Convertible Instruments (Tables)
|
12 Months Ended |
May 31, 2019 |
|---|
| Warrants At Fair Value And Beneficial Conversion Feature At Intrinsic Value |
The net proceeds of $5.0 million were allocated first to the redemption provision at its fair value, then to the warrants at their relative fair value and the beneficial conversion feature at its intrinsic value as follows:
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|
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|
| |
|
January 30, 2019 |
|
Fair value of redemption provision |
|
$ |
1,465,008 |
|
Relative fair value of equity classified warrants |
|
|
858,353 |
|
Beneficial conversion feature |
|
|
2,676,639 |
|
| |
|
$ |
5,000,000 |
|
|
| Activity Related to Notes |
Activity related to the June 2018 Note and the January 2019 Note is as follows:
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|
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| |
|
Short Term |
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Long Term |
|
|
Total |
|
|
|
$ |
2,100,000 |
|
|
$ |
3,600,000 |
|
|
$ |
5,700,000 |
|
Monthly redemption provision |
|
|
2,100,000 |
|
|
|
(2,100,000 |
) |
|
|
— |
|
|
|
|
— |
|
|
|
111,410 |
|
|
|
111,410 |
|
|
|
|
— |
|
|
|
(1,455,000 |
) |
|
|
(1,455,000 |
) |
Interest accretion - June 2018 and January 2019 Notes |
|
|
— |
|
|
|
298,158 |
|
|
|
298,158 |
|
Carrying value of Notes at May 31, 2019 |
|
$ |
4,200,000 |
|
|
$ |
454,568 |
|
|
$ |
4,654,568 |
|
|
| Short-Term Convertible Notes |
|
| Activity Related to Notes |
Activity related to the 2018 Short-term Convertible Notes was as follows:
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|
|
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| |
|
2018 |
|
Face amount of Short-Term Convertible Notes |
|
$ |
6,038,500 |
|
| |
|
|
|
|
Unamortized discount |
|
|
— |
|
Registered direct offering |
|
|
(5,788,500 |
) |
Note repayment |
|
|
(250,000 |
) |
| |
|
|
|
|
Carrying value of Short-term Convertible Notes |
|
$ |
— |
|
| |
|
|
|
|
|
| Two Thousand And Nineteen Short Term Convertible Notes [Member] |
|
| Summary of Fair Value Valuation Technique |
The Company determined the fair value of the warrants at issuance using the Black-Scholes option pricing model utilizing certain weighted average assumptions, such as expected stock price volatility, expected term of the warrants, risk-free interest rates and expected dividend yield at the grant date. |
| Activity Related to Notes |
Activity related to the 2019 Short-term Convertible Notes was as follows:
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|
|
|
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|
|
| |
|
May 31, 2019 |
|
|
May 31, 2018 |
|
Face value of Short-term convertible Notes |
|
$ |
5,460,000 |
|
|
$ |
— |
|
|
|
|
(1,469,625 |
) |
|
|
— |
|
Unamortized issuance costs |
|
|
(404,340 |
) |
|
|
— |
|
Carrying value of Short-term Convertible Notes |
|
$ |
3,586,035 |
|
|
$ |
— |
|
|
| Investor Warrants |
|
| Summary of Fair Value Valuation Technique |
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|
|
| |
|
2018 |
Expected dividend yield |
|
0 % |
Stock price volatility |
|
69.80 % |
Expected term |
|
5 year |
Risk-free interest rate |
|
1.77 - 1.93 % |
Grant-date fair value |
|
$ 0.30 - $0.39
|
|