the current period using a discounted cash flow methodology. The following table sets forth a summary of changes in the contingent consideration for the period ended March 31, 2019: Contingent Consideration Balance as of June 30, 2018 $ 4,694,000 Increase due to purchase of assets 8,833,000 Increase due to accretion 354,000 Decrease due to contractual payments (438,000 ) Balance as of March 31, 2019 $ 13,443,000

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and contingencies are described below and summarized by the following as of March 31, 2019: Total Remaining 2019 2020 2021 2022 2023 Thereafter Prescription database $ 2,029,000 $ 474,000 $ 509,000 $ 534,000 $ 512,000 $ - $ - Milestone payments 5,500,000 - - - 3,000,000 2,500,000 - Office lease 521,000 30,000 109,000 113,000 180,000 121,000 30,000 $ 8,050,000 $ 504,000 $ 618,000 $ 647,000 $ 3,630,000 $ 2,621,000 $ 30,000 Prescription Database In May 2016, Aytu entered into an agreement with a vendor that will provide Aytu with prescription information. Aytu agreed to pay approximately $1.9 million over three years for access to the database of prescriptions written for Natesto. Aggregate payments have been broken down into quarterly payments. In December 2018, Aytu executed an amendment to the contract that added Tuzistra XR and extended the contract through May of 2022. The amendment added $1.7 million to the contract value and as of March 31, 2019, Aytu has $2.0 million of payments remaining. Milestone Payments In connection with our intangible assets, Aytu has certain milestone payments, totaling $5.5 million, that will be payable in the future based on sales performance. Office Lease In June 2018, the Company entered into a 12-month operating lease, beginning on August 1, 2018, for office space in Raleigh, North Carolina. This lease has base rent of $1,100 a month, with total rent over the term of the lease of approximately $13,200. In September 2015, the Company entered into a 37-month operating lease in Englewood, Colorado. This lease had an initial base rent of $9,000 a month with a total base rent over the term of the lease of approximately $318,000. In October 2017, the Company signed an amendment to the 37-month operating lease in Englewood, Colorado, extending the lease for an additional 24 months beginning October 1, 2018. The base rent remained $9,000 per month. In April 2019, the Company extended the lease for an additional 36 months beginning October1, 2020 (see Note 12). Rent expense for the respective periods was as follows: Three Months Ended March 31, Nine Months Ended March 31, 2019 2018 2019 2018 Rent expense $ 31,000 $ 35,000 $ 94,000 $ 105,000

Debt - Related Party

Debt - Related Party	9 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Debt - Related Party	On November 29, 2018, Aytu issued a $5.0 million promissory note (the “Note”) to Armistice Capital Master Fund Ltd. (“Armistice”). The Note was collateralized by the future revenue stream from the products licensed to the Company under the Tris License Agreement between the Company and TRIS. The Note carried an annual interest rate of 8% and had a three-year term with principal and interest payable at maturity. The Company had the right, in its sole discretion, to repay the Note without penalty at any time after December 29, 2018. For the quarter ended March 31, 2019, the Company did not exercised the early repayment option. Subsequent to March 31, 2019, the Company exchanged the Note for a combination of common stock, preferred stock and warrants (see Note 12). Interest expense for the Note for the three months ended March 31, 2019 and 2018 was $99,000 and $0, respectively. Interest expense for the Note for the nine months ended March 31, 2019 and 2018 was $135,000 and $0, respectively.

Common Stock

Common Stock	9 Months Ended
	Mar. 31, 2019
Equity [Abstract]
Common Stock	At March 31, 2019 and June 30, 2018, Aytu had 12,848,499 and 1,794,762 shares of common stock outstanding, respectively, and 2,335,665 and 0 shares of preferred stock outstanding, respectively. The Company has 100 million shares of common stock authorized with a par value of $0.0001 per share and 50 million shares of preferred stock authorized with a par value of $0.0001 per share, of which 500 are designated Series A Convertible preferred stock, 161 are designated as Series B Convertible preferred stock, 8,342,993 are designated as Series C Convertible preferred stock, and 400,000 are designated as Series D Convertible preferred stock. Included in the common stock outstanding are 2,719,312 shares of restricted stock issued to executives, directors, employees and consultants. On October 9, 2018, we completed an underwritten public offering for, total gross proceeds of $15.2 million which includes the full exercise of the underwriters’ over-allotment option to purchase additional shares and warrants, before deducting underwriting discounts, commissions and other offering expenses payable by the Company. The securities offered by the Company consisted of: (i) an aggregate of 457,007 shares of its common stock; (ii) an aggregate of 8,342,993 shares of its Series C Convertible preferred stock convertible into an aggregate of 8,342,993 shares of common stock at a conversion price of $1.50 per share; and (iii) warrants to purchase an aggregate of 8,800,000 shares of common stock at an exercise price of $1.50 per share. The securities were issued at a public offering purchase price of $1.50 per fixed unit consisting of: (a) one share of common stock and one warrant; or (b) one share of Series C preferred stock and one warrant. The common stock issued had a relative fair value of $533,000 in the aggregate and a fair value of $594,000 in the aggregate. The Series C preferred stock issued had a relative fair value of $9.7 million in the aggregate and a fair value of $10.8 million in the aggregate. The warrants are exercisable upon issuance and will expire five years from the date of issuance. The warrants have a relative fair value of $1.6 million in the aggregate, a fair value of $1.8 million in the aggregate, and generated gross proceeds of $88,000. The conversion price of the Series C preferred stock in the offering as well as the exercise price of the warrants are fixed and do not contain any variable pricing features, or any price based anti-dilution features. In connection with this offering, the underwriters exercised their over-allotment option in full, purchasing an additional 1,320,000 shares of common stock and 1,320,000 warrants. The common stock issued had a relative fair value of $1.5 million and a fair value of $1.7 million. The warrants have the same terms as the Warrants sold in the registered offering. These warrants have a relative fair value of $238,000, a fair value of $265,000, and gross proceeds of $13,000, which was the purchase price per the underwriting agreement. In October 2018, Aytu issued 9,000 shares of common stock to a former employee. On November 2, 2018, the Company issued 400,000 shares of Series D Convertible preferred stock as consideration for a purchased asset. In March 2019, warrants issued from the October registered offering to purchase an aggregate of 172,231 shares of common stock were exercised for aggregate gross proceeds to our Company of approximately $259,000. As of March 31, 2019, investors holding shares of Series C preferred stock exercised their right to convert 6,407,328 shares of Series C preferred stock into 6,407,328 shares of common stock. As of March 31, 2019, Aytu has 1,935,665 shares of Series C preferred stock outstanding.

