Quarterly report pursuant to Section 13 or 15(d)

Derivative Liabilities (Tables)

v3.19.3.a.u2
Derivative Liabilities (Tables)
 6 Months Ended
Nov. 30, 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,
and the fair value as of
May 31, 2019 and November 30, 2019:
 
     Shares Indexed      Derivative Liability  
Inception
to
date September 15, 2016
      7,733,334      $ 5,179,200  
Balance May 31, 2019
      7,733,334        409,132  
Balance November 30, 2019
      7,733,334      $ 122,372  
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
November
 3
0
, 2019, using the following assumptions:
 
     September 15,
2016		     May 31,
2019		    
November
 3
0
,
2019		  
Fair value of underlying stock
    $ 0.78     $ 0.39     $ 0.28  
Risk free rate
      1.20 %      1.94 %      1.61 % 
Expected term (years)
      5       2.29       1.79  
Stock price volatility
      106 %      61 %      63 % 
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,
 
 
May 31, 2019
 
 
November 30
, 2019
 
   
2018
    
2019
    
June
Note
 
 
 
January
Note
  
 
June
Note
    
January
Note
  
Fair value of underlying stock
    $
 
 
 
 
 
 
 
 
 
 
 
0.57		     $ 0.49    
$
 
0.39
 
 
$
0.39
    
$
 
 0.28    
$
 0.28  
Risk free rate
      2.78 %     2.52 %  
 
2.21
%
 
 
1.95
%
  
 
 1.63 %      1.60 % 
Expected term (in years)
      1.61       2    
 
1.07
 
 
 
1.67
    
 
 0.57       1.17  
Stock price volatility
      58.8 %      61 %   
 
62.2
%
 
 
62.2
%
  
 
 66.3 %      64.1 % 
Expected dividend yield
      —         —      
 
—  
 
 
 
—  
    
 
 —          —     
Discount factor
      85 %      85 %   
 
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
the fair value as of May 31, 2019 and
November
 3
0
, 2019:  
 
     Net Proceeds      Derivative Liability  
     Inception date
 
 
May 31, 2019
     
November
 3
0
, 2019		  
Inception date June 2018 Note, November 15, 2018
    $ 5,000,000      $ 1,284,988
 
 
$
 
847,103
      $ 481,345  
Inception date January 2019 Note, January 30, 2019
      5,000,000        1,465,008
 
 
 
 
1,158,034
        975,053  
                 
 
 
 
 
     
 
 
  
                 
 
 
$
 
2,005,137
      $ 1,456,398