Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.20.1
Summary of Significant Accounting Policies (Tables)
9 Months Ended
Feb. 29, 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 February 29, 2020 and May 31, 2019 is as follows:
 
     Fair Value Measurement at
February 29, 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
     2,108,398        2,108,398        402,132        402,132  
  
 
 
    
 
 
    
 
 
    
 
 
 
Total liability
   $ 2,108,398      $ 2,108,398      $ 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 February 29, 2020 and May 31, 2019.
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 29, 2020, and the year ended May 31, 2019:
 
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
     (744,869
Fair value adjustments—convertible notes
     (921,600
  
 
 
 
Balance at May 31, 2019
   $ 2,407,269  
Fair value adjustments—warrants
     4,110,363  
Exercises —warrants
     (2,404,097
Redemptions—convertible notes
     (2,005,137
  
 
 
 
Balance at February 29, 2020
   $ 2,108,398