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<div style="font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Note 13 – Related Party Transactions </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Audit Committee of the Board of Directors, comprised of independent directors, or the full Board of Directors, reviews and approves all related party transactions. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;">On July 15, 2019, the Company entered into consulting agreements with two of its directors, one with Scott A. Kelly, M.D. in the capacity of <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">non-executive</div> Chief Science Officer, the other with David F. Welch, Ph.D. in the capacity of <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">non-executive</div> Strategy Advisor. On September 12, 2019, the Company and Dr. Welch agreed to amend his consulting agreement to eliminate any cash compensation (including previously earned entitlements) thereunder. The company has issued <div style="display:inline;">sto<div style="display:inline;">ck </div></div>options <div style="display:inline;">covering</div> an aggregate of 1,375,000 shares of common stock to Dr. Kelly and Dr. Welch as compensation pursuant to such agreements, including options to Dr. Kelly for 750,000 shares at an exercise price of $0.385, on September 12, 2019, and 187,500 shares at an exercise price of $0.39, on October 7, 2019; and options to Dr. Welch for 250,000 shares at an exercise price of $0.385, on September 12, 2019, and 187,500 shares at an exercise price of $0.39, on October 7, 2019. The options granted on September 12, 2019 vested immediately upon issuance and have a <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">10-year</div> expiration term. The options issued on October 7, 2019 vest in four equal quarterly installments beginning on the grant date and have a <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">10-year</div> expiration term.</div><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">On June 12, 2019, the Company concluded a warrant tender offer (the “June 2019 Warrant Tender Offer”) for certain outstanding series of eligible warrants, offering the holders of such warrants the opportunity to amend and exercise their warrants at a reduced exercise price equal to the lower of (i) their respective existing exercise price or (ii) $0.40 per share of common stock. As an inducement to holders to participate in the June 2019 Warrant Tender Offer, the Company offered to issue to participating holders shares of common stock equal to an additional 50% of the number of shares issuable upon exercise of the eligible warrants (collectively, the “Additional Shares”). Dr. Kelly validly tendered warrants beneficially owned by him, covering an aggregate of 50,000 shares of common stock, and received 25,000 Additional Shares. Dr. Kelly participated on terms identical to those applicable to other holders in the June 2019 Warrant Tender Offer. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">On July 31, 2019, the Company concluded an additional warrant tender offer on terms identical to the June 2019 Warrant Tender Offer (the “July 2019 Warrant Tender Offer”). Dr. Welch tendered warrants beneficially owned by him, covering an aggregate of 1,000,000 shares of common stock, and received 500,000 Additional Shares. Dr. Welch participated on terms identical to those applicable to other holders in the July 2019 Warrant Tender Offer”). </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">On September 30, 2019, an entity controlled by Dr. Welch exchanged a 2019 Short-term Convertible Note in the principal amount of $1 million and accrued but unpaid interest of $75,343, for an Exchange Note in the principal amount of $1,075,343 and a warrant to purchase 1,000,000 shares of common stock. The entity controlled by Dr. Welch participated on <div style="display:inline;">similar </div>terms to the other holders in the exchange.</div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="display:inline;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">On October 8, 2019, an entity controlled by Mr. Klump exchanged a 2019 Short-term Convertible Note in the principal amount of $0.5 million and accrued but unpaid interest of $37,397, for an Exchange Note in the principal amount of $537,397 and a warrant to purchase 500,000 shares of common stock. The entity controlled by Mr. Klump participated on similar terms to the other holders in the exchange. </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="display:inline;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">On December 13, 2019, Mr. Naydenov participated in a registered direct equity offering. Mr. Naydenov purchased 833,333 shares of common stock and received warrants covering 625,000 shares. The terms and conditions of Mr. Naydenov’s $250,000 investment were identical to those offered to other investors in this offering. </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="display:inline;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">On December 23, 2019, an entity controlled by Dr. Welch participated in a registered direct equity offering. The entity controlled by Dr. Welch purchased 1,639,344 shares of common stock and received warrants covering 819,672 shares. The terms and conditions of the $500,000 investment made by the entity controlled by Dr. Welch were identical to those offered to other investors in this offering. </div></div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: "times new roman"; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Note 12 – Employee Benefit Plan </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;">The Company has an employee savings plan (the “Plan”) pursuant to Section 401(k) of the Internal Revenue Code (the “Code”), covering all of its employees. The Company makes a <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">qualified non-elective contribution</div> of 3%, which consequently vests immediately. In addition, participants in the Plan may contribute a percentage of their compensation, but not in excess of the maximum allowed under the Code. During the three <div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">and six </div>months ended <div style="letter-spacing: 0px; top: 0px;;display:inline;">Novembe<div style="letter-spacing: 0px; top: 0px;;display:inline;">r 30</div></div>, 2019 and 2018, the Company incurred an expense of approximately $19,800 and $46,000<div style="letter-spacing: 0px; top: 0px;;display:inline;"> and $<div style="letter-spacing: 0px; top: 0px;;display:inline;">15,200 </div>and $31,000</div>, respectively, for qualified <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">non-elective</div> contributions.</div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
15200
31000
<div style="margin: 0in 0in 0.0001pt; font-family: "times new roman", serif; font-size: 10pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">Note 11 – Registered Direct Equity Offerings</div></div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">During the six months ended November 30</div>, 2019, the Company entered into subscription agreements with certain investors for the sale of 19,100,333 shares of common stock at purchase <div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">prices ranging between $0.30 and</div> $0.40 per share in registered direct <div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">offerings,</div> pursuant to a registration statement on <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">Form S-3. The</div> investors in <div style="letter-spacing: 0px; top: 0px;;display:inline;">these</div> offering<div style="letter-spacing: 0px; top: 0px;;display:inline;">s</div> also received warrants to purchase 11,987,250 shares of common stock with an exercise price of $0.45 per share and a <div style="letter-spacing: 0px; top: 0px;;display:inline;">five</div>-year term. The Company received net proceeds from the offering<div style="letter-spacing: 0px; top: 0px;;display:inline;">s</div> of approximately $<div style="letter-spacing: 0px; top: 0px;;display:inline;">6.3</div> million. In addition, the placement agent received warrants covering 655,305 shares of common stock (or 1.3% of total shares sold to investors) with per share exercise <div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">prices ranging between</div> $0.40<div style="letter-spacing: 0px; top: 0px;;display:inline;"> and </div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">$0.444</div>, a <div style="letter-spacing: 0px; top: 0px;;display:inline;">five</div>-year term and a cashless exercise provision.</div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
0.30
0.444
P5Y
<div style="font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Note 10 – Public Warrant Tender Offerings </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;">During the <div style="display:inline;">six</div> months ended <div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">November 30</div>, 2019, the Company conducted two public warrant tender offers, in which accredited investors purchased unregistered common stock at either $0.30 or $0.40 per share. Pursuant to the offering, the Company sold a total of 45,375,923 shares of common stock, $0.001 par value, for aggregate gross proceeds of approximately $11.9 million. The Company paid placement agent fees of approximately $1.1 million for services in connection with the offering. The Company also recorded a <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">non-cash</div> inducement interest expense of approximately $2.4 million in connection with the offerings.</div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Note 8 – License Agreements </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;">The Company has <div style="letter-spacing: 0px; top: 0px;;display:inline;">two</div> license <div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">agreements</div> with a third-party licensor covering the licensor’s <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">“system know-how” technology</div> with respect to the Company’s use of proprietary cell lines to manufacture new leronlimab (PRO 140) material. The Company accrues an annual license fee<div style="letter-spacing: 0px; top: 0px;;display:inline;">s</div> of £600,000 (approximately US$800,000 utilizing current exchange rates), which is payable annually in December<div style="letter-spacing: 0px; top: 0px;;display:inline;">.</div> <div style="letter-spacing: 0px; top: 0px;;display:inline;">The </div>December 201<div style="letter-spacing: 0px; top: 0px;;display:inline;">9</div> and 2018 payments were extended to <div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">March 15<div style="font-size: 7.4pt; vertical-align: top;;vertical-align: super;font-size: smaller;display:inline;">th</div></div></div>, 20<div style="letter-spacing: 0px; top: 0px;;display:inline;">20</div> and April 15, 2019<div style="display:inline;">, </div>respectively. Future annual license fees and royalty rate will vary depending on whether the Company manufactures leronlimab (PRO 140), utilizes the third-party licensor as a contract manufacturer, or utilizes an independent party as a contract manufacturer. The licensor does not charge an annual license fee when it serves as the manufacturer. In addition, the Company will incur royalties of up to 0.75% to 2% of net sales, depending upon who serves as the manufacturer, when the Company commences their first commercial sale, which will continue as long as the license agreement is maintained.</div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">A summary of the net purchase price and allocation to the acquired assets is as follows: </div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px;;margin : 0px auto;;text-align:left;;width:68%;"><tr style="font-size: 0px;"><td style="padding: 0px;;width:82%;"></td><td style="padding: 0px;;vertical-align:bottom;;width:6%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">ProstaGene, LLC</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">CytoDyn Inc. Equity</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">11,558,000</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Acquisition Expenses</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">741,297</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Release of Deferred Tax Asset</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">2,826,919</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Total Cost of Acquisition</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">15,126,216</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Intangible assets</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">15,126,216</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Other</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px; white-space: nowrap;;text-align:right;;vertical-align:bottom;">—  </td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Allocation of Acquisition Costs</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">15,126,216</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
P3Y
P1Y
P10Y
P3Y
P10Y
1112500
P10Y
P5Y
<div style="font-family: "times new roman"; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Note 1 – Organization </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;">CytoDyn Inc. (the “Company”) was originally incorporated under the laws of Colorado on May 2, 2002 under the name RexRay Corporation (its previous name) and, effective August 27, 2015, reincorporated under the laws of Delaware. The Company is a clinical-stage biotechnology company developing innovative treatments for multiple therapeutic indications based on leronlimab, a novel humanized monoclonal antibody targeting the CCR5 receptor. CCR5 appears to play a key role in the ability of Human Immunodeficiency Virus (“HIV”) to enter and infect healthy <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">T-cells.</div> The CCR5 receptor also appears to be implicated in human metastasis and in immune-mediated illnesses such as <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;"><div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">graft-vs-host</div></div> disease (“GvHD”) and <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">Non-Alcoholic</div> Steatohepatitis (“NASH”). The Company’s lead product candidate, leronlimab, belongs to a class of HIV therapies known as entry inhibitors. These therapies block HIV from entering into and infecting certain cells.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Company has developed a class of therapeutic monoclonal antibodies to address unmet medical needs in the areas of HIV and GvHD. In addition, the Company is expanding the clinical focus with leronlimab to include the evaluation in certain cancer and immunological indications where CCR antagonism has shown initial promise. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Basis of Presentation </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;">The accompanying consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and reflect all adjustments, which consist solely of normal recurring adjustments, needed to fairly present the financial results for these periods. The consolidated financial statements and notes thereto are presented as prescribed by Form <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">10-Q.</div> Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted. The accompanying consolidated financial statements should be read in conjunction with the financial statements for the fiscal years ended May 31, 2019 and 2018 and notes thereto in the Company’s Annual Report on <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">Form 10-K for</div> the fiscal year ended May 31, 2019, filed with the Securities and Exchange Commission on August 14, 2019. Operating results for the three and six months ended November 30, 2019 are not necessarily indicative of the results that may be expected for the entire year. In the opinion of management, all adjustments have been made, which consist only of normal recurring adjustments necessary for a fair statement of (a) the results of operations for the three and six months ended November 30, 2019 and November 30, 2018, (b) the financial position at November 30, 2019 and (c) cash flows for the three and six month periods ended November 30, 2019 and November 30, 2018.</div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Principles of Consolidation </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, CytoDyn Operations Inc., Advanced Genetic Technologies, Inc. (“AGTI”) and CytoDyn Veterinary Medicine LLC (“CVM”), of which both AGTI and CVM are dormant entities. All intercompany transactions and balances are eliminated in consolidation. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Reclassifications </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Certain prior year amounts shown in the accompanying consolidated financial statements have been reclassified to conform to the 2020 presentation. These reclassifications did not have any effect on total current assets, total assets, total current liabilities, total liabilities, total stockholders’ (deficit) equity, net loss or loss per share. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Going Concern </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The consolidated accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statements, the Company had losses for all periods presented. The Company incurred a net loss of $31,024,467 for the six months ended November 30, 2019 and has an accumulated deficit of $260,648,884 as of November 30, 2019. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. </div></div><div style="font-size: 1px; margin-top: 12px; margin-bottom: 0px;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The consolidated financial statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to obtain additional operating capital, complete development of its product candidate, obtain U.S. Food & Drug Administration (“FDA”) approval, outsource manufacturing of the product candidate, and ultimately achieve initial revenues and attain profitability. The Company is currently engaging in significant research and development activities related to its product candidate for multiple indications, and expects to incur significant research and development expenses in the future primarily related to its clinical trials. These research and development activities are subject to significant risks and uncertainties. The Company intends to finance its future development activities and its working capital needs largely from the sale of equity and debt securities, combined with additional funding from other traditional sources. There can be no assurance, however, that the Company will be successful in these endeavors. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Use of Estimates </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
Cash is maintained at federally insured financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. Balances in excess of federally insured limits at November 30, 2019 and May 31, 2019 approximated $1.0 million and $3.2 million, respectively.<table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Identified Intangible Assets </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Company follows the provisions of Financial Accounting Standards Board (“FASB”) ASC Topic 350 Intangibles-Goodwill and Other, which establishes accounting standards for the impairment of long-lived assets such as intangible assets subject to amortization. The Company reviews long-lived assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the sum of the undiscounted expected future cash flows over the remaining useful life of a long-lived asset group is less than its carrying value, the asset is considered impaired. Impairment losses are measured as the amount by which the carrying amount of the asset group exceeds the fair value of the asset. There were no impairment charges for the six months ended November 30, 2019 and 2018. The value of the Company’s patents would be significantly impaired by any adverse developments as they relate to the clinical trials pursuant to the patents acquired as discussed in Notes 7 and 9. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Research and Development </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Research and development costs are expensed as incurred. Clinical trial costs incurred through third parties are expensed as the contracted work is performed. Where contingent milestone payments are due to third parties under research and development collaboration arrangements or other contractual agreements, the milestone payment obligations are expensed when the milestone conditions are probable and the amount of payment is reasonably estimable. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="font-weight:bold;display:inline;"><div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">Pre-launch</div> Inventory </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;">The Company <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">may scale-up and</div> make commercial quantities of its product candidate prior to the date it anticipates that such product will receive final FDA approval. <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">The scale-up and</div> commercial production <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">of pre-launch inventories</div> involves the risk that such products may not be approved for marketing by the FDA on a timely basis, or ever. This risk notwithstanding, the Company <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">may scale-up and</div> <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">build pre-launch inventories</div> of product that have not yet received final governmental approval when the Company believes that such action is appropriate in relation to the commercial value of the product launch opportunity. The determination to capitalize is made once the Company (or its third party development partners) has filed a Biologics License Application (“BLA”) that has been acknowledged by the FDA as containing sufficient information to allow the FDA to conduct its review in an efficient and timely manner and management is reasonably certain that all regulatory and legal requirements will be satisfied. This determination is based on the particular facts and circumstances relating to the expected FDA approval of the drug product being considered. As of November 30, 2019, and May 31, 2019, the Company did not <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">have pre-launch inventory</div> that qualified for capitalization pursuant to U.S. GAAP ASC 330 “Inventory.”</div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Fair Value of Financial Instruments </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;;font-style:italic;display:inline;">Fair Value Hierarchy </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The three levels of inputs that may be used to measure fair value are as follows: </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Level 1. Quoted prices in active markets for identical assets or liabilities. </div></div><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;">Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities. Level 2 inputs also <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">include non-binding market</div> consensus prices that can be corroborated with observable market data, as well as quoted prices that were adjusted for security-specific restrictions.</div><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;">Level 3. Unobservable inputs to the valuation methodology are significant to the measurement of the fair value of assets or liabilities. These Level 3 inputs also <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">include non-binding market</div> consensus prices <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">or non-binding broker</div> quotes that the Company was unable to corroborate with observable market data.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as of November 30, 2019 and May 31, 2019 is as follows: </div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px;;margin : 0px auto;;text-align:left;;width:92%;"><tr style="font-size: 0px;"><td style="padding: 0px;;width:56%;"></td><td style="padding: 0px;;vertical-align:bottom;;width:3%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;;vertical-align:bottom;;width:3%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;;vertical-align:bottom;;width:3%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;;vertical-align:bottom;;width:3%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="6" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Fair Value Measurement at<br/>November 30, 2019 (1)</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="6" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Fair Value Measurement at<br/>May 31, 2019 (1)</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td colspan="2" style="padding-left: 0px;;text-align:center;;vertical-align:bottom;">Using</td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td colspan="2" style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td colspan="2" style="padding-left: 0px;;text-align:center;;vertical-align:bottom;">Using</td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td colspan="2" style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Level 3</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Total</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Level 3</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Total</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Liabilities:</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 3em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Derivative liability - convertible note redemption provision</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;"> 1,456,398</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;"> 1,456,398</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;"> 2,005,137</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;"> 2,005,137</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 3em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Derivative liability - warrants</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">122,372</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">122,372</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">402,132</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">402,132</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 5em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Total liability</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">1,578,770</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">1,578,770</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">2,407,269</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">2,407,269</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px; background: none;"></div><div style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px;;width:100%;"><tr style="page-break-inside: avoid;"><td style="padding-left: 0px;;text-align:left;;vertical-align:top;;width:4%;">(1)</td><td style="padding-left: 0px;;text-align:left;;vertical-align:top;"><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Company did not have any assets or liabilities measured at fair value using Level 1 or 2 of the fair value hierarchy as of November 30, 2019 and May 31, 2019. </div></div></td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px; background: none;"></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurements. These instruments are not quoted on an active market. The Company uses a Binomial Lattice Model to estimate the value of the warrant derivative liability and a Monte Carlo Simulation to value the derivative liability of the redemption provision within a convertible promissory note. These valuation models were used because management believes they reflect all the assumptions that market participants would likely consider in negotiating the transfer of the instruments. The Company’s derivative liabilities are classified within Level 3 of the fair value hierarchy because certain unobservable inputs were used in the valuation models. