2. Cash, Cash Equivalents and Restricted Cash

9 Months Ended

Feb. 28, 2019

Cash and Cash Equivalents [Abstract]

Cash, Cash Equivalents and Restricted Cash

2. Cash, Cash Equivalents and Restricted Cash

We purchase certificates of deposit with varying maturity dates. We consider all highly liquid investments acquired with a maturity of three months or less from the purchase date to be cash equivalents.

Restricted cash at February 28, 2019 and May 31, 2018 consist of a savings account held as collateral for our corporate credit card account. In addition, at February 28, 2019, restricted cash includes amounts previously held by a third party in conjunction with the Company’s acquisition of Crossflo. A corresponding amount has been recorded as a current liability at February 28, 2019.

Under authoritative guidance we are required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. We determine fair value based on quoted prices when available or through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment or valuations by third party professionals. The three levels of inputs that we may use to measure fair value are:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported by little or no market activity).

The following tables detail the fair value measurements within the fair value hierarchy of our cash, cash equivalents and restricted cash and cash equivalents:

			Fair Value Measurements at February 28, 2019 Using
	Fair Value at February 28, 2019		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents:
Cash	$	53,051	$	53,051	$	–	$	–
Money market funds		713,110		713,110		–		–
Certificates of deposit		1,000,000		–		1,000,000		–
Restricted cash		198,887		198,887		–		–
Total	$	1,965,048	$	965,048	$	1,000,000	$	–

			Fair Value Measurements at May 31, 2018 Using
	Fair Value at May 31, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents:
Cash	$	31,622	$	31,622	$	–	$	–
Money market funds		1,265,505		1,265,505		–		–
Certificates of deposit		1,000,763		–		1,000,763		–
Restricted cash		21,559		21,559		–		–
Total	$	2,319,449	$	1,318,686	$	1,000,763	$	–