Equity Instruments

Equity Instruments	9 Months Ended
	Mar. 31, 2019
Share-based Payment Arrangement [Abstract]
Equity Instruments	Share-based Compensation Plans On June 1, 2015, Aytu’s stockholders approved the Aytu BioScience 2015 Stock Option and Incentive Plan (the “2015 Plan”), which, as amended in July 2017, provides for the award of stock options, stock appreciation rights, restricted stock and other equity awards for up to an aggregate of 3.0 million shares of common stock. The shares of common stock underlying any awards that are forfeited, canceled, reacquired by Aytu prior to vesting, satisfied without any issuance of stock, expire or are otherwise terminated (other than by exercise) under the 2015 Plan will be added back to the shares of common stock available for issuance under the 2015 Plan. As of March 31, 2019, we have 205,562 shares available for grant under the 2015 Plan. Pursuant to the 2015 Plan, 3.0 million shares of the Company’s common stock, are reserved for issuance. The fair value of options granted has been calculated using the Black-Scholes option pricing model. In order to calculate the fair value of the options, certain assumptions are made regarding components of the model, including the estimated fair value of the underlying common stock, the risk-free interest rate, volatility, expected dividend yield and the expected option life. Changes to the assumptions could cause significant adjustments to valuation. Aytu estimates the expected term of granted options based on the average of the vesting term and the contractual term of the options. The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of the grant for treasury securities of similar maturity. There were no issuances during the three months ended March 31, 2019, therefore, no assumptions are used for this quarter. Stock option activity is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Outstanding June 30, 2018 1,798 $ 325.97 6.95 Granted - $ - Exercised - $ - Forfeited/Cancelled (132 ) $ 328.00 Outstanding March 31, 2019 1,666 $ 325.81 6.49 Exercisable at March 31, 2019 1,514 $ 325.59 6.43 As of March 31, 2019, there was $28,000 of total unrecognized share-based compensation expense related to non-vested stock options. The Company expects to recognize this expense over a weighted-average period of 0.43 years. During the quarter ended December 31, 2018, Aytu issued 75,000 performance-based stock options out of the 2015 Plan to a consultant. These options vest based on meeting certain market criteria with an exercise price of $1.00. Market options that require specific events before they begin to vest are valued at grant date. The fair value of the options granted has been calculated using a Monte Carlo simulation. Significant assumptions at issuance in valuing the options were as follows: Expected volatility 164% Risk free interest rate 2.99% Expected term (years) 5.0 Dividend yield 0% As of March 31, 2019, there was $44,000 of total unrecognized share-based compensation expense related to these non-vested stock options. The Company expects to recognize this expense over a weighted-average period of 0.63 years. Restricted stock issued from the 2015 Plan is as follows: Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life in Years Unvested at June 30, 2018 37,200 $ 39.80 9.4 Vested (850 ) $ 40.40 Granted 2,772,022 $ 1.30 Forfeited (90,600 ) $ - Unvested at March 31, 2019 2,717,772 $ 1.81 9.3 In October 2018, Aytu issued 2,707,022 shares of restricted stock to executives, directors, employees pursuant to the 2015 Plan, which vest in October 2028. Expense will be recognized over the 10-year vesting period. In January 2019, Aytu modified 168,288 shares of restricted stock for accelerated vesting and recognized an increase in aggregate stock compensation expense of $207,000. Also, in January 2019, Aytu forfeited 57,000 shares of restricted stock. In February 2019, Aytu issued 65,000 shares of restricted stock to a director pursuant to the 2015 Plan, which vest in February 2029. In March 2019, Aytu forfeited 33,600 shares of restricted stock. Under the 2015 Plan, there was $4,288,000 of total unrecognized share-based compensation expense related to the non-vested restricted stock as of March 31, 2019. The Company expects to recognize this expense over a weighted-average period of 9.32 years. During the three months ended March 31, 2019, the expense related to these awards was $313,000. During the nine months ended March 31, 2019, the expense related to these awards was $452,000. Aytu previously issued 1,540 shares of restricted stock outside the Aytu 2015 Plan, which vest in July 2026. The unrecognized expense related to these shares was $1,447,000 as of March 31, 2019 and will be recognized over the 10-year vesting period, of which 7.28 years remain. During the three months ended March 31, 2019, the expense related to these awards was $49,000. During the nine months ended March 31, 2019, the expense related to these awards was $149,000. Stock-based compensation expense related to the fair value of stock options and restricted stock was included in the statements of operations as selling, general and administrative expenses as set forth in the table below: Three Months Ended March 31, Nine Months Ended March 31, 2019 2018 2019 2018 Selling, general and administrative: Stock options $ 15,000 $ 12,000 $ 122,000 $ 288,000 Restricted stock 362,000 55,000 601,000 159,000 Total share-based compensation expense $ 377,000 $ 67,000 $ 723,000 $ 447,000 Warrants A summary of all warrants is as follows: Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Outstanding June 30, 2018 1,882,661 $ 25.94 4.61 Warrants issued in connection with the October 2018 offering 10,120,000 $ 1.50 Warrants issued to underwriters in connection with the October 2018 offering 303,600 $ 1.50 Warrants exercised (172,331 ) $ 1.50 Outstanding March 31, 2019 12,133,930 $ 5.29 4.42 In connection with our October 2018 registered offering, we issued warrants to investors and underwriters to purchase an aggregate of 10,423,600 shares of the Company’s common stock at an exercise price of $1.50 and a term of five years. These warrants are accounted for under equity treatment. These warrants had a relative fair value of $1.8 million and a fair value of $2.0 million. In March 2019, warrants issued from the October registered offering to purchase an aggregate of 172,331 shares of common stock were exercised for aggregate gross proceeds to our Company of approximately $259,000.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
Related Party Transactions	Armistice In February 2019, the Company waived its right to disallow Armistice from holding more than 4.99% of Aytu common stock and agreed to allow Armistice to hold up to 40% of the outstanding shares of our common stock. Also, in February 2019, Armistice converted 1.9 million shares of Series C preferred stock into Aytu common stock, resulting in Armistice holding more than 10% of the Company’s common stock. The Company also had a promissory note to Armistice with a face value of $5.0 million (see Note 8), which was subsequently exchanged for a combination of common stock, preferred stock and warrants (see Note 12). Therefore, Armistice is now considered an affiliate of the Company. Co-Pay Support In June 2018, the Company entered into a master services agreement with TrialCard Incorporated (“TCI”), a vendor selected to support the Company sponsored co-pay program. In supporting the program, Aytu will prefund certain amounts from which TCI will make disbursements to qualified patients presenting valid prescriptions for Natesto, Tuzistra XR and ZolpiMist on behalf of Aytu. Disbursements will be based upon business rules determined by Aytu. The Company agreed to pay fees monthly to TCI for account management, data analytics, implementation, and technology and to reimburse TCI for certain direct costs incurred by TCI to support the Company’s program. One of the Aytu directors, Mr. Donofrio, was an executive officer of TCI but has no direct interest in the arrangement. As of February 2019, Mr. Donofrio is no longer employed by TCI.

