The following excerpt is from the company's SEC filing.

Live Conference Call and Webcast Today at 4:30 p.m. ET

ENGLEWOOD, Colo., Sept. 1, 2016 /PRNewswire/ -- 

Aytu BioScience, Inc.

(OTCQX: AYTU), a specialty pharmaceutical company focused on global commercialization of novel products in the field of urology, provided today a review of its recent accomplishments and provided an overview of its business and growth strategy, as well as its operational and financial results for the fiscal year ended June 30, 2016. The company will host a live conference call and webcast today at 4:30 p.m. ET.

Fiscal 2016 Corporate Highlights:

Executed c ommercial-focused business strategy, acquiring two additional FDA-approved, revenue-generating urology products

Secured exclusive U.S. rights to Natesto

, the only FDA-approved nasally-administered testosterone product and only topically applied testosterone product without a black box safety warning

Acquired global rights to Primsol

, the only FDA-approved trimethoprim-only oral solution for treating urinary tract infections

Built and expanded the company's commercial infrastructure, including proven commercial leadership and a nationwide specialty sales force

Secured CE Marking and approval by Health Canada for MiOXSYS™, the company's novel, proprietary device for the rapid assessment of male infertility

Appointed three independent board directors and established the full spectrum of corporate governance policies and procedures in compliance with the listing requirements for both NYSE and NASDAQ

Fiscal 2016 Financial Highlights:

Grew annual revenues nearly ten-fold from $262,000 in fiscal 2015 to $2.6 million in fiscal 2016 (newly licensed Natesto is not included in either of these revenue numbers, as it was launched in July 2016)

Demonstrated consistent quarterly revenue growth, with sales of $469,000, $669,000, and $937,000 in fiscal quarters two, three, and four, respectively

Raised sufficient initial growth capital through convertible note and equity offerings to support the company's initial commercial infrastructure and three product launches

Ended fiscal 2016 with $8.1 million in cash and cash equivalents

Successfully upgraded Aytu stock from OTCQB to OTCQX

Entered into a $10.5 million stock purchase agreement with Lincoln Park Capital just after the start of fiscal 2017 to enable balance sheet strength and flexibility as the Company executes on the Natesto product launch

Executed a reverse stock split in June 2016 to support potential up-listing of Aytu stock to a national stock exchange

"2016 has been a period of remarkable growth for Aytu," stated Josh Disbrow, Chairman and Chief Executive Officer of Aytu BioScience, Inc. "During our first complete fiscal year since our merger in 2015, we've become a rapidly maturing, commercially driven specialty pharmaceutical company that has already achieved substantial revenue growth and built a portfolio of differentiated urology-focused commercial products.  With our most recent acquisition of Natesto, we achieved a critical mass of products and scaled our commercial organization to execute a successful launch of Natesto, which we expect to be the primary revenue driver for Aytu, while efficiently growing both ProstaScint and Primsol in the U.S.  We're already on a strong growth trajectory, and our objective is to continue growing revenue and driving toward profitability as efficiently as possible."

Securing the U.S. commercial rights to Natesto was a transformational event for Aytu.  It enabled the company to launch the product in late July 2016 and begin establishing it within the growing $2.4 billion U.S. testosterone replacement therapy (TRT) market.  Natesto is the only FDA-approved nasally-administered TRT product, and unlike the leading topical TRTs, it does not carry a black box safety warning due to the risk of unintended transference. Nor does Natesto require a lengthy and cumbersome application process. 

Through the first four weeks of the launch of Natesto, Aytu has received a positive response for the product, with steady week over week prescription growth, based on IMS data. Weekly redemptions of Natesto co-pay coupons have already surpassed the previous 2016 weekly high levels registered under the previous marketer's co-pay program.  Additionally, the Company's Assure Rx program is operational in nearly all sales territories across the U.S. with confirmed prescriptions across multiple partner pharmacies.  The Company has already booked additional demand-driven factory sales through its wholesale channels, which were pre-stocked prior to Aytu's Natesto launch – another positive indicator for the initial launch of this product.

While Natesto is the lead product in terms of sales force prioritization, the Company remains committed to continuing to build revenue for ProstaScint and Primsol, and will continue to market these products to urologists through existing sales channels and partnerships.  In fiscal 2016, Aytu established partnerships for both of these products.  In March, Aytu partnered with Hybridyne Imaging Technologies to potentially expand the utility and application of ProstaScint for detecting prostate cancer by using it with Hybridyne's minimally invasive camera.  Hybridyne has initiated enrollment and patient dosing in an open-label prostate cancer study.  Also in March, Aytu signed a strategic co-promotion agreement with Allegis Pharmaceuticals, which is focused on marketing Primsol for the pediatric indication of acute otitis media.

