Fair Value Of Financial Instruments As Follows (Tables)

3 Months Ended

Aug. 31, 2013

Fair Value Of Financial Instruments As Follows

Fair Value Assets and Liabilities Measured

The following summarizes the Company’s assets and liabilities measured at fair value as of August 31, 2013:

			Fair Value Measurements at Reporting Date Using:
			Quoted
			Prices
			in Active		Significant
			Markets for		Other		Significant
	Balance as of		Identical		Observable		Unobservable
	August 31,		Assets		Inputs		Inputs
Description (000’s)	2013		(Level 1)		(Level 2)		(Level 3)
Liabilities
Warrant liability	$	42	$	—	$	—	$	42
Total Liabilities	$	42	$	—	$	—	$	42

Activity for liabilities classified as level 3

Activity for liabilities classified as Level 3:

	SubordinatedConvertibleNote
Balance at May 31, 2013	$	-
Issuance of warrant liability	51
Fair value adjustment	(9)
Fair value at August 31, 2013	$	42

Estimated the fair value of each share-based award using the Black-Scholes option

The Company estimated the fair value of each share-based award using the Black-Scholes option valuation model. The Black-Scholes Pricing Model incorporates assumptions as to stock price volatility, the expected life of options, a risk-free interest rate and dividend yield

Input		July 9, 2013	August 31, 2013
Stock Price	$	2.11	$	1.77
Exercise Price		1.00		1.00
Expected Life (in years)		7.00	6.86
Stock Volatility		138%	138%
Risk-Free Interest Rate		2.28%	2.24%
Dividend Rate		0%	0%