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The following is a reconciliation of the beginning and ending balances for liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the six months ended November 30, 2019, and the year ended May 31, 2019: </div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px;;margin : 0px auto;;text-align:left;;width:68%;"><tr style="font-size: 0px;"><td style="padding: 0px;;width:84%;"></td><td style="padding: 0px;;vertical-align:bottom;;width:5%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Investor warrants issued with registered direct equity offering</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">4,360,000</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Placement agent warrants issued with registered direct equity offering</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">819,200</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Fair value adjustments</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">(3,855,468</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;">) </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Balance at May 31, 2018</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">1,323,732</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Inception date value of redemption provisions</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">2,750,006</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Fair value adjustments - warrants</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">(744,869</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">) </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Fair value adjustments - convertible notes</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">(921,600</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;">) </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Balance at May 31, 2019</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">2,407,269</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Fair value adjustments - warrants</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">(279,760</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;">) </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Fair value adjustments - convertible notes</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">(548,739</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">) </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Balance at November 30, 2019</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">1,578,770</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Operating Leases </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;">Effective June 1, 2019, the Company determined if an arrangement is a lease at inception. Operating leases are included in operating lease <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;"><div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">right-of-use</div></div> (“ROU”) assets, other current liabilities, and operating lease liabilities on its consolidated balance sheets.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;">Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The Company’s lease terms do not include options to extend or terminate the lease as it is not reasonably certain that it will exercise these options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">non-lease</div> components, which are generally accounted for separately.</div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Stock-Based Compensation </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">U.S. GAAP requires companies to measure the cost of employee services received in exchange for the award of equity instruments based on the fair value of the award at the date of grant. The expense is to be recognized over the period during which an employee is required to provide services in exchange for the award (requisite service period) or when designated milestones have been achieved. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Company accounts for stock-based awards established by the fair market value of the instrument using the Black-Scholes option pricing model utilizing certain weighted average assumptions including stock price volatility, expected term and risk-free interest rates, as of the grant date. The risk-free interest rate assumption is based upon observed interest rates appropriate for the expected term of the stock-based award. The expected volatility is based on the historical volatility of the Company’s common stock on monthly intervals. The computation of the expected option term is based on the “simplified method,” as the Company issuances are considered “plain vanilla” options. For stock-based awards with defined vesting, the Company recognizes compensation expense over the requisite service period or when designated milestones have been achieved. The Company estimates forfeitures at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. Based on limited historical experience of forfeitures, the Company estimated future unvested forfeitures at 0% for all periods presented. Periodically, the Company will issue restricted common stock to third parties as compensation for services rendered. Such stock awards are valued at fair market value on the effective date of the Company’s obligation. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Common Stock </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">On November 8, 2018, at the 2018 Annual Meeting of Stockholders, a proposal was approved to increase the total number of authorized shares of common stock of the Company from 450,000,000 to 600,000,000. Subsequently, on May 22, 2019, at a special meeting of stockholders, a proposal was approved to increase the total number of authorized shares of common stock of the Company from 600,000,000 to 700,000,000. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Preferred Stock </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Company’s Board of Directors is authorized to issue up to 20,000,000 shares of preferred stock without stockholder approval. As of November 30, 2019, the Company has authorized the issuance of 400,000 shares of Series B convertible preferred stock and 20,000 shares of Series C convertible preferred stock, of which 92,100 shares and 7,788 shares, respectively, were outstanding. The remaining preferred shares authorized have no specified rights. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Treasury Stock </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Treasury stock purchases are accounted for under the par value method, whereby the cost of the acquired stock is recorded at par value. As of November 30, 2019, the Company has purchased 159,011 shares of $0.001 par value treasury stock. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Debt Discount </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">During year ended May 31, 2019, the Company incurred approximately $4.2 million of debt discount related to the issuance of convertible notes, as described in Note 4. The discount is amortized over the life of the convertible promissory notes. During the six months ended November 30, 2019 and November 30, 2018, the Company recorded approximately $1.5 million and $0.6 million of related amortization, respectively. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Debt Issuance Cost </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">During the year ended May 31, 2019, the Company incurred direct costs associated with the issuance of convertible notes, as described in Note 4, and recorded approximately $1.0 million of debt issuance costs. During the six months ended November 30, 2019 and November 30, 2018, the Company recognized related amortization of approximately $404,000 and $20,000, respectively. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Offering Costs </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">During the six months ended November 30, 2019 and the year ended May 31, 2019, the Company incurred direct incremental costs associated with the sale of equity securities and conversion of debt, as described in Notes 10 and 11. The costs were approximately $2.0 million and $4.3 million for the six months ended November 30, 2019 and year ended May 31, 2019, respectively. The offering costs were recorded as a component of equity upon receipt of proceeds. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Stock for Services </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Company periodically issues warrants to consultants for various services. The Black-Scholes option pricing model, as described more fully above, is utilized to measure the fair value of the equity instruments on the date of issuance. The Company recognizes the compensation expense associated with the equity instruments over the requisite service or vesting period. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Loss per Common Share </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Basic loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding during the period. Diluted loss per share would include the weighted average number of shares of common stock outstanding and potentially dilutive common stock equivalents. Because of the net losses for all periods presented, the basic and diluted weighted average shares outstanding are the same since including the additional shares would have an anti-dilutive effect on the loss per share. For this reason, common stock options and warrants to purchase 160,752,883 and 155,836,676 shares of common stock were not included in the computation of basic and diluted weighted average number of shares of common stock outstanding for the three months ended November 30, 2019 and November 30, 2018, respectively. Additionally, as of November 30, 2019, shares of Series C and Series B convertible preferred stock in the aggregate of 99,888 shares can potentially convert into 16,497,000 shares of common stock. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Income Taxes </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Deferred taxes are provided on the asset and liability method, whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Future tax benefits for net operating loss carry forwards are recognized to the extent that realization of these benefits is considered more likely than not. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. </div></div><div style="font-size: 1px; margin-top: 12px; margin-bottom: 0px;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">The Company follows the provisions of FASB Accounting Standards Codification (“ASC”) ASC <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">740-10</div> “Uncertainty in Income Taxes”. A reconciliation of the beginning and ending amount of unrecognized tax benefits has not been provided since there are no unrecognized benefits for all periods presented. The Company has not recognized interest expense or penalties as a result of the implementation of ASC <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">740-10.</div> If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefit in interest expense and penalties in operating expenses.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">In accordance with Section 15 of the Internal Revenue Code, the Company utilized a federal statutory rate of 21% and 28.62% for the six months ended November 30, 2019 and November 30, 2018, respectively. The net tax expense for the six months ended November 30, 2019 and November 30, 2018, is zero. The Company has a full valuation allowance as of November 30, 2019 and May 31, 2019, as management does not consider it more than likely than not that the benefits from the deferred taxes will be realized. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as of November 30, 2019 and May 31, 2019 is as follows: </div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px;;margin : 0px auto;;text-align:left;;width:92%;"><tr style="font-size: 0px;"><td style="padding: 0px;;width:56%;"></td><td style="padding: 0px;;vertical-align:bottom;;width:3%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;;vertical-align:bottom;;width:3%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;;vertical-align:bottom;;width:3%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;;vertical-align:bottom;;width:3%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="6" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Fair Value Measurement at<br/>November 30, 2019 (1)</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="6" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Fair Value Measurement at<br/>May 31, 2019 (1)</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td colspan="2" style="padding-left: 0px;;text-align:center;;vertical-align:bottom;">Using</td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td colspan="2" style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td colspan="2" style="padding-left: 0px;;text-align:center;;vertical-align:bottom;">Using</td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td colspan="2" style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Level 3</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Total</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Level 3</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Total</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Liabilities:</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 3em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Derivative liability - convertible note redemption provision</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;"> 1,456,398</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;"> 1,456,398</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;"> 2,005,137</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;"> 2,005,137</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 3em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Derivative liability - warrants</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">122,372</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">122,372</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">402,132</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">402,132</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 5em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Total liability</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">1,578,770</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">1,578,770</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">2,407,269</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">2,407,269</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px; background: none;"></div><div style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px;;width:100%;"><tr style="page-break-inside: avoid;"><td style="padding-left: 0px;;text-align:left;;vertical-align:top;;width:4%;">(1)</td><td style="padding-left: 0px;;text-align:left;;vertical-align:top;"><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Company did not have any assets or liabilities measured at fair value using Level 1 or 2 of the fair value hierarchy as of November 30, 2019 and May 31, 2019. </div></div></td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The following is a reconciliation of the beginning and ending balances for liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the six months ended November 30, 2019, and the year ended May 31, 2019: </div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px;;margin : 0px auto;;text-align:left;;width:68%;"><tr style="font-size: 0px;"><td style="padding: 0px;;width:84%;"></td><td style="padding: 0px;;vertical-align:bottom;;width:5%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Investor warrants issued with registered direct equity offering</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">4,360,000</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Placement agent warrants issued with registered direct equity offering</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">819,200</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Fair value adjustments</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">(3,855,468</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;">) </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Balance at May 31, 2018</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">1,323,732</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Inception date value of redemption provisions</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">2,750,006</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Fair value adjustments - warrants</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">(744,869</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">) </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Fair value adjustments - convertible notes</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">(921,600</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;">) </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Balance at May 31, 2019</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">2,407,269</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Fair value adjustments - warrants</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">(279,760</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;">) </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Fair value adjustments - convertible notes</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">(548,739</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">) </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Balance at November 30, 2019</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">1,578,770</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
0
0
0
0
0.0
<div style="font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Note 3 – Recent Accounting Pronouncements </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Recent accounting pronouncements, other than below, issued by the FASB (including its EITF), the AICPA and the SEC did not or are not believed by management to have a material effect on the Company’s present or future financial statements. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;">In February 2016, the FASB issued a new accounting standard which requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases. The ASU also requires new qualitative and quantitative disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The standard is effective for fiscal years beginning after December 15, 2018. The Company adopted the standard as of June 1, 2019, using the modified retrospective approach in which prior comparative periods are not adjusted. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows the Company to carry forward historical lease classification. The Company has operating leases for two office facilities, one which expires on April 30, 2021 and the other on March 31, 2022. As of June 1, 2019, the Company recognized additional <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;"><div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">right-of-use</div></div> assets and corresponding operating lease liabilities related to its facility leases on the consolidated balance sheet. No cumulative effect adjustment was recognized as the amount was not material. The standard did not materially impact the Company’s consolidated statement of operations or cash flows.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">In June 2016, the FASB issued a new accounting standard intended to provide financial statement users with more decision-useful information about expected credit losses and other commitments to extend credit held by the reporting entity. The standard replaces the incurred loss impairment methodology in current GAAP with one that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The update is effective on January 1, 2020, with early adoption permitted. The Company does not expect the adoption to have a material impact on its consolidated financial statements. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">In August 2018, the FASB issued a new accounting standard to reduce, modify, and add to the disclosure requirements on fair value measurements. The standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company does not expect the adoption to have a material impact on its consolidated financial statements. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;">In August 2018, the FASB issued a new accounting standard to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">internal-use</div> software. The standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company does not expect the adoption to have a material impact on its consolidated financial statements.</div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Note 4 – Convertible Instruments </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;;font-style:italic;display:inline;">Series C Convertible Preferred Stock </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">On March 20, 2019, the Company authorized 5,000 shares and issued 3,246 shares of Series C Convertible Preferred Stock, $0.001 par value per share (“Series C Preferred Stock”), at <div style="letter-spacing: 0px; top: 0px;;display:inline;">$</div></div><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">1,</div></div><div style="letter-spacing: 0px; top: 0px;;display:inline;">000<div style="letter-spacing: 0px; top: 0px;;display:inline;">.00 </div>per share for cash proceeds totaling $3,083,700, net of placement agent fees of $162,300. On August 29, 2019<div style="display:inline;">, </div>the Company issued the remaining 1,754 shares of Series C Preferred Stock at $<div style="letter-spacing: 0px; top: 0px;;display:inline;">1,</div>000<div style="letter-spacing: 0px; top: 0px;;display:inline;">.00</div></div><div style="letter-spacing: 0px; top: 0px;;display:inline;"> per share for cash proceeds totaling $1,542,545, net of placement agent fees and legal fees totaling $211,455. On October 11, 2019, the Company authorized an increase from 5,000 shares to <div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">20</div></div>,<div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">000</div></div> shares, and between October 21, 2019 and November 8, 2019 issued 2,788 shares of Series C Convertible Preferred Stock. As of November 30, 2019, 12,212 shares of Series C Preferred Stock remain <div style="letter-spacing: 0px; top: 0px;;display:inline;">available to be issu<div style="letter-spacing: 0px; top: 0px;;display:inline;">ed</div></div>. The Series C Preferred Stock Certificate of Designation (the “Certificate of Designation”) provides, among other things, that holders of Series C Preferred Stock shall be entitled to receive, <div style="letter-spacing: 0px; top: 0px;;display:inline;">ou<div style="display:inline;">t</div> of any assets at the time legally a<div style="letter-spacing: 0px; top: 0px;;display:inline;">vailable therefor</div></div>, cumulative dividends at the rate of ten percent (10%) per share per annum of the stated value of the Series C Preferred Stock, to be paid per share of Series C Preferred Stock<div style="letter-spacing: 0px; top: 0px;;display:inline;">, which d<div style="display:inline;">i</div>vidends shall accrue whether or not declared</div>. Any dividends paid by the Company will first be paid to the holders of Series C Preferred Stock prior and in preference to any payment or distribution to holders of common stock. Dividends on the Series C Preferred Stock are mandatory and cumulative and there are no sinking fund provisions applicable to the Series C Preferred Stock. The Series C Preferred Stock does not have redemption rights. The stated value per share for the Series C Preferred Stock is $1,000 (the “Stated Value”). In the event of any liquidation, dissolution or winding up of the Company, the Series C Preferred Stock will be paid, prior and in preference to any payment or distribution on any shares of common stock, currently outstanding series of preferred stock, or subsequent series of preferred stock, an amount per share equal to the Stated Value and the amount of any accrued and unpaid dividends. The holders of the Series C Preferred Stock will then receive distributions along with the holders of common stock on a pari passu basis according to the number of shares of common stock the Series C Preferred holders would be entitled if they converted their shares of Series C Preferred Stock at the time of such distribution. If, at any time while the Series C Preferred Stock is outstanding, the Company effects any reorganization, merger or sale of the Company or substantially all of its assets (each a “Fundamental Transaction”), a holder of the Series C Preferred Stock will have the right to receive any shares of the acquiring corporation or other consideration it would have been entitled to receive if it had been a holder of the number of shares of common stock then issuable upon conversion in full of the Series C Preferred Stock immediately prior to the Fundamental Transaction. Each share of Series C Preferred Stock is convertible at any time at the holder’s option into that number of fully paid and nonassessable shares of the Company’s common stock determined by dividing the Stated Value by the conversion price of $0.50 per share (subject to adjustment as set forth in the Certificate of Designation). No fractional shares will be issued upon the conversion of the Series C Preferred Stock. Except as otherwise provided in the Certificate of Designation or as otherwise required by law, the Series C Preferred Stock has no voting rights. As of November 30, 2019, the accrued dividends were approximately $299,000 or 598,000 shares of common stock. