Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.19.1
Summary of Significant Accounting Policies (Tables)
9 Months Ended
Feb. 28, 2019
Liabilities 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 February 28, 2019 and May 31, 2018 is as follows:
 
 
 
Fair Value Measurement at

February 28, 2019 (1)
 
 
Fair Value Measurement at

May 31, 2018 (1)
 
 
 
Using

Level 3
 
 
Total
 
 
Using

Level 3
 
 
Total
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liability - warrants
 
$
793,866
 
 
$
793,866
 
 
$
1,323,732
 
 
$
1,323,732
 
Derivative liability - convertible note redemption provision
 
 
2,398,377
 
 
 
2,398,377
 
 
 
 
 
 
 
Total liabilities
 
$
3,192,243
 
 
$
3,192,243
 
 
$
1,323,732
 
 
$
1,323,732
 
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) during the nine months ended February 28, 2019 and the year ended May 31, 2018:
 
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 - warrants
 
 
(529,867
)
Fair value adjustments - convertible notes
 
 
(351,628
)
Balance at February 28, 2019
 
$
3,192,243