
Title of Each Class		Trading Symbol(s)		Name of Each Exchange on Which Registered
None.		None.		None.


		PAGE
PART I	3
	ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS	3
	ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	30
	ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	41
	ITEM 4. CONTROLS AND PROCEDURES	42
PART II	44
	ITEM 1. LEGAL PROCEEDINGS	44
	ITEM 1A. RISK FACTORS	44
	ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	46
	ITEM 3. DEFAULTS UPON SENIOR SECURITIES	46
	ITEM 4. MINE SAFETY DISCLOSURES	46
	ITEM 5. OTHER INFORMATION	46
	ITEM 6. EXHIBITS	47

PART I. Financial Information

Item 1. Consolidated Financial Statements

CytoDyn Inc.

Consolidated Balance Sheets

(Unaudited, in thousands, except par value)


	February 28, 2022		May 31, 2021
				(Revised) ⁽¹⁾
Assets
Current assets:
Cash	$	1,363	$	33,943
Restricted cash		1,000		—
Inventories, net		82,668		93,479
Prepaid expenses		6,135		616
Prepaid service fees		1,183		1,543
Total current assets		92,349		129,581
Operating leases - right-of-use asset		570		712
Property and equipment, net		117		134
Intangibles, net		1,043		1,653
Total assets	$	94,079	$	132,080
Liabilities and Stockholders’ (Deficit) Equity
Current liabilities:
Accounts payable	$	62,393	$	65,897
Accrued liabilities and compensation		9,418		19,073
Accrued interest on convertible notes		4,857		2,007
Accrued dividends on convertible preferred stock		3,635		2,647
Operating leases		136		175
Convertible notes payable, net		35,647		62,747
Total current liabilities		116,086		152,546
Long-term liabilities - operating leases		453		552
Total liabilities		116,539		153,098
Commitments and Contingencies (Note 10)
Stockholders’ (deficit) equity:
Preferred Stock, $0.001 par value; 5,000 shares authorized:
Series B convertible preferred stock, $0.001 par value; 400 shares authorized; 19 and 79 shares issued and outstanding at February 28, 2022 and May 31, 2021, respectively		—		—
Series C convertible preferred stock, $0.001 par value; 8 authorized; 7 and 8 issued and outstanding at February 28, 2022 and May 31, 2021, respectively		—		—
Series D convertible preferred stock, $0.001 par value; 12 authorized; 9 issued and outstanding at February 28, 2022 and May 31, 2021, respectively		—		—
Common stock, $0.001 par value; 1,000,000 shares authorized; 713,730 and 626,123 issued, and 713,287 and 625,680 outstanding at February 28, 2022 and May 31, 2021, respectively		713		626
Additional paid-in capital		612,905		512,796
Accumulated deficit		(636,078)		(534,440)
Treasury stock, $0.001 par value; 443 at February 28, 2022 and May 31, 2021		—		—
Total stockholders’ deficit		(22,460)		(21,018)
Total liabilities and stockholders' equity	$	94,079	$	132,080

(1) See Note 2, Correction of Immaterial Misstatements in Prior Period Financial Statements in Form 10-Q for the period ended November 30, 2021.

See accompanying notes to consolidated financial statements.

Table of Contents

CytoDyn Inc.

Consolidated Statements of Operations

(Unaudited, in thousands, except per share data)


	Three months ended February 28,				Nine months ended February 28,
	2022		2021		2022		2021
				(Revised) ⁽¹⁾				(Revised) ⁽¹⁾
Revenue:
Product revenue	$	—	$	—	$	266	$	—
Total revenue		—		—		266		—
Cost of goods sold:
Cost of goods sold		—		—		53		—
Total cost of goods sold		—		—		53		—
Gross margin		—		—		213		—
Operating expenses:
General and administrative		10,140		7,902		33,960		25,328
Research and development		9,128		12,323		31,952		44,061
Amortization and depreciation		129		511		657		1,522
Intangible asset impairment charge		—		10,049		—		10,049
Total operating expenses		19,397		30,785		66,569		80,960
Operating loss		(19,397)		(30,785)		(66,356)		(80,960)
Interest and other expense:
Interest on convertible notes		(1,187)		(1,257)		(4,299)		(2,870)
Amortization of discount on convertible notes		(637)		(157)		(2,382)		(2,739)
Amortization of debt issuance costs		(19)		(21)		(70)		(40)
Loss on extinguishment of convertible notes		(3,109)		(7,625)		(11,072)		(11,794)
Finance charges		(7,025)		(1)		(8,084)		(138)
Inducement interest expense		(954)		(5,360)		(6,186)		(12,922)
Legal settlement		—		—		(1,941)		—
Total interest and other expense		(12,931)		(14,421)		(34,034)		(30,503)
Loss before income taxes		(32,328)		(45,206)		(100,390)		(111,463)
Income tax benefit		—		—		—		—
Net loss	$	(32,328)	$	(45,206)	$	(100,390)	$	(111,463)

