Aytu BioPharma (AYTU) 10-Q 14 Feb 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2019	Feb. 01, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	AYTU BIOSCIENCE, INC
Entity Central Index Key	0001385818
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Document Type	10-Q
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		23,018,052

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2019	Jun. 30, 2019
Current assets
Cash and cash equivalents	$ 5,259,492	$ 11,044,227
Restricted cash	251,396	250,000
Accounts receivable, net	5,197,151	1,740,787
Inventory, net	2,491,807	1,440,069
Prepaid expenses and other	2,361,249	957,781
Note receivable	1,350,000	0
Other current assets	1,426,617	0
Total current assets	18,337,712	15,432,864
Fixed assets, net	122,064	203,733
Licensed assets, net	17,724,416	18,861,983
Patents, net	207,944	220,611
Right-of-use-asset	374,568	0
Product technology rights	22,321,667	0
Deposits	2,200	2,200
Goodwill	15,387,064	0
Total long-term assets	56,139,923	19,288,527
Total assets	74,477,635	34,721,391
Current liabilities
Accounts payable and other	9,598,567	2,297,270
Accrued liabilities	2,114,060	1,147,740
Accrued compensation	786,769	849,498
Current lease liability	82,755	0
Current contingent consideration	705,880	1,078,068
Current portion of fixed payment arrangements	2,661,456	0
Total current liabilities	15,949,487	5,372,576
Long-term contingent consideration	17,739,964	22,247,796
Long-term lease liability	291,813	0
Long-term fixed payment arrangements	23,394,761	0
Warrant derivative liability	11,371	13,201
Total liabilities	57,387,395	27,633,573
Stockholders' equity
Preferred Stock, par value $.0001; 50,000,000 shares authorized; shares issued and outstanding 10,215,845 and 3,594,981, respectively as of December 31, 2019 (unaudited) and June 30, 2019.	1,022	359
Common Stock, par value $.0001; 100,000,000 shares authorized; shares issued and outstanding 20,733,052 and 17,538,071, respectively as of December 31, 2019 (unaudited) and June 30, 2019.	2,073	1,754
Additional paid-in capital	128,619,922	113,475,205
Accumulated deficit	(111,532,777)	(106,389,500)
Total stockholders' equity	17,090,240	7,087,818
Total liabilities and stockholders' equity	$ 74,477,635	$ 34,721,391

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Jun. 30, 2019
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	10,215,845	3,594,981
Preferred stock, shares outstanding	10,215,845	3,594,981
Common stock, par value	$ .0001	$ .0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	20,733,052	17,538,071
Common stock, shares outstanding	20,733,052	17,538,071

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Revenues
Product revenue, net	$ 3,175,236	$ 1,795,011	$ 4,615,062	$ 3,226,820
Operating expenses
Cost of sales	606,046	525,138	981,766	936,097
Research and development	66,675	149,029	144,695	304,907
Selling, general and administrative	6,516,160	5,046,174	11,662,603	8,622,754
Selling, general and administrative - related party	0	91,337	0	345,046
Amortization of intangible assets	953,450	534,063	1,528,567	986,020
Total operating expenses	8,142,331	6,345,741	14,317,631	11,194,824
Loss from operations	(4,967,095)	(4,550,730)	(9,702,569)	(7,968,004)
Other (expense) income
Other (expense), net	(446,958)	(127,569)	(642,344)	(204,130)
Gain from derecognition of contingent consideration liability	5,199,806	0	5,199,806	0
Gain from warrant derivative liability	0	20,637	1,830	67,989
Total other (expense) income	4,752,848	(106,932)	4,559,292	(136,141)
Net loss	$ (214,247)	$ (4,657,662)	$ (5,143,277)	$ (8,104,145)
Weighted average number of common shares outstanding	17,538,148	6,477,004	16,425,990	4,183,591
Basic and diluted net loss per common share	$ (0.03)	$ (0.72)	$ (.31)	$ (1.94)

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($)	Preferred Stock	Common Stock	Additional Paid-in Capital	Retained Earnings	Total
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, amount			152,114		152,114
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					(8,104,145)
Ending balance, shares at Dec. 31, 2018	4,532,664	10,504,769
Ending balance, amount at Dec. 31, 2018	$ 453	$ 1,050	107,258,097	(87,361,737)	19,897,863
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, shares		2,707,022
Stock-based compensation, amount		$ 270	193,792		194,062
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 the 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 stock converted into common stock, shares	(4,210,329)	4,210,329
Preferred stock 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	$ 1,050	107,258,097	(87,361,737)	19,897,863
Beginning balance, shares at Jun. 30, 2019	3,594,981	17,538,071
Beginning balance, amount at Jun. 30, 2019	$ 359	$ 1,754	113,475,205	(106,389,500)	7,087,818
Stock-based compensation, amount			165,171		165,171
Preferred stock converted into common stock, shares	(443,833)	443,833
Preferred stock converted into common stock, amount	$ (44)	$ 44			0
Net loss				(4,929,030)	(4,929,030)
Ending balance, shares at Sep. 30, 2019	3,151,148	17,981,904
Ending balance, amount at Sep. 30, 2019	$ 315	$ 1,798	113,640,376	(111,318,530)	2,323,959
Beginning balance, shares at Jun. 30, 2019	3,594,981	17,538,071
Beginning balance, amount at Jun. 30, 2019	$ 359	$ 1,754	113,475,205	(106,389,500)	7,087,818
Net loss					(5,143,277)
Ending balance, shares at Dec. 31, 2019	10,215,845	20,733,052
Ending balance, amount at Dec. 31, 2019	$ 1,022	$ 2,073	128,619,922	(111,532,777)	17,090,240
Beginning balance, shares at Sep. 30, 2019	3,151,148	17,981,904
Beginning balance, amount at Sep. 30, 2019	$ 315	$ 1,798	113,640,376	(111,318,530)	2,323,959
Stock-based compensation, amount			162,264		162,264
Issuance of Series F preferred stock from October 2019 private placement financing, net, shares	10,000
Issuance of Series F preferred stock from October 2019 private placement financing, net, amount	$ 1		5,249,483		5,249,484
Warrants issued in connection with the private placement			4,008,866		4,008,866
Issuance of Series G preferred stock due to acquisition of the Cerecor Portfolio of Pediatrics Therapeutics, shares	9,805,845
Issuance of Series G preferred stock due to acquisition of the Cerecor Portfolio of Pediatrics Therapeutics, amount	$ 981		5,558,933		5,559,914
Preferred stock converted into common stock, shares	(2,751,148)	2,751,148
Preferred stock converted into common stock, amount	$ (275)	$ 275			0
Net loss				(214,247)	(214,247)
Ending balance, shares at Dec. 31, 2019	10,215,845	20,733,052
Ending balance, amount at Dec. 31, 2019	$ 1,022	$ 2,073	$ 128,619,922	$ (111,532,777)	$ 17,090,240

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net loss	$ (5,143,277)	$ (8,104,145)
Adjustments to reconcile net loss to cash used in operating activities
Depreciation, amortization and accretion	2,157,540	1,230,671
Stock-based compensation expense and restricted stock issuance	327,435	346,176
Derecognition of contingent consideration	(5,199,806)	0
Issuance of common stock to employee	0	11,690
Derivative income	(1,830)	(67,989)
Changes in operating assets and liabilities:
(Increase) in accounts receivable	(3,456,364)	(903,708)
(Increase) in inventory	(132,199)	(305,888)
(Increase) in prepaid expenses and other	(171,430)	(504,757)
(Increase) in other current assets	(136,694)	0
Increase in accounts payable and other	2,806,973	252,113
Increase in accrued liabilities	145,467	760,798
(Decrease) increase in accrued compensation	(62,729)	203,160
(Decrease) in fixed payment arrangements	(216,150)	0
Increase in interest payable	0	36,164
(Decrease) in deferred rent	(3,990)	(1,450)
Net cash used in operating activities	(9,087,054)	(7,047,165)
Cash flows used in investing activities
Deposit	0	2,888
Purchases of fixed assets	0	(12,954)
Contingent consideration payment	(104,635)	(50,221)
Notes receivable	(1,350,000)	0
Purchase of assets	(4,500,000)	(800,000)
Net cash used in investing activities	(5,954,635)	(860,287)
Cash flows from financing activities
Issuance of preferred, common stock and warrants	10,000,000	15,180,000
Issuance costs related to preferred, common stock and warrants	(741,650)	(1,479,963)
Issuance of debt	0	5,000,000
Net cash provided by financing activities	9,258,350	18,700,037
Net change in cash, restricted cash and cash equivalents	(5,783,339)	10,792,585
Cash, restricted cash and cash equivalents at beginning of period	11,294,227	7,112,527
Cash, restricted cash and cash equivalents at end of period	5,510,888	17,905,112
Supplemental disclosures of cash and non-cash investing and financing transactions
Cash paid for interest	161,890	0
Fair value of right-to-use asset and related lease liability	374,568	0
Issuance of Series G preferred stock due to acquisition of the Cerecor portfolio of pediatrics therapeutics (unaudited)	5,559,914	0
Inventory payment included in accounts payable	460,416	0
Contingent consideration included in accounts payable	16,014	0
Fixed payment arrangements included in accounts payable	291,666	0
Exchange of convertible preferred stock into common stock	319	0
Return deductions received by Cerecor	1,309,365	0
Fair value of warrants issued to investors and underwriters	0	1,888,652
Issuance of preferred stock related to purchase of asset	0	519,600
Contingent consideration related to purchase of asset	$ 0	$ 8,833,219

