Quarterly report pursuant to Section 13 or 15(d)

Convertible Instruments (Tables)

v3.10.0.1
Convertible Instruments (Tables)
3 Months Ended
Aug. 31, 2018
Activity Related to Notes

Activity related to the Note was as follows:

 

     August 31, 2018         
     Short term      Long term      Total      May 31, 2018  

Face amount of Note

   $ 2,100,000      $ 3,600,000      $ 5,700,000      $ —    

Monthly redemption

     700,000        (700,000      —       

Unamortized discount

     (344,614      (281,628      (626,242      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Carrying value of Note

   $ 2,455,386      $ 2,618,372      $ 5,073,758      $ —    
  

 

 

    

 

 

    

 

 

    

 

 

 
Short-Term Convertible Notes  
Activity Related to Notes

Activity related to the short-term Convertible Notes was as follows:

 

     August 31, 2018      May 31, 2018  

Face amount of short-term Convertible Notes

   $ —        $ 6,038,500  
  

 

 

    

 

 

 

Unamortized discount

     —          —    

Registered direct equity offering

     —          (5,788,500

Note repayment

     —          (250,000
  

 

 

    

 

 

 

Carrying value of short-term Convertible Notes

   $ —        $ —    
  

 

 

    

 

 

 
Investor Warrants  
Weighted Average Assumptions to Value Investor Warrants

The Company determined the fair value of the warrants at issuance using the Black-Scholes option pricing model utilizing certain weighted average assumptions, such as expected stock price volatility, expected term of the warrants, risk-free interest rates and expected dividend yield at the grant date.

 

     2018

Expected dividend yield

   0%

Stock price volatility

   69.80%

Expected term

   5 year

Risk-free interest rate

   1.77 - 1.93%

Grant-date fair value

   $0.30 - $0.39