AYTU
BIOSCIENCE, INC.
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(Exact
Name of Registrant as Specified in Charter)
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Delaware
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001-38247
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47-0883144
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(State
or Other Jurisdictionof Incorporation)
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(CommissionFile
Number)
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(IRS
EmployerIdentification No.)
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373
Inverness Parkway, Suite 206, Englewood, Colorado
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80112
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(Address
of Principal Executive Offices)
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(Zip
Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common
Stock, par value $0.0001 per share
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AYTU
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The
NASDAQ Stock Market LLC
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Exhibit
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Description
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Press
Release dated May 14, 2019
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AYTU BIOSCIENCE, INC.
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Date:
May 14, 2019
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By:
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/s/
Joshua Disbrow
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Name:
Joshua Disbrow
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Title:
Chief Executive Officer
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March
31,
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June
30,
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2019
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2018
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(unaudited)
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Assets
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Current
assets
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Cash and cash
equivalents
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$14,647,402
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$7,012,527
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Restricted
cash
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100,296
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100,000
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Accounts
receivable, net
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1,376,358
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578,782
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Inventory,
net
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1,530,083
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1,338,973
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Prepaid
expenses and other
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804,840
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440,009
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Total current
assets
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18,458,979
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9,470,291
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Fixed assets,
net
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219,177
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218,684
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Licensed
assets, net
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19,430,767
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11,120,086
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Patents,
net
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226,944
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245,944
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Deposits
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2,200
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5,088
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Total
long-term assets
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19,879,088
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11,589,802
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Total
assets
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$38,338,067
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$21,060,093
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Liabilities and Stockholders'
Equity
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Current
liabilities
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Accounts
payable and other
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$2,131,251
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$2,119,672
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Accrued
liabilities
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772,140
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185,882
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Accrued
compensation
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791,586
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540,674
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Current
deferred rent
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-
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1,450
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Current
contingent consideration
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808,779
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547,100
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Total current
liabilities
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4,503,756
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3,394,778
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Long-term
contingent consideration
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12,633,824
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4,146,829
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Long-term
debt - related party (Note 11)
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5,134,795
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-
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Warrant
derivative liability
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28,513
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93,981
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Total
liabilities
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22,300,888
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7,635,588
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Commitments
and contingencies (Note 7)
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Stockholders'
equity
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Preferred
Stock, par value $.0001; 50,000,000 shares authorized; shares
issued
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and
outstanding 2,335,665 and 0, respectively as of
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March
31, 2019 and June 30, 2018
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234
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-
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Common Stock,
par value $.0001; 100,000,000 shares authorized; shares
issued
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and
outstanding 12,848,499 and 1,794,762, respectively as
of
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March
31, 2019 and June 30, 2018
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1,285
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179
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Additional
paid-in capital
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107,893,259
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92,681,918
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Accumulated
deficit
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(91,857,599)
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(79,257,592)
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Total
stockholders' equity
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16,037,179
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13,424,505
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Total
liabilities and stockholders' equity
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$38,338,067
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$21,060,093
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Three Months
Ended March 31,
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Nine Months
Ended March 31,
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||
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2019
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2018
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2019
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2018
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Product
revenue, net
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$2,372,016
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$607,473
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$5,598,836
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$2,734,995
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License
revenue, net
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5,776
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-
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5,776
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-
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Total
revenue
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2,377,792
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607,473
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5,604,612
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2,734,995
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Operating
expenses
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Cost
of sales
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616,853
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1,136,833
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1,552,950
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1,809,445
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Research and
development
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108,901
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114,141
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413,808
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(22,391)
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Selling,
general and administrative
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5,368,762
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4,637,495
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13,991,516
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13,809,264
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Selling,
general and administrative - related party (Note 11)
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6,797
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-
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351,843
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-
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Impairment of
intangible assets
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-
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1,856,020
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-
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1,856,020
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Amortization
of intangible assets
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575,117
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387,606
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1,561,137
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1,156,258
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Total
operating expenses
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6,676,430
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8,132,095
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17,871,254
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18,608,596
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Loss from
operations
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(4,298,638)
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(7,524,622)
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(12,266,642)
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(15,873,601)
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Other
(expense) income
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Other
expense, net
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(194,703)
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(186,629)
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(398,833)
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(572,155)
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Derivative
(expense) income
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(2,521)
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3,139,971
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65,468
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3,957,756
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Other
gain
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-
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1,753,568
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-
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1,753,568
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Total other
(expense) income
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(197,224)
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4,706,910
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(333,365)
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5,139,169
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Net
loss
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$(4,495,862)
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$(2,817,712)
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$(12,600,007)
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$(10,734,432)
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Weighted
average number of
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common shares
outstanding
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9,061,023
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592,771
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5,785,669
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250,478
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Basic and
diluted net loss
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per common
share
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$(0.50)
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$(4.75)
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$(2.18)
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$(42.86)
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Nine Months
Ended March 31,
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2019
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2018
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Cash flows from
operating activities
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Net
loss
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$(12,600,007)
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$(10,735,432)
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Adjustments to
reconcile net loss to cash used in operating
activities
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Depreciation,
amortization and accretion
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1,974,213
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1,975,448
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Stock-based
compensation expense
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121,979
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288,010
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Issuance of
restricted stock
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600,863
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158,585
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Issuance of common
stock to employee
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11,690
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-
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Derivative
(income)
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(65,468)
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(3,957,756)
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Impairment of
intangible assets
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-
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1,856,020
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Other
gain
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-
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(1,753,568)
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Issuance of
warrants
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-
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179,287
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Warrant
amendment
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-
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4,633
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Changes in
operating assets and liabilities:
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(Increase) in
accounts receivable
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(797,576)
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(204,437)
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(Increase) decrease
in inventory
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(191,110)
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428,401
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(Increase) in
prepaid expenses and other
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(364,831)
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(586,139)
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(Decrease) increase
in accounts payable and other
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(17,769)
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967,641
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Increase (decrease)
in accrued liabilities
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586,258
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(571,121)
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Increase in accrued
compensation
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250,912
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558,451
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Increase in
interest payable - related party
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134,795
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-
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(Decrease) in
deferred rent
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(1,450)
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(5,005)
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Net cash used in
operating activities
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(10,357,501)
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(11,396,982)
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Cash flows used in
investing activities
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Deposit
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2,888
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-
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Purchases of
property and equipment
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(59,848)
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(74,707)
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Contingent
consideration payment
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(408,917)
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(7,385)
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Purchase of
assets
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(500,000)
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-
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Net cash used in
investing activities
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(965,877)
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(82,092)
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Cash flows from
financing activities
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Issuance of
preferred, common stock and warrants
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15,180,000
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24,740,015
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Issuance costs
related to preferred, common stock and warrants
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(1,479,963)
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(2,697,066)
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Warrant
exercises
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258,512
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640,380
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Issuance of debt -
related party
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5,000,000
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-
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Net cash provided
by financing activities
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18,958,549
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22,683,329
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Net change in cash,
cash equivalents and restricted cash
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7,635,171
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11,204,255
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Cash, cash
equivalents and restricted cash at beginning of period
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7,112,527
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877,542
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Cash, cash
equivalents and restricted cash at end of period
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$14,747,698
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$12,081,797
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