Basic and diluted loss per share	$	(0.05)	$	(0.08)	$	(0.15)	$	(0.19)
Basic and diluted weighted average common shares outstanding		695,614		577,854		663,373		595,226

(1) See Note 2, Correction of Immaterial Misstatements in Prior Period Financial Statements in Form 10-Q for the period ended November 30, 2021.

See accompanying notes to consolidated financial statements.

Table of Contents

CytoDyn Inc.

Consolidated Statement of Changes in Stockholders’ (Deficit) Equity

(Unaudited, in thousands)


	Preferred stock			Common stock			Treasury stock			Additional		Accumulated		Total stockholders'
	Shares	Amount		Shares	Amount		Shares	Amount		paid-in capital		deficit		(deficit) equity
											(Revised) ⁽¹⁾		(Revised) ⁽¹⁾		(Revised) ⁽¹⁾
Balance at May 31, 2021	96	$	—	626,123	$	626	443	$	—	$	512,796	$	(534,440)	$	(21,018)
For the three months ended August 31, 2021:
Issuance of stock for convertible note repayment	—		—	11,816		12	—		—		18,483		—		18,495
Issuance of legal settlement warrants	—		—	—		—	—		—		1,744		—		1,744
Exercise of stock options	—		—	300		—	—		—		189		—		189
Stock issued for incentive compensation and tendered for income tax	—		—	1,014		1	—		—		(1)		—		—
Stock issued for private offering ($1.00 per share)	—		—	2,872		3	—		—		2,869		—		2,872
Private warrant exchange	—		—	1,327		1	—		—		774		—		775
Exercise of warrants	—		—	668		1	—		—		502		—		503
Inducement interest expense related to private warrant exchange	—		—	—		—	—		—		528		—		528
Dividends accrued on Series C and D preferred stock	—		—	—		—	—		—		—		(420)		(420)
Stock-based compensation	—		—	—		—	—		—		2,597		—		2,597
Net loss	—		—	—		—	—		—		—		(31,458)		(31,458)
Balance at August 31, 2021	96		—	644,120		644	443		—		540,481		(566,318)		(25,193)
For the three months ended November 30, 2021:
Issuance of stock for convertible note repayment	—		—	8,162		8	—		—		11,505		—		11,513
Exercise of stock options	—		—	210		—	—		—		200		—		200
Private warrant exchange	—		—	6,593		7	—		—		4,608		—		4,615
Stock issued for private offering ($1.00 - $1.80 per share)	—		—	25,178		25	—		—		27,282		—		27,307
Issuance costs related to stock issued for private offering	—		—	—		—	—		—		(1,418)		—		(1,418)
Conversion of Series B convertible preferred stock to common stock	(60)		—	600		1	—		—		—		—		1
Exercise of warrants	—		—	963		1	—		—		532		—		533
Inducement interest expense related to private warrant exchange	—		—	—		—	—		—		4,704		—		4,704
Dividend declared and paid in common stock on Series B preferred stock ($0.25 per share)	—		—	35		—	—		—		17		(17)		—
Dividends accrued on Series C and D preferred stock	—		—	—		—	—		—		—		(414)		(414)
Stock-based compensation	—		—	—		—	—		—		2,060		—		2,060
Net loss	—		—	—		—	—		—		—		(36,604)		(36,604)
Balance at November 30, 2021	36		—	685,861		686	443		—		589,971		(603,353)		(12,696)
For the three months ended February 28, 2022:
Issuance of stock for convertible note repayment	—		—	17,132		17	—	—	—	—	12,048	—	—	—	12,065
Stock issued for private offering ($0.40 - $1.00 per share)	—		—	6,860		7	—		—		3,545		—		3,552
Conversion of Series C convertible preferred stock to common stock	(1)		—	2,200		2	—		—		(2)		—		—
Exercise of warrants	—		—	11		—	—		—		—		—		—
Modification of previously issued equity	—		—	1,179		1	—		—		953		—		954
Dividend declared and paid in common stock upon conversion of Series C preferred stock ($0.50 per share)	—		—	487		—	—		—		243		—		243
Dividends accrued on Series C and D preferred stock	—		—	—		—	—		—		—		(397)		(397)
Finance charges related to warrant issuance for surety bond backstop agreement	—		—	—		—	—		—		6,585		—		6,585
Stock-based compensation	—		—	—		—	—		—		(438)		—		(438)
Net loss	—		—	—		—	—		—		—		(32,328)		(32,328)
Balance at February 28, 2022	35	$	—	713,730	$	713	443	$	—	$	612,905	$	(636,078)	$	(22,460)

