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Income Taxes | 12 Months Ended
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Jun. 30, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income tax benefit resulting from applying statutory rates in jurisdictions in which Aytu is taxed (Federal and various states) differs from the income tax provision (benefit) in the Aytu financial statements. The following table reflects the reconciliation for the respective periods.
|  | June 30, |
|  | 2020 |  |  | 2019 |
Benefit at statutory rate |  | $ | (2,934,000 | ) |  |  | -21.00 | % |  | $ | (5,698,000 | ) |  |  | -21.00 | %
State income taxes, net of federal benefit |  |  | (798,000 | ) |  |  | -5.71 | % |  |  | (1,077,000 | ) |  |  | -3.97 | %
Stock based compensation |  |  | (35,000 | ) |  |  | -0.25 | % |  |  | 3,000 |  |  |  | 0.01 | %
Contingent consideration |  |  | 54,000 |  |  |  | 0.39 | % |  |  | - |  |  |  | 0.00 | %
Change in tax rate |  |  | - |  |  |  | 0.00 | % |  |  | 12,000 |  |  |  | 0.04 | %
Remeasurement of deferred taxes |  |  | - |  |  |  | 0.00 | % |  |  | - |  |  |  | 0.00 | %
Effect of phased-in tax rate |  |  | - |  |  |  | 0.00 | % |  |  | - |  |  |  | 0.00 | %
Loss on debt extinguishment and interest expense |  |  | 167,000 |  |  |  | 1.20 | % |  |  | - |  |  |  | 0.00 | %
Change in valuation allowance |  |  | 3,496,000 |  |  |  | 25.02 | % |  |  | 6,584,000 |  |  |  | 24.27 | %
Derivative income |  |  | - |  |  |  | 0.00 | % |  |  | (16,000 | ) |  |  | -0.06 | %
Other |  |  | 50,000 |  |  |  | 0.37 | % |  |  | 192,000 |  |  |  | 0.71 | %
Net income tax provision (benefit) |  | $ | - |  |  |  | 0.02 | % |  | $ | - |  |  |  | 0.00 | %
Deferred income taxes arise from temporary differences in the recognition of certain items for income tax and financial reporting purposes. The approximate tax effects of significant temporary differences which comprise the deferred tax assets and liabilities are as follows for the respective periods:
|  | June 30, |
|  | 2020 |  |  | 2019 |
Deferred tax assets (liabilities): |  |  |  |  |  |
Accrued expenses |  | $ | 855,000 |  |  | $ | 234,000 |
Net operating loss carry forward |  |  | 37,191,000 |  |  |  | 18,085,000 |
Intangibles |  |  | (1,578,000 | ) |  |  | 3,377,000 |
Share-based compensation |  |  | 1,891,000 |  |  |  | 1,210,000 |
Fixed assets |  |  | 73,000 |  |  |  | 86,000 |
Capital loss carry forward |  |  | 203,000 |  |  |  | 203,000 |
Contribution carry forward |  |  | 31,000 |  |  |  | 31,000 |
Warrant liability |  |  | 51,000 |  |  |  | 51,000 |
Inventory |  |  | 789,000 |  |  |  | 25,000 |
R&D Credits |  |  | 9,000 |  |  |  | - |
Lease Liability |  |  | 261,000 |  |  |  | - |
ROU Asset |  |  | (224,000 | ) |  |  | - |
Total deferred income tax assets (liabilities) |  |  | 39,552,000 |  |  |  | 23,302,000 |
Less: Valuation allowance |  |  | (39,552,000 | ) |  |  | (23,302,000 | )
Total deferred income tax assets (liabilities) |  | $ | - |  |  | $ | - |
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, carry back opportunities and tax planning strategies in making the assessment. The Company believes it is more likely than not it will realize the benefits of these deductible differences, net of the valuation allowance provided. The Company has federal net operating losses of approximately $147 million and $73.9 million as of June 30, 2020 and June 30, 2019, respectively that, subject to limitation, may be available in future tax years to offset taxable income. Of the available federal net operating losses, approximately $46.9 million can be carried forward indefinitely while the balance will begin to expire in 2031. The available state net operating losses, if not utilized to offset taxable income in future periods, will begin to expire in 2025 through 2038. Under the provisions of the Internal Revenue Code, substantial changes in the Company's ownership may result in limitations on the amount of NOL carryforwards that can be utilized in future years. Net operating loss carryforwards are subject to examination in the year they are utilized regardless of whether the tax year in which they are generated has been closed by statute. The amount subject to disallowance is limited to the NOL utilized. Accordingly, the Company may be subject to examination for prior NOLs generated as such NOLs are utilized. As of June 30, 2020, the company had various state NOL carryforwards. The determination of the state NOL carryforwards is dependent on apportionment percentages and state laws that can change from year to year and impact the amount of such carryforwards. As of June 30, 2020, and 2019, the Company has no liability for gross unrecognized tax benefits or related interest and penalties. Aytu has made its best estimates of certain income tax amounts included in the financial statements. Application of the Company's accounting policies and estimates, however, involves the exercise of judgement and use of assumptions as to future uncertainties and, as a result, could differ from these estimates. In arriving at its estimates, factors the Company considers include how accurate the estimates or assumptions have been in the past, how much the estimates or assumptions have changed and how reasonably likely such changes may have a material impact. Under the general statute of limitations, the Company would not be subject to federal or Colorado income tax examinations for tax years prior to 2016 and 2015, respectively. However, given the net operating losses generated since inception, all tax years since inception are subject to examination.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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