Note 11 - Capital Structure

9 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

11.

Capital Structure

The Company has

200

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. On 

March 31, 2021

and

June 30, 2020

, Aytu had

23,457,887

 and

12,583,736

 common shares outstanding, respectively, and

zero

preferred shares outstanding, respectively.

Included in the common stock outstanding are

274,635

 shares of restricted stock issued to executives, directors, employees, and consultants.

In

June 2020,

the Company initiated an at-the-market offering program ("ATM"), which allows the Company to sell and issue shares of the Company's common stock from time-to-time. The company has issued

430,230

shares of common stock, with total gross proceeds of

$6.8

 million before deducting underwriting discounts, commissions and other offering expenses payable by the Company of

$0.2

million through

June 30, 2020. 

The Company did

not

issue any shares of common stock under the ATM during the

three

months ended

March 31, 2021,

and has issued

352,912

shares of common stock under the ATM, with total gross proceeds of approximately

$3.6

 million before deducting underwriting discounts, commissions, and other offering expenses payable by the Company of

$1.6

 million during the

nine

months ended

March 31, 2021.

Since initiated in

June 2020

through

March 31, 2021,

the total number of shares of common stock issued under the ATM was

783,142,

with total gross proceeds of

$10.4

million before deducting underwriting discounts, commissions and other offering expenses payable by the Company of

$1.8

 million.  

The Company entered into

three

separate registered direct stock offerings on

March 10, 2020,

March 12, 2020

and

March 19, 2020 (

the

“March

Offerings”) in which the Company issued a combination of common stock and warrants. In

July 2020,

the Company paid

$1.5

million issuance cost in cash related to the

March

Offerings and issued

92,302

warrants to purchase

92,302

shares of the Company's common stock with a weighted-average exercise price of

$15.99

to an investment bank conjunction with the

March 2020

offerings. The warrants have a term of

one

year from the issuance date. These warrants had at issuance a fair value of approximately

$356,000

and were valued using a Black-Scholes model.

On

December 10, 2020,

the Company entered into an exchange agreement to exchange the

$0.8

million of debt outstanding for

130,081

shares of the Company's common stock (see Note

15

).

On

December 

10,

2020,

the Company entered into an underwriting agreement with H.C. Wainwright & Co., LLC (“Wainwright”) (as amended and restated, the “Underwriting Agreement”). Pursuant to the Underwriting Agreement, the Company agreed to sell, in an upsized firm commitment offering,

4,166,667

shares (the “Shares”) of the Company's common stock,

$0.0001

par value per share (the “Common Stock”), to Wainwright at an offering price to the public of

$6.00

per share, less underwriting discounts and commissions. In addition, pursuant to the Underwriting Agreement, the Company granted Wainwright a

30

-day option to purchase up to an additional

625,000

shares of Common Stock at the same offering price to the public, less underwriting discounts and commissions. Wainwright exercised their over-allotment option in full, purchasing total common stock of 

4,791,667

 shares. The Company raised gross proceeds of

$28.8

million through this offering. Offering costs totaled

$2.6

million resulting in net cash proceeds of

$26.2

million. In connection with the offering, the Company issued 

311,458

 underwriter warrants to purchase up to 

311,458

shares of common stock. The exercise price per share of the underwriter warrants is

$7.50

(equal to

125%

of the public offering price per share for the shares of common stock sold in the offering) and the underwriter warrants have a term of

five

years from the date of effectiveness of the offering. The underwriter warrants are exercisable immediately. These warrants have fair value of approximately

$1.3

million and are classified with the stockholders' equity.

On

March 19, 2021,

upon closing of the Neos Merger, the Company issued

5,447,000

shares of its common stock to acquire all the outstanding shares of common stock of Neos. In addition, pursuant to the agreement in the Neos Merger, the Company issued

24,804

 shares of common stock to settle the accelerated restricted stock units of former Neos directors and officers (see Note

2

).

On

March 20, 2021,

the Company paid the CVR holders approximately

103,000

 shares of the Company's common stock to satisfy

one

of

two

$1.0

million

2020

milestones, which relates to the Innovus achievement of

$30.0

 million in revenues during the

2020

 calendar year.