Convertible Instruments and Accrued Interest (Tables)
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3 Months Ended |
Aug. 31, 2026 |
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| Convertible Instruments and Accrued Interest |
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| Schedule of information on dividends of convertible preferred stock |
The following table presents the number of potentially issuable shares of common stock, should shares of preferred stock and amounts of undeclared and accrued preferred dividends be converted to common stock.
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August 31, 2026 |
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May 31, 2026 |
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(in thousands except conversion rate) |
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Series B |
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Series C |
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Series D |
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Series B |
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Series C |
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Series D |
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Shares of preferred stock outstanding |
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19 |
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6 |
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9 |
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19 |
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6 |
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9 |
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Common stock conversion rate |
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10:1 |
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2,000:1 |
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1,250:1 |
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10:1 |
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2,000:1 |
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1,250:1 |
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Total shares of common stock if converted |
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190 |
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12,390 |
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10,565 |
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190 |
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12,390 |
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10,565 |
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Undeclared dividends |
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$ |
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30 |
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$ |
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— |
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$ |
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— |
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$ |
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29 |
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$ |
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— |
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$ |
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— |
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Accrued dividends |
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$ |
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— |
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$ |
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4,458 |
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$ |
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5,558 |
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$ |
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— |
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$ |
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4,302 |
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$ |
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5,345 |
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Total shares of common stock if dividends converted |
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60 |
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8,916 |
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11,116 |
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58 |
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8,604 |
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10,690 |
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| Schedule of outstanding balances of convertible notes and accrued interest |
The table below presents outstanding convertible notes and accrued interest as of August 31, 2026 and May 31, 2026:
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August 31, 2026 |
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May 31, 2026 |
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(in thousands) |
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April 2, 2021
Note |
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April 23, 2021
Note |
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Total |
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April 2, 2021
Note |
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April 23, 2021
Note |
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Total |
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Convertible notes payable |
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2,831 |
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24,369 |
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27,200 |
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2,831 |
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24,369 |
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27,200 |
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Accrued interest on convertible notes |
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5,982 |
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2,627 |
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8,609 |
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5,872 |
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5,268 |
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11,140 |
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Outstanding convertible notes payable and accrued interest |
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$ |
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8,813 |
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$ |
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26,996 |
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$ |
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35,809 |
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$ |
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8,703 |
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$ |
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29,637 |
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$ |
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38,340 |
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| Schedule of changes to outstanding balance of convertible notes, including accrued interest |
Reconciliation of changes to the outstanding balance of convertible notes, including accrued interest, were as follows:
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(in thousands) |
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April 2, 2021
Note |
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April 23, 2021
Note |
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Total |
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Outstanding balance at May 31, 2026 |
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$ |
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8,703 |
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$ |
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29,637 |
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$ |
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38,340 |
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Interest expense |
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110 |
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359 |
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469 |
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Fair market value of shares exchanged for repayment |
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— |
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(3,000 |
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(3,000 |
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Outstanding balance at August 31, 2026 |
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$ |
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8,813 |
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$ |
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26,996 |
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$ |
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35,809 |
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| Summary of key terms of the outstanding convertible notes |
Key terms of the outstanding convertible notes (the “Notes”) are as follows:
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August 31, 2026 |
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April 2, 2021
Note |
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April 23, 2021
Note |
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Interest rate per annum |
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5 |
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% |
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5 |
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% |
Conversion price per share upon five trading days' notice |
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$ |
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10.00 |
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$ |
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10.00 |
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Party that controls the conversion rights |
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Investor |
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Investor |
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Maturity date |
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April 5, 2029 |
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April 23, 2029 |
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Security interest |
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All Company assets excluding intellectual property |
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