UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1933 |
For the transition period from to
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(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer or Identification No.) |
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(Registrant’s telephone number, including area code)
Not applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
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None. |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
☒ | Accelerated Filer | ☐ | |
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Non-accelerated Filer | ☐ | Smaller Reporting Company | |
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| Emerging Growth Company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes
On March 31, 2022, there were
TABLE OF CONTENTS
2
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 |
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Current assets: |
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Cash | $ | | $ | | ||
Restricted cash |
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Inventories, net | | | ||||
Prepaid expenses |
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Prepaid service fees |
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Total current assets |
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Operating leases - right-of-use asset |
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Property and equipment, net |
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Intangibles, net |
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Total assets | $ | | $ | | ||
Liabilities and Stockholders’ (Deficit) Equity |
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Current liabilities: |
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Accounts payable | $ | | $ | | ||
Accrued liabilities and compensation |
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Accrued interest on convertible notes |
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Accrued dividends on convertible preferred stock |
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Operating leases |
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Convertible notes payable, net |
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Total current liabilities |
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Long-term liabilities - operating leases |
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Total liabilities |
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Commitments and Contingencies (Note 10) |
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Stockholders’ (deficit) equity: |
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Preferred Stock, $ |
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Series B convertible preferred stock, $ |
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Series C convertible preferred stock, $ |
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Series D convertible preferred stock, $ |
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Common stock, $ |
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Additional paid-in capital |
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Accumulated deficit |
| ( |
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Treasury stock, $ |
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Total stockholders’ deficit |
| ( |
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Total liabilities and stockholders' equity | $ | | $ | |
(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.
3
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 | $ | — | $ | — | $ | | $ | — | |||||
Total revenue | — | — | | — | |||||||||
Cost of goods sold: | |||||||||||||
Cost of goods sold | — | — | | — | |||||||||
Total cost of goods sold | — | — | | — | |||||||||
Gross margin | — | — | | — | |||||||||
Operating expenses: |
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General and administrative | | | | | |||||||||
Research and development |
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Amortization and depreciation |
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Intangible asset impairment charge | — | | — | | |||||||||
Total operating expenses |
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Operating loss |
| ( |
| ( |
| ( |
| ( | |||||
Interest and other expense: | |||||||||||||
Interest on convertible notes |
| ( |
| ( |
| ( |
| ( | |||||
Amortization of discount on convertible notes | ( | ( | ( | ( | |||||||||
Amortization of debt issuance costs |
| ( |
| ( |
| ( |
| ( | |||||
Loss on extinguishment of convertible notes |
| ( | ( | ( | ( | ||||||||
Finance charges |
| ( |
| ( |
| ( |
| ( | |||||
Inducement interest expense |
| ( |
| ( |
| ( |
| ( | |||||
Legal settlement |
| — |
| — |
| ( |
| — | |||||
Total interest and other expense |
| ( |
| ( |
| ( |
| ( | |||||
Loss before income taxes |
| ( |
| ( |
| ( |
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Income tax benefit |
| — |
| — |
| — |
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Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||
Basic and diluted loss per share | ( | ( | ( | ( | |||||||||
Basic and diluted weighted average common shares outstanding |
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(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.
4
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 | | $ | — | | $ | | | $ | — | $ | | $ | ( | $ | ( | |||||||||
For the three months ended August 31, 2021: | ||||||||||||||||||||||||
Issuance of stock for convertible note repayment | — | — | | | — | — |
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Issuance of legal settlement warrants | — | — | — | — | — | — |
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Exercise of stock options | — | — | | — | — | — |
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Stock issued for incentive compensation and tendered for income tax | — | — | | | — | — |
| ( |
| — |
| — | ||||||||||||
Stock issued for private offering ($ | — | — | | | — | — |
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Private warrant exchange | — | — | | | — | — |
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Exercise of warrants | — | — | | | — | — |
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Inducement interest expense related to private warrant exchange | — | — | — | — | — | — |