Nature of Business, Financial C

Nature of Business, Financial Condition, Basis of Presentation	6 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business, Financial Condition, Basis of Presentation	Nature of Business. The Company is currently focused on commercialization of the following products (i) Natesto®, a testosterone replacement therapy, or TRT, (ii) Tuzistra® XR, a codeine–based antitussive, (iii) ZolpiMist™, a short-term insomnia treatment and (iv), MiOXSYS®, a novel in vitro diagnostic system for male infertility assessment. Additionally, the Company completed an Asset Purchase Agreement (the “Purchase Agreement”) with Cerecor, Inc (“Cerecor”) on November 1, 2019, acquiring six products, (i) AcipHex® Sprinkle™, (ii) Cefaclor for Oral Suspension, (iii) Karbinal® ER, (iv) Flexichamber™, (v) Poly-Vi-Flor® and Tri-Vi-Flor™ (the “Pediatric Portfolio”) (see below and Note 2). The Company immediately began to include the acquired Pediatric Portfolio in its commercialization efforts. In the future the Company will seek to acquire additional commercial-stage or near-market products, including existing products the Company believes can offer distinct clinical advantages and patient benefits over other marketed products. The management team’s prior experience has involved identifying both clinical-stage and commercial-stage assets that can be launched or re-launched to increase value, with a focused commercial infrastructure specializing in novel, niche products. Financial Condition. On November 1, 2019, the Company closed an asset acquisition with Cerecor, Inc. (“Cerecor”) whereby the Company acquired certain of Cerecor’s Portfolio of Pediatric Therapeutics (the “Pediatric Portfolio”) for $4.5 million in cash, approximately 9.8 million shares of Series G Convertible Preferred Stock, the assumption of Cerecor’s financial and royalty obligations, which includes not more than $3.5 million of Medicaid rebates and products returns as they come due, and other assumed liabilities associated with the Pediatric Portfolio (see Note 2). In addition, the Company has assumed obligations in connection with the Pediatric Portfolio acquisition due to an investor including fixed and variable payments. The Company assumed fixed monthly payments equal to $0.1 million from November 2019 through January 2021 plus $15 million due in January 2021. Monthly variable payments due to the same investor are equal to 15% of net revenue generated from a subset of the Product Portfolio, subject to an aggregate monthly minimum of $0.1 million, except for January 2020, when a one-time payment of $0.2 million is due. The variable payment obligation continues until the earlier of: (i) aggregate variable payments of approximately $9.5 million have been made, or (ii) February 12, 2026. The Company expects to require capital beyond operating need to complete and integrate the Pediatric Portfolio acquisition and the merger with Innovus Pharmaceuticals, Inc. (“Innovus”), approved by the shareholders of both companies on February 13, 2020, and expected to close February 14, 2020 (the “Merger”) (see below). Revenues for the three-months ended December 31, 2019 increased 77% compared to the three-months ended December 31, 2018, and revenues increased 100% and 14% for each of the years ended June 30, 2019 and 2018, respectively. Revenue is expected to continue to increase long-term, allowing the Company to rely less on our existing cash and cash equivalents, and proceeds from financing transactions. Cash used in operations during the six-months ended December 31, 2019 was $9.1 million compared to $7.0 million for the six-months ended December 31, 2018, due primarily to the Company’s acquisition and integration of the Pediatric Portfolio, which consumed additional cash resources. On October 11, 2019, the Company entered into Securities Purchase Agreements (the “Purchase Agreement”) with two institutional investors (the “Investors”) providing for the issuance and sale by the Company (the “October 2019 Offering”) of $10.0 million of, (i) shares of the Company’s Series F Convertible Preferred Stock (the “Preferred Stock”) which are convertible into shares of common stock (the “Conversion Shares”) and (ii) warrants (the “Warrants”) which are exercisable for shares of common stock (the “Warrant Shares”), which expire January 10, 2025, for a stated value of $1,000 per unit. The closing of the October 2019 offering occurred on October 16, 2019. The Warrants had an exercise price equal to $1.25 and contain a cashless exercise provision. This provision was dependent on (i) performance of the Company’s stock price between October 11, 2019 and the date of exercise of all, or a portion of the Warrants, and (ii) subject to shareholder approval of the October 2019 Offering, which was approved January 24, 2020. On January 27, 2020, 2.0 million cashless warrants were exercised to acquire 2.0 million shares of the Company’s common stock. The net proceeds that the Company received from the October 2019 Offering were approximately $9.3 million. The net proceeds received by the Company from the October 2019 Offering will be used for general corporate purposes, including working capital. As of the date of this Report, the Company expects its commercial costs for its current operation to increase modestly as the Company integrates the acquisition of the Pediatrics Portfolio and continues to focus on revenue growth through increasing product sales. The Company’s total asset position totaling $74.5 million plus the proceeds expected from ongoing product sales will be used to fund operations. The Company will access the capital markets to fund operations when needed, and to the extent it is required. The timing and amount of capital that may be raised is dependent on market conditions and the terms and conditions upon which investors would require to provide such capital. There is no guarantee that capital will be available on terms favorable to the Company and its stockholders, or at all. However, the Company has been successful in accessing the capital markets in the past and is confident in its ability to access the capital markets again, if needed. Since the Company does not have sufficient cash and cash equivalents on-hand as of December 31, 2019 to cover potential net cash outflows for the twelve months following the filing date of this Quarterly Report, ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40) requires the Company to report that there exists an indication of substantial doubt about its ability to continue as a going concern. As of the date of this report, the Company has inadequate capital resources to complete its near-term operating and transaction objectives. In anticipation of the cash outlays related to the merger, the Pediatric Portfolio acquisition, and funding the Company’s operations, the Company has taken the following steps to address its post-closing cash needs, including, but not limited to (i) engaging a placement agent to refinance the fixed obligation, and (ii) engaging in discussions with lenders to establish a debt facility to provide the Company with capital while considering other funding strategies. The Company will also require the investors that participated in the October PIPE to waive the financing prohibition which expires in April 2020. There is no guarantee that capital will be available on terms that the Company considers to be favorable. However, the Company has been successful in accessing the capital markets in the past and the Company is confident in its ability to access the capital markets again, if needed. If the Company is unable to raise adequate capital in the future when it is required, the Company can adjust its operating plans to reduce the magnitude of the capital need under its existing operating plan. Some of the adjustments that could be made include delays of and reductions to commercial programs, reductions in headcount, narrowing the scope of the Company’s commercial plans, or reductions to its research and development programs. Without sufficient operating capital, the Company could be required to relinquish rights to products or renegotiate to maintain such rights on less favorable terms than it would otherwise choose. This may lead to impairment or other charges, which could materially affect the Company’s balance sheet and operating results. The Pending Merger. Upon closing, the Merger will cause for the Company to retire all of the outstanding common stock of Innovus for an estimate of (i) up to approximately 3.7 million in shares of the Company’s common stock and, (ii) up to $16 million in milestone payments in the form of contingent value rights (CVRs) may be paid to Innovus shareholders in cash or stock over the next five years if certain revenue and profitability milestones are achieved. Innovus specializes in commercializing, licensing and developing safe and effective over-the-counter consumer health products and supplements. The Company anticipates that this transaction will formally close on February 14, 2020, subject to shareholder approval. The outstanding Innovus warrants with cash out rights will receive Aytu preferred stock and such warrants will be retired. The remaining outstanding Innovus warrants will retain the right to be exercised for merger consideration. Nasdaq Listing Compliance. , Basis of Presentation. Adoption of New Accounting Pronouncements Leases (“ASU 2016-02”). Topic 842 Leases. The Company has elected to apply the short-term scope exception for leases with terms of 12 months or less at the inception of the lease and will continue to recognize rent expense on a straight-line basis. As a result of the adoption, on July 1, 2019, the Company recognized a lease liability of approximately $0.4 million, which represented the present value of the remaining minimum lease payments using an estimated incremental borrowing rate of 8%. As of December 31, 2019, the Company recognized a right-to-use asset of approximately $0.4 million. Lease expense did not change materially as a result of the adoption of ASU 2016-02. Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815) (“ASU 2017-11”) . Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815) Recently Accounting Pronouncements Fair Value Measurements (“ASU 2018-03”). 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 Financial Instruments – Credit Losses (“ASU 2016-13”). This Quarterly Report on Form 10-Q does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

Acquisitions

Acquisitions	6 Months Ended
	Dec. 31, 2019
Business Combinations [Abstract]
Acquisitions	On October 10, 2019, the Company entered into the Purchase Agreement with Cerecor, Inc. (“Cerecor”) to purchase and acquire Cerecor’s Pediatric Portfolio, which closed on November 1, 2019. The Pediatric Portfolio consists of six prescription products consisting of (i) AcipHex® Sprinkle™, (ii) Cefaclor for Oral Suspension, (iii) Karbinal® ER, (iv) Flexichamber™, (v) Poly-Vi-Flor® and Tri-Vi-Flor™. Total consideration transferred to Cerecor consisted of $4.5 million cash and approximately 9.8 million shares of Series G Convertible Preferred Stock. The Company also assumed certain of Cerecor’s financial and royalty obligations, and not more than $3.5 million of Medicaid rebates and products returns. The Company also retained the majority of Cerecor’s workforce focused on commercial sales, commercial contracts and customer relationships. In addition, the Company assumed Cerecor obligations due to an investor that include fixed and variable payments aggregating to $25.6 million. The Company assumed fixed monthly payments equal to $0.1 million from November 2019 through January 2021 plus $15 million due in January 2021. Monthly variable payments due to the same investor are equal to 15% of net revenue generated from a subset of the Product Portfolio, subject to an aggregate monthly minimum of $0.1 million, except for January 2020, when a one-time payment of $0.2 million is due to the investor. The variable payment obligation continues until the earlier of: (i) aggregate variable payments of approximately $9.5 million have been made, or (ii) February 12, 2026. Further, certain of the products in the Product Portfolio require royalty payments ranging from 12% to 15% of net revenue. One of the products in the Product Portfolio requires the Company to generate minimum annual sales sufficient to represent annual royalties of approximately $1.8 million, in the event the minimum sales volume is not satisfied. While no equity was acquired by the Company, the transaction was accounted for as a business combination under the acquisition method of accounting pursuant to Topic 805. Accordingly, the tangible and identifiable intangible assets acquired and liabilities assumed were recorded at fair value as of the date of acquisition, with the remaining purchase price recorded as goodwill. The goodwill recognized is attributable primarily to strategic opportunities related to an expanded commercial footprint and diversified pediatric product portfolio that is expected to provide revenue and cost synergies. Transaction costs of $0.3 million were included as general and administrative expense in the consolidated statements of operations for the three and six months ended December 31, 2019. The following table summarized the preliminary fair value of assets acquired and liabilities assumed at the date of acquisition. These estimates are preliminary, pending final evaluation of certain assets, and therefore, are subject to revisions that may result in adjustments to the values presented below: As of November 1, 2019 Consideration Cash and cash equivalents $ 4,500,000 Fair value of Series G Convertible Preferred Stock Total shares issued 9,805,845 Estimated fair value per share of Aytu common stock $ 0.567 Estimated fair value of equity consideration transferred $ 5,559,914 Total consideration transferred $ 10,059,914 Recognized amounts of identifiable assets acquired and liabilities assumed Inventory, net $ 459,123 Prepaid assets 1,743,555 Other current assets 2,548,187 Intangible assets - product technology rights 22,700,000 Accrued product program liabilities (6,320,853 ) Assumed fixed payment obligations (26,457,162 ) Total identifiable net assets (5,327,150 ) Goodwill $ 15,387,064 The fair values of intangible assets, including product technology rights were determined using variations of the income approach. Varying discount rates were also applied to the projected net cash flows. The Company believes the assumptions are representative of those a market participant would use in estimating fair value (see Note 10). As of November 1, 2019 Acquired product technology rights $ 22,700,000 The fair value of the net identifiable asset acquired was determined to be $22.7 million, which is being amortized over ten years. The aggregate amortization expense was $0.4 and $0, for the three and six months ended December 31, 2019 and 2018 respectively. Pro Forma Impact of Business Combination The following supplemental unaudited proforma financial information presents the Company’s results as if the acquisition of the Pediatric Portfolio, which was completed on November 1, 2019, had occurred on July 1, 2018. Due to limitations on information on revenues and expenses for certain gap periods within each fiscal year, this unaudited proforma financial information may not reflect how the acquisition would fully impact the Company had the acquisition occurred at the beginning of the earliest fiscal year presented in these financial statements. Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Unaudited (aa) Pro forma Unaudited Pro forma Unaudited Pro forma Unaudited Total revenues, net $ 3,175,236 $ 8,016,356 $ 8,027,106 $ 14,207,635 Net income/(loss) 306,314 (2,532,910 ) (5,997,071 ) (3,854,640 ) Net income/(loss) per share (bb) $ 0.01 $ (0.39 ) $ (0.38 ) $ (0.92 ) (aa) Due to a lack of financial information covering the period from October 1, 2019 through November 1, 2019, the Company was not able to provide pro forma adjusted financial statements without making estimated extrapolations that the Company did not believe would be useful to user of the above pro forma information. (bb) Pro forma net loss per share calculations excluded the impact of the issuance of the Series G Convertible Preferred under the assumption those shares would continue to remain non-participatory until the July 1, 2020 effective registration.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Revenue Recognition	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 to 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 pharmacies and patients. Revenue from product sales is recorded at the established 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. 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. 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 December 31, Six Months Ended December 31, 2019 2018 2019 2018 U.S. $ 3,047,000 $ 1,730,000 $ 4,309,000 3,001,000 International 128,000 65,000 306,000 226,000 Total net revenue $ 3,175,000 $ 1,795,000 $ 4,615,000 3,227,000

