Convertible Instruments (Tables)

12 Months Ended

May 31, 2014

Activity Related to Notes

Activity related to the Notes was as follows:

	May 31, 2014			May 31, 2013
Face amount of Notes	$	7,221,250		$	6,588,250
Unamortized discount		(1,932,566	)		(4,539,886	)
Repayments		(500,000	)		—
Conversions		(2,450,000	)		(567,000	)
Total carrying value of Notes		2,338,684			1,481,364
Short-term portion of Notes		—			(328,347	)
Long-term portion of Notes	$	2,338,684		$	1,153,017

Weighted Average Assumptions to Value Investor Warrants

The Company utilized the following weighted average assumptions to value the above investor warrants:

	2014	2013
Expected dividend yield	-0-%	-0-%
Stock price volatility	78 - 93%	70 - 94%
Expected term	3-5 years	2 years
Risk-free interest rate	.64 -1.42%	0.28%
Grant-date fair value	$  .66 - $.72	$  .11 - $1.10