Convertible Instruments (Tables)
|
6 Months Ended |
12 Months Ended |
Nov. 30, 2015 |
May. 31, 2015 |
| Fair Value of Warrants |
The fair value of the warrants was determined using a Black-Scholes
option model using the following assumptions:
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Warrants issued on
September 26, 2014 |
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Warrants issued on
February 6, 2015 |
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Risk free interest rate
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1.82% |
|
1.48% |
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Expected life
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5 years |
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5 years |
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Expected volatility
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136% |
|
119% |
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Dividend yield
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|
0.00% |
|
0.00% |
|
The fair value of the warrants was determined using a Black-Scholes
option model using the following assumptions:
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Warrants issued on
September 26,2014 |
|
Warrants issued on
February 6, 2015 |
|
Risk free interest rate
|
|
1.82% |
|
1.48% |
|
Expected life
|
|
5 years |
|
5 years |
|
Expected volatility
|
|
136% |
|
119% |
|
Dividend yield
|
|
0.00% |
|
0.00% |
|
| Allocation of Cash Proceeds Derivative Liability at Its Fair Value and Warrant at Its Relative Fair Value, with Residual Allocation of Host AVCP Note Agreement |
Based on the previous conclusions, the Company allocated the cash
proceeds first to the derivative liability at its fair value and
then to the warrants at their relative fair value, with the
residual allocated to the host AVCP Convertible Notes as presented
below.
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Six-months Ended November 30,
2015 |
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May 31, 2015 |
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Debt Discount |
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Fair Value |
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Conversion |
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November 30, 2015 |
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AVCP Convertible note payable
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$ |
2,637,618 |
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$ |
94,344 |
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$ |
— |
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|
$ |
(2,731,962 |
) |
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$ |
— |
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Compound embedded derivative
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|
2,008,907 |
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|
— |
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(646,505 |
) |
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(1,362,402 |
) |
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— |
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Warrants (equity allocation)
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|
215,732 |
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— |
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— |
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— |
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— |
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Accrued interest on note payable
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(35,627 |
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Fair Value of Common Stock Issued
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4,714,168 |
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Loss on conversion
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(584,177 |
) |
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$ |
4,862,257 |
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$ |
94,344 |
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$ |
(646,505 |
) |
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$ |
— |
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$ |
— |
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Based on the previous conclusions, the Company allocated the cash
proceeds first to the derivative liability at its fair value and
then to the warrants at their relative fair value, with the
residual allocated to the host AVCP Notes as follows:
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September 26, 2014 |
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February 6, 2015 |
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Debt Discount |
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Fair Value |
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May 31, 2015 |
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AVCP convertible notes payable
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$ |
1,074,617 |
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$ |
1,039,387 |
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$ |
523,614 |
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|
$ |
— |
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$ |
2,637,618 |
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|
Compound embedded derivative
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|
767,038 |
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|
403,226 |
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— |
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838,643 |
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2,008,907 |
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Warrants (equity allocation)
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|
158,345 |
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57,387 |
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— |
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— |
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215,732 |
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$ |
2,000,000 |
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$ |
1,500,000 |
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$ |
523,614 |
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$ |
838,643 |
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$ |
4,862,257 |
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| Short-Term Convertible Notes |
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| Activity Related to Notes |
Activity related to the Short-Term Convertible Notes for the
six-months ended November 30, 2015, and fiscal year ended May 31,
2015 was as follows:
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November 30, 2015 |
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May 31, 2015 |
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Face amount of Notes
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$ |
3,981,050 |
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$ |
3,981,050 |
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Unamortized discounts
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— |
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$ |
(2,390,063 |
) |
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Tender offer conversions
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(2,693,800 |
) |
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— |
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Conversions
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(525,000 |
) |
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— |
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Payments upon maturity
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(762,250 |
) |
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— |
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Total carrying value of Notes
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$ |
— |
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$ |
1,590,987 |
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The unamortized discounts are fully amortized upon any conversion
of the Notes before maturity. Activity related to the Notes was as
follows:
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May 31, 2015 |
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Face amount of Notes
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$ |
3,981,050 |
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Unamortized discount
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(2,390,063 |
) |
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Repayments
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— |
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Conversions
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|
— |
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Total carrying value of Notes
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$ |
1,590,987 |
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| 2013 Convertible Notes |
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| Activity Related to Notes |
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Activity related to the Notes was as follows:
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May 31, 2015 |
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|
May 31, 2014 |
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Face amount of Notes
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$ |
4,271,250 |
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$ |
7,221,250 |
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Unamortized discount
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(6,529 |
) |
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(1,932,566 |
) |
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Repayments
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|
— |
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(500,000 |
) |
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Conversions
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(4,221,250 |
) |
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(2,450,000 |
) |
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Total carrying value of Notes
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$ |
43,471 |
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$ |
2,338,684 |
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Short-term portion of Notes
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$ |
43,471 |
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$ |
— |
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Long-term portion of Notes
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$ |
— |
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$ |
2,338,684 |
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| Investor Warrants |
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| Weighted Average Assumptions to Value Investor Warrants |
The Company utilized the following weighted-average assumptions to
value the above investor warrants:
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2015 |
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Expected dividend yield
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0% |
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Stock price volatility
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88.79% |
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Expected term
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5 years |
|
Risk-free interest rate
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1.46%-1.58% |
|
Grant-date fair value
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$0.52-$0.76 |
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The Company utilized the following weighted-average assumptions to
value the warrants:
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2015 |
|
2014 |
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Expected dividend yield
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0% |
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0% |
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Stock price volatility
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80.68% |
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78-93% |
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Expected term
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.50 yr |
|
3-5 years |
|
Risk-free interest rate
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0.12% |
|
.64-1.42% |
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Grant-date fair value
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$0.15 |
|
$.66-$.72 |
|
| Detachable Common Stock Warrants |
|
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| Weighted Average Assumptions to Value Investor Warrants |
The Company determined the fair value of the new warrants using the
Black-Scholes option pricing model utilizing certain
weighted-average assumptions, such as expected stock price
volatility, term of the warrants, risk-free interest rate and
expected dividend yield at the commitment date.
|
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|
| |
|
2015 |
|
Expected dividend yield
|
|
0% |
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Stock price volatility
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|
88.79% |
|
Expected term
|
|
5 years |
|
Risk-free interest rate
|
|
1.46%-1.58% |
|
Grant-date fair value
|
|
$0.52-$0.76 |
The Company determined the fair value of the new warrants using the
Black-Scholes option pricing model utilizing certain
weighted-average assumptions, such as expected stock price
volatility, term of the warrants, risk-free interest rate and
expected dividend yield at the commitment date.
|
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|
| |
|
2015 |
|
Expected dividend yield
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0% |
|
Stock price volatility
|
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64.56% -69.30% |
|
Expected term
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|
1 year |
|
Risk-free interest rate
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|
.33% |
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Grant-date fair value
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$0.15-$0.18 |
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The Company utilized the following weighted-average assumptions to
value the above investor warrants:
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| |
|
2015 |
|
Expected dividend yield
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0% |
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Stock price volatility
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88.79% |
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Expected term
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5 years |
|
Risk-free interest rate
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|
1.46%-1.58% |
|
Grant-date fair value
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$0.52-$0.76 |
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