Product Licenses and Acquisitio

Product Licenses and Acquisitions	6 Months Ended
	Dec. 31, 2019
Product Licenses And Acquisitions
Product Licenses and Acquisitions	The Company licensed three of its existing product offerings from third parties: (i) Natesto, (ii) ZolpiMist, and (iii) Tuzistra XR. Each of these license agreements are subject to terms and conditions specific to each agreement. The Company acquired an additional six pharmaceutical products upon the closing of the Asset Purchase Agreement with Cerecor. The Company recognized an intangible asset of approximately $22.7 million relating the Product technology rights acquired from the Pediatric Portfolio. 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. On July 29, 2019, the Company and Acerus agreed-to an Amended and Restated License and Supply Agreement (the “Acerus Amendment”), subject to certain conditions being satisfied prior to the Acerus Amendment becoming effective and enforeceable. The Acerus Amendment amended the previously disclosed upfront payments made to Acerus, where the Company 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 was $37.5 million. Upon the effectiveness of the Acerus Amendment on December 1, 2019, all royalties and milestones were eliminated. Upon the effectiveness of the Acerus Amendment, Acerus was granted the right to earn commissions on certain filled Natesto prescriptions. Additionally, Acerus assumed certain ongoing sales, marketing and regulatory obligations from the Company. This Acerus Amendment became effective December 1, 2020, resulting in a $5.2 million unrealized gain for the three and six months ended December 31, 2019, due to the elimination of the revenue-based product milestones. 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 December 31, 2019 and 2018 was $0.3 million. The aggregate amortization expense for each of the six-month periods ended December 31, 2019 and 2018 was $0.7 million. The contingent consideration was initially valued at $3.2 million using a Monte Carlo simulation, as of June 30, 2016. As of June 30, 2019, the contingent consideration was revalued at $5.1 million using the same Monte Carlo simulation methodology, and based on current interest rates, expected sales potential, and Aytu stock trading variables. The Company reevaluates the contingent consideration on a quarterly basis for changes in the fair value recognized after the acquisition date, such as measurement period adjustments. The contingent consideration accretion expense for each of the three-month periods ended December 31, 2019 and 2018 was $54,000, and $16,000, respectively. The contingent consideration accretion expense for each of the six-month periods ended December 31, 2019 and 2018 was $133,000, and $31,000, respectively. Upon the effective date of the Acerus Amendment, the contingent consideration liability of $5.2 million was removed from the balance sheet as a result. As of December 31, 2019, none of the milestones had been achieved, and therefore, no milestone payment was 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 $0.4 million to Magna upon execution of the agreement. In July 2018, the Company paid an additional $0.3 million, of which, $0.3 million 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 December 31, 2019 and 2018 was $116,000. The aggregate amortization expense for each of the six-month periods ended December 31, 2019 and 2018 was $232,000. 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. As of June 30, 2019, the contingent consideration was revalued at $2.3 million using the same Monte Carlo simulation methodology, and based on current interest rates, expected sales potential, and Aytu stock trading variables. The Company reevaluates the contingent consideration on a quarterly basis for changes in the fair value recognized after the acquisition date, such as measurement period adjustments. The contingent consideration accretion expense for the three months ended December 31, 2019 and 2018 was $56,000 and $61,000, respectively. The contingent consideration accretion expense for each of the six-month periods ended December 31, 2019 and 2018 was $110,000, and $120,000, respectively. As of December 31, 2019, none of the milestones had been achieved, and therefore, no milestone payment was made. 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 December 31, 2019 and 2018 was $123,000 and $82,000, respectively. The aggregate amortization expense for each of the six-month periods ended December 31, 2019 and 2018 was $246,000 and $82,000. 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. As of June 30, 2019, the contingent consideration was revalued at $16.0 million using the same Monte Carlo simulation methodology, and based on current interest rates, expected sales potential, and Aytu stock trading variables. The Company reevaluates the contingent consideration on a quarterly basis for changes in the fair value recognized after the acquisition date, such as measurement period adjustments. The contingent consideration accretion expense for the three months ended December 31, 2019 and 2018 was $101,000, and $46,000, respectively. The contingent consideration accretion expense for each of the six-month periods ended December 31, 2019 and 2018 was $197,000, and $46,000, respectively. As of December 31, 2019, none of the milestones had been achieved, and therefore, no milestone payment was made. Asset Purchase Agreement—Cerecor Products In November 2019, Aytu Therapeutics, LLC., a wholly-owned subsidiary of Aytu, acquired the portfolio of pediatric therapeutic commercial products from Cerecor, Inc. This transaction expanded our product portfolio with the addition of six pharmaceutical and other prescription products, (i) AcipHex® Sprinkle™, (ii) Cefaclor for Oral Suspension, (iii) Karbinal® ER, (iv) Flexichamber™, (v) Poly-Vi-Flor® and Tri-Vi-Flor™. Aytu paid $4.5 million in cash, issued approximately 9.8 million shares of Series G Convertible Preferred Stock and assume certain of Seller’s financial and royalty obligations, and not more than $3.5 million of Medicaid rebates and products returns. In addition, the Company has assumed obligations due to an investor including fixed and variable payments. The Company assumed fixed monthly payments equal to $0.1 million from November 2019 through January 2021 plus $15 million due in January 2021. Monthly variable payments due to the same investor are equal to 15% of net revenue generated from a subset of the Product Portfolio, subject to an aggregate monthly minimum of $0.1 million, except for January 2020, when a one-time payment of $0.2 million is due. The variable payment obligation continues until the earlier of: (i) aggregate variable payments of approximately $9.5 million have been made, or (ii) February 12, 2026. Supply and Distribution Agreement, As Amended – Karbinal® ER The Company acquired and assumed all rights and obligations pursuant to the Supply and Distribution Agreement, as Amended, with TRIS for the exclusive rights to commercialize Karbinal® ER in the United States (the “TRIS Karbinal Agreement”). The TRIS Karbinal Agreement’s initial term terminates in August of 2033, with an optional initial 20-year extension. The Company owes royalties on sales of Karbinal of 23.5% of net revenues on a quarterly basis. As part of the agreement, the Company has agreed to pay TRIS a product make-whole payment of approximately $1.8 million per year through July 2023, totaling a minimum of $6.6 million (see Note 12). Supply and License Agreement – Poly-vi-Flor & Tri-vi-Flor The Company acquired and assumed all rights and obligations pursuant to a Supply and License Agreement and various assignment and release agreements, including a previously agreed to Settlement and License Agreements (the “Poly-Tri Agreements”) for the exclusive rights to commercialize Poly-vi-Flor and Tri-vi-Flor in the United States. The Company owes royalties to multiple parties totaling approximately 29.0% of net revenues on a quarterly basis. There are no milestones, make-whole payments other otherwise any contingencies related to these agreements. License and Assignment Agreement – AcipHex Sprinkle The Company acquired and assumed all rights and obligations pursuant to the License and Assignment Agreement with Eisai, Inc. for exclusive rights to commercialized AcipHex Sprinkle in the United States (the “Eisai AcipHex Agreement”). The Eisai AcipHex Agreement includes quarterly royalties totaling 15% of net revenues, but offset by amounts paid for certain regulatory costs otherwise the responsibility of Eisai Co., Ltd. In addition, there are certain milestone provisions triggering potential payments of between $3.0 - $5.0 million, for which the Company has preliminarily estimated to have a value of $0.00. License, Supply and Distribution Agreement – Cefaclor The Company acquired and assumed all rights and obligations pursuant to the License, Supply and Distribution Agreement involving multiple counterparties to commercialize Cefaclor in the United States. (the “Cefaclor Agreement”). The Cefaclor Agreement includes quarterly royalties totaling approximately 15% of net products sales. In addition, there are certain milestone provisions triggering potential payments of between $0.5 - $2.5 million, for which the Company has preliminarily estimated to have a value of $0.00.

Inventories

Inventories	6 Months Ended
	Dec. 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. There was no inventory write-down during the three and six months ended December 31, 2019 or 2018, respectively. Inventory balances consist of the following: As of As of December 31, June 30, 2019 2019 Raw materials $ 182,000 $ 117,000 Finished goods 2,310,000 1,323,000 $ 2,492,000 $ 1,440,000

Fixed Assets

Fixed Assets	6 Months Ended
	Dec. 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: As of As of Estimated Useful Lives in December 31, June 30, years 2019 2019 Manufacturing equipment 2 - 5 $ 83,000 $ 83,000 Leasehold improvements 3 112,000 112,000 Office equipment, furniture and other 2 - 5 265,000 315,000 Lab equipment 3 - 5 90,000 90,000 Less accumulated depreciation and amortization (428,000 ) (396,000 ) Fixed assets, net $ 122,000 $ 204,000 Depreciation and amortization expense totaled $16,000 and $16,000 for the three-months ended December 31, 2019 and 2018, respectively, and $32,000 and $44,000 for the six months ended December 31, 2019 and 2018.

Leases, Right-to-Use Assets and

Leases, Right-to-Use Assets and Related Liabilities	6 Months Ended
	Dec. 31, 2019
Leases Right-to-use Assets And Related Liabilities
Leases, Right-to-Use Assets and Related Liabilities	In September 2015, the Company entered into a 37-month operating lease in Englewood, Colorado. This lease had an initial base rent of approximately $9 thousand 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 approximately $9 thousand per month. In April 2019, the Company extended the lease for an additional 36 months beginning October 1, 2020. 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 approximately $1 thousand a month, with total rent over the term of the lease of approximately $13 thousand. As discussed within Note 1 “Leases (Topic 842)” Total 2020 2021 2022 2023 2024 Thereafter Remaining Office leases $ 445,000 $ 54,000 $ 113,000 $ 117,000 $ 121,000 $ 40,000 $ − Less: Discount Adjustment (70,000 ) Total lease liability 375,000 Lease liability - current portion 83,000 Long-term lease liability $ 292,000 Rent expense for the three months ended December 31, 2019 and 2018 totaled $30 thousand and $31 thousand, respectively. Rent expense for the six months ended December 31, 2019 and 2018 totaled $63 thousand and $63 thousand, respectively

Patents

Patents	6 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Patents	The cost of the oxidation-reduction potential (“ORP”) technology related patents for the 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 As of December 31, June 30, 2019 2019 Patents $ 380,000 $ 380,000 Less accumulated amortization (172,000 ) (159,000 ) Patents, net $ 208,000 $ 221,000 The amortization expense was $7 thousand for the three months ended December 31, 2019 and 2018, respectively, and $13 thousand for the six months ended December 31, 2019 and 2018 respectively.

