v3.24.2.u1
Consolidated Statements of Cash Flows - USD ($)
12 Months Ended 60 Months Ended
May 31, 2024
May 31, 2023
May 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income (loss) $ (4,485,236) $ (14,844,285)  
Adjustments to reconcile net loss to net cash used in operating activities:      
Loss on equity investment 0 178,674  
Share-based compensation 64,556 0  
Amortization of debt discounts 989,807 801,535  
Loss on extinguishment of debt 2,067,141 6,659,359  
Gain on settlement of note receivable 0 (348,165)  
Gain on settlement of legal fees 0 (146,092)  
Fair value of shares vested by officers 0 656  
Impairment of investment 0 1,590,742  
Impairment on intangible assets 0 866,288  
Gain on settlement of accounts payable (4,375) (145,106)  
Gain on debt settlement (2,682,899) (2,384)  
Depreciation and amortization expense 830,511 952,133  
Bad debt expense 38,280 43,122  
Changes in assets and liabilities:      
Accounts receivable (289,970) 143,901  
Prepaid expenses and other current assets 99,644 185,916  
Inventory 1,044,359 404,670  
Right of use asset 391,125 353,797  
Accounts payable and accrued expenses 631,865 650,483  
Accrued interest 347,549 534,680  
Deferred tax liability 2,147,406 2,220,675  
Financing lease liability 0 1,407 $ 2,579,009
Operating lease liability (381,075) (331,865)  
Net cash used in operating activities 808,688 (229,859)  
CASH FLOWS FROM INVESTING ACTIVITIES      
Payments to purchase property, plant and equipment (148,114) (152,275)  
Investment in Quinn River 0 (304,145)  
Proceeds from collection of note receivable 0 348,165  
Net cash used in investing activities (148,114) (108,255)  
CASH FLOWS FROM FINANCING ACTIVITIES      
Cash received from the issuance of convertible notes payable 2,030,000 0  
Principal payments on convertible notes payable (2,542,530) (500,000)  
Cash received from the issuance of notes payable 2,524,000 0  
Principal payments on notes payable (2,504,058) 0  
Proceeds from loan payable 0 1,717,115  
Repayments of loan payable (481,943) (2,356,806)  
Principal payments on finance leases (84,457) (75,633)  
Net cash used in financing activities (1,058,988) (1,215,324)  
Net increase in cash and cash equivalents (398,414) (1,553,438)  
Cash and cash equivalents at beginning of period 998,421 2,551,859  
Cash and cash equivalents at end of period 600,007 998,421 $ 600,007
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:      
Interest paid 582,491 1,476,946  
Income taxes paid 0 0  
NONCASH INVESTING AND FINANCING ACTIVITIES:      
Common stock issued for conversion of convertible notes payable 2,174,000 11,532,680  
Fair value of shares issued from stock payable 0 4,390  
Capitalized interest 978,543 3,283  
Discounts on notes payable 284,112 0  
Initial ROU asset and lease liability - operating 224,899 46,475  
Initial ROU asset and lease liability - finance 0 12,400  
Return of assets under financing lease $ 6,234 $ 0  

Source