Good afternoon, and thank you for joining us at the Aytu BioScience Third Quarter Fiscal 2020 Business Update Call for the quarter ending March 31, 2020. With me this afternoon are Aytu's Chairman and Chief Executive Officer, Josh Disbrow; and Chief Financial Officer, Dave Green. Aytu Bioscience issued a press release earlier this afternoon with details of the company's operational and financial results for the third quarter. A copy of the press release is available on the news page of the company's website at aytubio.com. I'd like to remind everyone that today's call is being recorded. A replay of today's call will be available by using the telephone numbers and conference ID provided in the earnings press release. In addition, a webcast will be accessible live and archived on Aytu's website within the Investors section under the Events and Presentations at aytubio.com. Finally, I'd also like to call your attention to the customary Safe Harbor disclosure regarding forward-looking information. The conference call today will contain certain forward-looking statements, including statements regarding the goals, strategies, beliefs, expectations and future potential operating results of Aytu BioScience. Although management believes these statements are reasonable based on estimates, assumptions and projections as of today, May 14, 2020, these statements are not guarantees of future performance. Time-sensitive information may no longer be accurate at the time of any telephonic or webcast replay. Actual results may differ materially as a result of risks, uncertainties and other factors, including, but not limited to, the factors set forth in the company's filings with the SEC. Aytu undertakes no obligation to update or revise any of these forward-looking statements. I'd now like to turn the call over to Aytu's CEO, Josh Disbrow. Please go ahead Mr. Disbrow.

Thank you, Jerry. Good afternoon, everyone. Thanks for joining today's call during which Dave and I will review our fiscal Q3 performance and highlight the company's operational developments and key achievements. And we'll provide an important update on our COVID-19 initiatives. To say the least, we had an exceptional quarter and one I'd call transformative in multiple ways. First, looking at the topline, Q3 was our highest revenue quarter in the company's history with $8.2 million in sales. Importantly, that quarterly revenue number exceeds what we did all of last fiscal year combined, yet only includes half of the quarter for the newly acquired Innovus Consumer Health business segment. Also, that revenue number does not include any sales related to the COVID-19 rapid tests as those sales didn't begin until our Q4. Next, from an operational perspective, we achieved an important milestone midway through the quarter as we successfully closed the Innovus Pharmaceuticals acquisition. We are now well underway in integrating that business. Beginning with the current June quarter, our fiscal Q4, we are booking the entire consumer and Rx business revenues. We're also now booking COVID-19 test revenue. So we expect this quarter to look very different than Q3. Also from an operational perspective, Q3 was the first full quarter of having the former Cerecor commercial business integrated and asset purchase we closed six months ago back in November. I am pleased with the progress on that front and believe we have strong growth ahead of us on the Rx side of the business. Perhaps the most important highlight from the quarter is that we entered the COVID-19 fight. We acquired the distribution rights to COVID-19 rapid test and subsequent to the end of the market quarter began distributing the test in the U.S. Following Q3, we acquired the…

Thank you, Josh and thank you all for joining us. Today, I'll review the financial results for our third quarter that ended March 31, 2020. As a reminder, we have a June 30, fiscal year end. I'll preface my comments today by sharing that this has been a most productive time for Aytu. Despite the disruption many have felt as a result of the COVID-19 pandemic, we at Aytu have been more productive than ever. From acquiring and distributing COVID-19 antibody test kits to first responders and others to integrating two transformational transactions, taking on the development of the promising Healight technology, and finally raising more than $70 million during the quarter. This has been an incredibly productive period for Aytu and our results show it. Topline net revenue for Q3 is an all-time high of $8.2 million, substantially higher than the $3.2 million reported last quarter and the $2.4 million reported for Q3 last year. In fact our Q3 2020 million of $8.2 million is greater than the revenue that Aytu generated in all of fiscal year 2019. The substantial growth was due to recognizing revenues from both, the Cerecor and Innovus transactions on top of legacy Aytu revenue. In Q3 we recognized a full quarter of revenue from the Cerecor products acquired in Q2 and we captured a partial quarter of Innovus revenue after closing the merger in February. Year-to-date 2020 net revenue is $12.8 million more than doubling the $5.6 million reported for the same nine-month period last year. Gross profit for Q3 was $6.2 million representing a gross profit margin of 75.5%. Going forward we expect gross profit margins in the range of 70% to 75% depending on business mix. Operating expenses excluding cost of goods sold were $10.95 million for the quarter. This compares to…