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Dec. 31, 2019
Accrued Liabilities
Accrued Liabilities	Accrued liabilities consist of the following: As of As of December 31 June 30, 2019 2019 Accrued accounting fee $ 63,000 $ 85,000 Accrued program liabilities 1,087,000 736,000 Accrued product-related fees 601,000 295,000 Other accrued liabilities* 100,000 32,000 Accrued note payable 263,000 – Total accrued liabilities $ 2,114,000 $ 1,148,000 * Other accrued liabilities consist of franchise tax, samples and consultants, none of which individually represent greater than five percent of total current liabilities.

Fair Value Considerations

Fair Value Considerations	6 Months Ended
	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value Considerations	The Company’s financial instruments include cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities, 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, including those acquired or assumed on November 1, 2019 as a result of the acquisition of the Cerecor Portfolio of Pediatrics Therapeutics. 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 management, 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 the Company. Unobservable inputs are inputs that reflect the Company’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. The Company’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. The Company’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. Recurring Fair Value Measurements The following table presents the Company’s financial liabilities that were accounted for at fair value on a recurring basis as of December 31, 2019 and June 30, 2019, by level within the fair value hierarchy. Fair Value Measurements at December 31, 2019 Fair Value at December 31, 2019 Quoted Priced in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring: Warrant derivative liability $ 11,000 – – $ 11,000 Contingent consideration 18,446,000 – – 18,446,000 $ 18,457,000 – – $ 18,457,000 Fair Value Measurements at June 30, 2019 Fair Value at June 30, 2019 Quoted Priced in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring: Warrant derivative liability $ 13,000 – – $ 13,000 Contingent consideration 23,326,000 – – 23,326,000 $ 23,339,000 – – $ 23,339,000 Derivative Warrant Liability. As of December 31, 2019 As of June 30, 2019 Warrant Derivative Liability Volatility 163.2 % 163.2 % Equivalent term (years) 2.88 3.13 Risk-free interest rate 1.71 % 1.71 % Dividend yield 0.00 % 0.00 % Contingent Consideration. The Company derecognized the contingent consideration liability related to Natesto as a result of the December 1, 2019 effectiveness of the Acerus Amendment, which eliminated product milestone payments underlying the contingent consideration liability. Due to the derecognition of the Natesto contingent consideration, the Company recognized a, non-operating gain of approximately $5.2 million during the three and six months ended December 31, 2019. Non-Recurring Fair Value Measurements The following table represents those asset and liabilities measured on a non-recurring basis as a result Fair Value Measurements at December 31, 2019 Fair Value at December 31, 2019 Quoted Priced in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs(Level 2) Significant Unobservable Inputs(Level 3) Non-recurring Product technology rights $ 22,321,667 – – $ 22,321,667 Goodwill 15,387,064 – – 15,387,064 Fixed payment arrangements 26,056,217 – – 26,056,217 $ 63,764,948 – – $ 63,764,948 Fair Value Measurements at November 1, 2019 (*) Fair Value at November 1, 2019 (*) Quoted Priced in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Product technology rights $ 22,700,000 – – $ 22,700,000 Goodwill 15,387,064 – – 15,387,064 Fixed payment arrangements 26,457,162 – – 26,457,162 $ 64,544,226 – – $ 64,544,226 Product technology rights. As of November 1, 2019 (*) Product technology rights Re-levered Beta 1.60 Market risk premium 6.00 % Small stock risk premium 5.20 % Risk-free interest rate 2.00 % Company specific discount 25.00 % (*) Valuation performed as of November 1, 2019. As a non-recurring fair value measurement, there is no remeasurement at each reporting period unless indications exist that the fair value of the asset has been impaired. There were no indicators as of December 1, 2019 that the fair value of the Product technology rights was impaired. Goodwill. Fixed payment arrangements. As of November 1, 2019 (≠) Fixed payment obligations Discount rate 1.8% to 12.4% (≠) Valuation performed as of November 1, 2019. As a non-recurring fair value measurement, there is no remeasurement at each reporting period unless indicates that the circumstances that existed as of the November 1, 2019 measurement date indicate that the carrying value is no longer indicative of fair value. Summary of Level 3 Input Changes The following table sets forth a summary of changes to those fair value measures using Level 3 inputs for the six months ended December 31, 2019: Product Technology Rights Goodwill Liability Classified Warrants Contingent Consideration Fixed Payment Arrangements Balance as of June 30, 2019 $ – $ – $ 13,000 $ 23,326,000 $ – Transfers into Level 3 – – – – – Transfer out of Level 3 – – – – – Total gains, losses, amortization or accretion in period (378,000 ) – – Included in earnings – – (2,000 ) (4,760,000 ) 264,000 Included in other comprehensive income – – – – Purchases, issues, sales and settlements Purchases 22,700,000 15,387,000 – – – Issues – – – – 26,457,000 Sales – – – – – Settlements – – – (120,000 ) (665,000 ) Balance as of December 31, 2019 $ 22,322,000 $ 15,387,000 $ 11,000 $ 18,446,000 $ 26,056,000

Note Receivable

Note Receivable	6 Months Ended
	Dec. 31, 2019
Note Receivable
Note Receivable	On September 12, 2019, the Company announced it had entered into a definitive merger agreement with Innovus (see Note 1) to acquire Innovus which specializes in commercializing, licensing and developing safe and effective supplements and over-the-counter consumer health products. As part of the negotiations with Innovus, the Company agreed to provide a short-term, loan in the form of a $1.0 promissory note on August 8, 2019 (the “Innovus Note”). The Innovus Note will be used to offset a portion of the purchase price upon closing of the Innovus Merger Agreement (see Note 1) or, in the event the Merger Agreement does not close the Innovus Note matures on February 29, 2020, accruing interest at 10.0% per annum to be paid upon principal paydown. In the event of default, the interest rate increases to 15.0% per annum. In addition, on October 11, 2019, the Company amended the original promissory note, providing an additional approximately $0.4 million of bridge financing under the same terms and conditions as the Innovus Note.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and contingencies are described below and summarized by the following as of December 31, 2019: Total 2020 2021 2022 2023 2024 Thereafter Prescription database $ 1,342,000 $ 296,000 $ 534,000 $ 512,000 $ – $ – $ – Pediatric portfolio fixed payments and product minimums 29,824,000 2,107,000 18,471,000 2,950,000 2,950,000 1,346,000 2,000,000 Product milestone payments 3,000,000 – – – 3,000,000 – – $ 34,166,000 $ 2,403,000 $ 19,005,000 $ 3,462,000 $ 5,950,000 $ 1,346,000 $ 2,000,000 Prescription Database In May 2016, the Company entered into an agreement with a vendor that will provide it with prescription database information. The Company agreed to pay approximately $1.6 million over three years for access to the database of prescriptions written for Natesto. The payments have been broken down into quarterly payments. Pediatric Portfolio Fixed Payments and Product Milestone As a result ofthe November 1, 2019 acquisition of the Portfolio of Pediatric Therapeutics from Cerecor (see Note 2), the Company assumed the following fixed or minimum payments to third party creditors or suppliers/licensors: The Company assumed two fixed, periodic payment obligations to an investor (the “Fixed Obligation”). Beginning November 1, 2019 through January 2021, the Company will pay monthly payments of $86,840, with a balloon payment of $15,000,000 due in January 2021. A second fixed obligation requires the Company pay a minimum of $100,000 monthly through February 2026, except for $210,767 due January 2020. There is the potential for the second fixed obligation to rise an additional $1.8 million depending on product sales, which could trigger additional amounts to be paid. In addition, the Company acquired a Supply and Distribution Agreement with TRIS Pharma (the “Karbinal Agreement”), under which the Company is granted the exclusive right to distribute and sell the product in the United States. The initial term of the Karbinal Agreement is 20 years. The Company will pay TRIS a royalty equal to 23.5% of net sales. Avadel has agreed to offset the 23.5% royalty payable by 8.5%, for a net royalty equal to 15%, in fiscal year 2018 and 2019 for net sales of Karbinal. The make-whole payment is capped at $1,750,000 each year. The Karbinal Agreement also contains minimum unit sales commitments, which is based on a commercial year that spans from August 1 through July 31, of 70,000 units through 2023. The Company is required to pay TRIS a royalty make whole payment of $30 for each unit under the 70,000 unit annual minimum sales commitment through 2033. The annual payment is due in August of each year. The Karbinal Agreement also has multiple commercial milestone obligations that aggregate up to $3.0 million based on cumulative net sales, the first of which is triggered at $40.0 million. Milestone Payments In connection with the Company’s intangible assets, Aytu has certain milestone payments, totaling $3.0 million, payable at a future date, are not directly tied to future sales, but upon other events certain to happen. These obligations are included in the valuation of the Company’s contingent consideration (see Note 10).

Capital Structure

Capital Structure	6 Months Ended
	Dec. 31, 2019
Equity [Abstract]
Capital Structure	At December 31, 2019 and June 30, 2019, Aytu had 20,733,052 and 17,538,071 common shares outstanding, respectively, and 10,215,845 and 3,594,981 preferred shares 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. The Company has 50 million shares of non-voting, non-cumulative preferred stock authorized with a par value of $0.0001 per share, of which, 400,000 are designated as Series D Convertible preferred stock, and 10,000 are designated as Series F Convertible preferred stock, and 9,805,845 are designated as Series G Convertible preferred stock as of December 31, 2019. Liquidation rights for all series of preferred stock are on an as-converted to common stock basis. Included in the common stock outstanding are 2,307,854 shares of restricted stock issued to executives, directors, employees and consultants. During the quarter ended September 30, 2019, investors holding shares of Series C preferred stock exercised their right to convert 443,833 shares of Series C preferred stock into 443,833 shares of common stock. As of September 30, 2019, there are no remaining Series C preferred stock outstanding. In October 2019, Armistice Capital converted 2,751,148 shares of Series E Preferred Stock into 2,751,148 shares of common stock. In October 2019, the Company issued 10,000 shares of Series F Convertible Preferred Stock, with a face value of $1,000 per share, and convertible at a conversion price of $1.00 (the “Current Conversion Price”). The terms of the Series F Convertible Preferred include a conversion price reset provision in the event a future financing transaction is priced below the Current Conversion Price. The Company has determined that concurrent with the adoption of ASU 2017-11, this down-round provision feature reflects a beneficial conversion feature contingent on a future financing transaction at a price lower than the Current Conversion Price. As the Series F Convertible Preferred stock is an equity classified instrument, any accounting arising from a future event giving rise to the beneficial conversion feature would have no net impact on the Company’s financial statements, as all activity would be recognized within Additional Paid-in-Capital and offset. In November 2019, in connection with the Cerecor acquisition, the Company issued 9,805,845 shares of Series G Convertible Preferred stock.

