Quarterly report pursuant to Section 13 or 15(d)

Derivative Liability (Tables)

v3.10.0.1
Derivative Liability (Tables)
 3 Months Ended
Aug. 31, 2018
Summary of Fair Value Warrant Derivative Liability and Related Common Shares

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, 2018 and August 31, 2018:

 

     Shares Indexed      Derivative Liability  

Inception date September 15, 2016

      7,733,334      $ 5,179,200  

Balance May 31, 2018

      7,733,334        1,323,732  

Balance August 31, 2018

      7,733,334      $ 2,071,199  
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, 2018 and August 31, 2018, using the following assumptions:

 

     September 15,
2016		      May 31,
2018		      August 31,
2018		  

Fair value of underlying stock

    $ 0.78      $ 0.49      $ 0.69  

Risk free rate

      1.20%        2.63%        2.72%  

Expected term (in years)

      5        3.3        3.04  

Stock price volatility

      106%        64%        64%  

Expected dividend yield

      —          —          —    

Probability of Fundamental Transaction

      50%        50%        50%  

Probability of holder requesting cash payment

      50%        50%        50%