Aytu BioPharma, Inc. has announced the completion of amendments to certain warrants issued in connection with public equity offerings conducted in June 2023 and June 2025. The amendments were made to clarify the terms of the warrants, specifically addressing ambiguities related to beneficial ownership blockers and Nasdaq ownership blockers that had previously required the company to classify the warrants as liabilities rather than equity. This classification resulted in significant liabilities being recorded in the company's financial statements, amounting to $18.1 million and $25.2 million for the quarters ending September 30, 2025, and December 31, 2025, respectively.

The amendments, finalized on March 31, 2026, include the introduction of an Amended and Restated June 2023 Prefunded Warrant, an Amended and Restated June 2023 Tranche A Warrant, and an Amended and Restated June 2025 Prefunded Warrant. These changes are expected to allow for the warrants to be classified as equity going forward, which should reduce the company's warrant liability and increase its equity value correspondingly.

The company has indicated that the amendments will clarify that stockholder votes cannot amend or change the blockers associated with the warrants, thereby providing more certainty regarding the accounting treatment of these financial instruments. A copy of the amended warrants has been filed as an exhibit to the company's Form 8-K, which details the changes made and their implications for the company's financial reporting. This move is seen as a positive step towards improving the company's financial health and transparency, potentially enhancing investor confidence.

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