v3.19.3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
3 Months Ended
Aug. 31, 2019
Aug. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ (1,376,500) $ (16,656,940)
Adjustments to reconcile net loss to net cash used in operating activities:    
Gain on contingent liabilities (275,000) 0
Imputed interest 0 271
Stock-based compensation 63,222 120,138
Fair value of shares issued in settlement 7,500 490,000
Warrants issued to placement agent 0 2,908,673
Amortization of debt discounts 448,291 1,598,501
Warrants and Special Warrants issued due to penalty 0 8,084,522
Non-cash offering costs of equity financing 0 403,588
Depreciation and amortization expense 87,418 48,461
Expense from derivative triggering event 0 12,659
Changes in assets and liabilities:    
Accounts receivable (66,361) (24,544)
Prepaid expenses (36,205) (151,709)
Inventory (27,281) (93,446)
Interest receivable (82,169) 0
Amortization of right of use asset 1,034,847 0
Accounts payable and accrued expenses (267,861) (548,738)
Accrued compensation 0 (15,424)
Accrued interest, related party 0 3,497
Deferred rent 0 667
Accrued interest 433,937 59,437
Due to related parties 0 (50,000)
Operating lease liability (893,301) 0
Net cash used in operating activities (949,463) (3,810,387)
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments to purchase property, plant and equipment (923,199) 0
Loan made to borrower under note receivable (175,000) 0
Payment for investment in Alternative Solutions, net of cash received of $14,612 0 (5,982,710)
Net cash used in investing activities (1,098,199) (5,982,710)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from related party convertible notes payable 0 81,961
Proceeds from convertible notes payable 0 500,000
(2,570,230) (310,000)
Proceeds from sale of equity 0 15,535,978
Net cash provided by financing activities (2,570,230) 15,694,058
Net increase in cash and cash equivalents (4,617,892) 5,900,961
Principal payments on related party notes payable 0 (76,381)
Principal payments on convertible notes payable 0 (37,500)
Cash and cash equivalents at beginning of period 10,525,791 52,964
Cash and cash equivalents at end of period 5,907,899 5,953,925
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Interest paid 242 8,964
Income taxes paid 0 0
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Related party notes payable reclassified as related party convertible notes payable 0 75,000
Beneficial conversion feature on convertible notes 0 1,229,831
Note payable exchanged for common stock 0 654,697
Charge to paid-in capital for par value of shares issued in cashless exercise of warrants 0 13
Reclassify derivative liability to paid-in capital upon adoption of ASU 2017-11 0 1,265,751
Adoption of lease standard ASU 2016-02 1,781,446 0
Capitalized interest on convertible debentures 371,021 $ 0
Reclassification of deposit to fixed assets 136,190  
Shares issued for conversion of notes payable $ 25,857  

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