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;;font-style:italic;display:inline;">Series B Convertible Preferred Stock </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;">During fiscal 2010, the Company issued 400,000 shares of Series B Convertible Preferred Stock, $0.001 par value per share (“Series B Preferred Stock”) at $5.00 per share for cash proceeds totaling $2,009,000, of which 92,100 shares remain outstanding at November 30, 2019. Each share of the Series B Preferred Stock is convertible into ten shares of the Company’s common stock, including any accrued dividends, with an effective fixed conversion price of $0.50 per share. The holders of the Series B Preferred Stock can only convert their shares to shares of common stock provided the Company has sufficient authorized shares of common stock at the time of conversion. Accordingly, the conversion option was contingent upon the Company increasing its authorized common shares, which occurred in April 2010, when the Company’s stockholders approved an increase in the authorized shares of common stock to 100,000,000. At the commitment date, which occurred upon such stockholder approval, the conversion option related to the Series B Preferred Stock was beneficial. The intrinsic value of the conversion option at the commitment date resulted in a constructive dividend to the Series B Preferred Stock holders of approximately $6,000,000. The constructive dividend increased and decreased additional <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">paid-in</div> capital by identical amounts. The Series B Preferred Stock has liquidation preferences over the common shares at $5.00 per share plus any accrued dividends. Dividends are payable to the Series B Preferred Stock holders when declared by the Board of Directors at the rate of $0.25 per share per annum. Such dividends are cumulative and accrue whether or not declared and whether or not there are any profits, surplus or other funds or assets of the Company legally available. The Series B holders have no voting rights. As of November 30, 2019<div style="letter-spacing: 0px; top: 0px;;display:inline;">,</div> and May 31, 2019, the undeclared dividends were approximately $233,000 or 456,000 shares of common stock and approximately $216,000 or 432,000 shares of common stock, respectively.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;;font-style:italic;display:inline;">2019 Short-term Convertible Notes </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">During the year ended May 31, 2019, the Company issued approximately $5.5 million of nine-month unsecured Convertible Notes (the “2019 Short-term Convertible Notes”) and related warrants to investors for cash. Beginning on September 30, 2019 and through November 14, 2019, principal and interest totaling approximately $5.9 million came due. Holders of notes totaling approximately $1.1 million in principal and accrued interest agreed to extend their notes for another 3 months, and holders of notes totaling approximately $4.1 million in principal and accrued interest agreed to extend their notes for another 6 months. One note-holder with principal and accrued interest totaling approximately $0.2 million converted to shares of common stock of the Company. During the quarter ended November 30, 2019, a total of approximately $0.7 million of principal and accrued interest was repaid in cash. In addition, detachable stock warrants to purchase a total of <div style="letter-spacing: 0px; top: 0px;;display:inline;">4,750,000</div> warrants with a five-year term and an exercise price of $0.30 per share and a <div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">five</div></div>-year term were issued to investors who extended their notes. One investor received 200,000 warrants with a <div style="letter-spacing: 0px; top: 0px;;display:inline;">five</div>-year term and an exercise price of $0.45 per share for converting the entire principal and accrued interest </div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">on its note. In connection with the note extensions and conversion, the Company recorded a non-cash inducement interest expense of approximately $0.3 million during the quarter ended November 30, 2029<div style="display:inline;">.</div><div style="display:inline;"> </div></div><div style="letter-spacing: 0px; top: 0px;;display:inline;">The new principal amount of the 2019 Short-term Convertible Notes, including any accrued but unpaid interest thereon, is convertible at the election of the holder at any time into shares of common stock at any time prior to maturity at a conversion price of $0.50 per share. The 2019 Short-term Convertible Notes bear simple interest at the annual rate of 10%. Principal and accrued interest, to the extent not previously paid or converted, is due and payable on the maturity date. At the new commitment dates, the Company determined that there was a decrease in the fair value of the embedded conversion option resulting from the modification, the value of which is not </div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">required to be </div><div style="letter-spacing: 0px; top: 0px;;display:inline;">recognized under U.S. GAAP. </div></div><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 10pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Company recognized approximately $269,000 and $0 of interest expense during the six months ended November 30, 2019 and November 30, 2018, respectively. </div></div><div style="font-size: 1px; margin-top: 18px; margin-bottom: 0px;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;;font-style:italic;display:inline;">Long-term Convertible Notes—June 2018 Note </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;">On June 26, 2018, the Company entered into a securities purchase agreement, pursuant to which the Company issued a convertible promissory note (the “June 2018 Note”) with a <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">two-year</div> term to an institutional accredited investor in the initial principal amount of $5.7 million. The investor gave consideration of $5.0 million to the Company. The June 2018 Note bears interest of 10% and is convertible into common stock, at $0.55 per share. The June 2018 Note is convertible in total, or in part, of the outstanding balance, at any time after six months from the issue date upon five trading days’ notice, subject to certain adjustments and ownership limitations specified in the June 2018 Note. The Investor may redeem any portion of the June 2018 Note, at any time after six months from the issue date upon five trading days’ notice, subject to a maximum monthly redemption amount of $350,000. The securities purchase agreement requires the Company to reserve shares for future conversions or redemptions by dividing the outstanding principal balance plus accrued interest by the conversion price of $0.55 per share times 1.5. As a result of the entry into the January 2019 Note (as defined below), the Company’s obligations under the June 2018 Note are now secured by all of the assets of the Company, excluding the Company’s intellectual property.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Effective November 15, 2018, the June 2018 Note was amended to allow the Investor to redeem the monthly redemption amount of $350,000 in cash or stock, at the lesser of (i) $0.55, or (ii) the lowest closing bid price of the Company’s common stock during the 20 days prior to the conversion, multiplied by a conversion factor of 85%. The variable rate redemption provision meets the definition of a derivative instrument and subsequent to the amendment, it no longer meets the criteria to be considered indexed to the Company’s own stock. As of November 15, 2018, the redemption provision requires bifurcation as a derivative liability at fair value under the guidance in ASC Topic No. 815, “Derivatives and Hedging.” </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;">The amendment of the June 2018 Note was also evaluated under ASC Topic <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;"><div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">470-50-40,</div></div> “Debt Modifications and Extinguishments.” Based on the guidance, the instruments were determined to be substantially different, and debt extinguishment accounting was applied. The Company recorded approximately $1.5 million as an extinguishment loss, which was the difference in the net carrying value of the June 2018 Note prior to the amendment of approximately $5.4 million, and the fair value of the June 2018 Note and embedded derivatives after the amendment of approximately $6.9 million. The extinguishment loss includes a <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">write-off</div> of unamortized debt issuance costs and the debt discount associated with the original the June 2018 Note.</div><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">During the six months ended November 30, 2019 and November 30, 2018, the Company recognized approximately $300,000 and $248,000, of interest expense related to the June 2018 Note, respectively. During the six months ended November 30, 2019, the Company received redemption notices from the holder of the Company’s June 2018 Note, requesting an aggregate redemption of $2,055,000 of the outstanding balance thereof. In satisfaction of the redemption notices, the Company issued shares of common stock totaling 4,746,935 and paid cash totaling $525,000 to the June 2018 Note holder in accordance with the terms of the June 2018 Note. Following the redemptions, the outstanding balance of the convertible June 2018 Note, including accrued but unpaid interest, was approximately $2.8 million. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;;font-style:italic;display:inline;">Long-term Convertible Notes—January 2019 Note </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;">On January 30, 2019, the Company entered into a securities purchase agreement, pursuant to which the Company issued a convertible promissory note (the “January 2019 Note”) with a <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">two-year</div> term to the holder of the June 2018 Note in the initial principal amount of $5.7 million. In connection with the issuance of the January 2019 Note, the Company granted a lien against all of the assets of the Company, excluding the Company’s intellectual property, to secure all obligations owed to the investor by the Company (including those under both the January 2019 Note and the June 2018 Note). The investor gave consideration of $5.0 million to the Company, reflecting original issue discount of $0.6 million and issuance costs of $0.1 million. The January 2019 Note bears interest of 10% and is convertible into common stock, at $0.50 per share. The January 2019 Note is convertible in total, or in part, of the outstanding balance, at any time after six months from the issue date upon five trading days’ notice, subject to certain adjustments and ownership limitations specified in the Note. The Company analyzed the conversion option for derivative accounting treatment under ASC 815 and determined that the embedded conversion option did not qualify for derivative accounting.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;">The investor may redeem any portion of the January 2019 Note, at any time after six months from the issue date upon five trading days’ notice, subject to a maximum monthly redemption amount of $350,000. The monthly redemption amount may be paid in cash or stock, at the Company’s election, at the lesser of (i) $<div style="letter-spacing: 0px; top: 0px;;display:inline;">0.50</div>, or (ii) the lowest closing bid price of the Company’s common stock during the 20 days prior to the conversion, multiplied by a conversion factor of 85%. The redemption provision meets the definition of a derivative instrument and does not meet the criteria to be considered indexed to the Company’s own stock. Therefore, the redemption provision requires bifurcation as a derivative liability at fair value under the guidance in ASC Topic No. 815 (“ASC 815”). The securities purchase agreement requires the Company to reserve 20,000,000 shares for future conversions or redemptions. In conjunction with the January 2019 Note, the investor received a warrant to purchase 5,000,000 shares of common stock with an exercise price of $0.30 which is exercisable until the <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">5-year</div> anniversary of the date of issuance. The warrant achieved equity classification at inception. The net proceeds of $5.0 million were allocated first to the redemption provision at its fair value, then to the warrants at their relative fair value and the beneficial conversion feature at its intrinsic value as follows:</div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px;;margin : 0px auto;;text-align:left;;width:68%;"><tr style="font-size: 0px;"><td style="padding: 0px;;width:83%;"></td><td style="padding: 0px;;vertical-align:bottom;;width:7%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">January 30, 2019</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Fair value of redemption provision</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">1,465,008</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Relative fair value of equity classified warrants</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">858,353</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Beneficial conversion feature</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">2,676,639</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="padding-left: 0px;;vertical-align:top;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">5,000,000</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div> <div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;">Under the guidance of ASC 815, after allocation of proceeds to the redemption provision, relative fair value of equity classified warrants and the beneficial conversion feature, there were no proceeds remaining to allocate to convertible note payable. Therefore, principal, accrued interest, debt discount and offering costs will be recognized as interest expense, which represents the accretion of the convertible note payable and related debt discount and issuance costs. During the six months ended November 30, 2019 and November 30, 2018, the Company recognized approximately $387,000 and <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;"><div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">$-<div style="letter-spacing: 0px; top: 0px;;display:inline;">0</div>-,</div></div> respectively, of interest expense related to the January 2019 Note.</div> <div style="font-family: "times new roman"; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Activity related to the June 2018 Note and the January 2019 Note is as follows: </div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px;;margin : 0px auto;;text-align:left;;width:84%;"><tr style="font-size: 0px;"><td style="padding: 0px;;width:63%;"></td><td style="padding: 0px;;vertical-align:bottom;;width:4%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;;vertical-align:bottom;;width:3%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;;vertical-align:bottom;;width:3%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Short Term</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Long Term</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Total</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">June 2018 Note</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">2,100,000</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">3,600,000</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">5,700,000</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Monthly redemption provision</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">2,100,000</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">(2,100,000</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">) </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px; white-space: nowrap;;text-align:right;;vertical-align:bottom;">—  </td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Note amendment, net</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">—  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">111,410</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">111,410</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Redemptions</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">(1,726,582</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">) </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">(2,108,418</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">) </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">(3,835,000</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">) </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Interest accretion<div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">—</div>June 2018 and January 2019 Notes</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">300,308</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">685,599</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">985,907</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;">Carrying value of Notes at November 30, 2019</div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">2,773,726</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">188,591</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">2,962,317</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div> <table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
The net proceeds of $5.0 million were allocated first to the redemption provision at its fair value, then to the warrants at their relative fair value and the beneficial conversion feature at its intrinsic value as follows:<table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px;;margin : 0px auto;;text-align:left;;width:68%;"><tr style="font-size: 0px;"><td style="padding: 0px;;width:83%;"></td><td style="padding: 0px;;vertical-align:bottom;;width:7%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">January 30, 2019</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Fair value of redemption provision</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">1,465,008</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Relative fair value of equity classified warrants</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">858,353</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Beneficial conversion feature</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">2,676,639</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="padding-left: 0px;;vertical-align:top;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">5,000,000</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div> <table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: "times new roman"; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Activity related to the June 2018 Note and the January 2019 Note is as follows: </div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px;;margin : 0px auto;;text-align:left;;width:84%;"><tr style="font-size: 0px;"><td style="padding: 0px;;width:63%;"></td><td style="padding: 0px;;vertical-align:bottom;;width:4%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;;vertical-align:bottom;;width:3%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;;vertical-align:bottom;;width:3%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Short Term</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Long Term</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">Total</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">June 2018 Note</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">2,100,000</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">3,600,000</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">5,700,000</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Monthly redemption provision</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">2,100,000</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">(2,100,000</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">) </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px; white-space: nowrap;;text-align:right;;vertical-align:bottom;">—  </td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Note amendment, net</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">—  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">111,410</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">111,410</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Redemptions</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">(1,726,582</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">) </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">(2,108,418</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">) </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">(3,835,000</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">) </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Interest accretion<div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">—</div>June 2018 and January 2019 Notes</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">300,308</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">685,599</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">985,907</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;">Carrying value of Notes at November 30, 2019</div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">2,773,726</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">188,591</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">2,962,317</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div> <table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
0
The Investor may redeem any portion of the January 2019 Note, at any time after six months from the issue date upon five trading days’ notice, subject to a maximum monthly redemption amount of $350,000. The monthly redemption amount may be paid in cash or stock, at the Company’s election, at the lesser of (i) $0.50, or (ii) the lowest closing bid price of the Company’s common stock during the 20 days prior to the conversion, multiplied by a conversion factor of 85%
The Investor may redeem any portion of the June 2018 Note, at any time after six months from the issue date upon five trading days’ notice, subject to a maximum monthly redemption amount of $350,000
Effective November 15, 2018, the June 2018 Note was amended to allow the Investor to redeem the monthly redemption amount of $350,000 in cash or stock, at the lesser of (i) $0.55, or (ii) the lowest closing bid price of the Company’s common stock during the 20 days prior to the conversion, multiplied by a conversion factor of 85%
0.50
525000
0.45
P5Y
200000
P5Y
4750000
700000
200000
4100000
1100000
5900000
5000
20000
2788
1000
<div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Company estimated the fair value of the warrant derivative liability as of inception date September 15, 2016, May 31, 2019 and <div style="letter-spacing: 0px; top: 0px;;display:inline;">November</div> 3<div style="letter-spacing: 0px; top: 0px;;display:inline;">0</div>, 2019, using the following assumptions: </div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px;;margin : 0px auto;;text-align:left;;width:84%;"><tr style="font-size: 0px;"><td style="padding: 0px; width: 69%;"></td><td style="padding: 0px; width: 8%;;vertical-align:bottom;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px; width: 7%;;vertical-align:bottom;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px; width: 7%;;vertical-align:bottom;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;;width:;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;;width:;">September 15,<br/>2016</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;;width:;"> </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;;width:;">May 31,<br/>2019</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;;width:;"> </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;;width:;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">November</div> 3<div style="letter-spacing: 0px; top: 0px;;display:inline;">0</div>,<br/>2019</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;;width:;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 69%;;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Fair value of underlying stock</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 8%;;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">0.78</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 7%;;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">0.39</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 7%;;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">0.28</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 69%;;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Risk free rate</div></div></td><td style="padding-left: 0px; width: 8%;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">1.20</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">% </td><td style="padding-left: 0px; width: 7%;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">1.94</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">% </td><td style="padding-left: 0px; width: 7%;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">1.61</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">% </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 69%;;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Expected term (years)</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 8%;;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">5</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 7%;;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">2.29</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 7%;;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">1.79</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 69%;;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Stock price volatility</div></div></td><td style="padding-left: 0px; width: 8%;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">106</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">% </td><td style="padding-left: 0px; width: 7%;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">61</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">% </td><td style="padding-left: 0px; width: 7%;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">63</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">% </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 69%;;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Expected dividend yield</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 8%;;vertical-align:bottom;">  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">—  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 7%;;vertical-align:bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">—  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 7%;;vertical-align:bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">—   </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 69%;;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Probability of Fundamental Transaction</div></div></td><td style="padding-left: 0px; width: 8%;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">50</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">% </td><td style="padding-left: 0px; width: 7%;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">50</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">% </td><td style="padding-left: 0px; width: 7%;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">50</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">% </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 69%;;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Probability of holder requesting cash payment</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 8%;;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">50</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;">% </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 7%;;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">50</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;">% </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 7%;;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">50</td><td style="padding-left: 0px; 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10-Q
false
2019-11-30
2020
Q2
CytoDyn Inc.
