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


		PAGE
PART I Financial Information	3
	ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS	3
	ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	27
	ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	40
	ITEM 4. CONTROLS AND PROCEDURES	40
PART II Other Information	42
	ITEM 1. LEGAL PROCEEDINGS	42
	ITEM 1A. RISK FACTORS	42
	ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	42
	ITEM 5. Other Information	42
	ITEM 6. EXHIBITS	43

PART I. Financial Information

Item 1. Consolidated Financial Statements

CytoDyn Inc.

Consolidated Balance Sheets

(Unaudited, in thousands, except par value)


		February 28, 2023		May 31, 2022
Assets
Current assets:
Cash	$	5,112	$	4,231
Restricted cash		5,998		—
Prepaid expenses		2,411		5,198
Prepaid service fees		589		1,086
Total current assets		14,110		10,515
Inventories, net		—		17,929
Other non-current assets		532		741
Total assets	$	14,642	$	29,185
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	62,667	$	67,974
Accrued liabilities and compensation		8,298		8,995
Accrued interest on convertible notes		9,421		5,974
Accrued dividends on convertible preferred stock		4,935		3,977
Convertible notes payable, net		36,013		36,241
Total current liabilities		121,334		123,161
Operating leases		318		422
Total liabilities		121,652		123,583
Commitments and Contingencies (Note 9)
Stockholders’ deficit:
Preferred stock, $0.001 par value; 5,000 shares authorized:
Series B convertible preferred stock, $0.001 par value; 400 authorized; 19 issued and outstanding at February 28, 2023 and May 31, 2022		—		—
Series C convertible preferred stock, $0.001 par value; 8 authorized; 6 and 7 issued and outstanding at February 28, 2023 and May 31, 2022, respectively		—		—
Series D convertible preferred stock, $0.001 par value; 12 authorized; 9 issued and outstanding at February 28, 2023 and May 31, 2022		—		—
Common stock, $0.001 par value; 1,350,000 shares authorized; 837,031 and 720,028 issued, and 836,588 and 719,585 outstanding at February 28, 2023 and May 31, 2022, respectively		837		720
Treasury stock, $0.001 par value; 443 at February 28, 2023 and May 31, 2022		—		—
Additional paid-in capital		715,207		671,013
Accumulated deficit		(823,054)		(766,131)
Total stockholders’ deficit		(107,010)		(94,398)
Total liabilities and stockholders' deficit	$	14,642	$	29,185

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,
	2023		2022		2023		2022
				(Restated) ⁽¹⁾				(Restated) ⁽¹⁾
Revenue	$	—	$	—	$	—	$	266
Cost of goods sold		—		—		—		53
Gross profit		—		—		—		213
Operating expenses:
General and administrative		2,971		10,140		14,347		33,960
Research and development		938		3,569		1,651		23,036
Amortization and depreciation		12		129		165		657
Inventory charge		—		5,559		20,633		8,916
Total operating expenses		3,921		19,397		36,796		66,569
Operating loss		(3,921)		(19,397)		(36,796)		(66,356)
Interest and other expenses:
Interest on convertible notes		(1,142)		(1,187)		(3,447)		(4,299)
Amortization of discount on convertible notes		(565)		(637)		(1,721)		(2,382)
Amortization of debt issuance costs		(17)		(19)		(51)		(70)
Loss on induced conversion		(2,018)		(12,066)		(2,656)		(37,381)
Finance charges		(5,884)		(7,025)		(7,761)		(8,084)
Inducement interest expense		—		(954)		—		(6,186)
Legal settlement		—		—		—		(1,941)
Loss on derivatives		(155)		—		(8,756)		—
Total interest and other expenses		(9,781)		(21,888)		(24,392)		(60,343)
Loss before income taxes		(13,702)		(41,285)		(61,188)		(126,699)
Income tax benefit		—		—		—		—
Net loss	$	(13,702)	$	(41,285)	$	(61,188)	$	(126,699)
Basic and diluted:
Weighted average common shares outstanding		832,215		695,614		810,986		663,373
Loss per share	$	(0.02)	$	(0.06)	$	(0.08)	$	(0.19)

(1) See Note 2, Summary of Significant Accounting Policies—Revision and Restatement of Financial Statements.