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Dividends accrued on Series C and D preferred stock | — | — | — | — | — | — |
| — |
| ( |
| ( | ||||||||||||
Stock-based compensation | — | — | — | — | — | — |
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Net loss | — | — | — | — | — | — |
| — |
| ( |
| ( | ||||||||||||
Balance at August 31, 2021 | | — | | | | — | | ( | ( | |||||||||||||||
For the three months ended November 30, 2021: | ||||||||||||||||||||||||
Issuance of stock for convertible note repayment | — | — | | | — | — | | — |
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Exercise of stock options | — | — | | — | — | — | | — |
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Private warrant exchange | — | — | | | — | — | | — |
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Stock issued for private offering ($ | — | — | | | — | — | | — |
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Issuance costs related to stock issued for private offering | — | — | — | — | — | — | ( | — | ( | |||||||||||||||
Conversion of Series B convertible preferred stock to common stock | ( | — | | | — | — | — | — | | |||||||||||||||
Exercise of warrants | — | — | | | — | — | | — | | |||||||||||||||
Inducement interest expense related to private warrant exchange | — | — | — | — | — | — | | — |
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Dividend declared and paid in common stock on Series B preferred stock ($ | — | — | | — | — | — | | ( |
| — | ||||||||||||||
Dividends accrued on Series C and D preferred stock | — | — | — | — | — | — | — | ( |
| ( | ||||||||||||||
Stock-based compensation | — | — | — | — | — | — | | — |
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Net loss | — | — | — | — | — | — | — | ( |
| ( | ||||||||||||||
Balance at November 30, 2021 | | — | | | | — | | ( | ( | |||||||||||||||
For the three months ended February 28, 2022: | ||||||||||||||||||||||||
Issuance of stock for convertible note repayment | — | — | | | — | — | — | — | | — | — | — | | |||||||||||
Stock issued for private offering ($ | — | — | | | — | — | | — |
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Conversion of Series C convertible preferred stock to common stock | ( | — | | | — | — | ( | — |
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Exercise of warrants | — | — | | — | — | — | — | — |
| — | ||||||||||||||
Modification of previously issued equity | — | — | | | — | — | | — |
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Dividend declared and paid in common stock upon conversion of Series C preferred stock ($ | — | — | | — | — | — | | — |
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Dividends accrued on Series C and D preferred stock | — | — | — | — | — | — | — | ( |
| ( | ||||||||||||||
Finance charges related to warrant issuance for surety bond backstop agreement | — | — | — | — | — | — | | — | | |||||||||||||||
Stock-based compensation | — | — | — | — | — | — | ( | — |
| ( | ||||||||||||||
Net loss | — | — | — | — | — | — | — | ( |
| ( | ||||||||||||||
Balance at February 28, 2022 | | $ | — | | $ | | | $ | — | $ | | $ | ( | $ | ( |
(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.
5
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 | | $ | — | | $ | | | $ | — | $ | | $ | ( | $ | ( | |||||||||
For the three months ended August 31, 2020: | ||||||||||||||||||||||||
Issuance of stock for convertible note repayment | — | — | | | — | — |
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Issuance of legal settlement warrants | — | — | | | — | — |
| ( |
| — |
| — | ||||||||||||
Exercise of stock options | — | — | | — | — | — |
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Stock issued for incentive compensation and tendered for income tax | — | — | | — | | — |
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Conversion of Series B preferred stock to common stock | ( | — | | — | — | — |
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Private warrant exchange | — | — | | | — | — |
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Exercise of warrants | — | — | | | — | — |
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Inducement interest expense related to private warrant exchange | — | — | — | — | — | — |
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Offering costs related to private warrant exchange | — | — | — | — | — | — |
| ( |
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| ( | ||||||||||||
Dividend declared and paid on Series B preferred stock ($ | — | — | — | — | — | — |
| — |
| ( |
| ( | ||||||||||||
Dividends accrued on Series C and D preferred stock | — | — | — | — | — | — |
| — |
| ( |
| ( | ||||||||||||
Stock-based compensation | — | — | — | — | — | — |
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Net loss | — | — | — | — | — | — |
| — |
| ( |
| ( | ||||||||||||
Balance at August 31, 2020 | | — | | | | — | | ( | | |||||||||||||||
For the three months ended November 30, 2020: | ||||||||||||||||||||||||
Issuance of stock for convertible note repayment | — |
| — | |
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Exercise of stock options | — |
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Stock issued for private offering ($ | — |
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Private warrant exchange | — | — | | | — | | | |||||||||||||||||
Exercise of warrants | — | — | | | — | | | |||||||||||||||||
Inducement interest expense related to private warrant exchange | — |
| — | — |
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Dividends accrued on Series C and D preferred stock | — |
| — | — |
| — | — |
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| ( |
| ( | |||||||||
Stock-based compensation | — |
| — | — |
| — | — |
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Net loss | — |
| — | — |
| — | — |
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| — |
| ( |
| ( | |||||||||
Balance at November 30, 2020 | | — | | | | — | | ( | ( | |||||||||||||||
For the three months ended February 28, 2021: | ||||||||||||||||||||||||
Issuance of stock for convertible note repayment | — |
| — | |
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Exercise of stock options | — |
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Conversion of Series B preferred stock to common stock | ( |
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| — | — |
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| — | |||||||||
Private warrant exchange | — | — | | | — | — | | — | | |||||||||||||||
Exercise of warrants | — | — |