AYTU Biopharma has concluded that their previously issued financial statements should be restated due to the misclassification of outstanding warrants, resulting in an increase in liabilities and a decrease in shareholder's equity. The impact of this misclassification is not considered material to previous filings, but going forward, the warrants will be classified as liabilities, potentially affecting the company's results of operations. A material weakness in internal control over financial reporting has also been identified.