CytoDyn Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Convertible Instruments (Tables)

Convertible Instruments (Tables)

3 Months Ended

Aug. 31, 2018

Activity related to the Note was as follows:


	August 31, 2018
	Short term			Long term			Total			May 31, 2018
Face amount of Note	$	2,100,000		$	3,600,000		$	5,700,000		$	—
Monthly redemption		700,000			(700,000	)		—
Unamortized discount		(344,614	)		(281,628	)		(626,242	)		—

Carrying value of Note	$	2,455,386		$	2,618,372		$	5,073,758		$	—

Short-Term Convertible Notes

Activity Related to Notes

Activity related to the short-term Convertible Notes was as follows:


	August 31, 2018		May 31, 2018
Face amount of short-term Convertible Notes	$	—	$	6,038,500

Unamortized discount		—		—
Registered direct equity offering		—		(5,788,500	)
Note repayment		—		(250,000	)

Carrying value of short-term Convertible Notes	$	—	$	—

Investor Warrants

Weighted Average Assumptions to Value Investor Warrants

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.


		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

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details