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

CONSOLIDATED STATEMENTS OF CASH FLOWS

v3.19.2
CONSOLIDATED STATEMENTS OF CASH FLOWS
 9 Months Ended 12 Months Ended
Feb. 28, 2019
USD ($)
Feb. 28, 2018
USD ($)
May 31, 2018
USD ($)
May 31, 2017
USD ($)
CASH FLOWS FROM OPERATING ACTIVITIES        
Net income (loss) $ (24,187,649) $ (5,592,341) $ (9,577,484) $ (4,865,724)
Adjustments to reconcile net loss to net cash used in operating activities:        
Imputed interest 807 804 1,076 1,075
Excess derivative 0 0 1,940,439 0
Change in fair value of derivative 0 25,863 195,725 (310,975)
Loss on modification of debt 0 29,145 29,145 43,334
Loss on modification of debt – related party 0 0 0 951,239
Stock-based compensation 17,500   794,607 3,250
Warrants issued to placement agent 3,783,130 610,414 503,655 0
Warrants and Special Warrants issued to penalty 8,084,522 0 0 0
Units issued to placement agent 557,335      
Non-cash offering costs of equity financing 403,588 0 0 0
Fair value of shares vested by officers 328,513 55,000 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
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 2,481,674 1,391,110 2,534,103 2,274,519
Amortization of deferred financing costs 0 22,569    
Depreciation and amortization expense 184,068 993 1,322 1,324
Start-up costs 0 0 0 141,739
Changes in assets and liabilities:        
Accounts receivable (259,576) 0    
Interest receivable (99,618) 0    
Inventory (199,843) 0    
Prepaid expenses (608,090) (11,188) 0 5,332
Other assets 0 50,000 50,000 0
Redemption premium in transit (964,788) (46,000)    
Accounts payable and accrued expenses (353,832) 937,895 300,421 238,387
Accrued compensation (16,667) 167,584 216,667 150,000
Due to related parties (50,000) 0    
Accrued interest, related party 5,943 87,966 96,211 204,364
Accrued interest 588,312 21,045 11,746 (20,169)
Deferred rent 1,667 (49,565) (49,565) 0
Net cash used in operating activities (9,770,345) (909,072) (1,425,298) (1,182,305)
CASH FLOWS FROM INVESTING ACTIVITIES        
Payments to purchase property, plant and equipment (735,234) 0    
Payments to acquire note receivable (5,150,000) 0    
Payment for investment in Alternative Solutions (5,982,710) (2,050,000) (2,050,000) 0
Payment for construction in progress     0 (35,013)
Net cash used in investing activities (11,867,944) (2,050,000) (2,050,000) (35,013)
CASH FLOWS FROM FINANCING ACTIVITIES        
Proceeds from related party convertible notes payable 0 601,070 761,829 150,000
Proceeds from related party notes payable 211,700   0 1,447,550
Proceeds from notes payable   410,000 410,000 0
Proceeds from convertible note payable 18,369,000 880,000 1,655,000 0
Principal payments on notes payable (310,000) 0 (100,000) 0
Principal payments on related party notes payable (211,838) 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 1,012,425 1,460,917 0
Net cash provided by financing activities 33,557,340 2,903,495 3,449,952 1,207,384
Net increase in cash and cash equivalents 11,919,051 (55,577) (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 11,972,015 22,733 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 75,000 112,500 150,000 362,500
Related party notes payable reclassified as related party convertible notes payable 0 1,116,856 1,116,816 849,750
Beneficial conversion feature on convertible notes 9,039,096 1,681,946 0 0
Discount on notes due to derivatives 0 1,321,862 1,758,741 600,564
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  
Shares issued for services from stock payable 25,313 0 0 0
Common stock issued for conversion of related party notes payable 1,295,690 936,478 2,023,666 2,704,240
Common stock issued for conversion of convertible notes payable 1,295,690   1,618,446  
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