v3.22.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
3 Months Ended 9 Months Ended 33 Months Ended
Feb. 28, 2022
Feb. 28, 2021
Feb. 28, 2022
Feb. 28, 2021
Feb. 28, 2022
CASH FLOWS FROM OPERATING ACTIVITIES          
Net income (loss) $ (997,296) $ (3,712,772) $ (918,669) $ (5,707,184)  
Adjustments to reconcile net loss to net cash used in operating activities:          
Fair value of shares issued to consultants     0 (25,750)  
Amortization of debt discounts     132,735 1,185,210  
Fair value of shares vested by officers     8,780 80,813  
Gain on settlement of note receivable (522,246) 0 (2,218,574) 0  
Impairment of note receivable 0 2,498,706 0 2,498,706  
Depreciation and amortization expense     535,361 511,036  
Bad debt expense 2,329 0 2,329 5,927  
Changes in assets and liabilities:          
Accounts receivable     (160,067) (121,955)  
Prepaid expenses and other current assets     (6,385) (158,949)  
Inventory     (1,114,556) (394,414)  
Interest receivable     0 2,500  
Right of use asset 82,479   240,736 266,734  
Accounts payable and accrued expenses     266,417 6,865  
Accrued interest     95,050 258,113  
Funds held in escrow     0 (150,000)  
Deferred tax liability     793,322 0  
Operating lease liability     (213,827) (314,311) $ (1,787,472)
Net cash used in operating activities     (2,557,348) (2,056,659)  
CASH FLOWS FROM INVESTING ACTIVITIES          
Payments to purchase property, plant and equipment     (165,875) (181,266)  
Cash paid for construction deposit on grow facility     (82,500) 0  
Proceeds from collection of note receivable     2,218,574 1,544,291  
Net cash used in investing activities     1,970,199 1,363,025  
CASH FLOWS FROM FINANCING ACTIVITIES          
Proceeds from loan payable     808,800    
Repayments of loans payable     (566,339)    
Proceeds from debenture offering 514,100   2,500,000 0  
Principal payments on notes payable     (365,991) 0  
Net cash used in financing activities     2,376,470 0  
Net increase in cash and cash equivalents     1,789,321 (693,634)  
Cash and cash equivalents at beginning of period     1,665,263 2,925,568  
Cash and cash equivalents at end of period $ 3,454,584 $ 2,231,934 3,454,584 2,231,934 $ 3,454,584
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:          
Interest paid     1,221,173 943,817  
Income taxes paid     0 0  
NONCASH INVESTING AND FINANCING ACTIVITIES:          
Capitalized interest on convertible debentures     0 212,601  
Common stock issued for conversion of convertible notes payable     281,000 0  
Shares issued for services issued from stock payable     0 122,720  
Initial ROU asset and lease liability     229,412 0  
Original issue discount on notes payable     1,875,000 0  
Fair value of warrants issued with debenture offering     $ 98,448 $ 0  

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