
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	25
	ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	34
	ITEM 4. CONTROLS AND PROCEDURES	34
PART II Other Information	35
	ITEM 1. LEGAL PROCEEDINGS	35
	ITEM 1A. RISK FACTORS	35
	ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	36
	ITEM 6. EXHIBITS	37

PART I. Financial Information

Item 1. Consolidated Financial Statements

CytoDyn Inc.

Consolidated Balance Sheets

(Unaudited, in thousands, except par value)


		February 29, 2024		May 31, 2023
Assets
Current assets:
Cash	$	1,404	$	2,541
Restricted cash		6,619		6,507
Prepaid expenses		1,349		1,167
Prepaid service fees		538		590
Total current assets		9,910		10,805
Other non-current assets		360		487
Total assets	$	10,270	$	11,292
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	62,078	$	62,725
Accrued liabilities and compensation		10,559		6,669
Accrued interest on convertible notes		14,080		10,598
Accrued dividends on convertible preferred stock		6,418		5,308
Convertible notes payable, net		30,169		34,417
Derivative liability - equity instruments		3,493		79
Private placement of shares and warrants		2,679		—
Total current liabilities		129,476		119,796
Notes payable, net		—		714
Operating leases		176		283
Total liabilities		129,652		120,793
Commitments and Contingencies (Note 8)
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 29, 2024 and May 31, 2023		—		—
Series C convertible preferred stock, $0.001 par value; 8 authorized; 6 issued and outstanding at February 29, 2024 and May 31, 2023		—		—
Series D convertible preferred stock, $0.001 par value; 12 authorized; 9 issued and outstanding at February 29, 2024 and May 31, 2023		—		—
Common stock, $0.001 par value; 1,750,000 shares authorized; 990,368 and 919,053 issued, and 989,925 and 918,610 outstanding at February 29, 2024 and May 31, 2023, respectively		990		919
Treasury stock, $0.001 par value; 443 shares at February 29, 2024 and May 31, 2023		—		—
Additional paid-in capital		754,372		731,270
Accumulated deficit		(874,744)		(841,690)
Total stockholders’ deficit		(119,382)		(109,501)
Total liabilities and stockholders' deficit	$	10,270	$	11,292

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 29,				Nine months ended February 29,
	2024		2023		2024		2023
Operating expenses:
General and administrative	$	2,757	$	2,971	$	7,756	$	14,347
Research and development		650		938		3,643		1,651
Amortization and depreciation		7		12		25		165
Inventory charge		—		—		—		20,633
Total operating expenses		3,414		3,921		11,424		36,796
Operating loss		(3,414)		(3,921)		(11,424)		(36,796)
Interest and other expenses:
Interest on convertible notes		(1,151)		(1,142)		(3,512)		(3,447)
Amortization of discount on convertible notes		(409)		(565)		(951)		(1,721)
Amortization of debt issuance costs		(203)		(17)		(572)		(51)
Issuance costs for private placement of shares and warrants through placement agent (Note 5)		—		—		(906)		—
Loss on induced conversion		(3,353)		(2,018)		(5,993)		(2,656)
Finance charges		(882)		(5,884)		(2,685)		(7,761)
Loss on note extinguishment		(1,550)		—		(6,040)		—
Loss on derivatives		(958)		(155)		(971)		(8,756)
Total interest and other expenses		(8,506)		(9,781)		(21,630)		(24,392)
Loss before income taxes		(11,920)		(13,702)		(33,054)		(61,188)
Income tax benefit		—		—		—		—
Net loss	$	(11,920)	$	(13,702)	$	(33,054)	$	(61,188)
Basic and diluted:
Weighted average common shares outstanding		982,209		832,215		954,814		810,986
Loss per share	$	(0.01)	$	(0.02)	$	(0.04)	$	(0.08)