Subsequent Events

Subsequent Events	9 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	During April 2019, 691,832 of Aytu Series C Preferred shares outstanding converted into 691,832 shares of our common stock. On April 4, 2019, Aytu entered into a 36-month extension of our operating lease for the Englewood, Colorado office space. The base rent will be at $10,000 per month. On April 18, 2019, pursuant to the exchange agreement between Aytu and Armistice, which was approved by the stockholders of the Company on April 12, 2019, Aytu exchanged the Armistice Note into: (1) 3,120,064 shares of common stock of the Company, (2) 2,751,148 shares of Series E Convertible preferred stock of the Company, and (3) a Common Stock Purchase Warrant exercisable for 4,403,409 shares of common stock of the Company. On May 1, 2019, Aytu entered into an Independent Contractor Services Agreement (the “Agreement”) with Averaden, LLC (the “Contractor”). Under the terms of the Agreement, the Contractor agreed to perform certain consulting services with respect to corporate business development activities for the Company. In return, the Company has agreed to pay the Contractor $8,400 per month, which amount shall not exceed $110,000 in aggregate. The Agreement will terminate on May 15, 2020. Gary Cantrell, a member of the Board of Directors of the Company, is a Principal of the Contractor.

Business, Basis of Presentati_2

Business, Basis of Presentation, License and Supply Agreements (Policies)	9 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Business	Aytu BioScience, Inc. (“Aytu”, the “Company” or “we”) was incorporated as Rosewind Corporation on August 9, 2002 in the State of Colorado. Aytu was re-incorporated in the state of Delaware on June 8, 2015. Aytu is a specialty pharmaceutical company focused on global commercialization of novel products addressing significant medical needs such as hypogonadism (low testosterone) and plans to expand opportunistically into other therapeutic areas.
Basis of Presentation	The unaudited consolidated financial statements contained in this report represent the financial statements of Aytu and its wholly-owned subsidiary, Aytu Women’s Health, LLC. The unaudited consolidated financial statements should be read in conjunction with Aytu’s Annual Report on Form 10-K for the year ended June 30, 2018, which included all disclosures required by generally accepted accounting principles in the United States (“GAAP”). In the opinion of management, these unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position of Aytu and the results of operations and cash flows for the interim periods presented. The results of operations for the period ended March 31, 2019 are not necessarily indicative of expected operating results for the full year. The information presented throughout this report, as of and for the periods ended March 31, 2019, and 2018, is unaudited. The accompanying consolidated financial statements of the Company have been prepared in accordance with GAAP. On August 10, 2018, Aytu effected a reverse stock split in which each common stockholder received one share of common stock for every 20 shares held (herein referred to collectively as the “Reverse Stock Split”). All share and per share amounts in this report have been adjusted to reflect the effect of the Reverse Stock Split.
License and Supply Agreement - Natesto	In April 2016, Aytu entered into a license and supply agreement to acquire the exclusive U.S. rights to commercialize Natesto® (testosterone) nasal gel from Acerus Pharmaceuticals Corporation, or Acerus. We acquired the rights effective upon the expiration of the former licensee’s rights, which occurred on June 30, 2016. The term of the license runs for the greater of eight years or until the expiry of the latest to expire patent, including claims covering Natesto or until the entry on the market of at least one AB-rated generic product. In addition to the previously disclosed upfront payments made to Acerus, we agreed to make one-time, non-refundable milestone payments to Acerus within 45 days of the occurrence of certain agreed upon milestones. The maximum aggregate amount payable under such milestone payments is $37.5 million. The fair value of the net identifiable Natesto asset acquired was determined to be $10.5 million, which is being amortized over eight years. The aggregate amortization expense for each of the three-month periods ended March 31, 2019 and 2018 was $330,000. The aggregate amortization expense for each of the nine-month periods ended March 31, 2019 and 2018 was $989,000. The contingent consideration was initially valued at $3.2 million using a Monte Carlo simulation, as of June 30, 2016. As of June 30, 2018, the contingent consideration was revalued at $1.8 million using the same Monte Carlo simulation methodology, and based on current interest rates, expected sales potential, and Aytu stock trading variables. The contingent consideration accretion expense for each of the three-month periods ended March 31, 2019 and 2018 was $17,000, and $178,000, respectively. The contingent consideration accretion expense for each of the nine-month periods ended March 31, 2019 and 2018 was $48,000, and $508,000, respectively. As of March 31, 2019, no milestone payments have been made.
License Agreement - ZolpiMist	In June 2018, Aytu signed an exclusive license agreement for ZolpiMist™ (zolpidem tartrate oral spray) from Magna Pharmaceuticals, Inc., (“Magna”). This agreement allows for Aytu’s exclusive commercialization of ZolpiMist in the U.S. and Canada. Aytu made an upfront payment of $400,000 to Magna upon execution of the agreement. In July 2018, we paid an additional $300,000, of which, $297,000 was included in current contingent consideration at June 30, 2018. The ZolpiMist license agreement was valued at $3.2 million and will be amortized over the life of the license agreement up to seven years. The amortization expense for each of the three months ended March 31, 2019 and 2018 was $116,000 and $0, respectively. The amortization expense for each of the nine months ended March 31, 2019 and 2018 was $348,000 and $0, respectively. We also agreed to make certain royalty payments to Magna which will be calculated as a percentage of ZolpiMist net sales and are payable within 45 days of the end of the quarter during which the applicable net sales occur. The contingent consideration related to these royalty payments was valued at $2.6 million using a Monte Carlo simulation, as of June 11, 2018. The contingent consideration accretion expense for the three months ended March 31, 2019 and 2018 was $64,000, and $0, respectively. The contingent consideration accretion expense for the nine months ended March 31, 2019 and 2018 was $184,000, and $0, respectively.
