Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
9 Months Ended
Feb. 29, 2024
Feb. 28, 2023
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ (6,132,889) $ (10,567,398)
Adjustments to reconcile net loss to net cash used in operating activities:    
Loss on equity investment 0 176,587
Share-based compensation 45,239 0
Amortization of debt discounts 393,240 597,821
Loss on extinguishment of debt 3,404,910 6,659,359
Gain on settlement of note receivable 0 (348,165)
Gain on settlement of accounts payable (4,375) 0
Gain on debt settlement (168,837) (2,384)
Depreciation and amortization expense 498,131 716,114
Bad debt expense 393 (4,437)
Changes in assets and liabilities:    
Accounts receivable (523,209) (95,718)
Prepaid expenses and other current assets 66,042 143,627
Inventory 627,208 (931,861)
Right of use asset 287,717 263,064
Accounts payable and accrued expenses 656,121 739,622
Accrued interest 336,878 327,169
Deferred tax liability 1,380,226 1,552,028
Operating lease liability (277,945) (244,011)
Net cash used in operating activities 588,850 (1,018,583)
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments to purchase property, plant and equipment (50,659) (141,465)
Payment for construction security deposit (40,000) 0
Investment in Quinn River 0 (297,149)
Proceeds from collection of note receivable 0 348,165
Net cash used in investing activities (90,659) (90,449)
CASH FLOWS FROM FINANCING ACTIVITIES    
Cash received from the issuance of notes payable 0 0
Cash received from the issuance of convertible notes payable 2,030,000 0
Proceeds from loan payable 2,290,000 1,717,115
Repayments of loan payable (481,943) (1,869,344)
Principal payments on notes payable (812,807) 0
Repayments on convertible debt (3,758,795) (350,000)
Principal payments on finance leases (64,190) (52,786)
Net cash used in financing activities (797,735) (555,015)
Net increase in cash and cash equivalents (299,544) (1,664,047)
Cash and cash equivalents at beginning of period 998,421 2,551,859
Cash and cash equivalents at end of period 698,877 887,812
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Interest paid 338,529 1,188,397
Income taxes paid 0 0
NONCASH INVESTING AND FINANCING ACTIVITIES:    
Shares issued for conversion of notes payable 0 11,532,680
Capitalized interest 967,872 3,283
Extinguishment of debt 12,515,830 0
Gain on restructure of 15% notes 168,837 2,384
Conversion of notes payable to common stock 1,745,888 0
Loss on conversion of debentures to common stock 428,112 0
Initial ROU asset and lease liability – operating lease 224,899 46,475
Transfer from prepaid expenses to fixed assets 221,712 0
15% Notes [Member]    
Adjustments to reconcile net loss to net cash used in operating activities:    
Gain on debt settlement (1,088,308) 0
NONCASH INVESTING AND FINANCING ACTIVITIES:    
Gain on restructure of 15% notes $ 1,088,308 $ 0