Equity Incentive Plan

Equity Incentive Plan	6 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Equity Incentive Plan	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 December 31, 2019, we have 692,204 shares that are available for grant under the 2015 Plan. On December 23, 2019, the Company filed Form S-4 related to the proposed Innovus merger, in which shareholders are asked to approve an increase to 5.0 million total shares of common stock in the 2015 Plan. As of the date of this report, Aytu shareholders [approved] the proposal to increase the total number of common shares in the 2015 Plan. Stock Options Employee Stock Options: Stock option activity is as follows: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Outstanding June 30, 2019 1,607 $ 325.73 6.13 Expired (125 ) 328.00 – Outstanding December 31, 2019 1,482 325.54 6.07 Exercisable at December 31, 2019 1,482 $ 325.54 6.07 As of December 31, 2019, there was $0 unrecognized option-based compensation expense related to non-vested stock options. In January 2020, the Company granted 12,500 shares of stock options to 5 employees pursuant to the 2015 Plan, which vest immediately upon grant. Compensation expense related to these options will be fully recognized in the three months ended March 31, 2020. Restricted Stock Restricted stock activity is as follows: Number of Shares Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life in Years Unvested at June 30, 2019 2,346,214 $ 1.83 9.1 Granted – – – Vested – – – Forfeited (39,900 ) 2.57 – Unvested at December 31, 2019 2,306,314 $ 1.81 8.6 During the quarter ended September 30, 2019, 5,150 shares of restricted stock were exchanged with common stock, and the Company recognized an increase in aggregate stock compensation expense of $2,600. During the quarter ended December 31, 2019, 34,750 shares of restricted stock were exchanged with common stock, and the Company recognized an increase in aggregate stock compensation expense of $6,200. Under the 2015 Plan, there was $3,573,000 of total unrecognized stock-based compensation expense related to the non-vested restricted stock as of December 31, 2019. The Company expects to recognize this expense over a weighted-average period of 8.57 years. In January 2020, the Company issued 285,000 shares of restricted stock to directors and employees pursuant to the 2015 Plan. Of the 285,000 shares, 200,000 shares vest in November 2021 and share-based compensation expense will be recognized over a two-year period. 85,000 shares vest in January 2030 and share-based compensation expense will be recognized over a ten-year period. The Company previously issued 1,540 shares of restricted stock outside the Company’s 2015 Plan, which vest in July 2026. The unrecognized expense related to these shares was $1,297,000 as of December 31, 2019 and is expected to be recognized over the weighted average period of 6.52 years. 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 December 31, Six Months Ended December 31, Selling, general and administrative: 2019 2018 2019 2018 Stock options $ 2,000 $ 41,000 $ 7,000 $ 107,000 Restricted stock 160,000 153,000 320,000 239,000 Total stock-based compensation expense $ 162,000 $ 194,000 $ 327,000 $ 346,000

Warrants

Warrants	6 Months Ended
	Dec. 31, 2019
Warrants
Warrants	In connection with the October 2019 private placement financing, the Company issued warrants (the October 2019 Warrants) to the investors to purchase an aggregate of 10,000,000 shares of the Company’s common stock at an exercise price of $1.25 and a term of five years. These warrants feature a contingent cashless exercise provision. During the three months ended December 31, 2019, the cashless exercise contingency was satisfied, reducing the strike price of the October 2019 Warrants to $0. In January 2020, an investor exercised 2 million October 2019 Warrants using the cashless exercise feature. While these warrants are classified as a component of equity, in order to allocate the fair value of the October 2019 private placement between the Series F Convertible Preferred Stock and the October 2019 Warrants, the Company was required to calculate the fair value of the October 2019 Warrants. These warrants issued had a relative fair value of $4.0 million. All warrants issued in October 2019 were valued using a Monte Carlo model. In order to calculate the fair value of the warrants, certain assumptions were made, including the selling price or fair market value of the underlying common stock, risk-free interest rate, volatility, expected dividend yield, and contractual life. Changes to the assumptions could cause significant adjustments to valuation. The Company estimated a volatility factor utilizing a weighted average of comparable published betas of peer companies. 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. Significant assumptions in valuing the warrants issued during the quarter are as follows: As of October 11, 2019 Expected volatility 1.53 Equivalent term (years) 5 Risk-free rate 1.59 % Dividend yield 0.00 % A summary of equity-based warrants is as follows: Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Outstanding June 30, 2019 16,218,908 $ 3.15 4.36 Warrants issued (*) 10,000,000 1.25 5.00 Warrants expired – – – Warrants exercised – – – Outstanding December 31, 2019 26,218,908 $ 2.43 4.21 (*) In January 2020, and investor exercised 2.0 million of the October 2019 private placement warrants under the cashless exercise provision. A summary of liability warrants is as follows: Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Outstanding June 30, 2019 240,755 $ 72.00 3.16 Warrants expired – – – Warrants exercised – – – Outstanding December 31, 2019 240,755 $ 72.00 2.65

Net Loss Per Common Share

Net Loss Per Common Share	6 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Net Loss Per Common Share	Basic income (loss) per common share is calculated by dividing the net income (loss) available to the common shareholders by the weighted average number of common shares outstanding during that period. Diluted net loss per share reflects the potential of securities that could share in the net loss of Aytu. For each three and six month period presented, the basic and diluted loss per share were the same for 2019 and 2018, as they were not included in the calculation of the diluted net loss per share because they would have been anti-dilutive. The following table sets-forth securities that could be potentially dilutive, but as of the quarters ended December 31, 2019 and 2018 are anti-dilutive, and therefore excluded from the calculation of diluted earnings per share. Six Months Ended December 31 2019 2018 Warrants to purchase common stock - liability classified (Note 15) 240,755 240,755 Warrant to purchase common stock - equity classified (Note 15) 26,218,908 12,065,506 Employee stock options (Note 14) 1,482 1,787 Employee unvested restricted stock (Note 14) 2,307,854 2,744,912 Performance-based options (Note 14) – 75,000 Convertible preferred stock (Note 13) 10,215,845 4,532,664 38,984,844 19,660,624 In January 2020, 2.0 million equity classified warrants were cashless exercised pursuant to the terms of the October 2019 warrants.

Subsequent Events

Subsequent Events	6 Months Ended
	Dec. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	See Footnotes 14 and 16 for information relating to events occurring subsequent to December 31, 2019.

