Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.20.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
May 31, 2020
May 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ (30,657,973) $ (27,619,057)
Adjustments to reconcile net loss to net cash used in operating activities:    
Gain on contingent liabilities (275,000) 0
Gain on modification of leases (28,511) 0
Loss on disposal of assets 16,817 0
Impairment of goodwill 25,185,003 0
Imputed interest 0 807
Bad debt expense 108,392 0
Fair value of shares issued to consultants 45,000 490,000
Warrants issued to placement agent 0 3,783,130
Revaluation of contingent liability 0 321,889
Amortization of debt discounts 1,647,664 3,576,161
Warrants and Special Warrants issued to penalty 0 8,084,522
Units issued to placement agent 0 557,335
Non-cash offering costs of equity financing 0 403,588
Fair value of shares vested by officers 154,014 454,324
Depreciation and amortization expense 449,192 288,351
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 (106,230) (128,134)
Prepaid expenses and other current assets (122,936) (292,769)
Inventory 171,591 (340,880)
Interest receivable (224,517) (178,258)
Right of use asset 1,300,392 0
Accounts payable and accrued expenses (74,319) (484,609)
Accrued compensation 0 (120,417)
Accrued interest, related party 0 (362)
Deferred rent 0 1,667
Accrued interest 1,300,715 995,941
Due to related parties 0 (17,930)
Contingent liability (850,000) 0
Operating lease liability (1,202,259) 0
Net cash used in operating activities (3,162,965) (10,164,542)
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments to purchase property, plant and equipment (1,923,338) (1,037,262)
Payments to purchase intangible assets (22,030) 0
Loan made to borrower under note receivable (175,000) (5,150,000)
Proceeds from collection of note receivable 1,682,278 0
Payment for investment in Alternative Solutions 0 (5,982,710)
Net cash used in investing activities (438,090) (12,169,972)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from convertible note payable 0 18,369,000
Principal payments on notes payable (3,999,168) (1,060,000)
Principal payments on related party notes payable 0 (137)
Principal payments on convertible notes payable 0 (37,500)
Principal payments on notes payable (3,999,168) (1,060,000)
Proceeds from sale of equity 0 15,535,978
Net cash provided by financing activities (3,999,168) 32,807,341
Net increase in cash and cash equivalents (7,600,223) 10,472,827
Cash and cash equivalents at beginning of period 10,525,791 52,964
Cash and cash equivalents at end of period 2,925,568 10,525,791
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Interest paid 307,612 8,964
Income taxes paid 0 0
Common stock issued for services, previously accrued 0 17,500
Accrued interest capitalized to principal of notes payable 1,553,082 491,230
Convertible note issued for unpaid accrued salary 0 75,000
Beneficial conversion feature on convertible notes 0 5,888,707
Note payable exchanged for common stock 0 1,295,690
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 2,675,310 0
Capitalized interest on convertible debentures 1,553,082 491,230
Reclassification of deposit to fixed assets 281,966 0
Common stock issued for conversion of convertible notes payable 25,857 1,295,690
Shares issued for services from stock payable 0 25,313
Capitalized interest on note receivable 399,453 0
Non-Related Party Debt [Member]    
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Common stock issued for conversion of convertible notes payable $ 25,857 $ 0