v3.22.4
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
6 Months Ended
Nov. 30, 2022
Nov. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ (9,537,492) $ 78,627
Adjustments to reconcile net loss to net cash used in operating activities:    
Loss on equity investment 154,111 0
Amortization of debt discounts 394,110 35,496
Gain on settlement of note receivable (348,165) (1,696,328)
Loss on extinguishment of debt 6,659,359 0
Gain on debt settlement (2,384) 0
Depreciation and amortization expense 477,193 356,455
Bad debt expense 0 129
Changes in assets and liabilities:    
Accounts receivable (387,057) (115,060)
Prepaid expenses and other current assets 29,621 3,586
Inventory (1,458,054) (1,013,127)
Right of use asset 174,067 158,257
Accounts payable and accrued expenses 982,209 93,988
Accrued interest 166,547 (8,427)
Funds held in escrow 0 250,000
Deferred tax liability 1,035,776 469,057
Operating lease liability (161,153) (139,983)
Net cash used in operating activities (1,821,312) (1,527,330)
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments to purchase property, plant and equipment (138,476) (145,015)
Investment in Quinn River (242,957) 0
Cash paid for construction deposit on grow facility 0 (93,000)
Proceeds from collection of note receivable 348,165 1,696,328
Net cash used in investing activities (33,268) 1,458,313
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from loan payable 1,717,115 303,815
Repayments on convertible debt (200,000) 0
Repayments of loan payable (1,371,309) (365,991)
Principal payments on finance leases (34,493) 0
Net cash provided by (used in) financing activities 111,313 (62,176)
Net increase in cash and cash equivalents (1,743,267) (131,193)
Cash and cash equivalents at beginning of period 2,551,859 1,665,263
Cash and cash equivalents at end of period 808,592 1,534,070
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Interest paid 894,838 799,403
Income taxes paid 0 0
NONCASH INVESTING AND FINANCING ACTIVITIES:    
Common stock issued for conversion of convertible notes payable 11,532,680 281,000
Capitalized interest 3,283 0
Initial ROU asset and lease liability - operating $ 46,745 $ 229,412

Source