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 ($)
 6 Months Ended
Nov. 30, 2018
Nov. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ (19,356,183) $ (3,091,283)
Adjustments to reconcile net loss to net cash used in operating activities:    
Imputed interest 539 539
Change in fair value of derivative 0 174,090
Warrants issued to placement agent 2,908,673 0
Warrants and Special Warrants issued to penalty 8,084,522 0
Non-cash offering costs of equity financing 403,588 0
Stock-based compensation 230,888 0
Fair value of shares issued to consultants 490,000 0
Fair value of shares issued in settlement 47,500 0
Gain / loss on modification of debt 0 29,145
(Gain) loss on note exchange 0 404,082
Loss on extinguishment of debt 0 989,032
(Gain) loss on note exchange 0 (3,480)
Expense from derivative triggering event 12,659 0
Amortization of debt discounts 2,144,328 572,856
Amortization of deferred financing costs 0 3,119
Depreciation and amortization expense 128,531 662
Changes in assets and liabilities:    
Accounts receivable (42,982) 0
Interest receivable (24,658) 0
Inventory (465,031) 0
Prepaid expenses (72,295) (25,000)
Other assets 0 50,000
Other current assets 0 (39,500)
Accounts payable and accrued expenses (376,353) 334,018
Accrued compensation (16,667) 112,500
Due to related parties (50,000) 0
Accrued interest, related party 5,211 52,281
Accrued interest 188,736 12,189
Deferred rent liability 1,667  
Net cash used in operating activities (5,757,327) (424,750)
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments to purchase property, plant and equipment (35,095) 0
Payments to acquire note receivable (5,000,000) 0
Payment for investment in Alternative Solutions, net of cash received of $14,612 (5,982,710) 0
Net cash used in investing activities (11,017,805) 0
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from related party convertible notes payable 0  
Proceeds from related party notes payable 158,615 275,629
Proceeds from convertible notes payable 6,357,000 330,000
Principal payments on notes payable (310,000) 0
Principal payments on related party notes payable (109,877) 0
Repayments of convertible notes payable (37,500) 0
Proceeds from sale of equity 15,535,978 0
Net cash provided by financing activities 21,594,216 605,629
Net increase in cash and cash equivalents 4,819,084 180,879
Cash and cash equivalents at beginning of period 52,964 78,310
Cash and cash equivalents at end of period 4,872,048 259,189
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Interest paid 8,964 0
Income taxes paid 0 0
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Convertible note issued for unpaid accrued salary 75,000 75,000
Related party notes payable reclassified as related party convertible notes payable 0 873,996
Beneficial conversion feature on convertible notes 6,047,322 508,988
Note payable exchanged for common stock 1,039,663 936,478
Shares issued for settlement of accounts payable 0 6,000
Discount on convertible notes payable due to derivative 0 802,381
Charge to paid-in capital for par value of shares issued in cashless exercise of warrants 3,362 0
Reclassify derivative liability to paid-in capital upon adoption of ASU 2017-11 1,265,751 0
Shares issued for services from stock payable $ 25,313 $ 0