See accompanying notes to consolidated financial statements.

Table of Contents

CytoDyn Inc.

Consolidated Statement of Changes in Stockholders’ Deficit

(Unaudited, in thousands)


	Preferred stock			Common stock			Treasury stock			Additional		Accumulated		Total stockholders'
	Shares	Amount		Shares	Amount		Shares	Amount		paid-in capital		deficit		deficit
Balance at May 31, 2022	35	$	—	720,028	$	720	443	$	—	$	671,013	$	(766,131)	$	(94,398)
Stock issued for compensation	—		—	879		1	—		—		344		—		345
Stock issued for private offerings	—		—	85,378		85	—		—		17,459		—		17,544
Issuance costs related to stock issued for private offerings	—		—	—		—	—		—		(6,289)		—		(6,289)
Conversion of Series C convertible preferred stock to common stock	(1)		—	1,136		1	—		—		(1)		—		—
Warrant exercises	—		—	657		1	—		—		263		—		264
Deemed dividend paid in common stock due to down round provision, recorded in additional paid-in capital	—		—	4,620		5	—		—		(5)		—		—
Dividends accrued on Series C and D convertible preferred stock	—		—	—		—	—		—		(384)		—		(384)
Reclassification of warrants from liability to equity classified	—		—	—		—	—		—		8,601		—		8,601
Stock-based compensation	—		—	—		—	—		—		996		—		996
Reclassification of prior period preferred stock dividends	—		—	—		—	—		—		(4,265)		4,265		—
Net loss	—		—	—		—	—		—		—		(20,991)		(20,991)
Balance at August 31, 2022	34		—	812,698		813	443		—		687,732		(782,857)		(94,312)
Issuance of stock for convertible note repayment	—		—	1,822		2	—		—		498		—		500
Loss on induced conversion	—		—	—		—	—		—		638		—		638
Stock issued for compensation	—		—	765		—	—		—		310		—		310
Exercise of warrants, net of offering costs	—		—	9,652		10	—		—		2,123		—		2,133
Make-whole shares related to private warrant exchange	—		—	23		—	—		—		—		—		—
Dividend paid in common stock upon conversion of Series C convertible preferred stock ($0.50 per share)	—		—	319		—	—		—		159		—		159
Dividends accrued on Series C and D convertible preferred stock	—		—	—		—	—		—		(369)		—		(369)
Stock-based compensation	—		—	—		—	—		—		1,467		—		1,467
Net loss	—		—	—		—	—		—		—		(26,495)		(26,495)
Balance at November 30, 2022	34		—	825,279		825	443		—		692,558		(809,352)		(115,969)
Issuance of stock for convertible note repayment	—		—	7,150		7	—		—		1,493		—		1,500
Loss on induced conversion	—		—	—		—	—		—		2,018		—		2,018
Stock issued for compensation	—		—	626		1	—		—		181		—		182
Stock to be issued for private offerings	—		—	—		—	—		—		18,045		—		18,045
Issuance costs related to stock to be issued for private offerings	—		—	—		—	—		—		(4,699)		—		(4,699)
Exercise of warrants, net of offering costs	—		—	3,442		3	—		—		679		—		682
Deemed dividend paid in common stock due to down round provision, recorded in additional paid-in capital	—		—	534		1	—		—		(1)		—		—
Dividends accrued on Series C and D preferred stock	—		—	—		—	—		—		(364)		—		(364)
Reclassification of warrants from liability to equity classified	—		—	—		—	—		—		155		—		155
Finance charges related to warrant issuance for surety bond backstop agreement	—		—	—		—	—		—		4,885		—		4,885
Stock-based compensation	—		—	—		—	—		—		257		—		257
Net loss	—		—	—		—	—		—		—		(13,702)		(13,702)
Balance at February 28, 2023	34	$	—	837,031	$	837	443	$	—	$	715,207	$	(823,054)	$	(107,010)

See accompanying notes to consolidated financial statements.

