Note 11 - Subsequent Events

On December 10, 2012, a holder of two of the Company’s convertible promissory notes totaling $567,000 in principal exercised his right to convert such notes into 755,999 shares of common stock at a conversion price of $0.75 per share.

On December 12, 2012, the Company’s shareholders approved, at its Annual Meeting, the CytoDyn Inc. 2012 Equity Incentive Plan, which replaces the 2004 Stock Incentive Plan and provides for the issuance of up to 3,000,000 shares of common stock pursuant to various forms of incentive awards allowed under the 2012 Plan.

Effective December 28, 2012, the Company settled a disputed balance of approximately $472,000 owed to its previous principal law firm in exchange for a cash payment of $45,000 and 66,116 shares of Company common stock with a value of $80,000 as determined by the closing price of the stock on December 24, 2012.