Nature of Business, Financial_2

Nature of Business, Financial Condition, Basis of Presentation (Policies)	6 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business	Nature of Business. The Company is currently focused on commercialization of the following products (i) Natesto®, a testosterone replacement therapy, or TRT, (ii) Tuzistra® XR, a codeine–based antitussive, (iii) ZolpiMist™, a short-term insomnia treatment and (iv), MiOXSYS®, a novel in vitro diagnostic system for male infertility assessment. Additionally, the Company completed an Asset Purchase Agreement (the “Purchase Agreement”) with Cerecor, Inc (“Cerecor”) on November 1, 2019, acquiring six products, (i) AcipHex® Sprinkle™, (ii) Cefaclor for Oral Suspension, (iii) Karbinal® ER, (iv) Flexichamber™, (v) Poly-Vi-Flor® and Tri-Vi-Flor™ (the “Pediatric Portfolio”) (see below and Note 2). The Company immediately began to include the acquired Pediatric Portfolio in its commercialization efforts. In the future the Company will seek to acquire additional commercial-stage or near-market products, including existing products the Company believes can offer distinct clinical advantages and patient benefits over other marketed products. The management team’s prior experience has involved identifying both clinical-stage and commercial-stage assets that can be launched or re-launched to increase value, with a focused commercial infrastructure specializing in novel, niche products.
Financial Condition	Financial Condition. On November 1, 2019, the Company closed an asset acquisition with Cerecor, Inc. (“Cerecor”) whereby the Company acquired certain of Cerecor’s Portfolio of Pediatric Therapeutics (the “Pediatric Portfolio”) for $4.5 million in cash, approximately 9.8 million shares of Series G Convertible Preferred Stock, the assumption of Cerecor’s financial and royalty obligations, which includes not more than $3.5 million of Medicaid rebates and products returns as they come due, and other assumed liabilities associated with the Pediatric Portfolio (see Note 2). In addition, the Company has assumed obligations in connection with the Pediatric Portfolio acquisition due to an investor including fixed and variable payments. The Company assumed fixed monthly payments equal to $0.1 million from November 2019 through January 2021 plus $15 million due in January 2021. Monthly variable payments due to the same investor are equal to 15% of net revenue generated from a subset of the Product Portfolio, subject to an aggregate monthly minimum of $0.1 million, except for January 2020, when a one-time payment of $0.2 million is due. The variable payment obligation continues until the earlier of: (i) aggregate variable payments of approximately $9.5 million have been made, or (ii) February 12, 2026. The Company expects to require capital beyond operating need to complete and integrate the Pediatric Portfolio acquisition and the merger with Innovus Pharmaceuticals, Inc. (“Innovus”), approved by the shareholders of both companies on February 13, 2020, and expected to close February 14, 2020 (the “Merger”) (see below). Revenues for the three-months ended December 31, 2019 increased 77% compared to the three-months ended December 31, 2018, and revenues increased 100% and 14% for each of the years ended June 30, 2019 and 2018, respectively. Revenue is expected to continue to increase long-term, allowing the Company to rely less on our existing cash and cash equivalents, and proceeds from financing transactions. Cash used in operations during the six-months ended December 31, 2019 was $9.1 million compared to $7.0 million for the six-months ended December 31, 2018, due primarily to the Company’s acquisition and integration of the Pediatric Portfolio, which consumed additional cash resources. On October 11, 2019, the Company entered into Securities Purchase Agreements (the “Purchase Agreement”) with two institutional investors (the “Investors”) providing for the issuance and sale by the Company (the “October 2019 Offering”) of $10.0 million of, (i) shares of the Company’s Series F Convertible Preferred Stock (the “Preferred Stock”) which are convertible into shares of common stock (the “Conversion Shares”) and (ii) warrants (the “Warrants”) which are exercisable for shares of common stock (the “Warrant Shares”), which expire January 10, 2025, for a stated value of $1,000 per unit. The closing of the October 2019 offering occurred on October 16, 2019. The Warrants had an exercise price equal to $1.25 and contain a cashless exercise provision. This provision was dependent on (i) performance of the Company’s stock price between October 11, 2019 and the date of exercise of all, or a portion of the Warrants, and (ii) subject to shareholder approval of the October 2019 Offering, which was approved January 24, 2020. On January 27, 2020, 2.0 million cashless warrants were exercised to acquire 2.0 million shares of the Company’s common stock. The net proceeds that the Company received from the October 2019 Offering were approximately $9.3 million. The net proceeds received by the Company from the October 2019 Offering will be used for general corporate purposes, including working capital. As of the date of this Report, the Company expects its commercial costs for its current operation to increase modestly as the Company integrates the acquisition of the Pediatrics Portfolio and continues to focus on revenue growth through increasing product sales. The Company’s total asset position totaling $74.5 million plus the proceeds expected from ongoing product sales will be used to fund operations. The Company will access the capital markets to fund operations when needed, and to the extent it is required. The timing and amount of capital that may be raised is dependent on market conditions and the terms and conditions upon which investors would require to provide such capital. There is no guarantee that capital will be available on terms favorable to the Company and its stockholders, or at all. However, the Company has been successful in accessing the capital markets in the past and is confident in its ability to access the capital markets again, if needed. Since the Company does not have sufficient cash and cash equivalents on-hand as of December 31, 2019 to cover potential net cash outflows for the twelve months following the filing date of this Quarterly Report, ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40) requires the Company to report that there exists an indication of substantial doubt about its ability to continue as a going concern. As of the date of this report, the Company has inadequate capital resources to complete its near-term operating and transaction objectives. In anticipation of the cash outlays related to the merger, the Pediatric Portfolio acquisition, and funding the Company’s operations, the Company has taken the following steps to address its post-closing cash needs, including, but not limited to (i) engaging a placement agent to refinance the fixed obligation, and (ii) engaging in discussions with lenders to establish a debt facility to provide the Company with capital while considering other funding strategies. The Company will also require the investors that participated in the October PIPE to waive the financing prohibition which expires in April 2020. There is no guarantee that capital will be available on terms that the Company considers to be favorable. However, the Company has been successful in accessing the capital markets in the past and the Company is confident in its ability to access the capital markets again, if needed. If the Company is unable to raise adequate capital in the future when it is required, the Company can adjust its operating plans to reduce the magnitude of the capital need under its existing operating plan. Some of the adjustments that could be made include delays of and reductions to commercial programs, reductions in headcount, narrowing the scope of the Company’s commercial plans, or reductions to its research and development programs. Without sufficient operating capital, the Company could be required to relinquish rights to products or renegotiate to maintain such rights on less favorable terms than it would otherwise choose. This may lead to impairment or other charges, which could materially affect the Company’s balance sheet and operating results.
The Pending Merger	The Pending Merger. Upon closing, the Merger will cause for the Company to retire all of the outstanding common stock of Innovus for an estimate of (i) up to approximately 3.7 million in shares of the Company’s common stock and, (ii) up to $16 million in milestone payments in the form of contingent value rights (CVRs) may be paid to Innovus shareholders in cash or stock over the next five years if certain revenue and profitability milestones are achieved. Innovus specializes in commercializing, licensing and developing safe and effective over-the-counter consumer health products and supplements. The Company anticipates that this transaction will formally close on February 14, 2020, subject to shareholder approval. The outstanding Innovus warrants with cash out rights will receive Aytu preferred stock and such warrants will be retired. The remaining outstanding Innovus warrants will retain the right to be exercised for merger consideration.
Nasdaq Listing Compliance	Nasdaq Listing Compliance. ,
Basis of Presentation	Basis of Presentation.
Accounting Pronouncements	Adoption of New Accounting Pronouncements Leases (“ASU 2016-02”). Topic 842 Leases. The Company has elected to apply the short-term scope exception for leases with terms of 12 months or less at the inception of the lease and will continue to recognize rent expense on a straight-line basis. As a result of the adoption, on July 1, 2019, the Company recognized a lease liability of approximately $0.4 million, which represented the present value of the remaining minimum lease payments using an estimated incremental borrowing rate of 8%. As of December 31, 2019, the Company recognized a right-to-use asset of approximately $0.4 million. Lease expense did not change materially as a result of the adoption of ASU 2016-02. Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815) (“ASU 2017-11”) . Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815) Recently Accounting Pronouncements Fair Value Measurements (“ASU 2018-03”). 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 Financial Instruments – Credit Losses (“ASU 2016-13”). This Quarterly Report on Form 10-Q does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Dec. 31, 2019
Business Combinations [Abstract]
Summary of assets acquired and liabilities assumed	As of November 1, 2019 Consideration Cash and cash equivalents $ 4,500,000 Fair value of Series G Convertible Preferred Stock Total shares issued 9,805,845 Estimated fair value per share of Aytu common stock $ 0.567 Estimated fair value of equity consideration transferred $ 5,559,914 Total consideration transferred $ 10,059,914 Recognized amounts of identifiable assets acquired and liabilities assumed Inventory, net $ 459,123 Prepaid assets 1,743,555 Other current assets 2,548,187 Intangible assets - product technology rights 22,700,000 Accrued product program liabilities (6,320,853 ) Assumed fixed payment obligations (26,457,162 ) Total identifiable net assets (5,327,150 ) Goodwill $ 15,387,064
Summary of intangible assets acquired	As of November 1, 2019 Acquired product technology rights $ 22,700,000
Pro forma information	Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Unaudited (aa) Pro forma Unaudited Pro forma Unaudited Pro forma Unaudited Total revenues, net $ 3,175,236 $ 8,016,356 $ 8,027,106 $ 14,207,635 Net income/(loss) 306,314 (2,532,910 ) (5,997,071 ) (3,854,640 ) Net income/(loss) per share (bb) $ 0.01 $ (0.39 ) $ (0.38 ) $ (0.92 ) (aa) Due to a lack of financial information covering the period from October 1, 2019 through November 1, 2019, the Company was not able to provide pro forma adjusted financial statements without making estimated extrapolations that the Company did not believe would be useful to user of the above pro forma information. (bb) Pro forma net loss per share calculations excluded the impact of the issuance of the Series G Convertible Preferred under the assumption those shares would continue to remain non-participatory until the July 1, 2020 effective registration.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Schedule of product revenues by geographic location	Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 U.S. $ 3,047,000 $ 1,730,000 $ 4,309,000 3,001,000 International 128,000 65,000 306,000 226,000 Total net revenue $ 3,175,000 $ 1,795,000 $ 4,615,000 3,227,000

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Dec. 31, 2019
Inventory Disclosure [Abstract]
Schedule of inventory balances	As of As of December 31, June 30, 2019 2019 Raw materials $ 182,000 $ 117,000 Finished goods 2,310,000 1,323,000 $ 2,492,000 $ 1,440,000

Fixed Assets (Tables)

Fixed Assets (Tables)	6 Months Ended
	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of fixed assets and depreciation expense	As of As of Estimated Useful Lives in December 31, June 30, years 2019 2019 Manufacturing equipment 2 - 5 $ 83,000 $ 83,000 Leasehold improvements 3 112,000 112,000 Office equipment, furniture and other 2 - 5 265,000 315,000 Lab equipment 3 - 5 90,000 90,000 Less accumulated depreciation and amortization (428,000 ) (396,000 ) Fixed assets, net $ 122,000 $ 204,000

Leases, Right-to-Use Assets a_2

Leases, Right-to-Use Assets and Related Liabilities (Tables)	6 Months Ended
	Dec. 31, 2019
Leases Righttouse Assets And Related Liabilities Tables Abstract
Lease liability	Total 2020 2021 2022 2023 2024 Thereafter Remaining Office leases $ 445,000 $ 54,000 $ 113,000 $ 117,000 $ 121,000 $ 40,000 $ − Less: Discount Adjustment (70,000 ) Total lease liability 375,000 Lease liability - current portion 83,000 Long-term lease liability $ 292,000

Patents (Tables)

Patents (Tables)	6 Months Ended
	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of patents	As of As of December 31, June 30, 2019 2019 Patents $ 380,000 $ 380,000 Less accumulated amortization (172,000 ) (159,000 ) Patents, net $ 208,000 $ 221,000

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Dec. 31, 2019
Accrued Liabilities
Schedule of accrued liabilities	As of As of December 31 June 30, 2019 2019 Accrued accounting fee $ 63,000 $ 85,000 Accrued program liabilities 1,087,000 736,000 Accrued product-related fees 601,000 295,000 Other accrued liabilities* 100,000 32,000 Accrued note payable 263,000 – Total accrued liabilities $ 2,114,000 $ 1,148,000 * Other accrued liabilities consist of franchise tax, samples and consultants, none of which individually represent greater than five percent of total current liabilities.

Fair Value Considerations (Tabl

Fair Value Considerations (Tables)	6 Months Ended
	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Schedule of fair value on a recurring basis	Fair Value Measurements at December 31, 2019 Fair Value at December 31, 2019 Quoted Priced in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring: Warrant derivative liability $ 11,000 – – $ 11,000 Contingent consideration 18,446,000 – – 18,446,000 $ 18,457,000 – – $ 18,457,000 Fair Value Measurements at June 30, 2019 Fair Value at June 30, 2019 Quoted Priced in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring: Warrant derivative liability $ 13,000 – – $ 13,000 Contingent consideration 23,326,000 – – 23,326,000 $ 23,339,000 – – $ 23,339,000
Schedule of significant assumptions in valuing the warrant derivative liability	As of December 31, 2019 As of June 30, 2019 Warrant Derivative Liability Volatility 163.2 % 163.2 % Equivalent term (years) 2.88 3.13 Risk-free interest rate 1.71 % 1.71 % Dividend yield 0.00 % 0.00 %
Schedule of fair value on a nonrecurring basis	Fair Value Measurements at December 31, 2019 Fair Value at December 31, 2019 Quoted Priced in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs(Level 2) Significant Unobservable Inputs(Level 3) Non-recurring Product technology rights $ 22,321,667 – – $ 22,321,667 Goodwill 15,387,064 – – 15,387,064 Fixed payment arrangements 26,056,217 – – 26,056,217 $ 63,764,948 – – $ 63,764,948 Fair Value Measurements at November 1, 2019 (*) Fair Value at November 1, 2019 (*) Quoted Priced in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Product technology rights $ 22,700,000 – – $ 22,700,000 Goodwill 15,387,064 – – 15,387,064 Fixed payment arrangements 26,457,162 – – 26,457,162 $ 64,544,226 – – $ 64,544,226
Schedule of significant assumptions in valuing intangible assets	As of November 1, 2019 (*) Product technology rights Re-levered Beta 1.60 Market risk premium 6.00 % Small stock risk premium 5.20 % Risk-free interest rate 2.00 % Company specific discount 25.00 % (*) Valuation performed as of November 1, 2019. As a non-recurring fair value measurement, there is no remeasurement at each reporting period unless indications exist that the fair value of the asset has been impaired. There were no indicators as of December 1, 2019 that the fair value of the Product technology rights was impaired.
Schedule of fixed payment obligations discount rate	As of November 1, 2019 (≠) Fixed payment obligations Discount rate 1.8% to 12.4% (≠) Valuation performed as of November 1, 2019. As a non-recurring fair value measurement, there is no remeasurement at each reporting period unless indicates that the circumstances that existed as of the November 1, 2019 measurement date indicate that the carrying value is no longer indicative of fair value.
Schedule of changes in Level 3 inputs	Product Technology Rights Goodwill Liability Classified Warrants Contingent Consideration Fixed Payment Arrangements Balance as of June 30, 2019 $ – $ – $ 13,000 $ 23,326,000 $ – Transfers into Level 3 – – – – – Transfer out of Level 3 – – – – – Total gains, losses, amortization or accretion in period (378,000 ) – – Included in earnings – – (2,000 ) (4,760,000 ) 264,000 Included in other comprehensive income – – – – Purchases, issues, sales and settlements Purchases 22,700,000 15,387,000 – – – Issues – – – – 26,457,000 Sales – – – – – Settlements – – – (120,000 ) (665,000 ) Balance as of December 31, 2019 $ 22,322,000 $ 15,387,000 $ 11,000 $ 18,446,000 $ 26,056,000