0001175680
--05-31
Yes
Yes
false
Accelerated Filer
true
false
WA
430755772
P5Y
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11900260
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<div style="font-family: times new roman; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Note 14 – Subsequent Events </div></div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">On December 2, 2019, the Company received <div style="display:inline;">a </div>redemption notice from the holder of the Company’s June 2018 Convertible Note requesting <div style="display:inline;">a</div> redemption </div></div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">of $350,000, which, at the Company’s election, was paid</div><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="display:inline;"> </div>in </div></div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">cash rather than stock</div><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">. </div></div><div style="display:inline;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">Following this redemption, the outstanding balance on the June 2018 Convertible Note, including accrued interest, was approximately $2.6 million.</div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">On December <div style="display:inline;">6</div>, 2019, the Company entered into subscription agreement<div style="display:inline;">s</div> with certain investors for the sale of </div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">415 Series C convertible preferred<div style="display:inline;"> </div></div><div style="letter-spacing: 0px; top: 0px;;display:inline;">shares at a purchase price of $1,000 per share (December <div style="display:inline;">6, </div>2019 <div style="display:inline;">o</div>ffering</div><div style="display:inline;">”</div><div style="letter-spacing: 0px; top: 0px;;display:inline;">)<div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">.</div> The investors in the December <div style="display:inline;">6, </div>2019 <div style="display:inline;">o</div>ffering also received warrants to purchase <div style="display:inline;">1,037,500 shares<div style="display:inline;"> </div></div>of common stock with an exercise price of $0.30 per share and a five<div style="display:inline;">-</div>year term. The Company received net proceeds from the December <div style="display:inline;">6, 2019 </div><div style="display:inline;">o</div>ffering of approximately $<div style="display:inline;">0.38</div> million. </div></div><div style="margin: 12pt 0in 0.0001pt; font-family: "times new roman", serif; font-size: 10pt;"><div style="display:inline;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">On December 9, 2019, the Company entered into subscription agreements with certain investors for the sale of 2,568,330 shares of common stock at a purchase price of $0.30 per share in a registered direct offering (“December 9 2019 Offering”), pursuant to a registration statement on Form S-3. The investors in the December 9 2019 Offering also received warrants to purchase 1,926,248 shares of common stock with an exercise price of $0.45 per share and a five-year term. The Company received net proceeds from the December 9 Offering of approximately $0.75 million. </div></div></div><div style="margin: 12pt 0in 0.0001pt; font-family: "times new roman", serif; font-size: 10pt;"><div style="display:inline;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">On December 13, 2019, the Company entered into subscription agreements with certain investors for the sale of 2,433,333 shares of common stock at a purchase price of $0.30 per share in a registered direct offering (“December 13 2019 Offering”), pursuant to a registration statement on Form S-3. The investors in the December 13 2019 Offering also received warrants to purchase 1,825,000 shares of common stock with an exercise price of $0.45 per share and a five-year term. The Company received net proceeds from the December 13 Offering of approximately $0.73 million. </div></div></div><div style="margin: 12pt 0in 0.0001pt; font-family: "times new roman", serif; font-size: 10pt;"><div style="display:inline;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">On December 16, 2019, the Company received a redemption notice from the holder of the Company’s January 2019 Convertible Note requesting a redemption of $350,000, which, at the Company’s election, was paid in cash rather than stock. On December 27, December 30, December 31, 2019 and on January 2, 2020, the Company received additional conversion notices from the holder of the January 2019 Convertible Note requesting conversions totaling $1.15 million. Pursuant to the January 2019 Convertible Note, such conversions are at $0.50 per share. Accordingly, the Company issued 2.3 million shares in connection with such conversion notices. Following the aforementioned redemption and conversions, the outstanding balance on the January 2019 Convertible Note, including accrued interest, was approximately $4.2 million. </div></div></div><div style="margin: 12pt 0in 0.0001pt; font-family: "times new roman", serif; font-size: 10pt;"><div style="display:inline;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">On December 17, 2019, the Company entered into a Commercialization and License Agreement (the “License Agreement”) and a Supply Agreement (the “Supply Agreement”) with Vyera Pharmaceuticals, LLC, a Delaware limited liability company (“Vyera”). Pursuant to the License Agreement, the Company granted Vyera an exclusive royalty-bearing license to commercialize pharmaceutical preparations containing leronlimab (PRO 140) for the treatment of HIV in humans in the United States. Pursuant to the terms of the License Agreement, and subject to the conditions set forth therein, Vyera will bear the cost of, and be responsible for, among other things, the commercialization of leronlimab (PRO 140) in the United States. Pursuant to the Supply Agreement, the Company has agreed to supply Vyera and Vyera has agreed to purchase from the Company, its requirements of leronlimab (PRO-140) for commercialization under the License Agreement. Under the terms of the Supply Agreement, Vyera is obligated to make purchases of leronlimab (PRO 140) from the Company pursuant to Vyera’s forecasted requirements, updated monthly, which will contain a binding period that will increase over the course of the first two years following receipt of regulatory approval of leronlimab (PRO 140) for the treatment of humans with HIV. </div></div></div><div style="margin: 12pt 0in 0.0001pt; font-family: "times new roman", serif; font-size: 10pt;"><div style="display:inline;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">On December 19, 2019, the Company issued stock options covering 7,300,000 shares of its common stock to directors and officers. The stock option awards have a per share exercise price of $0.63. Stock options covering 6,050,000 shares vested immediately upon issuance and 1,250,000 shares will vest upon filing of the BLA associated with HIV-Combination therapy. In addition, the president and chief executive officer received a warrant covering 2,000,000 shares with an exercise price of $0.63 per share, which vests upon the Company’s filing of the BLA. </div></div></div><div style="margin: 12pt 0in 0.0001pt; font-family: "times new roman", serif; font-size: 10pt;"><div style="display:inline;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">On December 20, 2019, the Company entered into a private warrant exchange in which certain accredited investors purchased unregistered common stock at a range of $0.22 to $0.25 per share as compared to the stated exercise price on their warrant, which ranged from $0.45 to $0.75 per share of common stock. The Company sold 3,350,000 shares of common stock, as well as 1,340,000 additional shares as an inducement to exercise their warrants, for a total of 4,690,000 shares of common stock, $0.001 par value. Aggregate gross proceeds from the private warrant exchange were approximately $0.8 million. </div></div></div><div style="margin: 12pt 0in 0.0001pt; font-family: "times new roman", serif; font-size: 10pt;"><div style="display:inline;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">As partial consideration for the License Agreement and the Supply Agreement, Vyera’s parent company, Phoenixus AG (“Phoenixus”), agreed to make a $4.0 million equity investment in the Company (the “December 23 2019 Offering”). On December 23, 2019, the Company entered into definitive subscription agreements relating to Phoenixus’ investment. In addition to the $4.0 million of shares of common stock and warrants sold to Phoenixus, the December 23 2019 Offering also included $0.5 million of shares of common stock and related warrants sold to an entity associated with David F. Welch, a member of the Company’s board of directors, on terms identical to those applicable to Phoenixus. In the aggregate, the Company sold 14,754,098 shares of common stock and warrants to purchase up to an aggregate of 7,377,049 shares of common stock. Each share of common stock was sold together with one-half of one warrant to purchase one share of common stock for a combined purchase price of $0.305 per share. </div></div></div><div style="margin: 12pt 0in 0.0001pt; font-family: "times new roman", serif; font-size: 10pt;"><div style="display:inline;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">On December 24, 2019, the Company issued a total of 379,880 shares of registered common stock to two executives in connection with the stock portion of their incentive compensation earned for the fiscal year ended May 31, 2018. The two executives simultaneously tendered back to the Company a total of 126,997 shares of the registered common stock to cover the income tax withholding requirements. </div></div></div><div style="margin: 12pt 0in 0.0001pt; font-family: "times new roman", serif; font-size: 10pt;"><div style="display:inline;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">On December 31, 2019, the holder of a 2019 Short-term Convertible Note in the aggregate principal amount of $549,912, including accrued but unpaid interest, tendered a notice of conversion at the stated conversion rate of $0.50 per share. The Company issued 1,099,823 shares of Common Stock in satisfaction of the conversion notice. </div></div></div><div style="margin: 9pt 0in 0.0001pt; font-family: "times new roman", serif; font-size: 1pt;"><div style="display:inline;"><div style="font-size: 1pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></div><div style="margin: 0in 0in 0.0001pt; font-family: "times new roman", serif; font-size: 10pt;"><div style="display:inline;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">On December 30, 2019, the Company entered into a private warrant exchange in which certain accredited investors purchased unregistered common stock at a reduced exercise price per share of $0.50 for any warrant with a stated exercise price greater than $0.50 per share and no discount for warrants with a stated exercise price equal to or less than $0.50 per share. The Company sold 2,230,000 shares of common stock, as well as 446,000 additional shares as an inducement to exercise their warrants, for a total of 2,676,000 shares of common stock, $0.001 par value. Aggregate gross proceeds from the private warrant exchange were approximately $1.0 million. </div></div></div><div style="margin: 12pt 0in 0.0001pt; font-family: "times new roman", serif; font-size: 10pt;"><div style="display:inline;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">On January 6, 2020, the Company granted stock option awards covering 210,000 shares of common stock to employees, with an exercise price of $0.98 per share. The awards vest ratably over three years and have a ten-year term. </div></div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
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0.63
300000
<div style="font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Note 5 – Derivative Liabilities </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The investor and placement agent warrants, issued in connection with a registered direct offering in September 2016, contained a provision for net cash settlement in the event that there is a fundamental transaction (contractually defined as a merger, sale of substantially all assets, tender offer or share exchange, whereby such other Person or group acquires more than 50% of the outstanding common stock). If a fundamental transaction occurs in which the consideration issued consists principally of cash or stock in a successor entity, then the warrant holder has the option to receive cash equal to the fair value of the remaining unexercised portion of the warrant. Due to this contingent cash settlement provision, the investor and placement agent warrants require liability classification as derivatives in accordance with ASC 480 and ASC 815 and are recorded at fair value. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The following tables summarize the fair value of the warrant derivative liability and related common shares as of inception date September 15, 2016, <div style="letter-spacing: 0px; top: 0px;;display:inline;">and the fair value as of </div>May 31, 2019 and November 30, 2019: </div></div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-spacing: 0px; width: 76%;;margin : 0px auto;;text-align:left;"><tr style="font-size: 0px;"><td style="padding: 0px; vertical-align: top; width: 68%;"></td><td style="padding: 0px; vertical-align: top; width: 6%;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top; width: 6%;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;">  </td><td colspan="2" style="padding-left: 0px; vertical-align: top; padding-bottom: 0in; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;">Shares Indexed</td><td style="padding-left: 0px; padding-bottom: 1pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;">  </td><td colspan="2" style="padding-left: 0px; vertical-align: top; padding-bottom: 0in; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;">Derivative Liability</td><td style="padding-left: 0px; padding-bottom: 1pt; vertical-align: top;;width:;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); vertical-align: top; width: 68%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Inception <div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">to </div>date September 15, 2016</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">7,733,334</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">5,179,200</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align: top; width: 68%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Balance May 31, 2019</div></div></td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">7,733,334</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">409,132</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); vertical-align: top; width: 68%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;">Balance November 30, 2019</div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">7,733,334</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">122,372</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;">The Company recognized approximately $280,000 of <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">non-cash</div> gain and $466,000 of <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">non-cash</div> loss, due to the changes in the fair value of the liability associated with such classified warrants during the <div style="letter-spacing: 0px; top: 0px;;display:inline;">six</div> months ended <div style="letter-spacing: 0px; top: 0px;;display:inline;">November</div> 3<div style="letter-spacing: 0px; top: 0px;;display:inline;">0</div>, 2019 and <div style="letter-spacing: 0px; top: 0px;;display:inline;">November</div> 3<div style="letter-spacing: 0px; top: 0px;;display:inline;">0</div>, 2018, respectively.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">ASC 820 provides requirements for disclosure of liabilities that are measured at fair value on a recurring basis in periods subsequent to the initial recognition. Fair values for the warrants were determined using a Binomial Lattice (“Lattice”) valuation model. </div></div><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 9pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Company estimated the fair value of the warrant derivative liability as of inception date September 15, 2016, May 31, 2019 and <div style="letter-spacing: 0px; top: 0px;;display:inline;">November</div> 3<div style="letter-spacing: 0px; top: 0px;;display:inline;">0</div>, 2019, using the following assumptions: </div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-spacing: 0px; width: 84%;;margin : 0px auto;;text-align:left;"><tr style="font-size: 0px;"><td style="padding: 0px; width: 69%; vertical-align: top;"></td><td style="padding: 0px; width: 8%; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; width: 7%; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; width: 7%; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;">  </td><td colspan="2" style="padding-left: 0px; vertical-align: top; padding-bottom: 0in; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;">September 15,<br/>2016</td><td style="padding-left: 0px; padding-bottom: 1pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td><td colspan="2" style="padding-left: 0px; vertical-align: top; padding-bottom: 0in; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;">May 31,<br/>2019</td><td style="padding-left: 0px; padding-bottom: 1pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td><td colspan="2" style="padding-left: 0px; vertical-align: top; padding-bottom: 0in; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">November</div> 3<div style="letter-spacing: 0px; top: 0px;;display:inline;">0</div>,<br/>2019</td><td style="padding-left: 0px; padding-bottom: 1pt; vertical-align: top;;width:;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 69%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Fair value of underlying stock</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 8%; vertical-align: top;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">0.78</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 7%; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">0.39</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 7%; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">0.28</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 69%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Risk free rate</div></div></td><td style="padding-left: 0px; width: 8%; vertical-align: top;">  </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">1.20</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; width: 7%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">1.94</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; width: 7%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">1.61</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 69%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Expected term (years)</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 8%; vertical-align: top;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">5</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 7%; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">2.29</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 7%; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">1.79</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 69%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Stock price volatility</div></div></td><td style="padding-left: 0px; width: 8%; vertical-align: top;">  </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">106</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; width: 7%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">61</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; width: 7%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">63</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 69%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Expected dividend yield</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 8%; vertical-align: top;">  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 7%; vertical-align: top;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 7%; vertical-align: top;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">—   </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 69%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Probability of Fundamental Transaction</div></div></td><td style="padding-left: 0px; width: 8%; vertical-align: top;">  </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">50</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; width: 7%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">50</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; width: 7%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">50</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 69%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Probability of holder requesting cash payment</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 8%; vertical-align: top;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">50</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;">% </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 7%; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">50</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;">% </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 7%; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">50</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;">% </td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Due to the fundamental transaction provision contained in the warrants, which could provide for early redemption of the warrants, the model also considered subjective assumptions related to the fundamental transaction provision. The fair value of the warrants will be significantly influenced by the fair value of the Company’s stock price, stock price volatility, changes in interest rates and management’s assumptions related to the fundamental transaction provisions. </div></div><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 12pt; margin-bottom: 12pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">As described above in Note 4 above, the redemption provision embedded in the June 2018 and January 2019 Notes required bifurcation and measurement at fair value as a derivative. The fair value of the Note redemption provision derivative liabilities was calculated using a Monte Carlo Simulation which uses randomly generated stock-price paths obtained through a Geometric Brownian Motion stock price simulation. The fair value of the redemption provision will be significantly influenced by the fair value of the Company’s stock price, stock price volatility, changes in interest rates and management’s assumptions related to the redemption factor. The Company estimated the fair value of the redemptive provision using the following assumptions on the closing date of November 15, 2018, January 30, 2019 and <div style="letter-spacing: 0px; top: 0px;;display:inline;">May 31, 2019 and </div>November 30, 2019:</div></div><div style="font-size: 12px; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table style="font-family: "times new roman"; font-size: 10pt; border-spacing: 0px; width: 92%; margin-top: 0pt; margin-bottom: 0pt;;margin : 0px auto;;text-align:left;"><tr><td style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: top; line-height: 8pt; font-size: 8pt;;width:;"><div style="margin-bottom: 0pt; margin-top: 0pt; font-size: 8pt; line-height: 7pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding: 0px 0px 0.7pt; vertical-align: top; line-height: 8pt; font-size: 8pt;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td colspan="2" style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: bottom; line-height: 8pt; font-size: 8pt;;text-align:center;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> <div style="line-height: 8pt; font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;">November 15,</div></div></div></td><td style="padding: 0px 0px 0.7pt; vertical-align: bottom; line-height: 8pt; font-size: 8pt;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding: 0px 0px 0.7pt; vertical-align: bottom; line-height: 8pt; font-size: 8pt;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td colspan="2" style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: bottom; line-height: 8pt; font-size: 8pt;;text-align:center;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;">  <div style="line-height: 8pt; letter-spacing: 0px; top: 0px; font-size: 8pt;;display:inline;">January 30,</div></div></div></td><td style="padding: 0px 0px 0.7pt; vertical-align: top; line-height: 8pt; font-size: 8pt;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: top; line-height: 8pt; font-size: 8pt;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td colspan="6" style="padding-left: 0px; padding-bottom: 0in; vertical-align: top; line-height: 8pt; font-size: 8pt; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="line-height: 8pt; font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;">May 31, 2019</div></div></td><td colspan="1" style="padding: 0px 0px 1pt; vertical-align: top; line-height: 8pt; font-size: 8pt;;text-align:center;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: top; line-height: 8pt; font-size: 8pt;;text-align:center;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td colspan="6" style="padding-left: 0px; padding-bottom: 0in; vertical-align: top; line-height: 8pt; font-size: 8pt; border-bottom: 1pt solid rgb(0, 0, 0); width: 0px;;text-align:center;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px; line-height: 8pt; font-size: 8pt;;display:inline;">November 30</div>, 2019</div></td><td style="padding-left: 0px; padding-bottom: 1pt; vertical-align: top; line-height: 8pt; font-size: 8pt;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: top;;width:;"> </td><td style="padding: 0px 0px 0.7pt; vertical-align: top;;width:;"> </td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: bottom; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">2018</div></td><td style="padding: 0px 0px 1pt; vertical-align: bottom;;width:;"> </td><td style="padding: 0px 0px 0.7pt; vertical-align: bottom;;width:;"> </td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: bottom; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">2019</div></td><td style="padding: 0px 0px 1pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: top;;width:;"> </td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: top; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;"><div style="font-size: 8pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">June<br/>Note</div></td><td style="padding-left: 0px; padding-bottom: 1pt; vertical-align: top;;text-align:center;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: top;;text-align:center;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: top; border-bottom: 1pt solid rgb(0, 0, 0); width: 0px;;text-align:center;"><div style="line-height: normal;"> <div style="letter-spacing: 0px; top: 0px;;display:inline;">January<br/>Note</div></div></td><td colspan="1" style="padding: 0px 0px 1pt; vertical-align: top;;text-align:center;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: top;;text-align:center;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: top; border-bottom: 1pt solid rgb(0, 0, 0); width: 0px;;text-align:center;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">June<br/>Note</div></td><td style="padding-left: 0px; padding-bottom: 1pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: top;;width:;"> </td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: top; border-bottom: 1pt solid rgb(0, 0, 0); width: 0px;;text-align:center;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">January<br/>Note</div></td><td style="padding-left: 0px; padding-bottom: 1pt; vertical-align: top;;width:;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 57%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Fair value of underlying stock</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: top;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div>0.57</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">0.49</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">$</div></td><td style="background: rgb(204, 238, 255); padding: 0in; vertical-align: top;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div>0.39</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">$</div></td><td style="background:#cceeff; padding:0in 0in 0in 0in;vertical-align:bottom;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">0.39</div></div></td><td style="background: rgb(204, 238, 