v3.19.3.a.u2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
6 Months Ended
Nov. 30, 2019
Nov. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ (2,658,474) $ (19,356,183)
Adjustments to reconcile net loss to net cash used in operating activities:    
Gain on contingent liabilities (275,000) 0
Imputed interest 0 539
Stock-based compensation 93,902 230,888
Fair value of shares issued in settlement 30,000 490,000
Warrants issued to placement agent 0 2,908,673
Amortization of debt discounts 853,983 2,144,328
Warrants and Special Warrants issued due to penalty 0 8,084,522
Non-cash offering costs of equity financing 0 403,588
Depreciation and amortization expense 171,497 128,531
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 (110,217) (42,982)
Prepaid expenses (41,394) (72,295)
Inventory 145,877 (465,031)
Interest receivable (163,446) (24,658)
Amortization of right of use asset 1,124,112 0
Accounts payable and accrued expenses (225,318) (376,353)
Accrued compensation 0 (16,667)
Accrued interest, related party 0 5,211
Deferred rent 0 1,667
Accrued interest 838,662 188,736
Due to related parties 0 (50,000)
Operating lease liability (992,296) 0
Net cash used in operating activities (1,208,112) (5,757,327)
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments to purchase property, plant and equipment (1,566,882) (35,095)
Loan made to borrower under note receivable (175,000) (5,000,000)
Payment for investment in Alternative Solutions, net of cash received of $14,612 0 (5,982,710)
Net cash used in investing activities (1,741,882) (11,017,805)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from related party convertible notes payable 0 158,615
Proceeds from convertible notes payable 0 6,357,000
(2,638,784) (310,000)
Proceeds from sale of equity 0 15,535,978
Net cash provided by financing activities (2,638,784) 21,594,216
Net increase in cash and cash equivalents (5,588,778) 4,819,084
Cash and cash equivalents at beginning of period 10,525,791 52,964
Cash and cash equivalents at end of period 4,937,013 4,872,048
Principal payments on related party notes payable 0 (109,877)
Principal payments on convertible notes payable 0 (37,500)
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Interest paid 242 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 6,047,322
Note payable exchanged for common stock 0 1,039,663
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 753,977 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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