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Fair Value Measurements
 3 Months Ended
Aug. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The carrying values of cash and cash equivalents, restricted cash and restricted cash equivalents, accounts receivable and accounts payable approximate fair value due to their short-term nature.
The majority of the Company’s non-financial instruments, which include lease assets and property and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur, a non-financial instrument is required to be evaluated for impairment. If the Company determines that the non-financial instrument is impaired, the Company would be required to write down the non-financial instrument to its fair value. No such triggering events were identified during the three months ended August 31, 2024.
Fair value of financial instruments is determined on a recurring basis, which results are summarized as follows (in thousands):
August 31, 2024
Debt instrumentFair Value HierarchyOutstanding PrincipalFair Value
Yorkville convertible debt
Level 2
$28,132 $30,463 
The fair value of the Yorkville convertible debt was calculated on an as-converted basis using quoted market prices of the Company's outstanding common stock as of August 31, 2024. In assuming full conversion of the outstanding debt balance, the Company used the same terms as the Yorkville Convertible Debt, including a 5% discount on the lowest daily volume weighted average price for the five days preceding August 31, 2024.
Outstanding Principal as of August 31, 2024 (in thousands)
$28,132 
Conversion price$3.37 
Number of shares to be issued8,346,164 
Stock price on August 31, 2024
$3.65 
Fair Value as of August 31, 2024 (in thousands)
$30,463 
The Company recorded a loss on the change in fair value of debt of $6.4 million in its unaudited condensed consolidated statements of operations.