Thank you, Dave. As it relates to the company's operations, let me first touch on the core Rx and consumer health businesses. I'll come back to our COVID-19 efforts near the end of my prepared remarks. I'll first speak to the newly acquired consumer health business unit, Innovus Pharmaceuticals. Again, we closed this acquisition on February 14, and only have half of the quarter's revenue for the consumer segment which was $3.45 million. It was a solid quarter for this business segment and we're excited about the growth ahead. We're also looking forward to realizing some key synergies and we've already begun to rationalize many of the consumer segments overlapping G&A functions with the aim of getting this unit to profitability. Importantly, Innovus' unique blend of direct-to-consumer marketing and e-commerce has enabled the Consumer Health segment of our business to continue with relatively little disruption due to COVID-19. While we do expect some impact, we'd expect it to be relatively modest. People, more than ever, are of course staying home due to the virus, so the e-commerce function in particular has continued to be strong for our Consumer Health business. An important product launch for the Innovus team was Regoxidine, excuse me, a hair loss treatment for men and women that competes with Rogaine. This is a consumer health category with approximately 50 million retail units sold in the U.S. annually. The team has been pleased with the product sales performance in the early weeks. For the Consumer Health business, the plan is to continue to build out the OTC medicines and supplements franchise and launch new products over the coming quarter and they are right on track in preparing for these product launches. The product selection strategy we apply to both business segments are similar. We identify novel products…

Thank you. [Operator Instructions] We have a question from Jeffrey Cohen, Ladenburg Thalmann. Please go ahead sir.

Hi Josh and Dave, how are you?

Hi Jeff, doing well, thank you.

Hi Jeff.

So, first, just a clarification, I believe you already sold the first lot of the L.B. tests and you were referring to the second one, and we're talking about that you received in your U.S. warehouse or is that a reference to the first one?

The second batch that we had been talking about, that we've been expecting, yes that's what I am referring to.

Okay, so you received some portion of it, I imagined you had received all of it, because it is pretty big?

We've got a big supply, so we'll leave it at that and we want to steer clear of giving people up to the second of exactly how many and exactly when it is coming, but the bottom line is we have a very adequate supply at the moment and expect to have additions to that going forward.

Okay, can you give us any further color on the revenue composition for the quarter? I know you called out Innovus approximately $3.5 million and I am assuming that was the portion for half the quarter that you booked correct?

That is correct and then the other portion would have been attributable to the Rx business and really fairly well spread out. It is a pretty good distribution of revenue across the product mix.

And Jeff, going forward we'll be breaking out, we'll have two segments now, we'll have the Consumer Health segment and the Rx segment, so we always talked about the Rx segment as one business and the Consumer Health business is a business.

Okay, and I'm assuming also the first lot from L.B. was included in the quarter as well?

Yes, so just to be clear, there was no revenue in Q3 from the COVID-19 test kits, no revenue at all. It will begin falling in Q4.

Got it, okay. Thanks for the clarifications. Can you give us any color on the experience that Innovus has had over the past say six or eight weeks, I imagine that some businesses online in and the situation had been somewhat weak over the past six to eight weeks, any color there or any - what's been going on there, what you’re seeing?

Yes, so the [indiscernible] business is actually holding in their pretty strongly I'd say. There's really two pieces of their business. The direct mail approach has had some slowing largely due to the U.S. mail moving slow and that's due to the COVID-19 pandemic. The online sales has been as expected, so really no introductions, no slowdowns there at all. So overall we're pleased with how Innovus is operating right now.

Fantastic. And then lastly from, based on this quarter release and your forward guidance on margins in the 70% to 75% mix, is it safe to say at that point then call it, I don't know, $12 million to $14 million per quarter on a top line basis gets you producing cash?

Well, you know, so here's the, with the merger and the acquisition Jeff we're still not fully consistent on our operating expenses. I mean, the gross profit margin we're confident will fall in the 70% to 75% range. The Innovus gross profit margin is a little bit lower, quite a bit lower than the Rx side of the business. But, you know, as we look at the expected revenue, contributions from both sides, we're, we're confident in that range. The operating expenses, you know, there's still duplicative costs that we're running through. You know, there's some adjustments and headcount. You know, there's shuffling of resources and such. So, you know, operating expenses will go up a little bit next quarter, because we will have a full quarter of Innovus, but we do expect to have some reductions as well. So it won't be an exact increase of expenses due to the other half of Innovus. So there'll be some economies there, but after we get through next quarter, we'll have a much better view to what kind of ongoing cost structure is going to look like.

Got it, okay. And then lastly from me the Healight development at Sterling, I'm assuming that would be a Class II 510 (k) finally?

That's the expectation. There's a near term thought, obviously around COVID that would be an abbreviated pathway if the FDA clears it that way. But yes, the expectation is that would be a Class II 510 (k). And as we mentioned, we'll look at other conditions outside of COVID obviously thinking beyond the pandemic, such as ventilator associated pneumonia, influenza, and potentially beyond that. So I think the potential for it is quite broad, but obviously, we're in the very early stages of really establishing what the specific clinical applications will be likely because it may be so broad.

Okay, got it. That does it for me. Thanks for taking the questions.

Thanks, Jeff.

Thanks Jeff.

There are no further questions. I'd like to turn the conference back over to Josh Disbrow for closing remarks. Please go ahead, sir.

Thank you, Jerry. Thank you, Jeff, for the questions. Thanks to everyone for joining our call this afternoon. We're looking forward to sharing our fourth quarter and our full year fiscal 2020 results when we report those out in September. So in the meantime, we will continue to keep you informed of important updates along the way. Thanks very much. Have a good evening.

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.