License Development, Manufacturing and Supply Agreement - Tuzistra XR	On November 2, 2018, the Company entered into a License, Development, Manufacturing and Supply Agreement (the “Tris License Agreement”) with TRIS Pharma, Inc. (“TRIS”). Pursuant to the Tris License Agreement, TRIS granted the Company an exclusive license in the United States to commercialize Tuzistra XR. In addition, TRIS granted the Company an exclusive license in the United States to commercialize a complementary antitussive referred to as “CCP-08” (together with Tuzistra XR, the “Products”) for which marketing approval has been sought by TRIS under a New Drug Application filed with the Food and Drug Administration (“FDA”). As consideration for the Products license, the Company: (i) made an upfront cash payment to TRIS; (ii) issued shares of Series D Convertible preferred stock to TRIS; and (iii) will pay certain royalties to TRIS throughout the license term in accordance with the Tris License Agreement. The Tris License Agreement was valued at $9.9 million and will be amortized over the life of the Tris License Agreement up to twenty years. The amortization expense for each of the three-month periods ended March 31, 2019 and 2018 was $123,000 and $0, respectively. The amortization expense for each of the nine-month periods ended March 31, 2019 and 2018 was $205,000 and $0, respectively. We also agreed to make certain quarterly royalty payments to TRIS which will be calculated as a percentage of our Tuzistra XR net sales, payable within 45 days of the end of the applicable quarter. As of November 2, 2018, the contingent consideration, related to this asset, was valued at $8.8 million using a Monte Carlo simulation. The contingent consideration accretion expense for the three months ended March 31, 2019 and 2018 was $73,000, and $0, respectively. The contingent consideration accretion expense for the nine months ended March 31, 2019 and 2018 was $119,000, and $0, respectively.
Liquidity Assessment	Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements - Going Concern, requires management to evaluate the company’s ability to continue as a going concern one year beyond the filing date of the financial statements contained herein. This evaluation requires management to perform two steps. First, management must evaluate whether there are conditions and events that raise substantial doubt about the entity’s ability to continue as a going concern. Second, if management concludes that substantial doubt is raised, management is required to consider whether it has plans in place to alleviate that doubt. Disclosures in the notes to the financial statements are required if management concludes that substantial doubt exists or that its plans alleviate the substantial doubt that was raised. Prior to the date of this Report, we have financed operations through a combination of private and public debt and equity financings, receipts from the sale of our products, and occasionally through divestures of non-strategic assets. Our financing transactions have included private placements of stock and convertible notes, and public offerings of the Company’s equity securities. Since the formation of Aytu in June 2015, the Company has raised approximately $70.3 million, inclusive of the $15.2 million we raised in October 2018, from the sale of securities to investors, the exercise of warrants by investors and the $5.0 million of debt issued in November 2018. Although it is difficult to predict our liquidity requirements, based upon our current operating plan, as of the date of this Report, we believe we will have sufficient cash to meet our projected operating requirements for the next 12 months.
Recently Adopted Accounting Pronouncements	In May 2014, the FASB issued ASU 2014-09, Topic 606, Revenue from Contracts with Customers Effective July 1, 2018, the Company adopted Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers We adopted the new standard through applying the following conclusions (resulting from a thorough analysis of all contract types): (1) The new guidance did not materially change our existing policy and practice for identifying contracts with customers, nor did it give rise to changes to our existing policy and practice or create new concern surrounding the collectability of our receivables from customers, (2) none of our contracts with customers contain multiple performance obligations that are not fulfilled at the same time, (3) the new guidance did not change our existing policy and practice regarding the recording of variable consideration, and (4) we did not identify any customer acquisition costs that are incremental and that are expected to be recovered at a future time. As mentioned above, the modified retrospective method of transition did not result in a cumulative adjustment as of July 1, 2018. Additionally, no other line items in the statement of operations or the balance sheet reflect any changes due to the adoption of the new standard. Adoption of the standards related to revenue recognition had no impact to cash from or used in operating, financing, or investing on our consolidated cash flows statement.
Recently Issued Accounting Pronouncements, Not Adopted	In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments in the standard apply to all entities that are required, under existing GAAP, to make disclosures about recurring or nonrecurring fair value measurements. ASU 2018-13 removes, modifies, and adds certain disclosure requirements in ASC 820, Fair Value Measurement. The standard is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of ASU 2018-13. An entity is permitted to early adopt any removed or modified disclosures upon issuance of ASU 2018-13 and delay adoption of the additional disclosures until their effective date. The Company is currently assessing the impact that ASU 2018-13 will have on its financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses” to require the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The standard is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. The Company is currently assessing the impact that ASU 2016-13 will have on its consolidated financial statements but does not anticipate there to be a material impact. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” “Codification Improvements to Topic 842, Leases,” “Leases (Topic 842): Targeted Improvements,” “Leases (Topic 842): Codification Improvements,”

