CytoDyn Inc. (CYDY) presents a deeply negative liquidation recovery posture as of February 28, 2026. Total reported assets are $18.5 million against total liabilities of $122.8 million, producing a stated stockholders' deficit of approximately $104.3 million. Under liquidation-lens haircuts, recoverable asset value is approximately $15.7 million (cash at 100%, $0.4 million prepaid at ~0%, $33K ROU asset at 0%, $59K other noncurrent at 0%), yielding gross liquidation proceeds of roughly $15.7 million against face-value liabilities of $122.8 million. Estimated equity recovery: approximately negative $107 million, consistent with MFFAIS CLV/LLV/OLV of negative $34.8 million at a prior measurement date — the gap has widened materially due to operating cash burn and new equity issuance costs charged to expense. The asset base is almost entirely cash; no PP&E, inventory, or intangibles of consequence appear on the balance sheet. Intangible assets (leronlimab IP) are not on-balance-sheet and receive zero recovery under the lens regardless. The liability stack is dominated by: (1) convertible notes totaling $40.5 million face value (April 2021 notes, both matured April 2026, subsequently amended post-period to extend 36 months at 5%); (2) accrued interest payable of $11.75 million; (3) accounts payable of $13.5 million, reflecting unpaid clinical and vendor obligations; (4) a litigation reserve of $12.7 million for the Securities Class Action settlement (down from $16.6 million in the prior 10-Q as of November 30, 2025 — the decline reflects a mark-to-market revaluation gain of $3.8 million recorded in Q3 FY2026); and (5) $43.6 million in other noncurrent liabilities, the composition of which the filing does not separately break out in XBRL beyond the single tag. The nine-month operating cash burn was $12.3 million; the period-end cash balance of $15.7 million was supported by $16.1 million in financing inflows from a private placement of common stock and warrants (PIPE), partially offset by $1.6 million in placement agent issuance costs expensed below the line. Going concern language is present. The accumulated deficit stands at $920.6 million. Since the prior filing (November 30, 2025), cash improved from $5.0 million to $15.7 million exclusively from the PIPE; short-term liabilities compressed from $85.1 million to $50.4 million, driven by reclassification of the convertible notes to noncurrent following the post-period maturity extension amendment. The litigation reserve declined $3.9 million QoQ (from $16.6 million to $12.7 million) due to settlement revaluation. Filing discusses the legal settlement revaluation ($3.8 million income in Q3) and placement agent issuance costs ($1.6 million expense) in MD&A but these are income statement items; the balance sheet effect is the reduced litigation reserve and reduced cash respectively. The $43.6 million OtherLiabilitiesNoncurrent tag is not separately broken out in XBRL — the composition is unclear from the filing body provided and warrants separate investigation.
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