Exhibit 99.1

Nuelle, Inc.

Financial Statements

As of and for the Year Ended June 30, 2016

(With Independent Auditor’s Report Thereon)

And

As of March 31, 2017, and for the Nine Month Period Ended March 31, 2017

(Unaudited)

NUELLE, INC.

Table of Contents

INDEPENDENT AUDITORS' REPORT

The Directors

Nuelle, Inc.

Englewood, Colorado

We have audited the accompanying financial statements of Nuelle, Inc. (the "Company"), which are comprised of the balance sheet as of June 30, 2016, and the related statements of operations, changes in stockholders' deficit, and cash flows for the year then ended, and the related notes to the financial statements.

MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

The Directors

Nuelle, Inc.

Page Two

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OPINION

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Nuelle, Inc. as of June 30, 2016, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

EKS&H LLLP

July 20, 2017

Denver, Colorado

See notes to financial statements.

See notes to financial statements.

Supplemental disclosure of cash flow information:

See notes to financial statements.

NUELLE, INC.

Property and equipment are summarized as follows:

Depreciation expense for the nine-month period ended March 31, 2017 (unaudited) and the year ended June 30, 2016 was $175,916 and $196,487, respectively.

Software development costs are summarized as follows:

Amortization expense for the nine-month period ended March 31, 2017 (unaudited) and the year ended June 30, 2016 was $32,828 and $41,449, respectively.

The Notes are convertible at the option of the holder upon a non-qualified transaction or any time prior to maturity date. There is an automatic conversion upon Qualified Financing. A Qualified Financing is defined as a transaction or series of transactions pursuant to which the Company issues and sells shares of its preferred stock for an aggregate gross proceeds of at least $5,000,000 (excluding all proceeds from the incurrence of indebtedness that is converted into such preferred stock, or otherwise cancelled in consideration for issuance of such preferred stock) with the principal purpose of raising capital.

In regards to the voluntary conversion upon a non-qualified transaction, the outstanding principal amount of the Notes and all accrued and unpaid interest shall convert into preferred stock at a price per share equal to 80% of the lowest price per share paid by other purchasers in the non-qualified financing.

NUELLE, INC.

Notes to Financial Statements

Note 3 - Notes Payable (continued)

In regards to the voluntary conversion at any time prior to maturity, the outstanding principal and all accrued and unpaid interest shall convert into preferred stock at price per share of $0.53. The related beneficial conversion feature is de minimis.

The automatic conversion upon Qualified Financing, the outstanding principal and accrued and unpaid interest shall convert into preferred stock at a price per share equal to 80% of the lowest price per share paid by other purchasers in the Qualified Financing.

Note 4 - Stockholders' Deficit

On March 28, 2016, the Company increased the number of authorized shares of common stock from 65,000,000 to 70,000,000. At the nine-month period ended March 31, 2017 (unaudited) and the year ended June 30, 2016 there were 11,517,853 and 11,517,853 shares of common stock, respectively, issued and outstanding. The par value of each share of common stock is $0.001.

2016 Conversion

In 2016, investors with preferred shares were asked to participate in the Notes. Those preferred shareholders that did not participate in the Notes had their preferred shares converted to common stock. A total of 1,425,553 of common stock were issued to convert 1,233,950 shares of Series A and 1,919,603 shares of Series A-1.

Common Stock Repurchased

During 2016, the Company authorized the purchase of 87,500 shares of the Company's common stock. Subject to applicable security laws, repurchases may be made at such times, and in such amounts, as the Company deems appropriate. As of June 30, 2016, the Company had repurchased 87,500 shares at a price of $0.001.

Preferred Stock

On March 28, 2016, the Company increased the number of authorized shares of preferred stock from 44,000,000 to 55,413,755. The Company has designated 29,313,755 shares as Series A Preferred Stock ("Series A Preferred") and 26,100,000 as Series A-1 Preferred Stock ("Series A-1 Preferred") (collectively, "Preferred Stock"). At March 31, 2017 (unaudited) and June 30, 2016, there were 28,079,807 and 11,871,163 of Series A Preferred and Series A-1 Preferred issued and outstanding, respectively.