255); padding: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">$<div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div></div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">0.28</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="line-height: normal;"><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">0.28</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 57%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Risk free rate</div></div></td><td style="padding-left: 0px; width: 4%; vertical-align: top;">  </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">2.78</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">%</td><td style="padding-left: 0px; width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">2.52</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">%</td><td style="padding-left: 0px; width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding: 0in; vertical-align: top;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">2.21</div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">%</div></td><td style="padding-left: 0px; vertical-align: top; width: 3%;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding:0in 0in 0in 0in;vertical-align:bottom;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">1.95</div></div></td><td style="padding: 0in; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">%</div></td><td style="padding-left: 0px; vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">1.63</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">1.60</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 57%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Expected term (in years)</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: top;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">1.61</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">2</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="background: rgb(204, 238, 255); padding: 0in; vertical-align: top;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">1.07</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="background:#cceeff; padding:0in 0in 0in 0in;vertical-align:bottom;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">1.67</div></div></td><td style="background: rgb(204, 238, 255); padding: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">0.57</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">1.17</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 57%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Stock price volatility</div></div></td><td style="padding-left: 0px; width: 4%; vertical-align: top;">  </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">58.8</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">61</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding: 0in; vertical-align: top;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">62.2</div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">%</div></td><td style="padding-left: 0px; vertical-align: top; width: 3%;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding:0in 0in 0in 0in;vertical-align:bottom;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">62.2</div></div></td><td style="padding: 0in; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">%</div></td><td style="padding-left: 0px; vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">66.3</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">64.1</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 57%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Expected dividend yield</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: top;">  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="background: rgb(204, 238, 255); padding: 0in; vertical-align: top; white-space: nowrap;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">—  </div></div></td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="background: rgb(204, 238, 255); padding: 0in; white-space: nowrap;;vertical-align:bottom;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">—  </div></div></td><td style="background: rgb(204, 238, 255); padding: 0px; vertical-align: top; white-space: nowrap;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">—   </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">—   </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 57%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Discount factor</div></div></td><td style="padding-left: 0px; width: 4%; vertical-align: top;">  </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">85</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">85</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding: 0in; vertical-align: top;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">85</div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">%</div></td><td style="padding-left: 0px; vertical-align: top; width: 3%;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding:0in 0in 0in 0in;vertical-align:bottom;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">85</div></div></td><td style="padding: 0in; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">%</div></td><td style="padding-left: 0px; vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">85</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">85</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">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 <div style="letter-spacing: 0px; top: 0px;;display:inline;">the fair value as of May 31, 2019 and </div><div style="letter-spacing: 0px; top: 0px;;display:inline;">November</div> 3<div style="letter-spacing: 0px; top: 0px;;display:inline;">0</div>, 2019:  </div></div><div style="text-align: center; margin-bottom: 0px; margin-top: 0px;"> </div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-spacing: 0px; width: 84%;;margin : 0px auto;;text-align:left;"><tr style="font-size: 0px;"><td style="padding: 0px; width: 48%; vertical-align: bottom;"></td><td style="padding: 0px; width: 4%; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; width: 4%; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; width: 4%; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; width: 4%; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;"> </td><td rowspan="2" style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;">  </td><td colspan="2" rowspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: bottom; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;">Net Proceeds</td><td rowspan="2" style="padding-left: 0px; padding-bottom: 1pt; vertical-align: bottom;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;">  </td><td colspan="10" style="padding-left: 0px; padding-bottom: 0in; vertical-align: bottom; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;">Derivative Liability</td><td style="padding-left: 0px; padding-bottom: 1pt; vertical-align: bottom;;width:;"> </td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;">  </td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: bottom; border-bottom: 1px solid black;;text-align:center;;width:;">Inception date</td><td style="padding-left: 0px; padding-bottom: 1px; vertical-align: bottom;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; text-align: center; vertical-align: bottom; border-bottom: 1px solid black;;width:;"><div style="font-size: 8pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">May 31, 2019</div></td><td style="padding-left: 0px; padding-bottom: 1px; vertical-align: bottom;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;">  </td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: bottom; border-bottom: 1px solid black;;text-align:center;;width:;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">November</div> 3<div style="letter-spacing: 0px; top: 0px;;display:inline;">0</div>, 2019</td><td style="padding-left: 0px; padding-bottom: 1px; vertical-align: bottom;;width:;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 48%; vertical-align: bottom;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Inception date June 2018 Note, November 15, 2018</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">5,000,000</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">1,284,988</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"><div style="text-align: right; line-height: normal; font-size: 10pt;"> <div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">847,103</div></div></td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">481,345</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 48%; vertical-align: bottom; padding-bottom: 0.375pt;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Inception date January 2019 Note, January 30, 2019</div></div></td><td style="padding-left: 0px; width: 4%; vertical-align: bottom; padding-bottom: 0.375pt;">  </td><td style="padding-left: 0px; vertical-align: bottom; padding-bottom: 0.375pt;"> </td><td style="padding-left: 0px; vertical-align: bottom; padding-bottom: 0.375pt;;text-align:right;">5,000,000</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom; padding-bottom: 0.375pt;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom; padding-bottom: 0.375pt;">  </td><td style="padding-left: 0px; vertical-align: bottom; padding-bottom: 0.375pt;"> </td><td style="padding-left: 0px; vertical-align: bottom; padding-bottom: 0.375pt;;text-align:right;">1,465,008</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom; padding-bottom: 0.375pt;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; white-space: nowrap; width: 4%; vertical-align: bottom; padding-bottom: 0.375pt;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom; border-bottom: 0.75pt solid black;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; white-space: nowrap; padding-bottom: 0in; vertical-align: bottom; border-bottom: 0.75pt solid black;"><div style="margin-bottom: 0px; margin-top: 0px; text-align: right; line-height: normal; font-size: 10pt;"> <div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">1,158,034</div></div></td><td style="padding-left: 0px; white-space: nowrap; padding-bottom: 0.375pt; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom; padding-bottom: 0.375pt;">  </td><td style="padding-left: 0px; vertical-align: bottom; padding-bottom: 0.375pt;"> </td><td style="padding-left: 0px; vertical-align: bottom; padding-bottom: 0.375pt;;text-align:right;">975,053</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom; padding-bottom: 0.375pt;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; width: 48%; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 48%; vertical-align: bottom; padding-bottom: 1.125pt;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom; padding-bottom: 1.125pt;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom; padding-bottom: 1.125pt;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom; padding-bottom: 1.125pt;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom; padding-bottom: 1.125pt;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom; padding-bottom: 1.125pt;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom; padding-bottom: 1.125pt;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom; padding-bottom: 1.125pt;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom; padding-bottom: 1.125pt;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom; padding-bottom: 1.125pt;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom; border-bottom: 2.5pt double black;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); padding-bottom: 0in; vertical-align: bottom; border-bottom: 2.5pt double black;"><div style="margin-bottom: 0px; margin-top: 0px; text-align: right; line-height: normal; font-size: 10pt;"> <div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">2,005,137</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); padding-bottom: 1.5pt; vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom; padding-bottom: 1.125pt;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom; border-bottom: 2.5pt double black;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); padding-bottom: 0in; vertical-align: bottom; border-bottom: 2.5pt double black;;text-align:right;">1,456,398</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); padding-bottom: 1.5pt; vertical-align: bottom;"> </td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;">The Company recognized approximately $549,000 of <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">non-cash</div> gain, due to the changes in the fair value of the liability associated with such classified redemption provision for the <div style="letter-spacing: 0px; top: 0px;;display:inline;">six</div> months ended <div style="letter-spacing: 0px; top: 0px;;display:inline;">Nov<div style="letter-spacing: 0px; top: 0px;;display:inline;">ember</div></div> 3<div style="letter-spacing: 0px; top: 0px;;display:inline;">0</div>, 2019.</div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div><table style="font-family: "times new roman"; font-size: 10pt; border-spacing: 0px; width: 92%; margin-top: 0pt; margin-bottom: 0pt;;margin : 0px auto;;text-align:left;"><tr><td style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: top; line-height: 8pt; font-size: 8pt;;width:;"><div style="margin-bottom: 0pt; margin-top: 0pt; font-size: 8pt; line-height: 7pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding: 0px 0px 0.7pt; vertical-align: top; line-height: 8pt; font-size: 8pt;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td colspan="2" style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: bottom; line-height: 8pt; font-size: 8pt;;text-align:center;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> <div style="line-height: 8pt; font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;">November 15,</div></div></div></td><td style="padding: 0px 0px 0.7pt; vertical-align: bottom; line-height: 8pt; font-size: 8pt;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding: 0px 0px 0.7pt; vertical-align: bottom; line-height: 8pt; font-size: 8pt;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td colspan="2" style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: bottom; line-height: 8pt; font-size: 8pt;;text-align:center;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;">  <div style="line-height: 8pt; letter-spacing: 0px; top: 0px; font-size: 8pt;;display:inline;">January 30,</div></div></div></td><td style="padding: 0px 0px 0.7pt; vertical-align: top; line-height: 8pt; font-size: 8pt;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: top; line-height: 8pt; font-size: 8pt;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td colspan="6" style="padding-left: 0px; padding-bottom: 0in; vertical-align: top; line-height: 8pt; font-size: 8pt; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="line-height: 8pt; font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;">May 31, 2019</div></div></td><td colspan="1" style="padding: 0px 0px 1pt; vertical-align: top; line-height: 8pt; font-size: 8pt;;text-align:center;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: top; line-height: 8pt; font-size: 8pt;;text-align:center;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td colspan="6" style="padding-left: 0px; padding-bottom: 0in; vertical-align: top; line-height: 8pt; font-size: 8pt; border-bottom: 1pt solid rgb(0, 0, 0); width: 0px;;text-align:center;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px; line-height: 8pt; font-size: 8pt;;display:inline;">November 30</div>, 2019</div></td><td style="padding-left: 0px; padding-bottom: 1pt; vertical-align: top; line-height: 8pt; font-size: 8pt;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; font-size: 8pt; line-height: 8pt;"><div style="font-size: 8pt; letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: top;;width:;"> </td><td style="padding: 0px 0px 0.7pt; vertical-align: top;;width:;"> </td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: bottom; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">2018</div></td><td style="padding: 0px 0px 1pt; vertical-align: bottom;;width:;"> </td><td style="padding: 0px 0px 0.7pt; vertical-align: bottom;;width:;"> </td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: bottom; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">2019</div></td><td style="padding: 0px 0px 1pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: top;;width:;"> </td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: top; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;"><div style="font-size: 8pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">June<br/>Note</div></td><td style="padding-left: 0px; padding-bottom: 1pt; vertical-align: top;;text-align:center;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: top;;text-align:center;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: top; border-bottom: 1pt solid rgb(0, 0, 0); width: 0px;;text-align:center;"><div style="line-height: normal;"> <div style="letter-spacing: 0px; top: 0px;;display:inline;">January<br/>Note</div></div></td><td colspan="1" style="padding: 0px 0px 1pt; vertical-align: top;;text-align:center;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: top;;text-align:center;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: top; border-bottom: 1pt solid rgb(0, 0, 0); width: 0px;;text-align:center;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">June<br/>Note</div></td><td style="padding-left: 0px; padding-bottom: 1pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.7pt; vertical-align: top;;width:;"> </td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: top; border-bottom: 1pt solid rgb(0, 0, 0); width: 0px;;text-align:center;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">January<br/>Note</div></td><td style="padding-left: 0px; padding-bottom: 1pt; vertical-align: top;;width:;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 57%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Fair value of underlying stock</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: top;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div>0.57</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">0.49</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">$</div></td><td style="background: rgb(204, 238, 255); padding: 0in; vertical-align: top;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div>0.39</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">$</div></td><td style="background:#cceeff; padding:0in 0in 0in 0in;vertical-align:bottom;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">0.39</div></div></td><td style="background: rgb(204, 238, 255); padding: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">$<div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;"> </div></div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">0.28</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="line-height: normal;"><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">0.28</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 57%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Risk free rate</div></div></td><td style="padding-left: 0px; width: 4%; vertical-align: top;">  </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">2.78</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">%</td><td style="padding-left: 0px; width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">2.52</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">%</td><td style="padding-left: 0px; width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding: 0in; vertical-align: top;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">2.21</div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">%</div></td><td style="padding-left: 0px; vertical-align: top; width: 3%;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding:0in 0in 0in 0in;vertical-align:bottom;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">1.95</div></div></td><td style="padding: 0in; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">%</div></td><td style="padding-left: 0px; vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">1.63</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">1.60</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 57%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Expected term (in years)</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: top;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">1.61</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">2</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="background: rgb(204, 238, 255); padding: 0in; vertical-align: top;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">1.07</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="background:#cceeff; padding:0in 0in 0in 0in;vertical-align:bottom;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">1.67</div></div></td><td style="background: rgb(204, 238, 255); padding: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">0.57</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">1.17</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 57%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Stock price volatility</div></div></td><td style="padding-left: 0px; width: 4%; vertical-align: top;">  </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">58.8</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">61</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding: 0in; vertical-align: top;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">62.2</div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">%</div></td><td style="padding-left: 0px; vertical-align: top; width: 3%;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding:0in 0in 0in 0in;vertical-align:bottom;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">62.2</div></div></td><td style="padding: 0in; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">%</div></td><td style="padding-left: 0px; vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">66.3</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">64.1</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 57%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Expected dividend yield</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: top;">  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="background: rgb(204, 238, 255); padding: 0in; vertical-align: top; white-space: nowrap;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">—  </div></div></td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="background: rgb(204, 238, 255); padding: 0in; white-space: nowrap;;vertical-align:bottom;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">—  </div></div></td><td style="background: rgb(204, 238, 255); padding: 0px; vertical-align: top; white-space: nowrap;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">—   </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">—   </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 57%; vertical-align: top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Discount factor</div></div></td><td style="padding-left: 0px; width: 4%; vertical-align: top;">  </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">85</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">85</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; width: 3%; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding: 0in; vertical-align: top;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">85</div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">%</div></td><td style="padding-left: 0px; vertical-align: top; width: 3%;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding:0in 0in 0in 0in;vertical-align:bottom;"><div style="text-align: right; margin-bottom: 0.0001pt; font-family: "times new roman", serif; line-height: normal; font-size: 10pt;"><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">85</div></div></td><td style="padding: 0in; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">%</div></td><td style="padding-left: 0px; vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">85</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td><td style="padding-left: 0px; vertical-align: top; width: 3%;"> </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">85</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;">% </td></tr></table></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">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 <div style="letter-spacing: 0px; top: 0px;;display:inline;">the fair value as of May 31, 2019 and </div><div style="letter-spacing: 0px; top: 0px;;display:inline;">November</div> 3<div style="letter-spacing: 0px; top: 0px;;display:inline;">0</div>, 2019:  </div></div><div style="text-align: center; margin-bottom: 0px; margin-top: 0px;"> </div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-spacing: 0px; width: 84%;;margin : 0px auto;;text-align:left;"><tr style="font-size: 0px;"><td style="padding: 0px; width: 48%; vertical-align: bottom;"></td><td style="padding: 0px; width: 4%; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; width: 4%; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; width: 4%; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; width: 4%; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;"> </td><td rowspan="2" style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;">  </td><td colspan="2" rowspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: bottom; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;">Net Proceeds</td><td rowspan="2" style="padding-left: 0px; padding-bottom: 1pt; vertical-align: bottom;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;">  </td><td colspan="10" style="padding-left: 0px; padding-bottom: 0in; vertical-align: bottom; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;">Derivative Liability</td><td style="padding-left: 0px; padding-bottom: 1pt; vertical-align: bottom;;width:;"> </td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;">  </td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: bottom; border-bottom: 1px solid black;;text-align:center;;width:;">Inception date</td><td style="padding-left: 0px; padding-bottom: 1px; vertical-align: bottom;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; text-align: center; vertical-align: bottom; border-bottom: 1px solid black;;width:;"><div style="font-size: 8pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">May 31, 2019</div></td><td style="padding-left: 0px; padding-bottom: 1px; vertical-align: bottom;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;">  </td><td colspan="2" style="padding-left: 0px; padding-bottom: 0in; vertical-align: bottom; border-bottom: 1px solid black;;text-align:center;;width:;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">November</div> 3<div style="letter-spacing: 0px; top: 0px;;display:inline;">0</div>, 2019</td><td style="padding-left: 0px; padding-bottom: 1px; vertical-align: bottom;;width:;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 48%; vertical-align: bottom;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Inception date June 2018 Note, November 15, 2018</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">5,000,000</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">1,284,988</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"><div style="text-align: right; line-height: normal; font-size: 10pt;"> <div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">847,103</div></div></td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">481,345</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 48%; vertical-align: bottom; padding-bottom: 0.375pt;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Inception date January 2019 Note, January 30, 2019</div></div></td><td style="padding-left: 0px; width: 4%; vertical-align: bottom; padding-bottom: 0.375pt;">  </td><td style="padding-left: 0px; vertical-align: bottom; padding-bottom: 0.375pt;"> </td><td style="padding-left: 0px; vertical-align: bottom; padding-bottom: 0.375pt;;text-align:right;">5,000,000</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom; padding-bottom: 0.375pt;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom; padding-bottom: 0.375pt;">  </td><td style="padding-left: 0px; vertical-align: bottom; padding-bottom: 0.375pt;"> </td><td style="padding-left: 0px; vertical-align: bottom; padding-bottom: 0.375pt;;text-align:right;">1,465,008</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom; padding-bottom: 0.375pt;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; white-space: nowrap; width: 4%; vertical-align: bottom; padding-bottom: 0.375pt;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom; border-bottom: 0.75pt solid black;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; white-space: nowrap; padding-bottom: 0in; vertical-align: bottom; border-bottom: 0.75pt solid black;"><div style="margin-bottom: 0px; margin-top: 0px; text-align: right; line-height: normal; font-size: 10pt;"> <div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">1,158,034</div></div></td><td style="padding-left: 0px; white-space: nowrap; padding-bottom: 0.375pt; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom; padding-bottom: 0.375pt;">  </td><td style="padding-left: 0px; vertical-align: bottom; padding-bottom: 0.375pt;"> </td><td style="padding-left: 0px; vertical-align: bottom; padding-bottom: 0.375pt;;text-align:right;">975,053</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom; padding-bottom: 0.375pt;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; width: 48%; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 48%; vertical-align: bottom; padding-bottom: 1.125pt;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom; padding-bottom: 1.125pt;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom; padding-bottom: 1.125pt;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom; padding-bottom: 1.125pt;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom; padding-bottom: 1.125pt;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom; padding-bottom: 1.125pt;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom; padding-bottom: 1.125pt;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom; padding-bottom: 1.125pt;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom; padding-bottom: 1.125pt;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom; padding-bottom: 1.125pt;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"> </div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom; border-bottom: 2.5pt double black;"><div style="margin-bottom: 0px; margin-top: 0px; line-height: normal;"><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">$</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); padding-bottom: 0in; vertical-align: bottom; border-bottom: 2.5pt double black;"><div style="margin-bottom: 0px; margin-top: 0px; text-align: right; line-height: normal; font-size: 10pt;"> <div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">2,005,137</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); padding-bottom: 1.5pt; vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom; padding-bottom: 1.125pt;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom; border-bottom: 2.5pt double black;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); padding-bottom: 0in; vertical-align: bottom; border-bottom: 2.5pt double black;;text-align:right;">1,456,398</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); padding-bottom: 1.5pt; vertical-align: bottom;"> </td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