(1)

See Note 2, Correction of Immaterial Misstatements in Prior Period Financial Statements in Form 10-Q for the period ended November 30, 2021.

See accompanying notes to consolidated financial statements.

Table of Contents

CytoDyn Inc.

Consolidated Statement of Changes in Stockholders’ (Deficit) Equity

(Unaudited, in thousands)


	Preferred stock			Common stock			Treasury stock			Additional		Accumulated		Total stockholders'
	Shares	Amount		Shares	Amount		Shares	Amount		paid-in capital		deficit		(deficit) equity
										(Revised) ⁽¹⁾		(Revised) ⁽¹⁾		(Revised) ⁽¹⁾
Balance at May 31, 2020	109	$	—	519,261	$	519	286	$	—	$	372,301	$	(375,301)	$	(2,481)
For the three months ended August 31, 2020:
Issuance of stock for convertible note repayment	—		—	2,119		2	—		—		9,535		—		9,537
Issuance of legal settlement warrants	—		—	4,000		4	—		—		(4)		—		—
Exercise of stock options	—		—	100		—	—		—		39		—		39
Stock issued for incentive compensation and tendered for income tax	—		—	323		—	156		—		828		—		828
Conversion of Series B preferred stock to common stock	(5)		—	50		—	—		—		—		—		—
Private warrant exchange	—		—	16,544		17	—		—		7,787		—		7,804
Exercise of warrants	—		—	27,928		28	—		—		12,662		—		12,690
Inducement interest expense related to private warrant exchange	—		—	—		—	—		—		3,345		—		3,345
Offering costs related to private warrant exchange	—		—	—		—	—		—		(364)		—		(364)
Dividend declared and paid on Series B preferred stock ($0.25 per share)	—		—	—		—	—		—		—		(243)		(243)
Dividends accrued on Series C and D preferred stock	—		—	—		—	—		—		—		(420)		(420)
Stock-based compensation	—		—	—		—	—		—		2,865		—		2,865
Net loss	—		—	—		—	—		—		—		(30,832)		(30,832)
Balance at August 31, 2020	104		—	570,325		570	442		—		408,994		(406,796)		2,768
For the three months ended November 30, 2020:
Issuance of stock for convertible note repayment	—		—	4,293		4	—		—		11,549		—		11,553
Exercise of stock options	—		—	10		—	—		—		10		—		10
Stock issued for private offering ($1.50 per share)	—		—	667		1	—		—		999		—		1,000
Private warrant exchange	—		—	12,480		13	—				4,583				4,596
Exercise of warrants	—		—	2,504		2	—				1,737				1,739
Inducement interest expense related to private warrant exchange	—		—	—		—	—		—		4,217		—		4,217
Dividends accrued on Series C and D preferred stock	—		—	—		—	—		—		—		(415)		(415)
Stock-based compensation	—		—	—		—	—		—		3,423		—		3,423
Net loss	—		—	—		—	—		—		—		(35,425)		(35,425)
Balance at November 30, 2020	104		—	590,279		590	442		—		435,512		(442,636)		(6,534)
For the three months ended February 28, 2021:
Issuance of stock for convertible note repayment	—		—	4,013		4	—		—		20,500		—		20,504
Exercise of stock options	—		—	2,471		2	—		—		1,778		—		1,780
Conversion of Series B preferred stock to common stock	(8)		—	80		—	—		—		—		—		—
Private warrant exchange	—		—	5,939		6	—		—		3,461		—		3,467
Exercise of warrants	—		—


Delaware	83-1887078
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer or Identification No.)

1111 Main Street, Suite 660 Vancouver, Washington	98660
(Address of principal executive offices)	(Zip Code)


Large Accelerated Filer	☒	Accelerated Filer	☐

Non-accelerated Filer	☐	Smaller Reporting Company	☐

		Emerging Growth Company	☐