Annual report pursuant to Section 13 and 15(d)

Derivative Liability (Tables)

v3.10.0.1
Derivative Liability (Tables)
 12 Months Ended
May 31, 2018
Summary of Fair Value Warrant Derivative Liability and Related Common Shares

The following tables summarize the fair value of the warrant derivative liability and related common shares as of inception date September 15, 2016, May 31, 2017 and May 31, 2018:    

 

     Shares Indexed      Derivative Liability  

Inception to date September 15, 2016

      7,333,334      $ 5,179,200  

Balance May 31, 2017

      7,733,334        3,014,667  

Balance May 31, 2018

      7,733,334      $ 1,323,732  
Assumptions used in Estimating Fair Value of Warrant Derivative Liability

The Company estimated the fair value of the warrant derivative liability as of inception, May 31, 2017 and May 31, 2018, using the following assumptions:

 

     September 15,
2016		     May 31,
2017		     May 31,
2018		  

Fair value of underlying stock

    $ 0.78     $ 0.60     $ 0.49  

Risk free rate

      1.20 %      1.71 %      2.63 % 

Expected term (in years)

      5.00       4.29       3.30  

Stock price volatility

      106 %      94 %      64 % 

Expected dividend yield

      —         —         —    

Probability of Fundamental Transaction

      50 %      50 %      50 % 

Probability of holder requesting cash payment

      50 %      50 %      50 %