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Schedule of commitments and contingencies	Total 2020 2021 2022 2023 2024 Thereafter Prescription database $ 1,342,000 $ 296,000 $ 534,000 $ 512,000 $ – $ – $ – Pediatric portfolio fixed payments and product minimums 29,824,000 2,107,000 18,471,000 2,950,000 2,950,000 1,346,000 2,000,000 Product milestone payments 3,000,000 – – – 3,000,000 – – $ 34,166,000 $ 2,403,000 $ 19,005,000 $ 3,462,000 $ 5,950,000 $ 1,346,000 $ 2,000,000

Equity Incentive Plan (Tables)

Equity Incentive Plan (Tables)	6 Months Ended
	Dec. 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, 2019 1,607 $ 325.73 6.13 Expired (125 ) 328.00 – Outstanding December 31, 2019 1,482 325.54 6.07 Exercisable at December 31, 2019 1,482 $ 325.54 6.07
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, 2019 2,346,214 $ 1.83 9.1 Granted – – – Vested – – – Forfeited (39,900 ) 2.57 – Unvested at December 31, 2019 2,306,314 $ 1.81 8.6
Schedule of stock-based compensation expense	Three Months Ended December 31, Six Months Ended December 31, Selling, general and administrative: 2019 2018 2019 2018 Stock options $ 2,000 $ 41,000 $ 7,000 $ 107,000 Restricted stock 160,000 153,000 320,000 239,000 Total stock-based compensation expense $ 162,000 $ 194,000 $ 327,000 $ 346,000

Warrants (Tables)

Warrants (Tables)	6 Months Ended
	Dec. 31, 2019
Warrants Tables Abstract
Summary of significant assumptions in valuing the warrants issued	As of October 11, 2019 Expected volatility 1.53 Equivalent term (years) 5 Risk-free rate 1.59 % Dividend yield 0.00 %
Summary of all warrants	A summary of equity-based warrants is as follows: Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Outstanding June 30, 2019 16,218,908 $ 3.15 4.36 Warrants issued (*) 10,000,000 1.25 5.00 Warrants expired – – – Warrants exercised – – – Outstanding December 31, 2019 26,218,908 $ 2.43 4.21 (*) In January 2020, and investor exercised 2.0 million of the October 2019 private placement warrants under the cashless exercise provision. A summary of liability warrants is as follows: Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life in Years Outstanding June 30, 2019 240,755 $ 72.00 3.16 Warrants expired – – – Warrants exercised – – – Outstanding December 31, 2019 240,755 $ 72.00 2.65

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	6 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Securities excluded from the calculation of diluted earnings per share	Six Months Ended December 31 2019 2018 Warrants to purchase common stock - liability classified (Note 15) 240,755 240,755 Warrant to purchase common stock - equity classified (Note 15) 26,218,908 12,065,506 Employee stock options (Note 14) 1,482 1,787 Employee unvested restricted stock (Note 14) 2,307,854 2,744,912 Performance-based options (Note 14) – 75,000 Convertible preferred stock (Note 13) 10,215,845 4,532,664 38,984,844 19,660,624

Acquisitions (Details)

Acquisitions (Details) - USD ($)	6 Months Ended
	Dec. 31, 2019	Jun. 30, 2019
Recognized amounts of identifiable assets acquired and liabilities assumed
Goodwill	$ 15,387,064	$ 0
Cerecor, Inc.
Consideration
Cash and cash equivalents	$ 4,500,000
Series G Convertible Preferred Stock shares issued	9,805,845
Estimated fair value per share of Aytu common stock	$ .567
Estimated fair value of equity consideration transferred	$ 5,559,914
Total consideration transferred	10,059,914
Recognized amounts of identifiable assets acquired and liabilities assumed
Inventory, net	459,123
Prepaid assets	1,743,555
Other current assets	2,548,187
Intangible assets - product marketing rights	22,700,000
Accrued product program liabilities	(6,320,853)
Assumed fixed payment obligations	(26,457,162)
Total identifiable net assets	(5,327,150)
Goodwill	$ 15,387,064

Acquisitions (Details 1)

Acquisitions (Details 1)	Dec. 31, 2019USD ($)
Cerecor, Inc.
Acquired product technology rights	$ 22,700,000

Acquisitions (Details 2)

Acquisitions (Details 2) - Cerecor, Inc. - USD ($)		3 Months Ended			6 Months Ended
		Dec. 31, 2019	[1]	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Total revenues, net		$ 3,175,236		$ 8,016,356	$ 8,027,106	$ 14,207,635
Net income/(loss)		$ 306,314		$ (2,532,910)	$ (5,997,071)	$ (3,854,640)
Net income/(loss) per share	[2]	$ 0.01		$ (.39)	$ (.38)	$ (.92)
[1]	Due to a lack of financial information covering the period from October 1, 2019 through November 1, 2019, the Company was not able to provide pro forma adjusted financial statements without making estimated extrapolations that the Company did not believe would be useful to user of the above pro forma information.
[2]	Pro forma net loss per share calculations excluded the impact of the issuance of the Series G Convertible Preferred under the assumption those shares would continue to remain non-participatory until the July 1, 2020 effective registration.

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Total net revenue	$ 3,175,000	$ 1,795,000	$ 4,615,000	$ 3,227,000
U.S.
Total net revenue	3,047,000	1,730,000	4,309,000	3,001,000
International
Total net revenue	$ 128,000	$ 65,000	$ 306,000	$ 226,000

Product Licenses and Acquisit_2

Product Licenses and Acquisitions (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Amortization expense	$ 16,000	$ 16,000	$ 32,000	$ 44,000
Natesto
Amortization expense	300,000	300,000	659,000	659,000
Contingent consideration accretion expense	54,000	16,000	133,000	31,000
ZolpiMist
Amortization expense	116,000	116,000	232,000	232,000
Contingent consideration accretion expense	56,000	61,000	110,000	120,000
Tuzistra XR
Amortization expense	123,000	82,000	246,000	82,000
Contingent consideration accretion expense	$ 101,000	$ 46,000	$ 197,000	$ 46,000

Inventories (Details)

Inventories (Details) - USD ($)	Dec. 31, 2019	Jun. 30, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 182,000	$ 117,000
Finished Goods	2,310,000	1,323,000
Inventory balance	$ 2,491,807	$ 1,440,069

Inventories (Details Narrative)

Inventories (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Inventory write-down	$ 0	$ 0	$ 0	$ 0

Fixed Assets (Details)

Fixed Assets (Details) - USD ($)	6 Months Ended
	Dec. 31, 2019	Jun. 30, 2019
Less accumulated depreciation and amortization	$ (428,000)	$ (396,000)
Fixed assets, net	122,064	203,733
Manufacturing Equipment
Fixed assets, gross	$ 83,000	83,000
Manufacturing Equipment | Minimum
Estimated useful lives in years	2 years
Manufacturing Equipment | Maximum
Estimated useful lives in years	5 years
Leasehold Improvements
Estimated useful lives in years	3 years
Fixed assets, gross	$ 112,000	112,000
Office Equipment, Furniture and Other
Fixed assets, gross	$ 265,000	315,000
Office Equipment, Furniture and Other | Minimum
Estimated useful lives in years	2 years
Office Equipment, Furniture and Other | Maximum
Estimated useful lives in years	5 years
Lab Equipment
Fixed assets, gross	$ 90,000	$ 90,000
Lab Equipment | Minimum
Estimated useful lives in years	3 years
Lab Equipment | Maximum
Estimated useful lives in years	5 years

Fixed Assets (Details Narrative

Fixed Assets (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation and amortization expense	$ 16,000	$ 16,000	$ 32,000	$ 44,000

Leases, Right-to-Use Assets a_3

Leases, Right-to-Use Assets and Related Liabilities (Details) - USD ($)	Dec. 31, 2019	Jun. 30, 2019
Leases Righttouse Assets And Related Liabilities Details Abstract
2020	$ 54,000
2021	113,000
2022	117,000
2023	121,000
2024	40,000
Thereafter	0
Total	445,000
Less: Discount adjustment	(70,000)
Total lease liability	375,000
Lease liability current portion	82,755	$ 0
Long-term lease liability	$ 291,813	$ 0

Leases, Right-to-use Assets a_4

Leases, Right-to-use Assets and Related Liabiliities (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Leases Right-to-use Assets And Related Liabiliities
Rent expense	$ 30,000	$ 31,000	$ 63,000	$ 63,000

Patents (Details)

Patents (Details) - USD ($)	Dec. 31, 2019	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Patents	$ 380,000	$ 380,000
Less accumulated amortization	(172,000)	(159,000)
Patents, net	$ 207,944	$ 220,611

Patents (Details Narrative)

Patents (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Patent amortization expense	$ 7,000	$ 7,000	$ 13,000	$ 13,000

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($)		Dec. 31, 2019	Jun. 30, 2019
Accrued Liabilities
Accrued accounting fee		$ 63,000	$ 85,000
Accrued program liabilities		1,087,000	736,000
Accrued product-related fees		601,000	295,000
Other accrued liabilities	[1]	100,000	32,000
Accrued note payable		263,000	0
Total accrued liabilities		$ 2,114,060	$ 1,147,740
[1]	Other accrued liabilities consist of franchise tax, samples and consultants, none of which individually represent greater than five percent of total current liabilities.

