Quarterly report pursuant to Section 13 or 15(d)

Derivative Liabilities (Tables)

v3.19.3
Derivative Liabilities (Tables)
 3 Months Ended
Aug. 31, 2019
Schedule of Derivative Liabilities at Fair Value
The following tables summarize the fair value of the warrant derivative liability and related common shares as of inception date September 15, 2016, May 31, 2019 and August 31, 2019:
 
    Shares Indexed     Derivative Liability  
Inception date September 15, 2016
     7,733,334     $  5,179,200  
Balance May 31, 2019
     7,733,334       402,132  
Balance August 31, 2019
     7,733,334     $ 339,172  
Assumptions used in Estimating Fair Value of Warrant Derivative Liability
The Company estimated the fair value of the warrant derivative liability as of inception date September 15, 2016, May 31, 2019 and August 31, 2019, using the following assumptions:
 
    September 15,
2016		     May 31,
2019		     August 31,
2019		  
Fair value of underlying stock
   $  0.78     $  0.39     $  0.40  
Risk free rate
     1.20 %      1.94 %      1.50 % 
Expected term (in years)
     5       2.29       2.04  
Stock price volatility
     106 %      61 %      60 % 
Expected dividend yield
     —         —         —    
Probability of Fundamental Transaction
     50 %      50 %      50 % 
Probability of holder requesting cash payment
     50 %      50 %      50 % 
Registered Direct Equity Offering [Member] | Investor Warrants Issued With Registered Direct Equity Offering [Member]  
Assumptions used in Estimating Fair Value of Warrant Derivative Liability
    November 15,     January 30,     August 31, 2019  
    2018     2019     Note 1     Note 2  
Fair value of underlying stock
   $  0.57     $  0.49     $  0.40     $  0.40  
Risk free rate
     2.78 %      2.52 %      1.76 %      1.76 % 
Expected term (in years)
     1.61       2       0.82       1.42  
Stock price volatility
     58.8 %      61 %      63.8 %      61.6 % 
Expected dividend yield
     —         —         0       0  
Discount factor
     85 %      85 %      85 %      85 % 
Convertible Note Redemption Provision Derivative Liability [Member]  
Schedule of Derivative Liabilities at Fair Value
The following table summarizes the fair value of the convertible note redemption provision derivative liability as of inception dates November 15, 2018, January 30, 2019 and August 31, 2019:
 
          Derivative Liability  
    Net Proceeds     Inception date     August 31, 2019  
Inception date June 2018 Note, November 15, 2018
   $ 5,000,000     $ 1,284,988     $ 372,458  
Inception date January 2019 Note, January 30, 2019
     5,000,000       1,465,008       1,070,306  
                   
 
 
  
                    $ 1,442,764