NUELLE, INC.

Notes to Financial Statements

Note 4 - Stockholders' Equity (continued)

Preferred Stock (continued)

Voting Rights

The holders of the common stock are entitled to one vote for each share of common stock held at all meetings of stockholders. Each holder of Preferred Stock shares is entitled to the number of votes equal to the number of shares of voting common stock into which the Preferred Stock shares held could be converted as of the record date. The holders of Preferred Stock shares will vote together with the holders of common stock as a single class.

Dividend Rights

The holders of Preferred Stock are entitled to receive, when and if declared by the Board of Directors of the Company, a dividend at a rate of $0.0424 per share per annum, which is subject to adjustment, as provided in the Amended and Restated Certificate of Incorporation (the "Agreement"). Dividends are payable prior and in preference to any payment of any dividend on the common stock of the Company. The right to such dividends are not cumulative. The Board of Directors has not declared any dividends since inception; therefore, as of March 31, 2017, (unaudited) and June 30, 2016, no dividends payable have been recorded.

Liquidation Rights

Proceeds from the sale, liquidation, or similar event, after settlement of debts and obligations, including liquidation and dissolution expenses, will be distributed in accordance with the following order and priority:

First, to the holders of Preferred Stock, pro rata, with equal priority between Series A Preferred and Series A-1 Preferred, in an amount equal to $0.53 per share, which is subject to adjustment, as provided in the Agreement, plus any dividends declared but unpaid on such shares or an amount per share that would have been payable had all shares of Preferred Stock been converted into common stock immediately prior to such liquidation, dissolution, winding up, or deemed liquidation event. At March 31, 2017 (unaudited) and June 30, 2016, Series A Preferred and Series A-1 Preferred had liquidation preference of 14,882,298 and 7,207,556, respectively.

Thereafter, to the holders of the shares of common stock, pro rata based on the number of shares of common stock held by each such holder.

Conversion Rights

Preferred Stock shares are convertible, at the option of the holder, at any time after the date of issuance into that number of fully paid shares of common stock determined by dividing the conversion price, as defined below, per share in effect at the time of conversion into the conversion value, as defined below, per share of such Preferred Stock. The conversion price is $0.53 for each Preferred Stock share, subject to adjustment, as defined in the Agreement. The conversion value per share of Preferred Stock is $0.53.

NUELLE, INC.

Notes to Financial Statements

Note 4 - Stockholders' Equity (continued)

Preferred Stock (continued)

Conversion Rights (continued)

The Preferred Stock shares are automatically converted upon either (i) the closing of an initial public offering that results in a price of at least $2.65 per share (subject to adjustment, as defined in the Agreement) and $30,000,000 of gross proceeds or (ii) the date and time, or the occurrence of an event, specified by vote or written consent of the holders of a majority of the then outstanding Preferred Stock shares, into voting common stock at the then applicable conversion rate.

Stock Options

The Company adopted a stock incentive plan in 2014 (the "Plan"), which was effective as of January 10, 2014. The Plan allows the Company to issue stock options for the purchase of 5,000,00 shares of common stock, which was increased to 9,300,000 effective April 10, 2015. The following stock option transactions occurred during the period presented in accordance with this plan.

As of June 30, 2015, there were 5,259,056 options outstanding, from previous issuances. During the year ended June 30, 2016, the Company recognized approximately $102,637 of compensation expense related to these issuances. As of June 30, 2016, there is $270,615 of stock-based compensation yet to be recorded related to this issuance.

During the year ended June 30, 2016, the Company issued options to various employees and board members. During the year ended June 30, 2016, the Company recognized approximately $32,058 of compensation expense related to these issuances. As of June 30, 2016, there is $149,282 of stock-based compensation yet to be recorded related to this issuance.

