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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 30, 2021

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1933

For the transition period from                  to                 

Commission File Number: 000-49908

CYTODYN INC.

(Exact name of registrant as specified in its charter)

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)

(360980-8524

(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:

Title of Each Class 

    

Trading
Symbol(s)

    

Name of Each Exchange
on Which Registered

None.

None.

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.   Yes      No  

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).   Yes      No  

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.

Large Accelerated Filer

Accelerated Filer

 

 

 

 

Non-accelerated Filer

Smaller Reporting Company

 

 

 

 

 

 

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      No  

On December 31, 2021, there were 690,233,504 shares outstanding of the registrant’s $0.001 par value common stock.

PART I. Financial Information

Item 1. Consolidated Financial Statements

CytoDyn Inc.

Consolidated Balance Sheets

(Unaudited)

(In thousands, except par value)

    

November 30, 2021

    

May 31, 2021

(Revised) (1)

Assets

 

  

 

  

Current assets:

 

  

 

  

Cash

$

8,875

$

33,943

Accounts receivable

 

225

 

Inventories, net

88,557

93,479

Prepaid expenses

 

2,979

 

616

Prepaid service fees

 

1,174

 

1,543

Total current assets

 

101,810

 

129,581

Operating leases right-of-use asset

 

617

 

712

Property and equipment, net

 

119

 

134

Intangibles, net

 

1,153

 

1,653

Total assets

$

103,699

$

132,080

Liabilities and Stockholders’ (Deficit) Equity

 

  

 

  

Current liabilities:

 

  

 

  

Accounts payable

$

58,008

$

65,897

Accrued liabilities and compensation

 

6,654

 

19,073

Accrued interest on convertible notes

 

3,670

 

2,007

Accrued dividends on convertible preferred stock

 

3,481

 

2,647

Operating leases liabilities

 

149

 

175

Convertible notes payable, net

 

43,947

 

62,747

Total current liabilities

 

115,909

 

152,546

Long-term liabilities:

 

  

 

  

Operating leases liabilities

 

486

 

552

Total long-term liabilities

 

486

 

552

Total liabilities

 

116,395

 

153,098

Commitments and Contingencies (Note 10)

 

  

 

  

Stockholders’ (deficit) equity:

 

  

 

  

Preferred Stock, $0.001 par value; 5,000 shares authorized

 

  

 

  

Series D convertible preferred stock, $0.001 par value; 12 authorized; 9 issued and outstanding at November 30, 2021 and May 31, 2021

 

 

Series C convertible preferred stock, $0.001 par value; 8 authorized; 8 issued and outstanding at November 30, 2021 and May 31, 2021

 

 

Series B convertible preferred stock, $0.001 par value; 400 shares authorized, 19 and 79 shares issued and outstanding at November 30, 2021 and May 31, 2021, respectively

 

 

Common stock, $0.001 par value; 1,000,000 shares authorized, 685,861 and 626,123 issued and 685,418 and 625,680 outstanding at November 30, 2021 and May 31, 2021, respectively

 

686

 

626

Additional paid-in capital

 

589,971

 

512,796

Accumulated (deficit)

 

(603,353)

 

(534,440)

Treasury stock, $0.001 par value; 443 at November 30, 2021 and May 31, 2021

 

 

Total stockholders’ (deficit) equity

 

(12,696)

 

(21,018)

Total liabilities and stockholders' (deficit) equity

$

103,699

$

132,080

(1) See Note 2, “—Correction of Immaterial Misstatements in Prior Period Financial Statements”.

See accompanying notes to consolidated financial statements.

3

CytoDyn Inc.

Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share data)

Three months ended November 30,

Six months ended November 30,

    

2021

    

2020

    

2021

    

2020

(Revised) (1)

(Revised) (1)

Revenue:

Product revenue

$

225

$

$

266

$

Total revenue

225

266

Cost of goods sold:

Cost of goods sold

52

53

Total cost of goods sold

52

53

Gross margin

173

213

Operating expenses:

 

  

 

  

 

  

 

  

 

General and administrative

16,203

7,551

23,820

17,426

Research and development

 

9,040

 

16,446

 

22,824

 

31,738

Amortization and depreciation

 

252

 

506

 

528

 

1,011

Total operating expenses

 

25,495

 

24,503

 

47,172

 

50,175

Operating loss

 

(25,322)

 

(24,503)

 

(46,959)

 

(50,175)

Other income (expense):

Loss on extinguishment of convertible notes

 

(3,312)

(4,169)

(7,963)

(4,169)

Legal settlement

(1,941)

Interest expense:

 

  

 

  

 

 

  

Finance charges

 

(1,024)

 

(231)

 

(1,059)

 

(137)

Amortization of discount on convertible notes

 

(793)

 

(1,243)

 

(1,745)

 

(2,582)

Amortization of debt issuance costs

 

(23)

 

(15)

 

(51)

 

(19)

Inducement interest expense

 

(4,704)

 

(4,217)

 

(5,232)

 

(7,562)

Interest on convertible notes payable

 

(1,426)

 

(1,047)

 

(3,112)

 

(1,613)

Total interest expense

 

(7,970)

 

(6,753)

 

(11,199)

 

(11,913)

Loss before income taxes

 

(36,604)

 

(35,425)

 

(68,062)

 

(66,257)

Income tax benefit

 

 

 

 

Net loss

$

(36,604)

$

(35,425)

$

(68,062)

$

(66,257)

Basic and diluted loss per share

$

(0.06)

$

(0.06)

$

(0.11)

$

(0.12)

Basic and diluted weighted average common shares outstanding

 

662,600

 

577,945

 

647,517

 

566,677

(1) See Note 2, “—Correction of Immaterial Misstatements in Prior Period Financial Statements”.

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 May 31, 2021

96

$

626,123

$

626

443

$

$

512,796

$

(534,440)

$

(21,018)

First Quarter Fiscal Year Ended May 31, 2022

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 August 31, 2021

 

 

(31,458)

 

(31,458)

Balance August 31, 2021

96

644,120

644

443

540,481

(566,318)

(25,193)

Second Quarter Fiscal Year Ended May 31, 2022

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 November 30, 2021

(36,604)

 

(36,604)

Balance November 30, 2021

36

$

685,861

$

686

443

$

$

589,971

$

(603,353)

$

(12,696)

(1) See Note 2, “—Correction of Immaterial Misstatements in Prior Period Financial Statements”.

See accompanying notes to consolidated financial statements.

5

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 May 31, 2020

109

$

519,261

$

519

286

$

$

372,301

$

(375,301)

$

(2,481)

First Quarter Fiscal Year Ended May 31, 2021

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

 

13,441

 

 

13,469

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

 

2,086

 

 

2,086

Net Loss August 31, 2020

 

 

(30,832)

 

(30,832)

Balance August 31, 2020

104

570,325

570

442

408,994

(406,796)

2,768

Second Quarter Fiscal Year Ended May 31, 2021

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 November 30, 2020

 

 

 

 

 

(35,425)

 

(35,425)

Balance November 30, 2020

104

$

590,279

$

590

442

$

$

435,512

$

(442,636)

$

(6,534)

(1) See Note 2, “—Correction of Immaterial Misstatements in Prior Period Financial Statements”.

See accompanying notes to consolidated financial statements.

6

CytoDyn Inc.

Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

Six months ended November 30,

    

2021

    

2020

    

(Revised) (1)

Cash flows from operating activities:

 

  

 

  

 

Net loss

$

(68,062)

$

(66,257)

Adjustments to reconcile net loss to net cash used in operating activities:

 

  

 

  

Amortization and depreciation

 

528

 

1,011

Amortization of debt issuance costs

 

51

 

19

Amortization of discount on convertible notes

 

1,745

 

2,582

Non-cash warrant issuance cost for legal settlement

1,744

Inducement interest expense

 

5,232

 

7,562

Inventory reserve and write-offs

3,357

4,835

Stock-based compensation

 

4,657

 

7,115

Loss on extinguishment of convertible notes

 

7,963

 

4,169

Changes in operating assets and liabilities:

 

 

  

(Increase) in accounts receivable

 

(225)

 

Decrease (increase) in inventories, net

1,565

(84,759)

(Increase) decrease in prepaid expenses

(1,994)

1,072

(Decrease) increase in accounts payable and accrued expenses

 

(17,193)

 

61,532

Net cash used in operating activities

 

(60,632)

 

(61,119)

Cash flows from investing activities:

 

  

 

  

Furniture and equipment purchases

 

(13)

 

(77)

Net cash used in investing activities

 

(13)

 

(77)

Cash flows from financing activities:

 

  

 

  

Proceeds from warrant transactions, net of offering costs

5,390

12,035

Proceeds from sale of common stock and warrants, net of issuance costs

 

28,761

 

1,000

Proceeds from warrant exercises

 

1,036

 

15,209

Payment on convertible notes

 

 

(950)

Release of restricted cash held in trust for warrant tender offer

 

 

(10)

Proceeds from stock option exercises

390

48

Payment of payroll withholdings related to tender of common stock for income tax withholding

(778)

Proceeds from convertible notes payable, net

 

 

50,000

Dividend declared and paid on Series B preferred stock

(243)

Net cash provided by financing activities

 

35,577

 

76,311

Net change in cash

 

(25,068)

 

15,115

Cash and restricted cash, beginning of period

 

33,943

 

14,292

Cash and restricted cash, end of period

$

8,875

$

29,407

Cash and restricted cash consisted of the following:

Cash

$

8,875

$

29,407

Restricted cash

Total cash and restricted cash

$

8,875

$

29,407

Supplemental disclosure of cash flow information:

 

  

 

  

Cash paid during the period for interest

$

57

$

138

Non-cash investing and financing transactions:

 

  

 

  

Issuance of common stock for principal and interest of convertible notes

$

22,045

$

16,922

Accrued dividends on convertible Series C and D preferred stock

$

834

$

835

Dividend declared and paid in common stock on Series B preferred stock

$

17

$

(1) See Note 2, “—Correction of Immaterial Misstatements in Prior Period Financial Statements”.

See accompanying notes to consolidated financial statements.

7

CYTODYN INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF NOVEMBER 30, 2021

(UNAUDITED)

Note 1. Organization

CytoDyn Inc. (the “Company”) was originally incorporated under the laws of Colorado on May 2, 2002 under the name RexRay Corporation and, effective August 27, 2015, reincorporated under the laws of Delaware. The Company is a late-stage biotechnology company developing innovative treatments for multiple therapeutic indications based on leronlimab, a novel humanized monoclonal antibody targeting the CCR5 receptor. Leronlimab is in a class of therapeutic monoclonal antibodies designed to address unmet medical needs for which the Company is focused on developing treatments in the areas of human immunodeficiency virus (“HIV”), cancer, immunology, and novel coronavirus disease (“COVID-19”).

Leronlimab belongs to a class of HIV therapies known as entry inhibitors which block HIV from entering and infecting specific cells. For cancer and immunology, the CCR5 receptor also appears to be implicated in human metastasis and in immune-mediated illnesses such as triple-negative breast cancer, other metastatic solid tumor cancers, and non-alcoholic steatohepatitis (“NASH”). For COVID-19, the Company believes leronlimab may be shown to provide therapeutic benefit by enhancing the immune response and also mitigating the “cytokine storm” that leads to morbidity and mortality in patients experiencing this syndrome.

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited interim Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiary, CytoDyn Operations Inc., and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and should be read in conjunction with the financial statements, summary of significant accounting policies and footnotes included in the Annual Report on Form 10-K, as amended by Amendment No. 1 filed with the SEC on September 28, 2021, for the year ended May 31, 2021 (the “2021 Form 10-K”). Accordingly, certain disclosures required by U.S. GAAP and normally included in Annual Reports on Form 10-K have been condensed or omitted from this report; however, except as disclosed herein, there has been no material change in the information disclosed in the notes to Consolidated Financial Statements included in the 2021 Form 10-K. All intercompany transactions and balances have been eliminated.

