v3.22.2.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended 36 Months Ended
May 31, 2022
May 31, 2021
May 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income (loss) $ (2,440,390) $ (15,890,514)  
Adjustments to reconcile net loss to net cash used in operating activities:      
Loss on extinguishment of debt 0 6,105,679  
Fair value of shares issued to consultants 0 (25,750)  
Gain on modification of leases 0 (14,889)  
Loss on equity investment 112,139 0  
Amortization of debt discounts 327,509 2,203,234  
Fair value of shares vested by officers 8,780 109,313  
Gain on settlement of note receivable (2,740,820) 0  
Impairment of note receivable 0 2,498,706  
Depreciation and amortization expense 753,740 685,292  
Bad debt expense 79,847 15,798  
Changes in assets and liabilities:      
Accounts receivable 64,361 (539,324)  
Prepaid expenses and other current assets (111,056) (28,221)  
Inventory (2,189,550) (652,810)  
Interest receivable 0 2,500  
Right of use asset 324,904 341,035  
Accounts payable and accrued expenses 709,273 435,742  
Accrued interest 235,425 258,113  
Contingent liability 0 (150,000)  
Deferred tax liability 2,041,487 2,490,295  
Financing lease liability (40,895) 0 $ (1,866,069)
Operating lease liability (292,424) (379,358)  
Net cash used in operating activities (3,157,670) (2,535,159)  
CASH FLOWS FROM INVESTING ACTIVITIES      
Payments to purchase property, plant and equipment (1,104,806) (269,437)  
Cash paid for construction deposit on grow facility (62,045) 0  
Investment in Quinn River (581,714) 0  
Proceeds from collection of note receivable 2,740,820 1,544,291  
Net cash used in investing activities 992,255 1,274,854  
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from loan payable 2,322,875 0  
Repayments of loan payable (1,393,966) 0  
Principal payments of finance leases (10,907)    
Proceeds from debenture offering 2,500,000 0  
Principal payments on notes payable (365,991) 0  
Net cash provided by financing activities 3,052,011 0  
Net increase in cash and cash equivalents 886,596 (1,260,305)  
Cash and cash equivalents at beginning of period 1,665,263 2,925,568  
Cash and cash equivalents at end of period 2,551,859 1,665,263 $ 2,551,859
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:      
Interest paid 1,656,774 943,817  
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 0 230,470  
Initial ROU asset and lease liability - operating 229,412 0  
Initial ROU asset and lease liability- financing 400,795 0  
Original issue discount on notes payable 1,875,000 0  
Discount on notes payable due to warrants 98,448 0  
Initial lease right of use asset and lease liability from lease modification $ 0 $ 1,172,726  

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