0.22
0.25
0.45
0.75
3350000
1340000
4690000
0.001
800000
<div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The following tables summarize the fair value of the warrant derivative liability and related common shares as of inception date September 15, 2016, <div style="letter-spacing: 0px; top: 0px;;display:inline;">and the fair value as of </div>May 31, 2019 and November 30, 2019: </div></div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-spacing: 0px; width: 76%;;margin : 0px auto;;text-align:left;"><tr style="font-size: 0px;"><td style="padding: 0px; vertical-align: top; width: 68%;"></td><td style="padding: 0px; vertical-align: top; width: 6%;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top; width: 6%;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;">  </td><td colspan="2" style="padding-left: 0px; vertical-align: top; padding-bottom: 0in; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;">Shares Indexed</td><td style="padding-left: 0px; padding-bottom: 1pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;">  </td><td colspan="2" style="padding-left: 0px; vertical-align: top; padding-bottom: 0in; border-bottom: 1pt solid rgb(0, 0, 0);;text-align:center;;width:;">Derivative Liability</td><td style="padding-left: 0px; padding-bottom: 1pt; vertical-align: top;;width:;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); vertical-align: top; width: 68%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Inception <div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">to </div>date September 15, 2016</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">7,733,334</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">5,179,200</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align: top; width: 68%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Balance May 31, 2019</div></div></td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">7,733,334</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">409,132</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); vertical-align: top; width: 68%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;">Balance November 30, 2019</div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">7,733,334</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">122,372</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
847103
1158034
2005137
500000
14754098
7377049
0.305
379880
126997
549912
0.50
1099823
0.50
2230000
446000
2676000
0.001
1000000
210000
0.98
P3Y
P10Y
1.63
1.60
0.39
0.39
2.21
1.95
P1Y25D
P1Y8M1D
62.2
62.2
85
85
<div style="font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Note 6 – Stock Options and Warrants </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Company has one active stock-based equity plan at <div style="letter-spacing: 0px; top: 0px;;display:inline;">November</div> 3<div style="letter-spacing: 0px; top: 0px;;display:inline;">0</div>, 2019, the CytoDyn Inc. 2012 Equity Incentive Plan, as amended (the “2012 Plan”)<div style="letter-spacing: 0px; top: 0px;;display:inline;">,</div> and one stock-based equity plan that is no longer active, but under which certain prior awards remain outstanding, the CytoDyn Inc. 2004 Stock Incentive Plan (the “2004 Plan” and, together with the 2012 Plan, the “Incentive Plans”). The 2012 Plan was approved by stockholders at the Company’s 2012 annual meeting to replace the 2004 Plan. The 2012 Plan was amended by stockholder approval in February 2015 to increase the number of shares available for issuance from 3,000,000 to 5,000,000 shares of common stock and in March 2016 to increase the number of shares available for issuance from 5,000,000 to 7,000,000 shares of common stock. At the annual meeting of stockholders held on August 24, 2017, the stockholders approved an amendment to the 2012 Plan to increase the number of shares available for issuance from 7,000,000 to 15,000,000 shares of common stock. At a special meeting of stockholders held on May 22, 2019, the stockholders approved an amendment to the 2012 Plan to increase the number of shares available for issuance from 15,000,000 to 25,000,000 shares of common stock. As of <div style="letter-spacing: 0px; top: 0px;;display:inline;">Nov<div style="letter-spacing: 0px; top: 0px;;display:inline;">ember</div></div> 3<div style="letter-spacing: 0px; top: 0px;;display:inline;">0</div>, 2019, the Company had 8,171,644 shares available for future stock-based grants under the 2012 Plan, as amended. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;;font-style:italic;display:inline;">Stock Options </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;">During the <div style="letter-spacing: 0px; top: 0px;;display:inline;">six</div> months ended <div style="letter-spacing: 0px; top: 0px;;display:inline;">November</div> 3<div style="letter-spacing: 0px; top: 0px;;display:inline;">0</div>, 2019, the Company granted annual stock option awards to directors to purchase a total of 1,975,000 shares of common stock. The exercise price<div style="letter-spacing: 0px; top: 0px;;display:inline;">s</div> of the stock option awards <div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">ranges between $0.385 and</div> $0.52 per share. <div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">1,000,000 stock options vest immediately and the remaining </div>awards vest quarterly over <div style="letter-spacing: 0px; top: 0px;;display:inline;">one</div> year and have <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">a <div style="letter-spacing: 0px; top: 0px;;display:inline;">ten</div>-year term.</div> The grant date fair value related to these stock options was $413,774.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;">During the <div style="letter-spacing: 0px; top: 0px;;display:inline;">six</div> months ended <div style="letter-spacing: 0px; top: 0px;;display:inline;">November</div> 3<div style="letter-spacing: 0px; top: 0px;;display:inline;">0</div>, 2019, the Company granted stock options, covering an aggregate of 1,787,500 shares of common stock, to executive management<div style="letter-spacing: 0px; top: 0px;;display:inline;">,</div> employees <div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">and consultants<div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div>with exercise prices ranging between $0.30 and $0.52 per share, except for one award of 50,000 shares which has an exercise price of $0.90 and represented a supplemental award related to a previous rescission, and which vested immediately. <div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">The awards granted to the consultants totaled 400,000 stock options, 200,000 of which vested immediately, 100,000 of which vested on December 12, 2019 and 100,000 of which will vest on April 7, 2020. Stock option awards covering an additional 1,112,500 shares granted to executive management and employees vest in 12 equal monthly installments and </div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">have a <div style="letter-spacing: 0px; top: 0px;;display:inline;">ten</div>-year term. </div>The remaining stock option awards <div style="letter-spacing: 0px; top: 0px;;display:inline;">granted to executive mana<div style="letter-spacing: 0px; top: 0px;;display:inline;">g<div style="letter-spacing: 0px; top: 0px;;display:inline;">e<div style="letter-spacing: 0px; top: 0px;;display:inline;">ment and employees </div></div></div></div>vest annually over <div style="letter-spacing: 0px; top: 0px;;display:inline;">three</div> years, with <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">a <div style="letter-spacing: 0px; top: 0px;;display:inline;">ten</div>-year term</div><div style="letter-spacing: 0px; top: 0px;;display:inline;">. The </div>grant date fair <div style="letter-spacing: 0px; top: 0px;;display:inline;">valu<div style="letter-spacing: 0px; top: 0px;;display:inline;">e</div> <div style="letter-spacing: 0px; top: 0px;;display:inline;">of<div style="letter-spacing: 0px; top: 0px;;display:inline;"> related to these stock options was</div> </div></div>$331,317.</div><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt; line-height: 12pt;">On August 12, 2019, Gregory Gould, a member of the Company’s Board of Directors, resigned. On September 12, <div style="letter-spacing: 0px; top: 0px;;display:inline;">2019 </div>Carl Dockery, a member of the Company’s Board of Directors did not stand for <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">re-election.</div> 90 days after the cessation of their service, any vested and unexercised options in their names <div style="letter-spacing: 0px; top: 0px;;display:inline;">were</div> returned to the pool of shares available for future stock-based grants under the 2012 Plan.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;;font-style:italic;display:inline;">Warrants </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">During the six months ended November 30</div><div style="letter-spacing: 0px; top: 0px;;display:inline;">, 2019, in connection with registered direct offering<div style="letter-spacing: 0px; top: 0px;;display:inline;">s</div>, as fully described in Note 11, the Company issued warrants covering 11,987,250 shares of common stock to investors. The investor warrants have a<div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div>five</div>-year term and an exercise price of $0.45 per share. In connection with the registered direct offering, the Company also issued warrants covering 655,305 shares of common stock to the placement agent. The placement agent warrants have a <div style="letter-spacing: 0px; top: 0px;;display:inline;">five</div>-year term and an exercise </div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">prices ranging between</div><div style="letter-spacing: 0px; top: 0px;;display:inline;"> of $0.40</div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;"> and $0.444<div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="letter-spacing: 0px; top: 0px;;display:inline;">per share. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">During the <div style="letter-spacing: 0px; top: 0px;;display:inline;">six</div> months ended </div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">November 30</div><div style="letter-spacing: 0px; top: 0px;;display:inline;">, 2019, in connection with Series C convertible preferred </div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">offerings</div><div style="letter-spacing: 0px; top: 0px;;display:inline;">, as fully described in Note 4, the Company issued common stock warrants covering a total of 9,601,000 shares of common stock to investors. The investor warrants have a <div style="letter-spacing: 0px; top: 0px;;display:inline;">five</div>-year term and exercise </div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">prices ranging between $0.30 and </div><div style="letter-spacing: 0px; top: 0px;;display:inline;"> $0.50 per share.</div><div style="background-color: rgb(204, 204, 204); font-size: 10pt; letter-spacing: 0px; font-family: "times new roman", serif; top: 0px;;display:inline;"> </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">During the six months ended November 30, 2019, in connection with extension and conversion of short-term convertible notes, the Company issued common stock warrants covering a total of 4,750,000 shares of common stock to investors. The investor warrants have a <div style="letter-spacing: 0px; top: 0px;;display:inline;">five</div>-year term and exercise prices ranging between $0.30 and $0.45 per share. </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Compensation expense related to stock options, compensatory warrants and common stock reserved for advisory services for the three <div style="letter-spacing: 0px; top: 0px;;display:inline;">and six </div>months ended </div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">November 30</div><div style="letter-spacing: 0px; top: 0px;;display:inline;">, 2019 and </div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">November 30</div><div style="letter-spacing: 0px; top: 0px;;display:inline;">, 2018 was approximately $1.0 <div style="letter-spacing: 0px; top: 0px;;display:inline;">million </div>and $434,000<div style="letter-spacing: 0px; top: 0px;;display:inline;"> and<div style="letter-spacing: 0px; top: 0px;;display:inline;"> $1.5 million and<div style="display:inline;"> </div></div><div style="letter-spacing: 0px; top: 0px;;display:inline;">$</div>1.2 million</div> respectively. The grant date fair value of options and compensatory warrants vested during the <div style="letter-spacing: 0px; top: 0px;;display:inline;">six</div><div style="display:inline;">-</div>month periods ended </div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">November 30</div><div style="letter-spacing: 0px; top: 0px;;display:inline;">, 2019 and </div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">November 30</div><div style="letter-spacing: 0px; top: 0px;;display:inline;">, 2018 was approximately $907,000 and $1.2 <div style="letter-spacing: 0px; top: 0px;;display:inline;">million </div>respectively. As of </div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">November 30</div><div style="letter-spacing: 0px; top: 0px;;display:inline;">, 2019, there was approximately $1.1 million of unrecognized compensation expense related to share-based payments for unvested options, which is expected to be recognized over a weighted average period of 0.72 years. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The following table represents stock option and warrant activity as of and for the <div style="letter-spacing: 0px; top: 0px;;display:inline;">six</div> months ended </div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">November 30</div><div style="letter-spacing: 0px; top: 0px;;display:inline;">, 2019: </div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-spacing: 0px; width: 100%; margin: 0in auto 0in 0px;;text-align:left;"><tr style="font-size: 0px;"><td style="padding: 0px; width: 60%; vertical-align: bottom;"></td><td style="padding: 0px; width: 4%; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; width: 4%; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; width: 4%; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; width: 4%; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;">  </td><td colspan="2" style="padding-left: 0px; border-bottom: 1px solid black; padding-bottom: 0in; vertical-align: bottom;;text-align:center;;width:;">Number of<br/>Shares</td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;">  </td><td colspan="2" style="padding-left: 0px; border-bottom: 1px solid black; padding-bottom: 0in; vertical-align: bottom;;text-align:center;;width:;">Weighted<br/>Average<br/>Exercise Price</td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;">  </td><td colspan="2" style="padding-left: 0px; border-bottom: 1px solid black; padding-bottom: 0in; vertical-align: bottom;;text-align:center;;width:;">Weighted<br/>Average<br/>Remaining<br/>Contractual Life<br/>in Years</td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;">  </td><td colspan="2" style="padding-left: 0px; border-bottom: 1px solid black; padding-bottom: 0in; vertical-align: bottom;;text-align:center;;width:;">Aggregate<br/>Intrinsic Value</td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 60%; vertical-align: bottom;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="font-size: 10pt; font-family: "times new roman", serif; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">Options and warrants outstanding—May 31, 2019</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">178,591,849</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">0.71</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">3.75</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">896,400</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; width: 60%; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 60%; vertical-align: bottom;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Granted</div></div></td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;;text-align:right;">30,756,055</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;;text-align:right;">0.36</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 60%; vertical-align: bottom;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Exercised</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">(30,250,649</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;">) </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">0.39</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 60%; vertical-align: bottom;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Forfeited/expired/cancelled</div></div></td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;;text-align:right;">(1,640,000</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;">) </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;;text-align:right;">0.74</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; width: 60%; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 60%; vertical-align: bottom;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="font-size: 10pt; font-family: "times new roman", serif; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">Options and warrants outstanding</div><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">—</div><div style="font-size: 10pt; font-family: "times new roman", serif; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">November 30, 2019</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">177,457,255</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">0.65</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">3.67</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">—</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; width: 60%; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 60%; vertical-align: bottom;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">Outstanding exercisable</div><div style="letter-spacing: 0px; top: 0px;;display:inline;">—</div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">November 30, 2019</div></div></td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;;text-align:right;">173,178,551</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;">$</td><td style="padding-left: 0px; vertical-align: bottom;;text-align:right;">0.66</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;;text-align:right;">3.56</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;">$</td><td style="padding-left: 0px; vertical-align: bottom;;text-align:right;">—</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; width: 60%; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td></tr></table><div style="clear: both; max-height: 0px;"></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
4000000
Each share of common stock was sold together with one-half of one warrant to purchase one share of common stock
1000000
400000
200000
100000
100000
1112500
1500000
<div style="font-family: "times new roman"; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Note 7 – Acquisition of Patents and Intangibles </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">As discussed in Note 9 below, the Company consummated an asset purchase on October 16, 2012, and paid $3,500,000 for certain assets, including intellectual property, certain related licenses and sublicenses, FDA filings and various forms of the leronlimab (PRO 140) drug substance. The Company followed the guidance in Financial Accounting Standards Topic 805 to determine if the Company acquired a business. Based on the prescribed accounting, the Company acquired assets and not a business. As of <div style="letter-spacing: 0px; top: 0px;;display:inline;">November </div>3<div style="letter-spacing: 0px; top: 0px;;display:inline;">0</div>, 2019, the Company has recorded and is amortizing $3,500,000 of intangible assets in the form of patents. The Company estimates the acquired patents have an estimated life of ten years. Subsequent to the acquisition date, the Company has continued to expand, amend and file new patents central to its current clinical trial strategies, which, in turn, have extended the protection period for certain methods of using leronlimab (PRO 140) and formulations comprising leronlimab (PRO 140) out through at least 2031 and 2038, respectively, in various countries. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;">On November 16, 2018, the Company completed the acquisition of substantially all of the assets of ProstaGene, LLC (“ProstaGene”), a biotechnology <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">start-up</div> company, which included patents related to clinical research, a proprietary CCR5 technology for early cancer diagnosis, and a noncompetition agreement with ProstaGene’s founder and Chief Executive Officer, Richard G. Pestell, M.D., Ph.D. The acquisition of ProstaGene’s assets expands the Company’s clinical development of leronlimab (PRO 140) into cancer indications and commercialization of certain cancer diagnostic tests.</div><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The aggregate purchase price paid for the ProstaGene acquisition was $11,558,000 based on the issuance of 20,278,000 shares of common stock of CytoDyn at $0.57 per share, including 1,620,000 shares earned, but not yet issued, by the investment bank for advisory services. In connection with the purchase, the Company entered into a Stock Restriction Agreement (“Agreement”), restricting the transfer of 8,342,000 shares of common stock payable to Dr. Pestell for a <div style="letter-spacing: 0px; top: 0px;;display:inline;">three</div>-year period from the closing date of the transaction. Dr. Pestell’s employment with the Company was terminated on July 25, 2019, and as defined in the employment agreement, on September 17, 2019 the Company exercised its option to repurchase such Restricted Shares from Dr. Pestell at a purchase price of $0.001 per share. The repurchase is currently the subject of a legal proceedings between Dr. Pestell and the Company, as fully described in Part II, Item 1. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">A summary of the net purchase price and allocation to the acquired assets is as follows: </div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px;;margin : 0px auto;;text-align:left;;width:68%;"><tr style="font-size: 0px;"><td style="padding: 0px;;width:82%;"></td><td style="padding: 0px;;vertical-align:bottom;;width:6%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px;;text-align:center;;vertical-align:bottom;">ProstaGene, LLC</td><td style="padding-left: 0px; padding-bottom: 0.5pt;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">CytoDyn Inc. Equity</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">11,558,000</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Acquisition Expenses</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">741,297</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Release of Deferred Tax Asset</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">2,826,919</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Total Cost of Acquisition</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">15,126,216</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Intangible assets</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">15,126,216</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Other</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td><td style="padding-left: 0px; white-space: nowrap;;text-align:right;;vertical-align:bottom;">—  </td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Allocation of Acquisition Costs</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">15,126,216</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;">Assets acquired from ProstaGene include (1) patents issued in the United States and Australia related to “Prostate Cancer Cell Lines, Gene Signatures and Uses Thereof” and “Use of Modulators of CCR5 in the Treatment of Cancer and Cancer Metastasis,” (2) an algorithm used to identify a <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">14-gene</div> signature to predict the likelihood and severity of cancer diagnoses, and (3) a noncompetition agreement in connection with an employment agreement with Dr. Pestell as Chief Medical Officer of the Company. The fair value of the assets acquired approximates the consideration paid. The Company did not assume any liabilities. The Company accounted for the ProstaGene acquisition as an asset acquisition under ASC <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;"><div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">805-10-55</div></div> “Business Combinations” because the assets retained from ProstaGene do not include an assembled workforce, and the gross value of the assets acquired meets the screen test in ASC <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;"><div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;"><div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">805-10-55-5A</div></div></div> related to substantially all of the fair value being concentrated in a single asset or group of assets (i.e., the proprietary technology and patents) and, thus, is not considered a business. Thus, management concluded that the acquisition did not include both an input and substantive processes that together significantly contribute to the ability to create outputs.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;">The fair value of the technology acquired is identified using the Income Approach. The fair value of the patents acquired is identified using the Cost to Reproduce Method. The fair value of noncompetition agreement acquired is identified using the Residual Value Method. Goodwill is not recorded as the transaction represents an asset acquisition in accordance with ASU <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">2017-01.</div> Acquisition costs for asset acquisitions are capitalized and included in the total cost of the transaction. In addition, pursuant to ASC 805, the net tax effect of the deferred tax liability arising from the book to tax basis differences is recorded as a cost of the acquisition.