Aytu also continues to develop MiOXSYS, its proprietary diagnostic device for male infertility that offers rapid and convenient oxidative stress testing in semen, and it has generated a robust and growing body of clinical data supporting this product.  In fiscal 2016, Aytu successfully obtained CE Marking as well as Health Canada approval for MiOXSYS and has begun to recognize ex-U.S. sales with a small commercial footprint.  In July, Aytu's academic and clinical collaborators presented three posters demonstrating the potential of MiOXSYS to be used as an aid in the diagnosis of infertility in men at the European Society of Human Reproduction and Embryology annual meeting.  Aytu also published clinical findings in the high-profile, peer-reviewed medical journal

Fertility and Sterility,

and MiOXSYS was featured with a dedicated chapter in a major andrology textbook.  The company expects to gain potential FDA clearance for MiOXSYS under the 510(k)

de novo

process and is currently finalizing a study protocol in conjunction with the Agency.  Aytu expects to begin a formal FDA clinical study by the end of calendar year 2016.

Net revenue for fiscal 2016 was $2.6 million, which was related to sales of ProstaScint and Primsol, ex-U.S. sales of MiOXSYS, and licensing revenue from Zertane.  Net revenue in fiscal 2015 was $262,000, which consisted primarily of initial sales of ProstaScint.  Revenues are expected to grow substantially in fiscal 2017 with the launch of Natesto and continued marketing of ProstaScint and Primsol.

Cash and cash equivalents were $8.1 million as of June 30, 2016.  In July 2016, Aytu entered into a $10.5 million stock purchase agreement with Lincoln Park Capital, expected to provide additional balance sheet strength and flexibility to support the company's rapidly progressing commercial activities. Based on current operational plans and assumptions, Aytu believes it has adequate financial resources to continue operations into the second quarter of fiscal 2017 and believes that it will be able to raise additional funding to support its growth.  In conjunction with a potential uplisting of the Company's stock to a national exchange, the Company intends to raise additional capital, with the expectation of extending operational and growth capital through fiscal 2017 and into fiscal 2018.

Aytu executed a 12:1 reverse stock split in June 2016, which was approved by Aytu shareholders in support of the company's plans to uplist to a national stock e

xchange.

Conference Call Information:

The live conference call and webcast will begin today at 4:30 p.m. Eastern Time.  Interested participants and investors may access the conference call by dialing either:

1 (855) 656-0926 (U.S.)

1 (412) 542-4198 (international)

The webcast will be accessible live and archived on Aytu's website,

http://aytubio.com

, for 90 days.

A 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 10091951.

About Aytu BioScience, Inc.

Aytu BioScience is a commercial-stage specialty pharmaceutical company focused on global commercialization of novel products in the field of urology. The Company currently markets three products: Natesto

, the first and only FDA-approved nasal formulation of testosterone for men with hypogonadism (low testosterone, or "Low T"), ProstaScint

 (capromab pendetide), the only FDA-approved imaging agent specific to prostate specific membrane antigen (PSMA) for prostate cancer detection and staging, and Primsol

 (trimethoprim hydrochloride), the only FDA-approved trimethoprim-only oral solution for urinary tract infections. 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 product, and Aytu is conducting U.S.-based clinical trials in pursuit of 510k de novo medical device clearance by the FDA. Aytu's strategy is to continue building its portfolio of revenue-generating urology products, leveraging its focused commercial team and expertise to build leading brands within well-established markets. For more information, visit aytubio.com.

For Investors & Media:

Tiberend Strategic Advisors, Inc.

Joshua Drumm, Ph.D.:

jdrumm@tiberend.com

; (212) 375-2664

Janine McCargo:

jmccargo@tiberend.com

; (646) 604-5150

Forward Looking Statement

This 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. All statements other than

statements of historical facts contained in this press release, including statements regarding our anticipated future clinical and regulatory events, future financial position, business strategy and plans and objectives of management for future operations, 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 unpredictability of the size of the markets for, and market acceptance of, any of our products and product candidates; the potential future commercialization of our approved products and product candidates; our need to obtain additional funding and our ability to obtain future funding on acceptable terms; our anticipated capital expenditures and our estimates regarding our capital requirements; the ability to meet ongoing conditions of the Lincoln Park Capital agreement in order to access the financing under the agreement; the ability to have Aytu common stock listed on a national securities exchange; 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; risks relating to gaining market acceptance of our products; obtaining reimbursement by third-party payors; our anticipated future cash position; and future events under our current and potential future collaborations. 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.

AYTU BIOSCIENCE, INC.

Balance Sheet

Assets

Current assets

8,054,190

7,353,061

Accounts receivable, net

162,427

157,058

Inventory, net

524,707

39,442

Prepaid expenses and other

215,558

370,888

Prepaid research and development - related party

121,983

Investment in Acerus

1,041,362

Total current assets

10,120,227

8,042,432

Fixed assets, net

231,430

29,706

Developed technology, net

1,159,736

780,125

Customer contracts, net

1,353,375

711,000

Trade names, net

194,472

79,000

Natesto asset

10,549,797

Goodwill

221,000

74,000

In-process research and development

7,500,000

Patents, net

296,611

628,776

Long-term portion of prepaid research and development - related party

213,471

335,454

Deposits

Total long-term assets

14,222,780

10,142,947

Total assets

24,343,007

18,185,379

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable and accrued liabilities