Table of Contents

CytoDyn Inc.

Consolidated Statement of Changes in Stockholders’ Deficit

(Unaudited, in thousands)


	Preferred stock			Common stock			Treasury stock			Additional		Accumulated		Total stockholders'
	Shares	Amount		Shares	Amount		Shares	Amount		paid-in capital		deficit		deficit
										(Restated) ⁽¹⁾		(Restated) ⁽¹⁾		(Restated) ⁽¹⁾
Balance at May 31, 2021	96	$	—	626,123	$	626	443	$	—	$	532,031	$	(553,675)	$	(21,018)
Issuance of stock for convertible note repayment	—		—	11,816		12	—		—		13,832		—		13,844
Loss on induced conversion	—		—	—		—	—		—		18,530		—		18,530
Issuance of legal settlement warrants	—		—	—		—	—		—		1,744		—		1,744
Stock option exercises	—		—	300		—	—		—		189		—		189
Stock issued for compensation and tendered for income tax	—		—	1,014		1	—		—		(1)		—		—
Stock issued for private offerings	—		—	2,872		3	—		—		2,869		—		2,872
Private warrant exchanges	—		—	1,327		1	—		—		774		—		775
Warrant exercises	—		—	668		1	—		—		502		—		503
Inducement interest expense related to private warrant exchanges	—		—	—		—	—		—		528		—		528
Accrued preferred stock dividends	—		—	—		—	—		—		—		(420)		(420)
Stock-based compensation	—		—	—		—	—		—		2,597		—		2,597
Net loss	—		—	—		—	—		—		—		(45,337)		(45,337)
Balance at August 31, 2021	96		—	644,120		644	443		—		573,595		(599,432)		(25,193)
Issuance of stock for convertible note repayment	—		—	8,162		8	—		—		8,193		—		8,201
Loss on induced conversion	—		—	—		—	—		—		6,785		—		6,785
Stock option exercises	—		—	210		—	—		—		200		—		200
Stock issued for private offerings	—		—	25,178		25	—		—		27,282		—		27,307
Conversion of Series B preferred stock to common stock	(60)		—	600		1	—		—		—		—		1
Private warrant exchanges	—		—	6,593		7	—		—		4,608		—		4,615
Offering costs related to stock issuance	—		—	—		—	—		—		(1,418)		—		(1,418)
Warrant exercises	—		—	963		1	—		—		532		—		533
Inducement interest expense related to private warrant exchanges	—		—	—		—	—		—		4,704		—		4,704
Preferred stock dividends accrued and paid in common stock	—		—	35		—	—		—		17		(431)		(414)
Stock-based compensation	—		—	—		—	—		—		2,060		—		2,060
Net loss	—		—	—		—	—		—		—		(40,077)		(40,077)
Balance at November 30, 2021	36		—	685,861		686	443		—		626,558		(639,940)		(12,696)
Issuance of stock for convertible note repayment	—		—	17,132		17	—		—		8,939		—		8,956
Loss on induced conversion	—		—	—		—	—		—		12,066		—		12,066
Stock issued for private offerings	—		—	6,860		7	—		—		3,545		—		3,552
Conversion of Series C preferred stock to common stock	(1)		—	2,200		2	—		—		(2)		—		—
Warrant exercises	—		—	11		—	—		—		—		—		—
Inducement interest expense related to private warrant exchanges	—		—	1,179		1	—		—		953		—		954
Preferred stock dividends accrued and paid in common stock	—		—	487		—	—		—		243		(397)		(154)
Stock-based compensation	—		—	—		—	—		—		(438)		—		(438)
Finance charges related to warrant issuance for surety bond backstop agreement	—		—	—		—	—		—		6,585		—		6,585
Net loss	—		—	—		—	—		—


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	☐