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Schedule product revenues by geographic location	Three Months Ended March 31, Nine Months Ended March 31, 2019 2018 2019 2018 U.S $ 2,024,000 $ 483,000 $ 5,025,000 $ 2,380,000 Rest-of-the-World 348,000 124,000 574,000 355,000 Total net revenue $ 2,372,000 $ 607,000 $ 5,599,000 $ 2,735,000

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Schedule of inventory balances	March 31, 2019 June 30, 2018 Finished goods, net $ 984,000 $ 1,100,000 Raw materials 546,000 239,000 Total inventory $ 1,530,000 $ 1,339,000

Fixed Assets (Tables)

Fixed Assets (Tables)	9 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of fixed assets and depreciation expense	Estimated Useful Lives in years As of March 31, 2019 As of June 30, 2018 Manufacturing equipment 2 - 5 $ 83,000 $ 213,000 Leasehold improvements 3 112,000 112,000 Office equipment, furniture and other 2 - 5 315,000 344,000 Lab equipment 3 - 5 90,000 90,000 Less accumulated depreciation and amortization (381,000 ) (540,000 ) Fixed assets, net $ 219,000 $ 219,000 Three Months Ended March 31, Nine Months Ended March 31, 2019 2018 2019 2018 Depreciation and amortization expense $ 15,000 $ 91,000 $ 59,000 $ 252,000