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The following presents intangible assets activity: </div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px;;margin : 0px auto;;text-align:left;;width:76%;"><tr style="font-size: 0px;"><td style="padding: 0px; vertical-align: top; width: 67%;"></td><td style="padding: 0px; vertical-align: top; width: 6%;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top; width: 5%;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px; vertical-align: top;;text-align:center;;width:;"><div style="font-size: 8pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">November 30, 2019</div></td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px; vertical-align: top;;text-align:center;;width:;"><div style="font-size: 8pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">May 31, 2019</div></td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); vertical-align: top; width: 67%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Gross carrying amounts</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">3,500,000</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">3,500,000</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align: top; width: 67%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Development of new Company website</div></div></td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">$</div></td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">19,552</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; vertical-align: top;">$</td><td style="padding: 0pt 4pt 0pt 0pt; height: 15px;;text-align:right;;vertical-align:bottom;">19,553</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); vertical-align: top; width: 67%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Intangible asset acquisition:</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align: top; width: 67%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 3em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">ProstaGene, LLC</div></div></td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">15,126,216</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">15,126,216</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); vertical-align: top; width: 67%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Accumulated amortization</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">(4,195,730</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;">) </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">(3,170,315</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;">) </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; vertical-align: top; width: 67%;"> </td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align: top; width: 67%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Total amortizable intangible assets, net</div></div></td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">$</div> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">14,450,038</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">$</div> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">15,475,454</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; vertical-align: top; width: 67%; padding-bottom: 1.125pt;"> </td><td style="padding-left: 0px; vertical-align: top; width: 6%; padding-bottom: 1.125pt;">  </td><td style="padding-left: 0px; vertical-align: top; border-bottom: 2.25pt double black;"><div style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top; border-bottom: 2.25pt double black;"><div style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top; padding-bottom: 1.125pt;"> </td><td style="padding-left: 0px; vertical-align: top; width: 5%; padding-bottom: 1.125pt;">  </td><td style="padding-left: 0px; vertical-align: top; border-bottom: 2.25pt double black;"><div style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top; border-bottom: 2.25pt double black;"><div style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top; padding-bottom: 1.125pt;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); vertical-align: top; width: 67%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Patents currently not amortized</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">$</div> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">$</div> </td><td style="padding: 0pt; white-space: nowrap; background-color: rgb(204, 238, 255); height: 15px;;text-align:right;;vertical-align:bottom;">—</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; vertical-align: top; width: 67%;"> </td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align: top; width: 67%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Carrying value of intangibles, net</div></div></td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;">$</td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">14,450,038</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; vertical-align: top;">$</td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">15,475,454</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; vertical-align: top; width: 67%;"> </td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px; background: none;"></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Amortization expense related to intangible assets was approximately $497,100 and $994,200 <div style="letter-spacing: 0px; top: 0px;;display:inline;">and $152,900 and $240,000 </div>for the three <div style="letter-spacing: 0px; top: 0px;;display:inline;">and six </div>months ended <div style="letter-spacing: 0px; top: 0px;;display:inline;">November 30</div>, 2019 and 2018, respectively. The estimated aggregate future amortization expense related to the Company’s intangible assets with finite lives is estimated to be approximately $2 million per year for the next two years, $1.4 million the following year, $1.1 million <div style="letter-spacing: 0px; top: 0px;;display:inline;">for </div>the <div style="letter-spacing: 0px; top: 0px;;display:inline;">next seven years<div style="letter-spacing: 0px; top: 0px;;display:inline;">, </div></div>and $940,000 <div style="letter-spacing: 0px; top: 0px;;display:inline;">fo<div style="letter-spacing: 0px; top: 0px;;display:inline;">r the last </div></div>year. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
<div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The following presents intangible assets activity: </div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px;;margin : 0px auto;;text-align:left;;width:76%;"><tr style="font-size: 0px;"><td style="padding: 0px; vertical-align: top; width: 67%;"></td><td style="padding: 0px; vertical-align: top; width: 6%;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top; width: 5%;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px; vertical-align: top;;text-align:center;;width:;"><div style="font-size: 8pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">November 30, 2019</div></td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px; vertical-align: top;;text-align:center;;width:;"><div style="font-size: 8pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">May 31, 2019</div></td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); vertical-align: top; width: 67%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Gross carrying amounts</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">3,500,000</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">3,500,000</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align: top; width: 67%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Development of new Company website</div></div></td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">$</div></td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">19,552</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; vertical-align: top;">$</td><td style="padding: 0pt 4pt 0pt 0pt; height: 15px;;text-align:right;;vertical-align:bottom;">19,553</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); vertical-align: top; width: 67%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Intangible asset acquisition:</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align: top; width: 67%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 3em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">ProstaGene, LLC</div></div></td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">15,126,216</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">15,126,216</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); vertical-align: top; width: 67%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Accumulated amortization</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">(4,195,730</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;">) </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">(3,170,315</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;">) </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; vertical-align: top; width: 67%;"> </td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align: top; width: 67%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Total amortizable intangible assets, net</div></div></td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">$</div> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">14,450,038</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">$</div> </td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">15,475,454</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; vertical-align: top; width: 67%; padding-bottom: 1.125pt;"> </td><td style="padding-left: 0px; vertical-align: top; width: 6%; padding-bottom: 1.125pt;">  </td><td style="padding-left: 0px; vertical-align: top; border-bottom: 2.25pt double black;"><div style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top; border-bottom: 2.25pt double black;"><div style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top; padding-bottom: 1.125pt;"> </td><td style="padding-left: 0px; vertical-align: top; width: 5%; padding-bottom: 1.125pt;">  </td><td style="padding-left: 0px; vertical-align: top; border-bottom: 2.25pt double black;"><div style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top; border-bottom: 2.25pt double black;"><div style="margin-top: 0pt; margin-bottom: 0pt; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top; padding-bottom: 1.125pt;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); vertical-align: top; width: 67%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Patents currently not amortized</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">$</div> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">$</div> </td><td style="padding: 0pt; white-space: nowrap; background-color: rgb(204, 238, 255); height: 15px;;text-align:right;;vertical-align:bottom;">—</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; vertical-align: top; width: 67%;"> </td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align: top; width: 67%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Carrying value of intangibles, net</div></div></td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;">$</td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">14,450,038</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; vertical-align: top;">$</td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">15,475,454</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; vertical-align: top; width: 67%;"> </td><td style="padding-left: 0px; vertical-align: top; width: 6%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 5%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
152900
240000
0
<div style="font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Note 9 – Commitments and Contingencies </div></div></div><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt; line-height: 12pt;">Under the Progenics Purchase Agreement, the Company acquired rights to the HIV viral-entry inhibitor drug candidate PRO 140, a humanized anti-CCR5 monoclonal antibody, as well as certain other related assets, including the existing inventory of bulk PRO 140 drug product, intellectual property, certain related licenses and sublicenses, and FDA regulatory filings. In connection with purchase, the Company has one remaining milestone payment of $5.0 million, which will become due at the time of the first U.S. new drug application approval by the FDA or other <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">non-U.S.</div> approval for the sale of PRO 140. In addition, the Company will incur royalty payments of up to 5% on net sales during the period beginning on the date of the first commercial sale of PRO 140 until the later of (a) the expiration of the last to expire patent included in the acquired assets, and (b) 10 years, in each case determined on a <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">country-by</div> country basis. During the year ended May 31, 2016 the Company paid a milestone obligation of $1.5 million owed to Progenics as a result of the first dosing in a U.S. Phase 3 trial. To the extent that the remaining milestone payment and royalties are not timely made, under the terms of the Progenics Purchase Agreement, Progenics has certain repurchase rights relating to the assets sold to the Company thereunder. As of the date of this filing, it is management’s conclusion that the probability of achieving the subsequent future scientific research milestone is not reasonably determinable, thus the future milestone payments payable to Progenics and its <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">sub-licensors</div> are deemed contingent consideration and, therefore, are not currently accruable. Payments to the third-party licensor and to Progenics are in addition to payments due under a Development and License Agreement, dated April 30, 1999 (the “PDL License”), between Protein Design Labs (now AbbVie Inc.) (“PDL”) and Progenics, which was assigned to the Company in the Progenics Purchase Agreement, pursuant to which the Company has an exclusive worldwide license to develop, make, have made, import, use, sell, offer to sell or have sold products that incorporate the humanized form of the PRO 140 antibody developed by PDL under the agreement the Company has paid various milestone obligations, with two remaining milestone payments of $0.5 million each, one payment of $0.5 million upon filing a BLA with the FDA or <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">non-U.S.</div> equivalent regulatory body and a second payment of $0.5 million, which will become due upon FDA approval or approval by anothernon-U.S. equivalent regulatory body. In addition, the Company will incur royalties of up to 3.5% of net sales for the longer of 10 years and the date of expiration of the last to expire licensed patent. Additionally, the PDL License provides for an annual maintenance fee of $150,000 or until annual royalties paid exceed that amount. To the extent the remaining milestone payment and royalties are not timely made, under the terms of the PDL License, AbbVie Inc. has certain termination rights relating to the Company’s license of PRO 140 thereunder. As of the date of this filing, it is management’s conclusion that the probability of achieving the subsequent future scientific research milestones is not reasonably determinable, thus the future milestone payments payable to PDL, Progenics and its <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">su<div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: "times new roman", times, serif; line-height: 10pt; letter-spacing: 0px; top: 0px;;display:inline;">b-licensors</div></div></div><div style="font-size: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-family: "times new roman", times, serif; line-height: 10pt; letter-spacing: 0px; top: 0px;;display:inline;"> are deemed contingent consideration and, therefore, are not currently accruable.</div></div></div><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt; line-height: 12pt;">During the fourth quarter of fiscal 2019, the Company entered into a Master Services Agreement and Product Specific Agreement (collectively, the “Samsung Agreement”) with Samsung BioLogics Co., Ltd. (“Samsung”), pursuant to which Samsung will perform technology transfer, process validation, manufacturing and supply services for the commercial supply of leronlimab. In April 2019 the Company delivered to Samsung a purchase order for $33 million worth of process validation and technology transfer services related to the manufacture of leronlimab, with payments by the Company scheduled to be made throughout calendar 2020. Under the Samsung Agreement, the purchase order is binding and the Company is obligated to pay the full amount of the purchase order. Under the terms of the Samsung Agreement, the Company is obligated to make specified minimum purchases of leronlimab from Samsung pursuant to forecasted requirements which the Company will provide to Samsung. The first forecast will be delivered to Samsung by March 31, 2020. Thereafter, the Company must provide Samsung with a rolling quarterly forecast setting forth the total quantity of commercial grade leronlimab that the Company expects to require in the following years. The Company estimates that initial ramp-up costs to manufacture commercial grade leronlimab at scale could total approximately $60 million, with approximately $30 million payable over the course of calendar 2020, and approximately $30 million payable in the first quarter of 2021. Thereafter, the Company will pay Samsung per 15,000L batch according to the pricing terms specified in the Samsung Agreement. The Samsung Agreement has an initial term ending in December 2027 and will be automatically extended for additional two year periods unless either party gives notice of termination at least six months prior to the then current term. Either party may terminate the Samsung Agreement in the event of the other party’s insolvency or uncured material breach, and the Company may terminate the agreement in the event of a voluntary or involuntary complete market withdrawal of leronlimab from commercial markets, with one and half year’s prior notice. Neither party may assign the agreement without the consent of the other, except in the event of a sale of all or substantially all of the assets of a party to which the agreement relates<div style="letter-spacing: 0px; top: 0px;;display:inline;">.</div></div><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Company has entered into project work orders, as amended, for each of its CRO and related laboratory vendors. Under the terms of these agreements, the Company incurs execution fees for direct services costs, which are recorded as a current asset. In the event the Company were to terminate any trial, it may incur certain financial penalties which would become payable to the CRO. Conditioned upon the form of termination of any one trial, the financial penalties may range up to $0.8 million. In the remote circumstance that the Company would terminate all clinical trials, the collective financial penalties may range from an approximate low of $0.7 million to an approximate high of $1.9 million. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">From time to time, the Company is involved in routine litigation that arises in the ordinary course of business. Other than specified in Part II, Item 1, there are no pending significant legal proceedings to which the Company is a party for which management believes the ultimate outcome would have a material adverse effect on the Company’s financial position. </div></div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
350000
2600000
1100000
940000
<div><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; line-height: 12pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Note 2 – Summary of Significant Accounting Policies </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Basis of Presentation </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;">The accompanying consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and reflect all adjustments, which consist solely of normal recurring adjustments, needed to fairly present the financial results for these periods. The consolidated financial statements and notes thereto are presented as prescribed by Form <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">10-Q.</div> Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted. The accompanying consolidated financial statements should be read in conjunction with the financial statements for the fiscal years ended May 31, 2019 and 2018 and notes thereto in the Company’s Annual Report on <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">Form 10-K for</div> the fiscal year ended May 31, 2019, filed with the Securities and Exchange Commission on August 14, 2019. Operating results for the three and six months ended November 30, 2019 are not necessarily indicative of the results that may be expected for the entire year. In the opinion of management, all adjustments have been made, which consist only of normal recurring adjustments necessary for a fair statement of (a) the results of operations for the three and six months ended November 30, 2019 and November 30, 2018, (b) the financial position at November 30, 2019 and (c) cash flows for the six month periods ended November 30, 2019 and November 30, 2018.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Principles of Consolidation </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, CytoDyn Operations Inc., Advanced Genetic Technologies, Inc. (“AGTI”) and CytoDyn Veterinary Medicine LLC (“CVM”), of which both AGTI and CVM are dormant entities. All intercompany transactions and balances are eliminated in consolidation. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Reclassifications </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Certain prior year amounts shown in the accompanying consolidated financial statements have been reclassified to conform to the 2020 presentation. These reclassifications did not have any effect on total current assets, total assets, total current liabilities, total liabilities, total stockholders’ (deficit) equity, net loss or loss per share. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Going Concern </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The consolidated accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statements, the Company had losses for all periods presented. The Company incurred a net loss of $31,024,467 for the six months ended November 30, 2019 and has an accumulated deficit of $260,648,884 as of November 30, 2019. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. </div></div><div style="font-size: 1px; margin-top: 12px; margin-bottom: 0px;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The consolidated financial statements do not include any adjustments relating to the recoverability of assets and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to obtain additional operating capital, complete development of its product candidate, obtain U.S. Food & Drug Administration (“FDA”) approval, outsource manufacturing of the product candidate, and ultimately achieve initial revenues and attain profitability. The Company is currently engaging in significant research and development activities related to its product candidate for multiple indications, and expects to incur significant research and development expenses in the future primarily related to its clinical trials. These research and development activities are subject to significant risks and uncertainties. The Company intends to finance its future development activities and its working capital needs largely from the sale of equity and debt securities, combined with additional funding from other traditional sources. There can be no assurance, however, that the Company will be successful in these endeavors. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Use of Estimates </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Cash </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Cash is maintained at federally insured financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. Balances in excess of federally insured limits at November 30, 2019 and May 31, 2019 approximated $1.3 million and $3.3 million, respectively. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Identified Intangible Assets </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Company follows the provisions of Financial Accounting Standards Board (“FASB”) ASC Topic 350 Intangibles-Goodwill and Other, which establishes accounting standards for the impairment of long-lived assets such as intangible assets subject to amortization. The Company reviews long-lived assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the sum of the undiscounted expected future cash flows over the remaining useful life of a long-lived asset group is less than its carrying value, the asset is considered impaired. Impairment losses are measured as the amount by which the carrying amount of the asset group exceeds the fair value of the asset. There were <div style="letter-spacing: 0px; top: 0px;;display:inline;">no</div> impairment charges for the six months ended November 30, 2019 and 2018. The value of the Company’s patents would be significantly impaired by any adverse developments as they relate to the clinical trials pursuant to the patents acquired as discussed in Notes 7 and 9. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Research and Development </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Research and development costs are expensed as incurred. Clinical trial costs incurred through third parties are expensed as the contracted work is performed. Where contingent milestone payments are due to third parties under research and development collaboration arrangements or other contractual agreements, the milestone payment obligations are expensed when the milestone conditions are probable and the amount of payment is reasonably estimable. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="font-weight:bold;display:inline;"><div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">Pre-launch</div> Inventory </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;">The Company <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">may scale-up and</div> make commercial quantities of its product candidate prior to the date it anticipates that such product will receive final FDA approval. <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">The scale-up and</div> commercial production <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">of pre-launch inventories</div> involves the risk that such products may not be approved for marketing by the FDA on a timely basis, or ever. This risk notwithstanding, the Company <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">may scale-up and</div> <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">build pre-launch inventories</div> of product that have not yet received final governmental approval when the Company believes that such action is appropriate in relation to the commercial value of the product launch opportunity. The determination to capitalize is made once the Company (or its third party development partners) has filed a Biologics License Application (“BLA”) that has been acknowledged by the FDA as containing sufficient information to allow the FDA to conduct its review in an efficient and timely manner and management is reasonably certain that all regulatory and legal requirements will be satisfied. This determination is based on the particular facts and circumstances relating to the expected FDA approval of the drug product being considered. As of November 30, 2019, and May 31, 2019, the Company did not <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">have pre-launch inventory</div> that qualified for capitalization pursuant to U.S. GAAP ASC 330 “Inventory.”</div><div style="font-size: 1px; margin-top: 18px; margin-bottom: 0px;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Fair Value of Financial Instruments </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-style:italic;display:inline;;font-style:italic;display:inline;">Fair Value Hierarchy </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The three levels of inputs that may be used to measure fair value are as follows: </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Level 1. Quoted prices in active markets for identical assets or liabilities. </div></div><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt; line-height: 12pt;">Level 2. Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities. Level 2 inputs also <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">include non-binding market</div> consensus prices that can be corroborated with observable market data, as well as quoted prices that were adjusted for security-specific restrictions.</div><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt; line-height: 12pt;">Level 3. Unobservable inputs to the valuation methodology are significant to the measurement of the fair value of assets or liabilities. These Level 3 inputs also <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">include non-binding market</div> consensus prices <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">or non-binding broker</div> quotes that the Company was unable to corroborate with observable market data.