Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

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Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Aug. 31, 2015
Liability Measured At Fair Value on Recurring Basis By Level within Fair Value Hierarchy

Liability measured at fair value on a recurring basis by level within the fair value hierarchy as of August 31, 2015 and May 31, 2015 is as follows:

 

     Fair Value Measurement at
August 31, 2015 (1) 		     Fair Value Measurement at
May 31, 2015 (1) 		 
     Using
Level 3		      Total      Using
Level 3		      Total  

Liability:

            

Derivative liability

    $ —         $ —         $ 2,008,907       $ 2,008,907   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total liability

    $ —         $ —         $ 2,008,907       $ 2,008,907   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(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 August 31, 2015 and May 31, 2015.
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 the liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three months ended August 31, 2015 and year ended May 31, 2015:

 

Balance at May 31, 2014

    $ —     

Note issuance, September 26, 2014

      767,038   

Note issuance, February 6, 2015

      403,226   

Fair value adjustments

      838,643   
  

 

 

  

Balance at May 31, 2015

    $ 2,008,907   
  

 

 

  

Note conversion June 24, 2015

      (521,133 ) 

Note conversion June 24, 2015

      (841,269 ) 

Fair value adjustments

      (646,505 ) 
  

 

 

  

Balance at August 31, 2015

    $ —