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

Quarterly report pursuant to Section 13 or 15(d)

Derivative Liabilities (Tables)

Derivative Liabilities (Tables)

6 Months Ended

Nov. 30, 2018

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 November 30, 2018, using the following assumptions:


	September 15, 2016			May 31, 2018			November 30, 2018
Fair value of underlying stock	$	0.78		$	0.49		$	0.58
Risk free rate		1.20	%		2.63	%		2.83	%
Expected term (in years)		5			3.3			2.79
Stock price volatility		106	%		64	%		62	%
Expected dividend yield		—			—			—
Probability of Fundamental Transaction		50	%		50	%		95	%
Probability of holder requesting cash payment		50	%		50	%		50	%

Convertible Note Redemption Provision Derivative Liability [Member]

Summary of Derivative Liabilities at Fair Value

The following table summarizes the fair value of the convertible note redemption provision derivative liability as of inception date November 15, 2018 and November 30, 2018:


	Net Proceeds		Derivative Liability
Inception date, November 15, 2018	$	5,000,000	$	1,284,998
Balance November 30, 2018	$	5,000,000	$	1,286,076

Registered Direct Equity Offering | Investor Warrants Issued with Registered Direct Equity Offering

Summary 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, 2018, August 31, 2018 and November 30, 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
Balance November 30, 2018		7,733,334	$	1,789,066