Short Term Loans

6 Months Ended

Nov. 30, 2016

Unsecured Convertible Promissory Notes and Debentures/Convertible Secured Debentures and Long-term Loan/Short Term Loans [Abstract]

Short Term Loans

5. Short Term Loans

The Company has a past due term loan originated on April 1, 2014 with an interest rate of 1% per month. The Company repaid $15,483 (Canadian $20,000) during the first quarter of fiscal 2017. As at November 30, 2016, the loan had a value of $88,476 ($118,815 Canadian).

The Company has a past due term loan originated on January 7, 2014 with an interest rate of 1% per month. The Company repaid $13,899 (Canadian $18,125) during the first quarter of fiscal 2017. As at November 30, 2016, the loan had a value of $63,203 ($84,875 Canadian).

During the fourth quarter of fiscal 2016, the Company received $100,000 from a director as an intended subscription in anticipation of a third closing of a private placement of units consisting of one common stock at $0.25 per share and one common stock purchase warrant with an exercise price of $0.25 per share. The Company completed this closing on August 31, 2016 and the loan was applied against the private placement (Note 9).

The following is a summary of Short Term Loans:

Principal amounts	April 1, 2014 Term Loan			January 7, 2014 Term Loan			Other Loans			Total
Fair value at May 31, 2015	$	152,545		$	82,817		$	556,566		$	791,928
Borrowing during the first quarter		-			-			328,265			328,265
Borrowing during the second quarter		-			-			1,201,000			1,201,000
Borrowing during the third quarter		-			-			170,468			170,468
Borrowing during the fourth quarter		-			-			100,000			100,000
Fair value adjustments		(9,446	)		(4,251	)		(19,726	)		(33,423	)
Conversions		-			-			(1,832,768	)		(1,832,768	)
Repayments		(37,214	)		-			(403,805	)		(441,019	)
Fair value at May 31, 2016	$	105,885		$	78,566		$	100,000		$	284,451
Fair value adjustments		(1,926	)		(1,464	)		-			(3,390	)
Conversions		-			-			(100,000	)		(100,000	)
Repayments		(15,483	)		(13,899	)		-			(29,382	)
Fair value at November 30, 2016	$	88,476		$	63,203		$	-		$	151,679

YAPPN CORP. 10-Q