Patents (Tables)

Patents (Tables)	9 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of patents	As of March 31, As of June 30, 2019 2018 Patents $ 380,000 $ 380,000 Less accumulated amortization (153,000 ) (134,000 ) Patents, net $ 227,000 $ 246,000
Schedule of amortization expense	Three Months Ended March 31, Nine Months Ended March 31, 2019 2018 2019 2018 Amortization expense $ 6,000 $ 6,000 $ 19,000 $ 19,000

Fair Value Considerations (Tabl

Fair Value Considerations (Tables)	9 Months Ended
	Mar. 31, 2019
Fair Value Disclosures [Abstract]
Schedule of fair value on a recurring basis	Fair Value Measurements Using Level 1 Level 2 Level 3 Total March 31, 2019 LIABILITIES Warrant derivative liability $ - $ - $ 29,000 $ 29,000 Contingent consideration $ - $ - $ 13,443,000 $ 13,443,000 June 30, 2018 LIABILITIES Warrant derivative liability $ - $ - $ 94,000 $ 94,000 Contingent consideration $ - $ - $ 4,694,000 $ 4,694,000
Schedule of significant assumptions in valuing the warrant derivative liability	March 31, 2019 At Issuance Warrants: Volatility 163.2 % 188.0 % Equivalent term (years) 3.38 5.00 Exercise premium 5 % 20 % Risk-free interest rate 2.21 % 1.83 % Dividend yield 0.00 % 0.00 %
Schedule of reconciliation of changes in the warrant derivative liability	Derivative Instruments Balance as of June 30, 2018 $ 94,000 Change in fair value included in earnings (65,000 ) Balance as of March 31, 2019 $ 29,000
Schedule of changes in the contingent consideration	Contingent Consideration Balance as of June 30, 2018 $ 4,694,000 Increase due to purchase of assets 8,833,000 Increase due to accretion 354,000 Decrease due to contractual payments (438,000 ) Balance as of March 31, 2019 $ 13,443,000

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Schedule of commitments and contingencies	Total Remaining 2019 2020 2021 2022 2023 Thereafter Prescription database $ 2,029,000 $ 474,000 $ 509,000 $ 534,000 $ 512,000 $ - $ - Milestone payments 5,500,000 - - - 3,000,000 2,500,000 - Office lease 521,000 30,000 109,000 113,000 180,000 121,000 30,000 $ 8,050,000 $ 504,000 $ 618,000 $ 647,000 $ 3,630,000 $ 2,621,000 $ 30,000
Schedule of rent expense	Three Months Ended March 31, Nine Months Ended March 31, 2019 2018 2019 2018 Rent expense $ 31,000 $ 35,000 $ 94,000 $ 105,000

Equity Instruments (Tables)

Equity Instruments (Tables)	9 Months Ended
	Mar. 31, 2019
Share-based Payment Arrangement [Abstract]
Schedule of stock option activity	Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Outstanding June 30, 2018 1,798 $ 325.97 6.95 Granted - $ - Exercised - $ - Forfeited/Cancelled (132 ) $ 328.00 Outstanding March 31, 2019 1,666 $ 325.81 6.49 Exercisable at March 31, 2019 1,514 $ 325.59 6.43
Schedule of significant assumptions used in valuing options/warrants issued	Expected volatility 164% Risk free interest rate 2.99% Expected term (years) 5.0 Dividend yield 0%
Schedule of restricted stock activity	Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life in Years Unvested at June 30, 2018 37,200 $ 39.80 9.4 Vested (850 ) $ 40.40 Granted 2,772,022 $ 1.30 Forfeited (90,600 ) $ - Unvested at March 31, 2019 2,717,772 $ 1.81 9.3
Schedule of stock-based compensation expense	Three Months Ended March 31, Nine Months Ended March 31, 2019 2018 2019 2018 Selling, general and administrative: Stock options $ 15,000 $ 12,000 $ 122,000 $ 288,000 Restricted stock 362,000 55,000 601,000 159,000 Total share-based compensation expense $ 377,000 $ 67,000 $ 723,000 $ 447,000
Schedule of all warrants	Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Outstanding June 30, 2018 1,882,661 $ 25.94 4.61 Warrants issued in connection with the October 2018 offering 10,120,000 $ 1.50 Warrants issued to underwriters in connection with the October 2018 offering 303,600 $ 1.50 Warrants exercised (172,331 ) $ 1.50 Outstanding March 31, 2019 12,133,930 $ 5.29 4.42

Business, Basis of Presentati_3

Business, Basis of Presentation, License and Supply Agreements (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Amortization expense	$ 15,000	$ 91,000	$ 59,000	$ 252,000
Natesto [Member]
Amortization expense	330,000	330,000	989,000	989,000
Contingent consideration accretion expense	17,000	178,000	48,000	508,000
ZolpiMist [Member]
Amortization expense	116,000	0	348,000	0
Contingent consideration accretion expense	64,000	0	184,000	0
Tuzistra XR [Member]
Amortization expense	123,000	0	205,000	0
Contingent consideration accretion expense	$ 73,000	$ 0	$ 119,000	$ 0