It is the opinion of management that all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation of interim financial information, have been included. The Company has no items of other comprehensive income or loss; therefore, its net income or loss is identical to its comprehensive income or loss. Operating results for the periods presented are not necessarily indicative of expected results for the full year.

Reclassifications

Certain prior year and prior quarter amounts shown in the accompanying Consolidated Financial Statements have been reclassified to conform to the current period presentation. These reclassifications did not have any effect on the Company’s financial position, results of operations, stockholders’ (deficit) equity, or net cash flows as previously reported.

Going Concern

The consolidated accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying Consolidated Financial Statements, the Company had losses for all periods presented. The Company

8

incurred a net loss of approximately $68.1 million for the six months ended November 30, 2021 and has an accumulated deficit of approximately $603.4 million as of November 30, 2021. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern.

The Consolidated Financial Statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to obtain additional operating capital, complete development of its product candidate, leronlimab, obtain approval to commercialize leronlimab from regulatory agencies, continue to outsource manufacturing of leronlimab, and ultimately achieve substantial revenues and attain profitability. The Company continues to engage in significant research and development activities related to leronlimab for multiple indications and expects to incur significant research and development expenses in the future primarily related to its clinical trials. These research and development activities are subject to significant risks and uncertainties. The Company intends to finance its future development activities and its working capital needs largely from the sale of equity and debt securities, combined with additional funding from other traditional sources. There can be no assurance, however, that the Company will be successful in these endeavors.

Use of Estimates

The preparation of the Consolidated Financial Statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities at the date of Consolidated Financial Statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are assessed each period and updated to reflect current information, such as the economic considerations related to the impact that the recent coronavirus disease could have on our significant accounting estimates and assumptions. The Company’s estimates are based on historical experience and on various market and other relevant, appropriate assumptions. Significant estimates include, but are not limited to, those relating to stock-based compensation, capitalization of pre-launch inventories, reserve for excess and obsolete inventories, revenue recognition, research and development expenses, determination of right of use assets under lease transactions and related lease obligations, commitments and contingencies, and the assumptions used to value warrants, warrant modifications and useful lives for property and equipment and related depreciation calculations. Actual results could differ from these estimates.

Correction of Immaterial Misstatements in Prior Period Financial Statements

During the preparation of the quarterly financial statements as of and for the period ended November 30, 2021, the Company identified an error in how non-cash inducement interest expense was calculated in previous reporting periods dating back to fiscal year 2018. The original inducement expense model was designed to calculate non-cash inducement interest expense specific to inducements that modified the warrant term (e.g., extension of the term or modification of exercise price) without settling the instrument. However, starting in fiscal year 2018, inducements were primarily structured to result in a settlement of the warrant, not merely a modification of a warrant that would remain outstanding for some period. The error was identified when the model started to calculate a gain on substantially all inducements, which was inconsistent with the economics of the arrangements. The error resulted in an understatement of non-cash inducement interest expense and additional paid-in capital.

The Company assessed the materiality of the misstatement in accordance with Accounting Standards Codification (“ASC”) 250, Accounting Changes and Error Corrections, as well as SEC Staff Accounting Bulletins No. 99, Materiality, and No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, and concluded that the misstatement was not material to the Company’s consolidated financial position for the prior periods and, accordingly, that amendments of previously filed reports were not required. However, the Company determined that the impact of the corrections would be too significant to record in the quarter ended November 30, 2021. As such, the revisions for the correction are reflected in the accompanying balance sheet as of May 31, 2021, the statements of operations for the six months ended November 30, 2021 and the three and six months ended November 30, 2020, changes in stockholders’ (deficit) equity for the three months ended August 31, 2021 and 2020 and November 30, 2020, and cash flows for the six months ended November 30, 2021 and 2020. Financial reporting periods that are affected but not presented herein will be revised, as applicable, in future

9

periods and filings. The errors had no impact on operating loss, cash, net cash used in or provided by operating, financing, and investing activities, assets, liabilities, commitments and contingencies, total stockholders’ (deficit) equity, number of shares issued and outstanding, basic and diluted weighted average common shares outstanding, and number of shares available for future issuance for any period presented.

