Mon, Apr 14, 9:16 PM (6 days ago)
**CytoDyn Inc. (CYDY) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue and Profit Margins:** CytoDyn reported a net income of $9.7 million for the nine months ended February 28, 2025, primarily due to a $25.0 million recovery from a legal settlement with Amarex. This is a significant improvement from a net loss of $33.05 million in the same period last year. - **Cash Flow:** The company had $16.4 million in cash and cash equivalents as of February 28, 2025, an increase of $13.3 million compared to May 31, 2024. This increase was driven by $10.0 million from the legal settlement and $9.7 million from financing activities. - **Operating Expenses:** Total operating expenses for the nine months ended February 28, 2025, were $14.7 million, a decrease of $26.1 million compared to the same period last year. This decrease was primarily due to a return of clinical expenses related to the Amarex settlement. - **Earnings Changes:** The company reported a net loss of $4.76 million for the three months ended February 28, 2025, compared to a net loss of $11.92 million in the same period last year. For the nine months ended February 28, 2025, the company reported a net income of $9.7 million, compared to a net loss of $33.05 million in the same period last year. **Quarterly Performance Discussion:** - **General and Administrative (G&A) Expenses:** G&A expenses decreased by 45% for the three months ended February 28, 2025, and by 30% for the nine months ended February 28, 2025, compared to the same periods last year. This decrease was primarily due to a reduction in stock-based compensation and salaries. - **Research and Development (R&D) Expenses:** R&D expenses increased by 283% for the three months ended February 28, 2025, due to initial costs related to the Phase II trial of leronlimab. However, R&D expenses decreased by 653% for the nine months ended February 28, 2025, primarily due to the return of clinical expenses from the Amarex settlement. - **Interest and Other Expenses:** Interest and other expenses decreased by 91% for the three months ended February 28, 2025, and by 77% for the nine months ended February 28, 2025, compared to the same periods last year. This decrease was primarily due to reductions in loss on induced conversion, loss on note extinguishment, and finance charges. **Trends and Uncertainties:** - **Going Concern:** Despite the improvement in net income, CytoDyn continues to face substantial doubt about its ability to continue as a going concern. The company has an accumulated deficit of approximately $881.8 million as of February 28, 2025. - **Future Operations:** CytoDyn plans to continue its research and development activities related to leronlimab and expects to incur significant expenses in the future. The company intends to finance its future development activities and working capital needs primarily from the sale of equity and debt securities. **Future Operations Impact:** - **Clinical Trials:** CytoDyn is continuing its Phase II trial of leronlimab in patients with relapsed/refractory micro-satellite stable colorectal cancer and plans to conduct additional studies exploring leronlimab's potential in other solid-tumor oncology indications. - **Funding:** The company will need to secure additional funding to execute its business strategy, which may include conducting a variety of additional pre-clinical studies and clinical trials. CytoDyn will also pursue non-dilutive financing opportunities, such as license agreements and co-development or strategic partnerships.