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Liabilities measured at fair value on a recurring basis by level within the fair value hierarchy as of November 30, 2019 and May 31, 2019 is as follows: </div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px; width: 92%;;margin : 0px auto;;text-align:left;"><tr style="font-size: 0px;"><td style="padding: 0px; vertical-align: top; width: 56%;"></td><td style="padding: 0px; vertical-align: top; width: 3%;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top; width: 3%;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top; width: 3%;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top; width: 3%;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td><td style="padding: 0px; vertical-align: top;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;">  </td><td colspan="6" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px; vertical-align: top;;text-align:center;;width:;">Fair Value Measurement at<br/>November 30, 2019 (1)</td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;">  </td><td colspan="6" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px; vertical-align: top;;text-align:center;;width:;">Fair Value Measurement at<br/>May 31, 2019 (1)</td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; vertical-align: top;;width:;">  </td><td colspan="2" style="padding-left: 0px; vertical-align: top;;text-align:center;;width:;">Using</td><td style="padding-left: 0px; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; vertical-align: top;;width:;">  </td><td colspan="2" style="padding-left: 0px; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; vertical-align: top;;width:;">  </td><td colspan="2" style="padding-left: 0px; vertical-align: top;;text-align:center;;width:;">Using</td><td style="padding-left: 0px; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; vertical-align: top;;width:;">  </td><td colspan="2" style="padding-left: 0px; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; vertical-align: top;;width:;"> </td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px; vertical-align: top;;text-align:center;;width:;">Level 3</td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px; vertical-align: top;;text-align:center;;width:;">Total</td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px; vertical-align: top;;text-align:center;;width:;">Level 3</td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;">  </td><td colspan="2" style="border-bottom: 1pt solid rgb(0, 0, 0); padding-left: 0px; vertical-align: top;;text-align:center;;width:;">Total</td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: top;;width:;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); vertical-align: top; width: 56%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Liabilities:</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align: top; width: 56%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 3em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Derivative liability—convertible note redemption provision</div></div></td><td style="padding-left: 0px; vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; vertical-align: top;">$</td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">1,456,398</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; vertical-align: top;">$</td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">1,456,398</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; vertical-align: top;">$</td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">2,005,137</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; vertical-align: top;">$</td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">2,005,137</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); vertical-align: top; width: 56%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 3em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Derivative liability—warrants</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">122,372</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">122,372</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">402,132</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: top;;text-align:right;">402,132</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: top;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; vertical-align: top; width: 56%;"> </td><td style="padding-left: 0px; vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align: top; width: 56%;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 5em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Total liability</div></div></td><td style="padding-left: 0px; vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; vertical-align: top;">$</td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">1,578,770</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; vertical-align: top;">$</td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">1,578,770</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; vertical-align: top;">$</td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">2,407,269</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; vertical-align: top;">$</td><td style="padding-left: 0px; vertical-align: top;;text-align:right;">2,407,269</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: top;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; vertical-align: top; width: 56%;"> </td><td style="padding-left: 0px; vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td><td style="padding-left: 0px; vertical-align: top; width: 3%;">  </td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: top;"> </td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px; background: none;"></div><div style="font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px;;width:100%;"><tr style="page-break-inside: avoid;"><td style="padding-left: 0px;;text-align:left;;vertical-align:top;;width:4%;">(1)</td><td style="padding-left: 0px;;text-align:left;;vertical-align:top;"><div style="font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Company did not have any assets or liabilities measured at fair value using Level 1 or 2 of the fair value hierarchy as of November 30, 2019 and May 31, 2019. </div></div></td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div> <div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurements. These instruments are not quoted on an active market. The Company uses a Binomial Lattice Model to estimate the value of the warrant derivative liability and a Monte Carlo Simulation to value the derivative liability of the redemption provision within a convertible promissory note. These valuation models were used because management believes they reflect all the assumptions that market participants would likely consider in negotiating the transfer of the instruments. The Company’s derivative liabilities are classified within Level 3 of the fair value hierarchy because certain unobservable inputs were used in the valuation models. </div></div> <div style="font-family: times new roman; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The following is a reconciliation of the beginning and ending balances for liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the six months ended November 30, 2019, and the year ended May 31, 2019: </div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-collapse: collapse; border-spacing: 0px;;margin : 0px auto;;text-align:left;;width:68%;"><tr style="font-size: 0px;"><td style="padding: 0px;;width:84%;"></td><td style="padding: 0px;;vertical-align:bottom;;width:5%;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td><td style="padding: 0px;"></td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Investor warrants issued with registered direct equity offering</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">4,360,000</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Placement agent warrants issued with registered direct equity offering</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">819,200</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Fair value adjustments</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">(3,855,468</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;">) </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Balance at May 31, 2018</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">1,323,732</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Inception date value of redemption provisions</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">2,750,006</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Fair value adjustments—warrants</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">(744,869</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">) </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Fair value adjustments</div><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">—</div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">convertible notes</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">(921,600</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;">) </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Balance at May 31, 2019</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;">$</td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">2,407,269</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Fair value adjustments</div><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">—</div><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">warrants</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">(279,760</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;">) </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Fair value adjustments</div><div style="letter-spacing: 0px; top: 0px;;display:inline;">—</div><div style="letter-spacing: 0px; top: 0px;;display:inline;">convertible notes</div></div></td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;text-align:right;;vertical-align:bottom;">(548,739</td><td style="padding-left: 0px; white-space: nowrap;;vertical-align:bottom;">) </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255);;vertical-align:top;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Balance at November 30, 2019</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;vertical-align:bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255);;text-align:right;;vertical-align:bottom;">1,578,770</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255);;vertical-align:bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px;;vertical-align:bottom;"> </td><td style="padding-left: 0px;;vertical-align:bottom;">  </td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;;vertical-align:bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px;"> </td></tr></table><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div><div style="clear: both; max-height: 0px;"></div> <div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Operating Leases </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;">Effective June 1, 2019, the Company determined if an arrangement is a lease at inception. Operating leases are included in operating lease <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;"><div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">right-of-use</div></div> (“ROU”) assets, other current liabilities, and operating lease liabilities on its consolidated balance sheets.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;">Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The Company’s lease terms do not include options to extend or terminate the lease as it is not reasonably certain that it will exercise these options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">non-lease</div> components, which are generally accounted for separately.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Stock-Based Compensation </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">U.S. GAAP requires companies to measure the cost of employee services received in exchange for the award of equity instruments based on the fair value of the award at the date of grant. The expense is to be recognized over the period during which an employee is required to provide services in exchange for the award (requisite service period) or when designated milestones have been achieved. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Company accounts for stock-based awards established by the fair market value of the instrument using the Black-Scholes option pricing model utilizing certain weighted average assumptions including stock price volatility, expected term and risk-free interest rates, as of the grant date. The risk-free interest rate assumption is based upon observed interest rates appropriate for the expected term of the stock-based award. The expected volatility is based on the historical volatility of the Company’s common stock on monthly intervals. The computation of the expected option term is based on the “simplified method,” as the Company issuances are considered “plain vanilla” options. For stock-based awards with defined vesting, the Company recognizes compensation expense over the requisite service period or when designated milestones have been achieved. The Company estimates forfeitures at the time of grant and revised, if necessary, in subsequent periods, if actual forfeitures differ from those estimates. Based on limited historical experience of forfeitures, the Company estimated future unvested forfeitures at 0% for all periods presented. Periodically, the Company will issue restricted common stock to third parties as compensation for services rendered. Such stock awards are valued at fair market value on the effective date of the Company’s obligation. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Common Stock </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">On November 8, 2018, at the 2018 Annual Meeting of Stockholders, a proposal was approved to increase the total number of authorized shares of common stock of the Company from 450,000,000 to 600,000,000. Subsequently, on May 22, 2019, at a special meeting of stockholders, a proposal was approved to increase the total number of authorized shares of common stock of the Company from 600,000,000 to 700,000,000. </div></div><div style="font-size: 1px; margin-top: 18px; margin-bottom: 0px;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Preferred Stock </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Company’s Board of Directors is authorized to issue up to 5,000,000 shares of preferred stock without stockholder approval. As of November 30, 2019, the Company has authorized the issuance of 400,000 shares of Series B convertible preferred stock and 20,000 shares of Series C convertible preferred stock, of which 92,100 shares and 7,788 shares, respectively, were outstanding. The remaining preferred shares authorized have no specified rights. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Treasury Stock </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Treasury stock purchases are accounted for under the par value method, whereby the cost of the acquired stock is recorded at par value. As of November 30, 2019, the Company has purchased 159,011 shares of $0.001 par value treasury stock. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Debt Discount </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">During year ended May 31, 2019, the Company incurred approximately $4.2 million of debt discount related to the issuance of convertible notes, as described in Note 4. The discount is amortized over the life of the convertible promissory notes. During the six months ended November 30, 2019 and November 30, 2018, the Company recorded approximately $1.5 million and $0.1 million of related amortization, respectively. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Debt Issuance Cost </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">During the year ended May 31, 2019, the Company incurred direct costs associated with the issuance of convertible notes, as described in Note 4, and recorded approximately $1.0 million of debt issuance costs. During the six months ended November 30, 2019 and November 30, 2018, the Company recognized related amortization of approximately $404,000 and $20,000, respectively. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Offering Costs </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">During the six months ended November 30, 2019 and the year ended May 31, 2019, the Company incurred direct incremental costs associated with the sale of equity securities and conversion of debt, as described in Notes 10 and 11. The costs were approximately $2.0 million and $4.3 million for the six months ended November 30, 2019 and year ended May 31, 2019, respectively. The offering costs were recorded as a component of equity upon receipt of proceeds. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Stock for Services </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The Company periodically issues warrants to consultants for various services. The Black-Scholes option pricing model, as described more fully above, is utilized to measure the fair value of the equity instruments on the date of issuance. The Company recognizes the compensation expense associated with the equity instruments over the requisite service or vesting period. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Loss per Common Share </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Basic loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding during the period. Diluted loss per share would include the weighted average number of shares of common stock outstanding and potentially dilutive common stock equivalents. Because of the net losses for all periods presented, the basic and diluted weighted average shares outstanding are the same since including the additional shares would have an anti-dilutive effect on the loss per share. For this reason<div style="letter-spacing: 0px; top: 0px;;display:inline;"> the following potentially dilutive</div> common stock <div style="letter-spacing: 0px; top: 0px;;display:inline;">equival<div style="letter-spacing: 0px; top: 0px;;display:inline;">e<div style="letter-spacing: 0px; top: 0px;;display:inline;">nts </div></div></div>were not included in the computation of basic and diluted weighted average number of shares of common stock outstanding for the <div style="letter-spacing: 0px; top: 0px;;display:inline;">si<div style="letter-spacing: 0px; top: 0px;;display:inline;">x</div></div> months ended November 30, 2019 and November 30, 2018</div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">: common stock options and warrants to purchase common stock of 177,457,255 and 155,836,676 respectively; short-term convertible notes and accrued interest that could convert into 10,048,121 and 0 common shares respectively; Shares of Series C and Series B convertible preferred stock including undeclared dividends that can potentially convert in the aggregate into a 17,550,240 and 1,330,861 common shares respectively. </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 18pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"><div style="font-weight:bold;display:inline;">Income Taxes </div></div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 6pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Deferred taxes are provided on the asset and liability method, whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Future tax benefits for net operating loss carry forwards are recognized to the extent that realization of these benefits is considered more likely than not. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. </div></div><div style="font-size: 1px; margin-top: 12px; margin-bottom: 0px;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><div style="font-family: times new roman; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">The Company follows the provisions of FASB Accounting Standards Codification (“ASC”) ASC <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">740-10</div> “Uncertainty in Income Taxes”. A reconciliation of the beginning and ending amount of unrecognized tax benefits has not been provided since there are no unrecognized benefits for all periods presented. The Company has not recognized interest expense or penalties as a result of the implementation of ASC <div style="white-space: nowrap; letter-spacing: 0px; top: 0px;;display:inline;">740-10.</div> If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefit in interest expense and penalties in operating expenses.</div><div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">In accordance with Section 15 of the Internal Revenue Code, the Company utilized a federal statutory rate of 21% and 28.62% for the six months ended November 30, 2019 and November 30, 2018, respectively. The net tax expense for the six months ended November 30, 2019 <div style="letter-spacing: 0px; top: 0px;;display:inline;">is zero and a ben<div style="letter-spacing: 0px; top: 0px;;display:inline;">efit of $2.8 million for the six month<div style="letter-spacing: 0px; top: 0px;;display:inline;">s ended</div></div></div> November 30, 2018. The Company has a full valuation allowance as of November 30, 2019 and May 31, 2019, as management does not consider it more than likely than not that the benefits from the deferred taxes will be realized. </div></div></div><div style="margin-bottom: 0px; margin-top: 0px;"> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
500000
37397
537397
500000
833333
625000
250000
1639344
819672
500000
0.0
17550240
1330861
0.0
<div style="font-family: times new roman; font-size: 10pt; margin-top: 12pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">The following table represents stock option and warrant activity as of and for the <div style="letter-spacing: 0px; top: 0px;;display:inline;">six</div> months ended </div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">November 30</div><div style="letter-spacing: 0px; top: 0px;;display:inline;">, 2019: </div></div><div style="font-size: 12pt; margin-top: 0pt; margin-bottom: 0pt;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div><table border="0" cellpadding="0" cellspacing="0" style="font-family: "times new roman"; font-size: 10pt; border-spacing: 0px; width: 100%; margin: 0in auto 0in 0px;;text-align:left;"><tr style="font-size: 0px;"><td style="padding: 0px; width: 60%; vertical-align: bottom;"></td><td style="padding: 0px; width: 4%; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; width: 4%; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; width: 4%; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; width: 4%; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td><td style="padding: 0px; vertical-align: bottom;"></td></tr><tr style="font-family: times new roman; font-size: 8pt; page-break-inside: avoid;"><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;">  </td><td colspan="2" style="padding-left: 0px; border-bottom: 1px solid black; padding-bottom: 0in; vertical-align: bottom;;text-align:center;;width:;">Number of<br/>Shares</td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;">  </td><td colspan="2" style="padding-left: 0px; border-bottom: 1px solid black; padding-bottom: 0in; vertical-align: bottom;;text-align:center;;width:;">Weighted<br/>Average<br/>Exercise Price</td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;">  </td><td colspan="2" style="padding-left: 0px; border-bottom: 1px solid black; padding-bottom: 0in; vertical-align: bottom;;text-align:center;;width:;">Weighted<br/>Average<br/>Remaining<br/>Contractual Life<br/>in Years</td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;"> </td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;">  </td><td colspan="2" style="padding-left: 0px; border-bottom: 1px solid black; padding-bottom: 0in; vertical-align: bottom;;text-align:center;;width:;">Aggregate<br/>Intrinsic Value</td><td style="padding-left: 0px; padding-bottom: 0.5pt; vertical-align: bottom;;width:;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 60%; vertical-align: bottom;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="font-size: 10pt; font-family: "times new roman", serif; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">Options and warrants outstanding—May 31, 2019</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">178,591,849</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">0.71</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">3.75</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;">$</td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">896,400</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; width: 60%; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 60%; vertical-align: bottom;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Granted</div></div></td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;;text-align:right;">30,756,055</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;;text-align:right;">0.36</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 60%; vertical-align: bottom;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px; background-color: rgb(204, 238, 255);;display:inline;">Exercised</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">(30,250,649</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;">) </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">0.39</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 60%; vertical-align: bottom;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;">Forfeited/expired/cancelled</div></div></td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;;text-align:right;">(1,640,000</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;">) </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;;text-align:right;">0.74</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;;text-align:right;">—  </td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; width: 60%; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 1px solid rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="background-color: rgb(204, 238, 255); width: 60%; vertical-align: bottom;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="font-size: 10pt; font-family: "times new roman", serif; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">Options and warrants outstanding</div><div style="background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">—</div><div style="font-size: 10pt; font-family: "times new roman", serif; background-color: rgb(204, 238, 255); letter-spacing: 0px; top: 0px;;display:inline;">November 30, 2019</div></div></td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">177,457,255</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">0.65</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">3.67</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td><td style="padding-left: 0px; background-color: rgb(204, 238, 255); vertical-align: bottom;;text-align:right;">—</td><td style="padding-left: 0px; white-space: nowrap; background-color: rgb(204, 238, 255); vertical-align: bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; width: 60%; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td></tr><tr style="font-family: times new roman; font-size: 10pt; page-break-inside: avoid;"><td style="width: 60%; vertical-align: bottom;"><div style="text-indent: -1em; font-family: "times new roman"; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1em; line-height: normal;"><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">Outstanding exercisable</div><div style="letter-spacing: 0px; top: 0px;;display:inline;">—</div><div style="font-size: 10pt; font-family: "times new roman", serif; letter-spacing: 0px; top: 0px;;display:inline;">November 30, 2019</div></div></td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;;text-align:right;">173,178,551</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;">$</td><td style="padding-left: 0px; vertical-align: bottom;;text-align:right;">0.66</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;;text-align:right;">3.56</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;">$</td><td style="padding-left: 0px; vertical-align: bottom;;text-align:right;">—</td><td style="padding-left: 0px; white-space: nowrap; vertical-align: bottom;"> </td></tr><tr style="font-size: 1px;"><td style="padding-left: 0px; width: 60%; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"><div style="margin-top: 0pt; margin-bottom: 0pt; border-top: 3px double rgb(0, 0, 0); line-height: normal;"><div style="letter-spacing: 0px; top: 0px;;display:inline;"> </div></div></td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; width: 4%; vertical-align: bottom;">  </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td><td style="padding-left: 0px; vertical-align: bottom;"> </td></tr></table><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
1530000
-153877
0
0
-1284998
xbrli:pure
iso4217:USD
iso4217:GBP
xbrli:shares
iso4217:USD
xbrli:shares
utr:Y
The Company did not have any assets or liabilities measured at fair value using Level 1 or 2 of the fair value hierarchy as of November 30, 2019 and May 31, 2019.