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Total net revenue	$ 2,372,000	$ 607,000	$ 5,599,000	$ 2,735,000
U.S.
Total net revenue	2,024,000	183,000	5,025,000	2,380,000
Rest-of-the-World
Total net revenue	$ 348,000	$ 124,000	$ 574,000	$ 355,000

Inventories (Details)

Inventories (Details) - USD ($)	Mar. 31, 2019	Jun. 30, 2018
Inventory Disclosure [Abstract]
Finished goods, net	$ 984,000	$ 1,100,000
Raw materials	546,000	239,000
Total inventory	$ 1,530,083	$ 1,338,973

Inventories (Details Narrative)

Inventories (Details Narrative) - USD ($)	Mar. 31, 2019	Jun. 30, 2018
Inventory Disclosure [Abstract]
Reserve for slow moving inventory	$ 10,000	$ 0

Fixed Assets (Details)

Fixed Assets (Details) - USD ($)	9 Months Ended
	Mar. 31, 2019	Jun. 30, 2018
Less accumulated depreciation and amortization	$ (381,000)	$ (540,000)
Fixed assets, net	219,177	218,684
Manufacturing Equipment [Member]
Fixed assets, gross	$ 83,000	213,000
Leasehold Improvements [Member]
Estimated useful lives in years	3 years
Fixed assets, gross	$ 112,000	112,000
Office Equipment, Furniture and Other [Member]
Fixed assets, gross	315,000	344,000
Lab Equipment [Member]
Fixed assets, gross	$ 90,000	$ 90,000
Minimum [Member] | Manufacturing Equipment [Member]
Estimated useful lives in years	2 years
Minimum [Member] | Office Equipment, Furniture and Other [Member]
Estimated useful lives in years	2 years
Minimum [Member] | Lab Equipment [Member]
Estimated useful lives in years	3 years
Maximum [Member] | Manufacturing Equipment [Member]
Estimated useful lives in years	5 years
Maximum [Member] | Office Equipment, Furniture and Other [Member]
Estimated useful lives in years	5 years
Maximum [Member] | Lab Equipment [Member]
Estimated useful lives in years	5 years

Fixed Assets (Details 1)

Fixed Assets (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 15,000	$ 91,000	$ 59,000	$ 252,000

Patents (Details)

Patents (Details) - USD ($)	Mar. 31, 2019	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Patents	$ 380,000	$ 380,000
Less accumulated amortization	(153,000)	(134,000)
Patents, net	$ 226,944	$ 245,944

Patents (Details 1)

Patents (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Patent amortization expense	$ 6,000	$ 6,000	$ 19,000	$ 19,000

Fair Value Considerations (Deta

Fair Value Considerations (Details) - USD ($)	Mar. 31, 2019	Jun. 30, 2018
Warrant derivative liability	$ 28,513	$ 93,981
Contingent consideration	13,443,000	4,694,000
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Warrant derivative liability	0	0
Contingent consideration	0	0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Warrant derivative liability	0	0
Contingent consideration	0	0
Level 3 [Member | Fair Value, Measurements, Recurring [Member]
Warrant derivative liability	29,000	94,000
Contingent consideration	$ 13,443,000	$ 4,694,000

Fair Value Considerations (De_2

Fair Value Considerations (Details 1) - Warrant [Member]	9 Months Ended
	Mar. 31, 2019
Volatility	163.20%
Equivalent term (years)	3 years 4 months 17 days
Exercise premium	5.00%
Risk-free interest rate	2.21%
Dividend yield	0.00%
At Issuance [Member]
Volatility	188.00%
Equivalent term (years)	5 years
Exercise premium	20.00%
Risk-free interest rate	1.83%
Dividend yield	0.00%

Fair Value Considerations (De_3

Fair Value Considerations (Details 2) - Level 3 [Member	9 Months Ended
	Mar. 31, 2019USD ($)
Beginning balance	$ 94,000
Change in fair value included in earnings	(65,000)
Ending balance	$ 29,000

Fair Value Considerations (De_4

Fair Value Considerations (Details 3)	9 Months Ended
	Mar. 31, 2019USD ($)
Fair Value Disclosures [Abstract]
Beginning balance	$ 4,694,000
Increase due to purchase of assets	8,833,000
Increase due to accretion	354,000
Decrease due to contractual payment	(438,000)
Ending balance	$ 13,443,000

Commitments and Contingencies_2

Commitments and Contingencies (Details)	Mar. 31, 2019USD ($)
2019	$ 504,000
2020	618,000
2021	647,000
2022	3,630,000
2023	2,621,000
Thereafter	30,000
Total	8,050,000
Prescription Database [Member]
2019	474,000
2020	509,000
2021	534,000
2022	512,000
2023	0
Thereafter	0
Total	2,029,000
Milestone Payments [Member]
2019	0
2020	0
2021	0
2022	3,000,000
2023	2,500,000
Thereafter	0
Total	5,500,000
Office Lease [Member]
2019	30,000
2020	109,000
2021	113,000
2022	118,000
2023	121,000
Thereafter	30,000
Total	$ 521,000

