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Long-term investments (Tables)
6 Months Ended
Nov. 30, 2021
Schedule of Long-term Investments

Long term investments consisted of the following:

 

 

 

November 30, 2021

 

 

May 31, 2021

 

Debt securities classified under available-for-sale method

 

$

154,442

 

 

$

 

Equity investments measured at fair value level 1

 

 

5,918

 

 

 

9,251

 

Equity investments measured at fair value level 2

 

 

2,384

 

 

 

2,934

 

Equity investments under measurement alternative

 

 

5,500

 

 

 

5,500

 

Total investments in debt and equity securities

 

$

168,244

 

 

$

17,685

 

Schedule of Estimated Fair Value of Convertible Debenture / Warrant Liability, Contingent Consideration and Debt Securities Classified under Available-for-sale Method

The Company estimated the fair value of the Warrant liability at November 30, 2021 at $6.51 per warrant using the Black-Scholes pricing model (Level 3) with the following weighted-average assumptions:

 

Risk-free interest rate

 

 

1.40

%

Expected volatility

 

 

70

%

Expected term

 

3.80 years

 

Expected dividend yield

 

 

0.0

%

Strike price

 

$

5.95

 

Fair value of common stock

 

$

10.12

 

 

 

The unrealized gain (loss) on fair value for the convertible debenture, the warrant liability, contingent consideration, and debt securities classified under available-for-sale method is recognized in non-operating income (loss) using the following inputs:

 

Financial asset / financial liability

 

Valuation

technique

 

Significant

unobservable

input

 

Inputs

APHA Convertible debentures

 

Black-Scholes

 

Volatility,

expected life

 

70%

2.5 years

Warrant liability

 

Black-Scholes

 

Volatility,

expected life

 

70%

3.8 years

Contingent consideration

 

Discounted

cash flows

 

Discount rate,

achievement

 

5%

100%

Debt securities classified under available-for-sale method

 

Black-Scholes

 

Interest rate,

conversion

 

20%

0% to 60%

 

Available-for-sale Securities [Member]  
Schedule of Estimated Fair Value of Convertible Debenture / Warrant Liability, Contingent Consideration and Debt Securities Classified under Available-for-sale Method

The Company values debt securities under available-for-sale method using the Black-Scholes model (Level 3) with the following weighted-average assumptions:

 

Expected term

 

0.4 to 6.7 years

 

Expected volatility

 

 

70

%

Effective interest rate

 

 

20.4

%

Expected dividend yield

 

 

0.0

%

Probability of conversion

 

0% to 60%

 

Strike price

 

$0.15 to $4.29

 

Fair value of common stock

 

$

0.22