General form of registration statement for all companies including face-amount certificate companies

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.19.1
CONSOLIDATED STATEMENTS OF CASH FLOWS
 6 Months Ended 12 Months Ended
Nov. 30, 2018
USD ($)
Nov. 30, 2017
USD ($)
May 31, 2018
USD ($)
May 31, 2017
USD ($)
CASH FLOWS FROM OPERATING ACTIVITIES        
Net income (loss) $ (19,356,183) $ (3,091,283) $ (9,577,484) $ (4,865,724)
Adjustments to reconcile net loss to net cash used in operating activities:        
Imputed interest 539 539 1,076 1,075
Excess derivative 0 0 1,940,439 0
Change in fair value of derivative 0 174,090 195,725 (310,975)
Stock-based compensation 17,500   794,607 3,250
Warrants issued to placement agent 2,908,673 0 503,655 0
Warrants and Special Warrants issued to penalty 8,084,522 0 0 0
Non-cash offering costs of equity financing 403,588 0 0 0
Fair value of shares vested by officers 230,888 0 0 0
Fair value of shares issued to consultants 490,000 0 0 0
Fair value of shares issued in settlement 47,500 0 0 0
Loss on modification of debt 0 29,145 29,145 43,334
Loss on modification of debt – related party 0 0 0 951,239
Note issued as commitment 0 404,082    
Loss on Note exchange 0 404,082 404,082 0
Loss on extinguishment of debt 0 989,032 989,032 0
(Gain) loss on note exchange 0 (3,480) (3,480) 0
Expense from derivative triggering event 12,659 0 0 0
Prepayment Penalty 0 0 137,000 0
Amortization of debt discounts 2,144,328 572,856 2,534,103 2,274,519
Amortization of deferred financing costs 0 3,119    
Depreciation and amortization expense 128,531 662 1,322 1,324
Start-up costs 0 0 0 141,739
Changes in assets and liabilities:        
Accounts receivable (42,982) 0 0 0
Interest receivable (24,658) 0 0 0
Inventory (465,031) 0 0 0
Prepaid expenses (72,295) (25,000) 0 5,332
Other assets 0 50,000 50,000 0
Other current assets 0 (39,500) 0 0
Accounts payable and accrued expenses (376,353) 334,018 300,421 238,387
Accrued compensation (16,667) 112,500 216,667 150,000
Due to related parties (50,000) 0    
Accrued interest, related party 5,211 52,281 96,211 204,364
Accrued interest 188,736 12,189 11,746 (20,169)
Deferred rent 1,667 0 (49,565) 0
Net cash used in operating activities (5,757,327) (424,750) (1,425,298) (1,182,305)
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 (5,982,710) 0 (2,050,000) 0
Payment for construction in progress 0 0 0 (35,013)
Net cash used in investing activities (11,017,805) 0 (2,050,000) (35,013)
CASH FLOWS FROM FINANCING ACTIVITIES        
Proceeds from related party convertible notes payable 0 0 761,829 150,000
Proceeds from related party notes payable 158,615 275,629 0 1,447,550
Proceeds from convertible note payable 6,357,000 330,000 1,655,000 0
Proceeds from notes payable     410,000 0
Principal payments on notes payable (310,000) 0 (100,000) 0
Principal payments on related party notes payable (109,877) 0 (237,794) (61,000)
Principal payments on convertible notes payable (37,500) 0 (500,000) (329,166)
Proceeds from sale of equity 15,535,978 0 1,460,917 0
Net cash provided by financing activities 21,594,216 605,629 3,449,952 1,207,384
Net increase in cash and cash equivalents 4,819,084 180,879 (25,346) (9,934)
Cash and cash equivalents at beginning of period 52,964 78,310 78,310 88,244
Cash and cash equivalents at end of period 4,872,048 259,189 52,964 78,310
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:        
Interest paid 8,964 0 0 53,837
Income taxes paid 0 0 0 0
NON-CASH INVESTING AND FINANCING ACTIVITIES:        
Convertible note issued for unpaid accrued salary 75,000 75,000 150,000 362,500
Discount on notes due to derivatives 0 802,381 1,758,741 600,564
Related party notes payable reclassified as related party convertible notes payable 0 873,996 1,116,816 849,750
Beneficial conversion feature on convertible notes 6,047,322 508,988 0 0
Charge to paid-in capital for par value of shares issued in cashless exercise of warrants 3,362 0 0 0
Reclassify derivative liability to paid-in capital upon adoption of ASU 2017-11 1,265,751 0 442,775 612,850
Shares issued for services from stock payable 25,313 0 0 0
Common stock issued for conversion of related party notes payable 1,039,663 936,478 2,023,666 2,704,240
Common stock issued for conversion of convertible notes payable 0 0 1,618,446 137,500
Shares issued for settlement of accounts payable 0 6,000 6,000 0
Settlement of derivative liability $ 0 $ 0 442,775 612,850
Non-Related Party Debt [Member]        
NON-CASH INVESTING AND FINANCING ACTIVITIES:        
Common stock issued for conversion of convertible notes payable     $ 2,554,924 $ 137,500