The following tables present a summary of the impact by financial statement line item of the corrections:

As of and For the Year Ended May 31, 2019

(in thousands)

As Previously Reported

    

Adjustments

    

As Revised

Inducement interest expense

$

(196)

$

(4,532)

$

(4,728)

Total interest expense

$

(3,313)

$

(4,532)

$

(7,845)

Loss before income taxes

$

(59,014)

$

(4,532)

$

(63,546)

Income tax benefit

$

2,827

$

$

2,827

Net loss

$

(56,187)

$

(4,532)

$

(60,719)

Basic and diluted loss per share

$

(0.21)

$

(0.02)

$

(0.23)

Additional paid-in capital (1)

$

220,120

$

5,057

$

225,177

Accumulated (deficit) (1)

$

(229,363)

$

(5,057)

$

(234,420)

(1) Includes adjustment of $525 for the fiscal year ended May 31, 2018.

As of and For the Year Ended May 31, 2020

(in thousands, except per share amount)

As Previously Reported

    

Adjustments

    

As Revised

Inducement interest expense

$

(7,904)

$

(15,533)

$

(23,437)

Total interest expense

$

(18,219)

$

(15,533)

$

(33,752)

Loss before income taxes

$

(124,403)

$

(15,533)

$

(139,936)

Net loss

$

(124,403)

$

(15,533)

$

(139,936)

Basic and diluted loss per share

$

(0.30)

$

(0.04)

$

(0.34)

Additional paid-in capital (1)

$

351,711

$

20,590

$

372,301

Accumulated (deficit) (1)

$

(354,711)

$

(20,590)

$

(375,301)

(1) Includes adjustments of $4,532 and $525 for the fiscal years ended May 31, 2019 and 2018, respectively.

Three months ended November 30, 2020

Six months ended November 30, 2020

(in thousands, except per share amount)

As Previously Reported

    

Adjustments

    

As Revised

  

  

As Previously Reported

    

Adjustments

    

As Revised

Inducement interest expense

$

(3,758)

$

(459)

$

(4,217)

$

(7,103)

$

(459)

$

(7,562)

Total interest expense

$

(6,294)

$

(459)

$

(6,753)

$

(11,454)

$

(459)

$

(11,913)

Loss before income taxes

$

(34,966)

$

(459)

$

(35,425)

$

(65,798)

$

(459)

$

(66,257)

Net loss

$

(34,966)

$

(459)

$

(35,425)

$

(65,798)

$

(459)

$

(66,257)

Basic and diluted loss per share

$

(0.06)

$

$

(0.06)

$

(0.12)

$

$

(0.12)

Three months ended February 28, 2021

Nine months ended February 28, 2021

(in thousands, except per share amount)

As Previously Reported

    

Adjustments

    

As Revised

  

  

As Previously Reported

    

Adjustments

    

As Revised

Inducement interest expense

$

(4,139)

$

(1,221)

$

(5,360)

$

(11,242)

$

(1,680)

$

(12,922)

Total interest expense

$

(5,576)

$

(1,221)

$

(6,797)

$

(17,031)

$

(1,680)

$

(18,711)

Loss before income taxes

$

(43,985)

$

(1,221)

$

(45,206)

$

(109,783)

$

(1,680)

$

(111,463)

Net loss

$

(43,985)

$

(1,221)

$

(45,206)

$

(109,783)

$

(1,680)

$

(111,463)

Basic and diluted loss per share

$

(0.08)

$

$

(0.08)

$

(0.18)

$

$

(0.18)

10