Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.20.2
Summary of Significant Accounting Policies (Tables)
12 Months Ended
May 31, 2020
Liability Measured at Fair Value on Recurring Basis by Level within Fair Value Hierarchy
Liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as of May 31, 2020 and May 31, 2019 is as follows:
 
    
Fair Value Measurement at

May 31, 2020 (1)
    
Fair Value Measurement at

May 31, 2019 (1)
 
    
Using

Level 3
    
Total
    
Using

Level 3
    
Total
 
Liabilities:
           
Derivative liability - convertible note redemption provision
   $ —        $ —        $ 2,005,137      $ 2,005,137  
Derivative liability - warrants
     —          —          402,132        402,132  
  
 
 
    
 
 
    
 
 
    
 
 
 
Total liability
   $ —        $ —        $ 2,407,269      $ 2,407,269  
  
 
 
    
 
 
    
 
 
    
 
 
 
 
(1)
The Company did not have any assets or liabilities measured at fair value using Level 1 or 2 of the fair value hierarchy as of May 31, 2020 and May 31, 2019. As of May 31, 2020, there were no longer any assets or liabilities measured at fair value using Level 3 inputs because all derivative warrants and convertible debt had been converted according to the terms of the agreements.
Reconciliation of Liability Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)
The following is a reconciliation of the beginning and ending balances for liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) from inception to May 31, 2020:
 
Investor warrants issued with registered direct equity offering
   $ 4,360,000  
Placement agent warrants issued with registered direct equity offering
     819,200  
Fair value adjustments
     (3,855,468
  
 
 
 
Balance at May 31, 2018
     1,323,732  
Inception date value of redemption provisions
     2,750,006  
Fair value adjustments - convertible notes
     (744,869
Fair value adjustments - warrants
     (921,600
  
 
 
 
Balance at May 31, 2019
   $ 2,407,269  
Fair value adjustments - convertible notes
     (2,005,137
Fair value adjustments - warrants
     11,546,840  
Exercise of derivative warrants
     (11,948,972
  
 
 
 
Balance at May 31, 2020
   $ —