Going Concern	12 Months Ended
Jun. 30, 2018
Going Concern
Going Concern	Note 3 – Going Concern As reflected in the accompanying financial statements, for the year ended June 30, 2018, the Company had a net loss of $10.2 million and net cash used in operations of $16.0 million. At June 30, 2018, Aytu had $7.1 million of cash, cash equivalents and restricted cash, stockholders’ equity of $13.5 million and an accumulated deficit of $79.3 million. In addition, the Company is in the early stage of commercialization and has not yet generated profits for the most recent four quarters ended June 30, 2018. We used an average of $4.0 million of cash per quarter for operating activities. These factors raised substantial doubt about the Company’s ability to continue as a going concern. Looking forward, we expect cash used in operating activities to be in the range of historical amounts, and we expect our revenue to increase. We also expect to raise new capital if and when needed. Therefore, it is uncertain as to whether the Company is sufficiently capitalized. Since the Company does not have a cash balance as of June 30, 2018, sufficient to cover potential operating losses for the twelve months following the expected filing date of this Annual Report, ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40) requires us to report that there is an indication that substantial doubt about the Company’s ability to continue as a going concern exists. The ability of the Company to continue its operations is dependent on management’s plans, which include continuing to build on the historical growth trajectory of Natesto, launching the recently licensed ZolpiMist product, seeking to acquire cash generating assets and if needed, accessing the capital markets through the sale of our securities. Based on our ability to raise capital in the past as well as our continued growth, the Company believes additional financing will be available and will continue to be available to support the current level of operations for at least the next 12 months from the date of this report. There can be no assurance, however, that such financing will be available on terms which are favorable to the Company, or at all. While Company management believes that its plan to fund ongoing operations will be successful, there is uncertainty due to the Company’s limited operating history and therefore no assurance that its plan will be successfully realized. The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.

Going Concern

12 Months Ended

Jun. 30, 2018

Note 3 – Going Concern

As reflected in the accompanying financial statements, for the year ended June 30, 2018, the Company had a net loss of $10.2 million and net cash used in operations of $16.0 million. At June 30, 2018, Aytu had $7.1 million of cash, cash equivalents and restricted cash, stockholders’ equity of $13.5 million and an accumulated deficit of $79.3 million. In addition, the Company is in the early stage of commercialization and has not yet generated profits for the most recent four quarters ended June 30, 2018. We used an average of $4.0 million of cash per quarter for operating activities. These factors raised substantial doubt about the Company’s ability to continue as a going concern.

Looking forward, we expect cash used in operating activities to be in the range of historical amounts, and we expect our revenue to increase. We also expect to raise new capital if and when needed. Therefore, it is uncertain as to whether the Company is sufficiently capitalized. Since the Company does not have a cash balance as of June 30, 2018, sufficient to cover potential operating losses for the twelve months following the expected filing date of this Annual Report, ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40) requires us to report that there is an indication that substantial doubt about the Company’s ability to continue as a going concern exists.

The ability of the Company to continue its operations is dependent on management’s plans, which include continuing to build on the historical growth trajectory of Natesto, launching the recently licensed ZolpiMist product, seeking to acquire cash generating assets and if needed, accessing the capital markets through the sale of our securities. Based on our ability to raise capital in the past as well as our continued growth, the Company believes additional financing will be available and will continue to be available to support the current level of operations for at least the next 12 months from the date of this report. There can be no assurance, however, that such financing will be available on terms which are favorable to the Company, or at all. While Company management believes that its plan to fund ongoing operations will be successful, there is uncertainty due to the Company’s limited operating history and therefore no assurance that its plan will be successfully realized.

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.