Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.7.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
May 31, 2017
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 May 31, 2017 and May 31, 2016 is as follows:

 

     Fair Value Measurement at
May 31, 2017 (1)		      Fair Value Measurement at
May 31, 2016		  
     Using
Level 3		      Total      Using
Level 3		      Total  

Liability:

            

Derivative liability

    $ 3,014,667      $ 3,014,667      $ —        $ —    
  

 

 

     

 

 

     

 

 

     

 

 

  

Total liability

    $ 3,014,667      $ 3,014,667      $ —        $ —    
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(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 May 31, 2017 and May 31, 2016.
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 year ended May 31, 2017 and May 31, 2016:

 

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 May 31, 2016

    $ —    
  

 

 

  

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

      (2,164,533 ) 
  

 

 

  

Balance at May 31, 2017

    $ 3,014,667