During the nine-month period ended March 31, 2017 (unaudited), no options were granted and the Company recognized approximately $14,772 of compensation expense related to previously granted options. As of March 31, 2017 (unaudited), there is $134,560 of stock-based compensation yet to be recorded.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions used:

Note 5 - Income Taxes

The Company did not provide a current or deferred U.S. federal, state, or foreign income tax provision or benefit for any of the periods presented because it has experienced recurring operating losses. The Company has provided a full valuation allowance on the deferred tax asset, consisting primarily of the net operating loss, because of uncertainty regarding its realizability.

At June 30, 2016, the Company had net operating losses of approximately $9.9 million, respectively, related to U.S. federal, state, and foreign jurisdictions. Utilization of the net operating losses, which expire at various times starting in 2033, may be subject to certain limitations under Section 382 of the Internal Revenue Code of 1986, as amended, and other limitations under state and foreign tax laws.

NUELLE, INC.

Notes to Financial Statements

Note 5 - Income Taxes (continued)

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets are approximately as follows:

Note 6 - Subsequent Events

On May 3, 2017, the Company entered into a Merger Agreement with Aytu BioScience, Inc. ("Aytu") and its stockholders, pursuant to which Nuelle would become a wholly owned subsidiary of Aytu (the “Merger”). The Merger closed on May 5, 2017.

In the Merger, (i) each share of Nuelle common stock and each option or warrant to purchase Nuelle stock was cancelled, and (ii) each share of Nuelle preferred stock was converted into the right to receive shares of Aytu's common stock. Aytu issued to the Nuelle preferred stockholders an aggregate of 2,500,000 shares of Aytu common stock.

In addition, Nuelle preferred stockholders will be entitled to revenue earn-out payments equal to a designated percentage of net sales on tiers of net sales up to $100.0 million, with an average rate for all tiers in the mid-single digit range and a maximum aggregate payout of $6.9 million. Nuelle stockholders additionally will be entitled to milestone earn-out payments of up to a potential aggregate of $24 million, upon the attainment by Aytu of designated net sales thresholds over any sequential four calendar quarter period.

The first $1.0 million of earn-out payments will be paid in shares of Aytu common stock and all other earn-out payments will be comprised of 60% cash and 40% shares of Aytu common stock. The stock portion of any earn-out will be calculated by dividing each Nuelle stockholder’s portion of the earn-out by the average closing price of Aytu common stock for the 10 trading days prior to the earlier of the date Aytu delivers notice to the Nuelle stockholders of the earn-out or any public disclosure by Aytu of the earn-out being due and payable.

NUELLE, INC.

Notes to Financial Statements

Note 6 - Subsequent Events (continued)

In the event that Aytu does not make all of the required earn-out payments to the Nuelle stockholders before May 3, 2022, and Aytu also closes a divestiture before May 3, 2022 of any of the products acquired in the Merger, Aytu will pay the Nuelle stockholders a combination of (i) cash in an amount equal to 10% of the value of all cash, securities and other property paid to Aytu in the divestiture (cash is to be up to 60% of the total consideration), and (ii) shares of Aytu common stock equal to the Nuelle stockholders’ portion of the divestiture payment divided by the average closing price of Aytu common stock for the 10 trading days prior to the earlier of the closing date of the divestiture or the public disclosure of the divestiture (shares of common stock are to be 40% of the total consideration).

No officer or director of Nuelle will become an officer or director of Aytu as a result of the Merger.

In the Merger Agreement, Aytu agreed to indemnify all past and present officers and directors of Nuelle to the fullest extent under applicable law for six years for acts or omissions that occurred prior to the Merger. Aytu also agreed to indemnify each Nuelle stockholder and their respective affiliates for any fraud by the Company or a subsidiary of the Company, any breach by Aytu or a subsidiary of any covenant in the Merger Agreement, and any design, sale, manufacture or any other activities primarily associated with Aytu products in development before the Merger. Each Nuelle stockholder agreed to indemnify Aytu for any fraud by Nuelle or any of its stockholders, any breach by Nuelle of any covenant in the Merger Agreement, and any pre-Merger tax liability.