Fair Value Considerations (Deta

Fair Value Considerations (Details) - USD ($)	Dec. 31, 2019	Jun. 30, 2019
Warrant derivative liability	$ 11,371	$ 13,201
Fair Value, Measurements, Recurring
Warrant derivative liability	11,000	13,000
Contingent consideration	18,446,000	23,326,000
Total	18,457,000	23,339,000
Level 1 | Fair Value, Measurements, Recurring
Warrant derivative liability	0	0
Contingent consideration	0	0
Total	0	0
Level 2 | Fair Value, Measurements, Recurring
Warrant derivative liability	0	0
Contingent consideration	0	0
Total	0	0
Level 3 | Fair Value, Measurements, Recurring
Warrant derivative liability	11,000	13,000
Contingent consideration	18,446,000	23,326,000
Total	$ 18,457,000	$ 23,339,000

Fair Value Considerations (De_2

Fair Value Considerations (Details 1) - Warrant	6 Months Ended	12 Months Ended
	Dec. 31, 2019	Jun. 30, 2019
Volatility	163.20%	163.20%
Equivalent term (years)	2 years 10 months 17 days	3 years 1 month 17 days
Risk-free interest rate	1.71%	1.71%
Dividend yield	0.00%	0.00%

Fair Value Considerations (De_3

Fair Value Considerations (Details 2) - Fair Value, Measurements, Nonrecurring - USD ($)	Dec. 31, 2019	Nov. 01, 2019	[1]
Product technology rights	$ 22,321,667	$ 22,700,000
Goodwill	15,387,064	15,387,064
Fixed payment arrangements	26,056,217	26,457,162
Total	63,764,948	64,544,226
Level 1
Product technology rights	0	0
Goodwill	0	0
Fixed payment arrangements	0	0
Total	0	0
Level 2
Product technology rights	0	0
Goodwill	0	0
Fixed payment arrangements	0	0
Total	0	0
Level 3
Product technology rights	22,321,667	22,700,000
Goodwill	15,387,064	15,387,064
Fixed payment arrangements	26,056,217	26,457,162
Total	$ 63,764,948	$ 64,544,226
[1]	Valuation performed as of November 1, 2019. As a non-recurring fair value measurement, there is no remeasurement at each reporting period unless indications exist that the fair value of the asset has been impaired. There were no indicators as of December 1, 2019 that the fair value of the Product technology rights was impaired.

Fair Value Considerations (De_4

Fair Value Considerations (Details 3) - Product Technology Rights	Nov. 01, 2019Beta	[1]
Re-levered Beta	1.60
Market risk premium	6.00%
Small stock risk premium	5.20%
Risk-free interest rate	2.00%
Company specific discount	25.00%
[1]	Valuation performed as of November 1, 2019. As a non-recurring fair value measurement, there is no remeasurement at each reporting period unless indications exist that the fair value of the asset has been impaired. There were no indicators as of December 1, 2019 that the fair value of the Product technology rights was impaired.

Fair Value Considerations (De_5

Fair Value Considerations (Details 4)	Nov. 01, 2019	[1]
Minimum
Fixed payment obligations discount rate	1.80%
Maximum
Fixed payment obligations discount rate	12.40%
[1]	Valuation performed as of November 1, 2019. As a non-recurring fair value measurement, there is no remeasurement at each reporting period unless indicates that the circumstances that existed as of the November 1, 2019 measurement date indicate that the carrying value is no longer indicative of fair value.

Fair Value Considerations (De_6

Fair Value Considerations (Details 5)	6 Months Ended
	Dec. 31, 2019USD ($)
Liability Classified Warrants
Beginning balance	$ 13,000
Transfers into Level 3	0
Transfer out of Level 3	0
Total gains, losses, amortization or accretion in period	0
Total gains, losses, amortization or accretion in period included in earnings	(2,000)
Total gains, losses, amortization or accretion in period included in other comprehensive income	0
Purchases	0
Issues	0
Sales	0
Settlements	0
Ending balance	11,000
Contingent Consideration
Beginning balance	23,326,000
Transfers into Level 3	0
Transfer out of Level 3	0
Total gains, losses, amortization or accretion in period	0
Total gains, losses, amortization or accretion in period included in earnings	(4,760,000)
Total gains, losses, amortization or accretion in period included in other comprehensive income	0
Purchases	0
Issues	0
Sales	0
Settlements	(120,000)
Ending balance	18,446,000
Fixed Payment Arrangements
Beginning balance	0
Transfers into Level 3	0
Transfer out of Level 3	0
Total gains, losses, amortization or accretion in period	0
Total gains, losses, amortization or accretion in period included in earnings	264,000
Total gains, losses, amortization or accretion in period included in other comprehensive income	0
Purchases	0
Issues	26,457,000
Sales	0
Settlements	(665,000)
Ending balance	26,056,000
Product Technology Rights
Beginning balance	0
Transfers into Level 3	0
Transfer out of Level 3	0
Total gains, losses, amortization or accretion in period	(378,000)
Total gains, losses, amortization or accretion in period included in earnings	0
Total gains, losses, amortization or accretion in period included in other comprehensive income	0
Purchases	22,700,000
Issues	0
Sales	0
Settlements	0
Ending balance	22,321,667
Goodwill
Beginning balance	0
Transfers into Level 3	0
Transfer out of Level 3	0
Total gains, losses, amortization or accretion in period	0
Total gains, losses, amortization or accretion in period included in earnings	0
Total gains, losses, amortization or accretion in period included in other comprehensive income	0
Purchases	15,387,000
Issues	0
Sales	0
Settlements	0
Ending balance	$ 15,387,000

Commitments and Contingencies_2

Commitments and Contingencies (Details)	Dec. 31, 2019USD ($)
2020	$ 2,403,000
2021	19,005,000
2022	3,462,000
2023	5,950,000
2024	1,346,000
Thereafter	2,000,000
Total	34,166,000
Prescription Database
2020	296,000
2021	534,000
2022	512,000
2023	0
2024	0
Thereafter	0
Total	1,342,000
Pediatric Portfolio Fixed Payments and Product Minimums
2020	2,107,000
2021	18,471,000
2022	2,950,000
2023	2,950,000
2024	1,346,000
Thereafter	2,000,000
Total	29,824,000
Product Milestone Payments
2020	0
2021	0
2022	0
2023	3,000,000
2024	0
Thereafter	0
Total	$ 3,000,000

Capital Structure (Details Narr

Capital Structure (Details Narrative) - $ / shares	Dec. 31, 2019	Jun. 30, 2019
Equity [Abstract]
Preferred stock, par value	$ .0001	$ .0001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	10,215,845	3,594,981
Preferred stock, shares outstanding	10,215,845	3,594,981
Common stock, par value	$ .0001	$ .0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	20,733,052	17,538,071
Common stock, shares outstanding	20,733,052	17,538,071

Equity Incentive Plan (Details)

Equity Incentive Plan (Details) - Stock Options	6 Months Ended
	Dec. 31, 2019$ / sharesshares
Number of Options
Number of options outstanding, beginning balance | shares	1,607
Number of options, expired | shares	(125)
Number of options outstanding, ending balance | shares	1,482
Number of options, exercisable | shares	1,482
Weighted Average Exercise Price
Weighted average exercise price, beginning balance | $ / shares	$ 325.73
Weighted average exercise price, expired | $ / shares	328
Weighted average exercise price, ending balance | $ / shares	325.54
Weighted average exercise price, exercisable | $ / shares	$ 325.54
Weighted Average Remaining Contractual Life in Years
Weighted average remaining contractual life in years, outstanding, beginning balance	6 years 1 month 17 days
Weighted average remaining contractual life in years, outstanding, ending balance	6 years 25 days
Weighted average remaining contractual life in years, exercisable	6 years 25 days

Equity Incentive Plan (Details

Equity Incentive Plan (Details 1) - Restricted Stock	6 Months Ended
	Dec. 31, 2019$ / sharesshares
Number of Shares
Unvested, beginning balance | shares	2,346,214
Granted | shares	0
Vested | shares	0
Forfeited | shares	(39,900)
Unvested, ending balance | shares	2,306,314
Weighted Average Grant Date Fair Value
Unvested, beginning balance | $ / shares	$ 1.83
Granted | $ / shares	.00
Vested | $ / shares	.00
Forfeited | $ / shares	2.57
Unvested, ending balance | $ / shares	$ 1.81
Weighted Average Remaining Contractual Life in Years
Unvested beginning, weighted average remaining contractual life in years	9 years 1 month 6 days
Unvested ending, weighted average remaining contractual life in years	8 years 7 months 6 days

Equity Incentive Plan (Detail_2

Equity Incentive Plan (Details 2) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Total share-based compensation expense	$ 162,000	$ 194,000	$ 327,000	$ 346,000
Employee Stock Option
Total share-based compensation expense	2,000	41,000	7,000	107,000
Restricted Stock
Total share-based compensation expense	$ 160,000	$ 153,000	$ 32,000	$ 239,000

Equity Incentive Plan (Detail_3

Equity Incentive Plan (Details Narrative)	6 Months Ended
	Dec. 31, 2019USD ($)shares
Restricted Stock
Shares available for grant | shares	1,540
Unrecognized expense share-based compensation expense	$ 1,297,000
Weighted-average period	6 years 6 months 7 days
Expense related to awards	$ 160,000
2015 Plan
Shares available for grant | shares	692,204
Unrecognized expense share-based compensation expense	$ 3,573,000
Weighted-average period	8 years 6 months 25 days
Expense related to awards	$ 160,000

Warrants (Details)

Warrants (Details) - Equity-Based Warrants	6 Months Ended
	Dec. 31, 2019
Expected volatility	1.53%
Equivalent term (years)	5 years
Risk-free rate	1.59%
Dividend yield	0.00%

Warrants (Details 1)

Warrants (Details 1)	6 Months Ended
	Dec. 31, 2019$ / sharesshares
Equity-Based Warrants
Number of Warrants
Number of warrants, outstanding beginning balance | shares	16,218,908
Warrants issued | shares	10,000,000
Warrants expired | shares	0
Warrants exercised | shares	0
Number of warrants outstanding, ending balance | shares	26,218,908
Weighted Average Exercise Price
Weighted average exercise price, beginning balance | $ / shares	$ 3.15
Warrants issued | $ / shares	1.25
Warrants expired | $ / shares	.00
Warrants exercised | $ / shares	.00
Weighted average exercise price, ending balance | $ / shares	$ 2.43
Weighted Average Remaining Contractual Life in Years
Weighted average remaining contractual life in years, outstanding, beginning balance	4 years 4 months 10 days
Warrants issued	5 years
Weighted average remaining contractual life in years, outstanding, ending balance	4 years 2 months 16 days
Liability Warrants
Number of Warrants
Number of warrants, outstanding beginning balance | shares	240,755
Warrants expired | shares	0
Warrants exercised | shares	0
Number of warrants outstanding, ending balance | shares	240,755
Weighted Average Exercise Price
Weighted average exercise price, beginning balance | $ / shares	$ 72
Warrants expired | $ / shares	.00
Warrants exercised | $ / shares	.00
Weighted average exercise price, ending balance | $ / shares	$ 72
Weighted Average Remaining Contractual Life in Years
Weighted average remaining contractual life in years, outstanding, beginning balance	3 years 1 month 28 days
Weighted average remaining contractual life in years, outstanding, ending balance	2 years 7 months 24 days

Net Loss Per Common Share (Deta

Net Loss Per Common Share (Details) - shares	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Antidilutive securities	39,984,844	19,660,624
Liability Warrants
Antidilutive securities	240,755	240,755
Equity-Based Warrants
Antidilutive securities	26,218,908	12,065,506
Employee Stock Option
Antidilutive securities	1,787	1,482
Employee Unvested Restricted Stock
Antidilutive securities	2,307,854	2,744,912
Performance-Based Options
Antidilutive securities	0	75,000
Convertible Preferred Stock
Antidilutive securities	10,215,845	4,532,664