Commitments and Contingencies_3

Commitments and Contingencies (Details 1) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 31,000	$ 35,000	$ 94,000	$ 105,000

Debt - Related Party (Details N

Debt - Related Party (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Debt Disclosure [Abstract]
Interest expense	$ 99,000	$ 0	$ 135,000	$ 0

Common Stock (Details Narrative

Common Stock (Details Narrative) - $ / shares	Mar. 31, 2019	Jun. 30, 2018
Equity [Abstract]
Preferred stock, par value	$ .0001	$ .0001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	2,335,665	0
Preferred stock, shares outstanding	2,335,665	0
Common stock, par value	$ .0001	$ .0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	12,848,499	1,794,762
Common stock, shares outstanding	12,848,499	1,794,762

Equity Instruments (Details)

Equity Instruments (Details) - Equity Option [Member]	9 Months Ended
	Mar. 31, 2019$ / sharesshares
Number of Options
Number of options outstanding, beginning balance | shares	1,798
Number of options, granted | shares	0
Number of options, exercised | shares	0
Number of options, forfeited/cancelled | shares	(132)
Number of options outstanding, ending balance | shares	1,666
Number of options, exercisable | shares	1,514
Weighted Average Exercise Price
Weighted average exercise price, beginning balance | $ / shares	$ 325.97
Weighted average exercise price, granted | $ / shares	.00
Weighted average exercise price, exercised | $ / shares	.00
Weighted average exercise price, forfeited/cancelled | $ / shares	328
Weighted average exercise price, ending balance | $ / shares	325.81
Weighted average exercise price, exercisable | $ / shares	$ 325.59
Weighted Average Remaining Contractual Life in Years
Weighted average remaining contractual life in years, outstanding, beginning balance	6 years 11 months 12 days
Weighted average remaining contractual life in years, outstanding, ending balance	6 years 5 months 26 days
Weighted average remaining contractual life in years, exercisable	6 years 5 months 5 days

Equity Instruments (Details 1)

Equity Instruments (Details 1) - Stock Options [Member]	9 Months Ended
	Mar. 31, 2019
Expected volatility	164.00%
Risk-free interest rate	2.99%
Equivalent term (years)	5 years
Dividend yield	0.00%

Equity Instruments (Details 2)

Equity Instruments (Details 2) - Restricted Stock [Member]	9 Months Ended
	Mar. 31, 2019$ / sharesshares
Number of Shares
Unvested, beginning balance | shares	37,200
Vested | shares	(850)
Granted | shares	2,772,022
Cancelled | shares	(90,600)
Unvested, ending balance | shares	2,717,772
Weighted Average Grant Date Fair Value
Unvested, beginning balance | $ / shares	$ 39.80
Vested | $ / shares	40.40
Granted | $ / shares	1.30
Cancelled | $ / shares	.00
Unvested, ending balance | $ / shares	$ 1.81
Weighted Average Remaining Contractual Life in Years
Unvested beginning, weighted average remaining contractual life in years	9 years 4 months 24 days
Unvested ending, weighted average remaining contractual life in years	9 years 3 months 18 days

Equity Instruments (Details 3)

Equity Instruments (Details 3) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Total share-based compensation expense	$ 377,000	$ 67,000	$ 723,000	$ 447,000
Restricted Stock [Member]
Total share-based compensation expense	362,000	55,000	601,000	159,000
Employee Stock Option [Member]
Total share-based compensation expense	$ 15,000	$ 12,000	$ 122,000	$ 288,000

Equity Instruments (Details 4)

Equity Instruments (Details 4) - Warrant [Member]	9 Months Ended
	Mar. 31, 2019$ / sharesshares
Number of Warrants
Number of warrants, outstanding beginning balance | shares	1,882,661
Warrants issued | shares	10,423,600
Warrants exercised | shares	(172,331)
Number of warrants outstanding, ending balance | shares	12,133,930
Weighted Average Exercise Price
Weighted average exercise price, beginning balance | $ / shares	$ 25.94
Warrants issued | $ / shares	1.50
Warrants exercised | $ / shares	1.50
Weighted average exercise price, ending balance | $ / shares	$ 5.29
Weighted Average Remaining Contractual Life in Years
Weighted average remaining contractual life in years, outstanding, beginning balance	4 years 7 months 10 days
Weighted average remaining contractual life in years, outstanding, ending balance	4 years 5 months 1 day

Equity Instruments (Details Nar

Equity Instruments (Details Narrative)	3 Months Ended	9 Months Ended
	Mar. 31, 2019USD ($)shares	Mar. 31, 2019USD ($)shares
Restricted Stock [Member]
Unrecognized expense share-based compensation expense	$ 1,447,000	$ 1,447,000
Weighted-average period		7 years 3 months 11 days
Expense related to awards	$ 49,000	$ 149,000
2015 Plan [Member]
Shares available for grant | shares	205,562	205,562
Unrecognized expense share-based compensation expense	$ 4,288,000	$ 4,288,000
Weighted-average period		9 years 3 months 25 days
Expense related to awards	$ 313,000	$ 452,000