Full Press Release Details
BioScience Provides Fiscal First Quarter 2018 Business Update - Live Conference Call and Webcast Today at 4:30 pm ET
CO - November 9, 2017 - Aytu BioScience, Inc. (NASDAQ: AYTU), a specialty life sciences company focused on global
commercialization of novel products in the field of urology, today provided an overview of its business, including the Company's
operational and financial results for its fiscal first quarter of 2018. The Company will host a live conference call and webcast
today at 4:30 p.m. ET. Conference call details are provided at the end of this press release.
the first fiscal quarter of 2018, we achieved our commercial objectives and experienced substantial prescription demand growth
for Natesto . The Company also increased our base of business outside the U.S. for the MiOXSYS System, and received positive
reception from clinicians during the early commercialization of our newly added commercial-stage product Fiera ," commented
Josh Disbrow, Chief Executive Officer of Aytu BioScience.
2018 Operational Highlights
2018 Financial Results
revenue for the Company, for the first quarter of 2018, totaled $1,076,000 from sales of Natesto, MiOXSYS, Fiera, and ProstaScint,
compared to net revenue of $698,000 for the same period last year, an increase of 54%. Natesto and MiOXSYS comprised the majority
of sales in the first quarter of 2018. Product sales in the same quarter of 2017 were mostly comprised of ProstaScint and Primsol,
a product that was divested in late fiscal 2017.
sales for the company totaled $2,243,000, representing an increase of 142% over the same period last year.
general, and administrative expenses for the first quarter of 2018 were $4,618,000, down 20% from the same quarter last year,
and the Company's net loss for the quarter was reduced by 26% to $4,245,000.
and cash equivalents totaled $7.1M as of September 30, 2017.
the increasing net revenues due to the sales growth of Natesto, expansion of MiOXSYS outside the US and the integration of Fiera,
the Company believes it has adequate cash to achieve profitability and effectively operate into the middle of fiscal 2019.
Company will host a live conference call at 4:30 p.m. ET today. The conference call can be accessed by dialing either:
(855) 656-0926 (U.S.)
(412) 542-4198 (international)
webcast will be accessible live during the conference call and archived on Aytu BioScience's website, within the Investors
section under Corporate Presentations & Media, at aytubio.com, for 90 days.
replay of the call will be available for seven days. Access the replay by calling 1 (877) 344-7529 (U.S.) or 1 (412) 317-0088
(international) and using the replay access code 10114103.
Aytu BioScience, Inc.
BioScience is a commercial-stage specialty life sciences company focused on global commercialization of novel products in the
field of urology, with a focus on products addressing vitality, sexual wellness, and reproductive health. The Company currently
markets two prescription products in the U.S.: Natesto , the first and only FDA-approved nasal formulation of testosterone
for men with hypogonadism (low testosterone, or "Low T") and ProstaScint (capromab pendetide), the only FDA-approved
imaging agent specific to prostate specific membrane antigen (PSMA) for prostate cancer detection and staging. Additionally, Aytu
is developing MiOXSYS , a novel, rapid semen analysis system with the potential to become a standard of care for the diagnosis
and management of male infertility caused by oxidative stress. MiOXSYS is commercialized outside the U.S. where it is a CE
Marked, Health Canada cleared, Australian TGA approved product, and Aytu is planning U.S.-based clinical trials in pursuit of
510k medical device clearance by the FDA. Aytu's strategy is to continue building its portfolio of revenue-generating products,
leveraging its focused commercial team and expertise to build leading brands within growing markets. For more information visit
aytubio.com. Aytu also now owns wholly-owned subsidiary Aytu Women's Health (formerly Nuelle, Inc.), a personal health and
wellness company focused on women's sexual wellbeing and intimacy. Aytu Women's Health markets Fiera, a personal care
device for women that is scientifically proven to enhance physical arousal and sexual desire. Fiera is a consumer device and is
not intended to treat, mitigate, or cure any disease or medical condition. For more information about the Fiera personal care
device visit fiera.com.