3,519,711

1,195,368

Natesto payable

5,379,675

Accrued compensation

1,200,930

196,503

Deferred  revenue

85,714

Deferred rent

Total current liabilities

10,104,425

1,477,585

Contingent consideration

3,869,122

664,000

Long-term deferred revenue

425,893

Warrant derivative liability

275,992

Total liabilities

14,257,754

2,568,927

Commitments and contingencies

Stockholders' equity

Preferred Stock, par value $.0001; 50,000,000 shares authorized; none issued

Common Stock, par value $.0001; 100,000,000 shares authorized; shares issued

    and outstanding 3,741,944 in 2016 and 1,188,307 in 2015

Additional paid-in capital

56,646,304

38,997,674

Ampio stock subscription

(5,000,000

Accumulated deficit

(46,561,425

(18,381,341

Total stockholders' equity

10,085,253

15,616,452

Total liabilities and stockholders' equity

AYTU BIOSCIENCE INC.

Statement of Operations

Three Months Ended June 30,

Year Ended June 30,

Product and service revenue

489,984

160,608

2,050,838

176,068

License revenue

447,321

21,428

511,607

Total revenue

937,305

182,036

2,562,445

261,782

Operating expenses

Cost of sales

334,854

88,109

957,076

Research and development

2,819,763

801,236

6,127,772

3,219,361

Research and development - related party

47,997

47,998

191,991

203,992

Sales, general and administrative

3,101,554

1,292,472

8,517,592

3,980,974

Sales, general and administrative - related party

53,024

66,000

307,704

311,004

Impairment of intangible assets

Amortization of intangible assets

380,074

37,571

664,707

90,662

Total operating expenses

14,237,266

2,333,386

24,266,842

7,894,102

Loss from operations

(13,299,961

(2,151,350

(21,704,397

(7,632,320

Other (expense)

Interest (expense)

(1,063,351

(4,094

(5,491,486

(114,994

Unrealized loss on investment

(971,629

Derivative income (expense)

37,483

(12,572

Total other (expense)

(1,997,497

(6,475,687

Net loss, before income tax

(15,297,458

(2,155,444

(28,180,084

(7,747,314

Deferred income tax benefit

23,910

(7,723,404

Weighted average number of Aytu common shares outstanding

3,002,980

665,768

1,741,137

767,326

Basic and diluted Aytu net loss per common share

(16.18

(10.07

Statement of Cash Flows

Cash flows from operating activities

Stock-based compensation expense

902,946

1,017,938

Depreciation, amortization and accretion

874,789

118,202

Asset impairment

Amortization of debt issuance costs

182,759

Amortization of beneficial conversion feature

4,943,073

Noncash interest expense

221,024

Derivative expense

Amortization of prepaid research and development - related party

121,984

Unrecognized loss on investment

Deferred taxes

(23,910

Adjustments to reconcile net loss to net cash used in operating activities:

(Increase) in accounts receivable

(5,369

(157,058

(Increase) in inventory

(485,265

(39,442

Decrease in prepaid expenses and other

155,330

150,434

(Increase) in prepaid research and development - related party

(150,000

Increase in accounts payable and accrued liabilities

1,623,469

547,314

Increase in accrued compensation

1,004,427

(Decrease) in payable to Ampio

(607,061

Increase in deferred rent

10,875

(Decrease) in deferred revenue

(511,607

(85,714

Net cash used in operating activities

(10,657,449

(6,634,214

Cash flows used in investing activities

(4,886

Purchases of fixed assets

(252,932

Purchase of ProstaScint Business

(1,000,000

Purchase of Primsol asset

(1,040,000

Purchase of Natesto license

(2,000,000

(2,012,991

Net cash used in investing activities

(5,303,925

(1,004,886

Cash flows from financing activities

Proceeds from convertible note from Ampio converted to stock

7,400,000

Proceeds from convertible promissory notes, net

5,175,000

Debt issuance costs

(298,322

Costs related to the conversion of the convertible promissory notes to equity

(29,754

Ampio stock subscription payment

Luoxis option payout pursuant to the merger

(27,476

Liabilities paid out pursuant to the merger

(20,013

Sale of stock subscription

200,000

Proceeds from issuance of equity financing

7,520,493

Issuance costs related to equity financing

(904,914

Net cash provided by financing activities

16,662,503

12,352,511

Net change in cash and cash equivalents

701,129

4,713,411

Cash and cash equivalents at beginning of period

2,639,650

Cash and cash equivalents at end of period

Non-cash transactions:

Ampio unpaid debt converted to stock, received prior to 2015

4,600,000

Contingent consideration related to the ProstaScint purchase

Warrant derivative liability related to the issuance of the convertible promissory notes

102,931

Primsol asset purchase included in primsol payable, $1,250,000 less future accretion of $173,000

1,077,000

Conversion of convertible promissory notes and interest of $221,000 to common stock

5,396,024

Natesto asset purchase included in Natesto payable, $6,000,000 less future accretion of $620,325

Warrant derivative liability related to the issuance of the registered offering placement agent warrants

297,317

Reclassification of liability based warrants to equity presentation related to the convertible promissory notes

136,828

Beneficial conversion feature related to convertible promissory notes

Debt issuance costs related to notes that converted to equity

(218,494

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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