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, 2023	34	$	—	919,053	$	919	443	$	—	$	731,270	$	(841,690)	$	(109,501)
Issuance of stock for convertible note repayment	—		—	8,661		8	—		—		1,492		—		1,500
Loss on induced conversion	—		—	—		—	—		—		2,004		—		2,004
Warrants issued in note offering	—		—	—		—	—		—		170		—		170
Stock issued for compensation	—		—	686		1	—		—		154		—		155
Warrant exercises	—		—	3,000		3	—		—		297		—		300
Dividends accrued on Series C and D convertible preferred stock	—		—	—		—	—		—		(373)		—		(373)
Reclassification of warrants from liability to equity classified	—		—	—		—	—		—		79		—		79
Stock-based compensation	—		—	—		—	—		—		348		—		348
Net loss	—		—	—		—	—		—		—		(11,571)		(11,571)
Balance at August 31, 2023	34		—	931,400		931	443		—		735,441		(853,261)		(116,889)
Issuance of stock for convertible note repayment	—		—	3,535		4	—		—		496		—		500
Loss on induced conversion	—		—	—		—	—		—		636		—		636
Warrants issued in note offering	—		—	—		—	—		—		10		—		10
Note conversion	—		—	14,339		14	—		—		4,379		—		4,393
Stock issued for compensation	—		—	559		1	—		—		97		—		98
Stock issued for private offering	—		—	21,453		21	—		—		6,307		—		6,328
Dividends accrued on Series C and D convertible preferred stock	—		—	—		—	—		—		(368)		—		(368)
Stock-based compensation	—		—	—		—	—		—		474		—		474
Net loss	—		—	—		—	—		—		—		(9,563)		(9,563)
Balance at November 30, 2023	34		—	971,286		971	443		—		747,472		(862,824)		(114,381)
Issuance of stock for convertible note repayment	—		—	18,674		19	—		—		2,731		—		2,750
Loss on induced conversion	—		—	—		—	—		—		3,353		—		3,353
Warrants issued in note offering	—		—	—		—	—		—		179		—		179
Discount related to private offering modification	—		—	—		—	—		—		137		—		137
Stock issued for compensation	—		—	408		—	—		—		75		—		75
Dividends accrued on Series C and D preferred stock	—		—	—		—	—		—		(369)		—		(369)
Stock-based compensation	—		—	—		—	—		—		794		—		794
Net loss	—		—	—		—	—		—		—		(11,920)		(11,920)
Balance at February 29, 2024	34	$	—	990,368	$	990	443	$	—	$	754,372	$	(874,744)	$	(119,382)

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)		—		—
Accrued preferred stock dividends	—		—	—		—	—		—		(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 issuance 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 issued for private offerings	—		—	—		—	—		—		(4,699)		—		(4,699)
Exercise of warrants, net of issuance 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 convertible 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 Statements of Cash Flows

(Unaudited, in thousands)


	Nine months ended February 29,
	2024		2023

Cash flows from operating activities:
Net loss	$	(33,054)	$	(61,188)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization and depreciation		25		165
Amortization of debt issuance costs		572		51
Issuance costs for private placement of shares and warrants through placement agent		906		—
Amortization of discount on convertible notes		951		1,721
Loss on derivatives		971		8,756
Loss on induced conversion		5,993		2,656
Non-cash finance charges		—		4,885
Loss on note extinguishment		6,040		—
Inventory charge		—		20,633
Stock-based compensation		1,944		3,557
Changes in operating assets and liabilities:
(Increase) decrease in prepaid expenses and other assets		(28)		624
(Decrease) increase in accounts payable and accrued expenses		6,348		(3,558)
Net cash used in operating activities		(9,332)		(21,698)
Cash flows from investing activities:
Net cash Provided by/used in investing activities		—		—
Cash flows from financing activities:
Proceeds from warrant transactions, net of offering costs		—		2,815
Proceeds from sale of common stock and warrants, net of issuance costs		5,696		24,601
Proceeds from warrant exercises		300		264
Proceeds held in trust		300		897
Proceeds from convertible note and warrant issuances, net of issuance costs		2,011		—
Net cash provided by financing activities		8,307		28,577
Net change in cash and restricted cash		(1,025)		6,879
Cash and restricted cash at beginning of period		9,048		4,231
Cash and restricted cash at end of period	$	8,023	$	11,110
Cash and restricted cash consisted of the following:
Cash	$	1,404	$	5,112
Restricted cash		6,619		5,998
Total cash and restricted cash	$	8,023	$	11,110
Supplemental disclosure:
Cash paid for interest	$	44	$	—
Non-cash investing and financing transactions:
Derivative liability associated with warrants	$	102	$	8,756
Issuance of common stock for principal of convertible notes	$	4,750	$	2,000
Accrued dividends on Series C and D convertible preferred stock	$	1,110	$	1,117
Dividend paid in common stock on Series B and C convertible preferred stock conversions	$	—	$	159
Warrants issued to placement agent	$	413	$	7,380
Warrants issued for surety bond backstop agreement	$	—	$	4,885
Deemed dividend on common stock issued due to down round provision, recorded in additional paid-in capital	$	—	$	5,417
Note conversion to common stock and warrants	$	3,302	$	—

See accompanying notes to consolidated financial statements.


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	☐