press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, or the Exchange Act. All statements other than statements of
historical facts contained in this presentation, are forward-looking statements. Forward looking statements are generally
written in the future tense and/or are preceded by words such as "may," "will," "should,"
"forecast," "could," "expect," "suggest," "believe,"
"estimate," "continue," "anticipate," "intend," "plan," or
similar words, or the negatives of such terms or other variations on such terms or comparable terminology. These statements
are just predictions and are subject to risks and uncertainties that could cause the actual events or results to differ
materially. These risks and uncertainties include, among others: the risks related to Natesto sales not increasing, MiOXSYS
not expanding outside the US, and setbacks related to the integration of Fiera that would affect having adequate cash to
achieve profitability and effectively operate into the middle of fiscal 2019, risks relating to gaining market acceptance of
our products, obtaining reimbursement by third-party payors, the potential future commercialization of our product
candidates, the anticipated start dates, durations and completion dates, as well as the potential future results, of our
ongoing and future clinical trials, the anticipated designs of our future clinical trials, anticipated future
regulatory submissions and events, our anticipated future cash position and future events under our current and potential
future collaboration. We also refer you to the risks described in "Risk Factors" in Part I, Item 1A of Aytu
BioScience, Inc.'s Annual Report on Form 10-K and in the other reports and documents we file with the Securities and
Exchange Commission from time to time.
| September 30, | June 30, | |||||||
| 2017 | 2017 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 7,021,527 | $ | 802,328 | ||||
| Restricted cash | 75,371 | 75,214 | ||||||
| Accounts receivable, net | 1,211,845 | 528,039 | ||||||
| Inventory, net | 1,171,260 | 1,312,221 | ||||||
| Prepaid expenses and other | 262,057 | 310,760 | ||||||
| Total current assets | 9,742,060 | 3,028,562 | ||||||
| Fixed assets, net | 566,913 | 647,254 | ||||||
| Developed technology, net | 1,294,306 | 1,337,333 | ||||||
| Customer contracts, net | 76,667 | 77,667 | ||||||
| Trade names, net | 158,238 | 164,037 | ||||||
| Natesto asset, net | 8,901,391 | 9,231,072 | ||||||
| Goodwill | 238,426 | 238,426 | ||||||
| Patents, net | 264,944 | 271,278 | ||||||
| Deposits | 2,888 | 2,888 | ||||||
| Total long-term assets | 11,503,773 | 11,969,955 | ||||||
| Total assets | $ | 21,245,833 | $ | 14,998,517 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and other | $ | 1,660,764 | $ | 2,220,400 | ||||
| Accrued liabilities | 903,386 | 782,536 | ||||||
| Accrued compensation | 680,545 | 339,704 | ||||||
| Deferred rent | 6,455 | 6,673 | ||||||
| Current contingent consideration | 257,036 | 261,155 | ||||||
| Total current liabilities | 3,508,186 | 3,610,468 | ||||||
| Long-term contingent consideration | 7,566,443 | 7,386,782 | ||||||
| Deferred rent | - | 1,451 | ||||||
| Warrant derivative liability | 3,818,263 | - | ||||||
| Total liabilities | 14,892,892 | 10,998,701 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity | ||||||||
| Preferred Stock, par value $.0001; 50,000,000 shares authorized; shares issued | 1 | - | ||||||
| and outstanding 2,250 (unaudited) and 0, respectively as of | ||||||||
| September 30, 2017 and June 30, 2017 | ||||||||
| Common Stock, par value $.0001; 100,000,000 shares authorized; shares issued | ||||||||
| and outstanding 4,224,840 (unaudited) and 824,831, respectively as of | ||||||||
| September 30, 2017 and June 30, 2017 | 422 | 82 | ||||||
| Additional paid-in capital | 79,667,289 | 73,069,463 | ||||||
