General form of registration statement for all companies including face-amount certificate companies

Convertible Instruments (Tables)

v2.4.0.8
Convertible Instruments (Tables)
 6 Months Ended 12 Months Ended
Nov. 30, 2013
May 31, 2013
Activity Related to Notes

Activity related to the Notes was as follows:

 

     November 30, 2013     May 31, 2013  

Face amount of Notes

    $ 7,221,250      $ 6,588,250   
  

 

 

    

 

 

  

Unamortized discount

      (2,692,486 )      (4,539,886 ) 

Exercise of right of repayment

      (250,000 )      —     

Conversions

      (2,350,000 )      (567,000 ) 
  

 

 

    

 

 

  

Total carry value of Notes

      1,928,764        1,481,364   

Short-term portion of Notes

      (294,094 )      (328,347 ) 
  

 

 

    

 

 

  

Long-term portion of Notes

    $ 1,634,670      $ 1,153,017   
  

 

 

    

 

 

During the year ended May 31, 2013, activity related to the Notes was as follows:

 

Face amount of convertible notes

    $  6,588,250  
  

 

 

  

Debt discounts

      (6,243,502 ) 

Amortization of debt discount

      1,703,616  

Conversions

      (567,000 ) 
  

 

 

  

Total carrying value of convertible notes

      1,481,364  

Short-term portion of convertible notes

      (328,347 ) 
  

 

 

  

Long-term portion of convertible notes

    $ 1,153,017   
  

 

 

  
Weighted Average Assumptions to Value Warrants  

The Company utilized the following weighted average assumptions to value the above warrants:

 

Expected dividend yield

    -0-%

Stock price volatility

    70 – 94%

Expected term

    2 years

Risk-free interest rate

    .28%

Grant-date fair value

    $.11 - $1.10