Exhibit 99.2

Aytu BioScience, Inc. Unaudited Pro Forma Combined

Financial Statements

On May 3, 2017 (the “Date of the Merger”), the Aytu BioScience, Inc. (“the Company”) entered into a Merger Agreement with Nuelle, Inc. (the “Seller” or “Nuelle”). The Merger closed on May 5, 2017.

The Company’s unaudited pro forma combined financial statements as of and for the year end June 30, 2016 and the nine months ended March 31, 2017 are based on the historical audited and unaudited combined financial statements of the Company (as filed with the Securities and Exchange Commission (the “SEC”)) in its Form 10-K filed September 1, 2016 and quarterly report on Form 10-Q filed on May 11, 2017 (“Quarterly Report”), combined with the audited financial statements of Nuelle as of and for the year ended June 30, 2016 and the unaudited financial statement as of and for the nine month period ended March 31, 2017, as filed as Exhibit 99.1 to the Company’s Amendment No. 1 to the Current Report on Form 8-K/A dated July 20, 2017 (the “Amendment No. 1 to the Current Report on Form 8-K/A”) after giving effect to the Company’s acquisition of certain operational assets and certain liabilities relating to Nuelle and includes the assumptions and adjustments as described in the accompanying notes hereto.

The unaudited pro forma combined balance sheet as of March 31, 2017, is presented as if the acquisition of Nuelle had occurred on March 31, 2017. The unaudited pro forma combined statement of operations for the year ended June 30, 2016 and the nine months ended March 31, 2017, gives effect to the acquisition as if it occurred on July 1, 2015. The unaudited pro forma combined financial statements are not intended to represent or be indicative of the financial condition of the combined entity that would have been reported if the acquisition had been consummated on July 1, 2015. In addition, the unaudited pro forma combined financial statements do not purport to project the future financial position of the Company as of the end of its fiscal year ended June 30, 2016, nine months ended March 31, 2017, or any other future periods.

The unaudited pro forma combined balance sheet has been prepared using the acquisition method of accounting. The estimated fair values of the acquired assets and assumed liabilities as of the date of acquisition, which are based on estimates and assumptions of the Company, the consideration paid and the entries to record the direct transaction costs incurred are reflected therein. As explained in more detail in the accompanying notes to the unaudited pro forma combined financial statements, the total consideration transferred of approximately $3.8 million to acquire Nuelle has been allocated to the assets acquired and assumed liabilities of Nuelle based upon preliminary estimated fair values at the date of acquisition. Independent valuation specialists have conducted analyses in order to assist management of the Company in determining the fair values of the selected assets and liabilities. The Company’s management is responsible for these internal and third party valuations and appraisals. The Company is continuing to finalize the valuations of these net assets. The fair value allocation consists of preliminary estimates and analyses and is subject to change upon the finalization of the appraisals and other valuation analyses, which will be completed prior to the Company’s filing of its Annual Report on Form 10-K with the SEC for its fiscal year ended June 30, 2017. Although the final determination may result in asset and liability fair values that are different than the preliminary estimates of these amounts included herein, it is not expected that those differences will be material to an understanding of the impact of this transaction on the financial results of the Company.

The unaudited pro forma combined financial statements of the Company and Nuelle have been provided to comply with the presentation of certain financial information relating to Nuelle in satisfaction of the requirements of Rule 8-05 of Regulation S-X, as required to be filed pursuant to Items 9.01(a) and 9.01 (b) of Form 8-K.

The unaudited pro forma combined financial statements of the Company and Nuelle, should be read in conjunction with the Current Report on Form 8-K filed on May 9, 2017, the historical financial statements and accompanying notes thereto of the Company contained in its Form 10-K, and Nuelle’s audited financial statements as of and for the year ended June 30, 2016 and as of and for the unaudited nine months ended March 31, 2017, included as Exhibit 99.1 in Amendment No.1 to the Current Report on Form 8-K/A.

Aytu BioScience, Inc. and Nuelle, Inc.

Notes to the Unaudited Pro Forma Combined Financial Statements