| Accumulated deficit | (73,314,771 | ) | (69,069,729 | ) | ||||
| Total stockholders' equity | 6,352,941 | 3,999,816 | ||||||
| Total liabilities and stockholders' equity | $ | 21,245,833 | $ | 14,998,517 |
| Three Months Ended September 30, | ||||||||
| 2017 | 2016 | |||||||
| Product revenue | $ | 1,076,368 | $ | 697,980 | ||||
| Total revenue | 1,076,368 | 697,980 | ||||||
| Operating expenses | ||||||||
| Cost of sales | 287,201 | 191,924 | ||||||
| Research and development | 140,954 | 232,022 | ||||||
| Research and development - related party | - | 47,998 | ||||||
| Sales, general and administrative | 4,618,403 | 5,704,750 | ||||||
| Sales, general and administrative - related party | - | 50,772 | ||||||
| Amortization and impairment of intangible assets | 385,841 | 437,014 | ||||||
| Total operating expenses | 5,432,399 | 6,664,480 | ||||||
| Loss from operations | (4,356,031 | ) | (5,966,500 | ) | ||||
| Other income (expense) | ||||||||
| Interest (expense) | (188,745 | ) | (415,381 | ) | ||||
| Derivative income (expense) | 299,734 | (70,609 | ) | |||||
| Unrealized gain on investment | - | 728,100 | ||||||
| Total other (expense) income | 110,989 | 242,110 | ||||||
| Net loss | $ | (4,245,042 | ) | $ | (5,724,390 | ) | ||
| Weighted average number of Aytu | ||||||||
| common shares outstanding | 2,415,402 | 244,937 | ||||||
| Basic and diluted Aytu net loss | ||||||||
| per common share | $ | (1.76 | ) | $ | (23.37 | ) |
| Three Months Ended September 30, | ||||||||
| 2017 | 2016 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (4,245,042 | ) | $ | (5,724,390 | ) | ||
| Adjustments to reconcile net loss to cash provided by (used in) operating activities | ||||||||
| Stock-based compensation expense | 195,105 | 1,043,712 | ||||||
| Issuance of restricted stock | 72,306 | 75,466 | ||||||
| Depreciation, amortization and accretion | 653,313 | 822,161 | ||||||
| Derivative (income) expense | (299,734 | ) | 70,609 | |||||
| Amortization of prepaid research and development - related party | - | 30,496 | ||||||
| Unrealized (gain) on investment | - | (728,100 | ) | |||||
| Compensation through issuance of stock | - | 509,996 | ||||||
| Issuance of warrants to initial investors | - | 589,377 | ||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| (Increase) in accounts receivable | (683,806 | ) | (347,013 | ) | ||||
| Decrease (increase) in inventory | 140,961 | (60,650 | ) | |||||
| Decrease (increase) in prepaid expenses and other | 48,703 | (337,525 | ) | |||||
| (Decrease) in accounts payable and other | (559,636 | ) | (109,365 | ) | ||||
| Increase (decrease) in accrued liabilities | 120,850 | (498,516 | ) | |||||
| Increase (decrease) in accrued compensation | 340,841 | (668,792 | ) | |||||
| (Decrease) increase in deferred rent | (1,669 | ) | 75 | |||||
| Net cash used in operating activities | (4,217,808 | ) | (5,332,459 | ) | ||||
| Cash flows used in investing activities | ||||||||
| Purchases of property and equipment | - | (4,721 | ) | |||||
| Installment payment for Primsol asset | - | (500,000 | ) | |||||
| Net cash used in investing activities | - | (504,721 | ) | |||||
| Cash flows from financing activities | ||||||||
| Issuance of preferred, common stock and warrants | 11,839,995 | - | ||||||
| Issuance costs related to preferred, common stock and warrants | (1,402,831 | ) | - | |||||
| Issuance of common stock to Lincoln Park Capital | - | 631,481 | ||||||
| Costs related to sale of common stock | - | (24,247 | ) | |||||
| Net cash provided by financing activities | 10,437,164 | 607,234 | ||||||
| Net change in cash and cash equivalents | 6,219,356 | (5,229,946 | ) | |||||
| Cash and cash equivalents at beginning of period | 877,542 | 8,054,190 | ||||||
| Cash and cash equivalents at end of period | $ | 7,096,898 | $ | 2,824,244 |