v3.20.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
9 Months Ended
Feb. 29, 2020
Feb. 28, 2019
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ (3,910,473) $ (24,187,649)
Adjustments to reconcile net loss to net cash used in operating activities:    
Gain on contingent liabilities (275,000) 0
Imputed interest 0 807
Stock-based compensation 124,582 328,513
Fair value of shares issued in settlement 45,000 490,000
Warrants issued to placement agent 0 3,783,130
Amortization of debt discounts 1,249,053 2,481,674
Warrants and Special Warrants issued due to penalty 0 8,084,522
Units issued to placement agent 0 557,335
Non-cash offering costs of equity financing 0 403,588
Depreciation and amortization expense 285,073 184,068
Expense from derivative triggering event 0 12,659
Fair value of shares issued in settlement 0 47,500
Changes in assets and liabilities:    
Accounts receivable 6,342 (259,576)
Prepaid expenses (72,742) (608,090)
Inventory 16,503 (199,843)
Interest receivable (221,195) (99,618)
Amortization of right of use asset 1,215,397 0
Redemption premium in transit 0 (964,788)
Accounts payable and accrued expenses (166,468) (353,832)
Accrued compensation 0 (16,667)
Accrued interest, related party 0 5,943
Deferred rent 0 1,667
Accrued interest 934,117 588,312
Due to related parties 0 (50,000)
Operating lease liability (1,101,532) 0
Net cash used in operating activities (1,871,343) (9,770,345)
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments to purchase property, plant and equipment (1,766,185) (735,234)
Loan made to borrower under note receivable (175,000) (5,150,000)
Proceeds from collection of note receivable 325,000  
Payment for investment in Alternative Solutions, net of cash received of $14,612 0 (5,982,710)
Net cash used in investing activities (1,616,185) (11,867,944)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from related party notes payable 0 211,700
Proceeds from convertible notes payable 0 18,369,000
(3,999,168) (310,000)
Proceeds from sale of equity 0 15,535,978
Net cash provided by financing activities (3,999,168) 33,557,340
Net increase in cash and cash equivalents (7,486,696) 11,919,051
Cash and cash equivalents at beginning of period 10,525,791 52,964
Cash and cash equivalents at end of period 3,039,095 11,972,015
Principal payments on related party notes payable 0 (211,838)
Principal payments on convertible notes payable 0 (37,500)
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Interest paid 307,612 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 9,039,096
Note payable exchanged for common stock 0 1,295,690
Charge to paid-in capital for par value of shares issued in cashless exercise of warrants 0 3,362
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 1,144,762 0
Reclassification of deposit to fixed assets 136,190 0
Shares issued for conversion of notes payable 25,857 0
Shares issued for services from stock payable $ 0 $ 25,313

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