Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.19.3
Summary of Significant Accounting Policies (Tables)
 3 Months Ended
Aug. 31, 2019
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 August 31, 2019 and May 31, 2019 is as follows:
 
    Fair Value Measurement at
August 31, 2019
(1)
     Fair Value Measurement at
May 31, 2019
(1)
  
    Using           Using        
    Level 3     Total     Level 3     Total  
Liabilities:
                                
Derivative liability—convertible note redemption provision
   $  1,442,764     $  1,442,764     $  2,005,137     $  2,005,137  
Derivative liability—warrants
   $ 339,172       339,172       402,132       402,132  
   
 
 
    
 
 
    
 
 
    
 
 
  
Total liabilities
   $ 1,781,936     $ 1,781,936     $ 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 August 31, 2019 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 three months ended August 31, 2019 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 provision—warrants
     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
 
 
(62,960
)
Fair value adjustments—convertible notes
 
 
(562,373
)
Balance at August 31, 2019
   $ 1,781,936