Out-Of-Period Adjustment

9 Months Ended

Feb. 28, 2021

Out-of-period Adjustment

Out-Of-Period Adjustment

During the current quarter, the Company recorded an out-of-period adjustment that affected the condensed consolidated balance sheet as of February 28, 2021 and the consolidated statement of operations and comprehensive income (loss) and the condensed consolidated statement of changes in stockholders’ equity for the periods then ended.  The adjustment related to the manner in which the Company was accounting for market-based stock-based compensation.  The impact of this adjustment resulted in a decrease of stock-based compensation of approximately $243,187 for the three months ended February 28, 2021 and $243,187 for the nine months ended February 28, 2021.  The Company also recorded a decrease in additional paid-in-capital of $243,187 as of February 28, 2021.  Management has evaluated the impact of this out-of-period adjustment and has concluded that it is not material to any current or previously reported quarterly or annual consolidated financial statements.