v3.21.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
May 31, 2021
May 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ (15,890,514) $ (30,657,973)
Adjustments to reconcile net loss to net cash used in operating activities:    
Gain on contingent liabilities 0 (275,000)
Loss on extinguishment of debt 6,105,679 0
Gain on modification of leases (14,889) (28,511)
Loss on disposal of assets 0 16,817
Impairment of goodwill 0 25,185,003
Fair value of shares issued to consultants (25,750) 0
Amortization of debt discounts 2,203,234 1,647,664
Fair value of shares vested by officers 109,313 154,014
Impairment of note receivable 2,498,706 0
Depreciation and amortization expense 685,292 449,192
Fair value of shares issued in settlement 0 45,000
Bad debt expense 15,798 108,392
Changes in assets and liabilities:    
Accounts receivable (539,324) (106,230)
Prepaid expenses and other current assets (28,221) (122,936)
Inventory (652,810) 171,591
Interest receivable 2,500 (224,517)
Right of use asset 341,035 1,300,392
Accounts payable and accrued expenses 435,742 (74,319)
Accrued interest 258,113 1,300,715
Deferred tax liability 2,490,295 0
Contingent liability (150,000) (850,000)
Operating lease liability (379,358) (1,202,259)
Net cash used in operating activities (2,535,159) (3,162,965)
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments to purchase property, plant and equipment (269,437) (1,923,338)
Payments to purchase intangible assets 0 (22,030)
Loan made to borrower under note receivable 0 (175,000)
Proceeds from collection of note receivable 1,544,291 1,682,278
Net cash used in investing activities 1,274,854 (438,090)
CASH FLOWS FROM FINANCING ACTIVITIES    
Principal payments on notes payable 0 (3,999,168)
Net cash provided by financing activities 0 (3,999,168)
Net increase in cash and cash equivalents (1,260,305) (7,600,223)
Cash and cash equivalents at beginning of period 2,925,568 10,525,791
Cash and cash equivalents at end of period 1,665,263 2,925,568
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Reclassify derivative liability to paid-in capital upon adoption of ASU 2017-11 943,817 307,612
Income taxes paid 0 0
NONCASH INVESTING AND FINANCING ACTIVITIES:    
Shares issued for services from stock payable 230,470 0
Adoption of lease standard ASU 2016-02 0 2,675,310
Capitalized interest on convertible debentures 212,601 1,553,082
Common stock issued for conversion of convertible notes payable 0 25,857
Capitalized interest on note receivable 0 399,453
Reclassification of deposit to fixed assets 0 281,966
Initial lease right of use asset and lease liability from lease modification $ 1,172,726 $ 0

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