Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
 9 Months Ended
Feb. 28, 2017
Feb. 29, 2016
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ (2,120,900) $ (1,862,610)
Adjustments to reconcile net loss to net cash used in operating activities:    
Imputed interest 804 807
Change in fair value of derivative (393,114) 0
Loss on modification of debt 33,334 0
Issuance of stock for services 0 115,050
Stock-based compensation 0 327,500
Amortization of debt discounts 1,197,998 114,489
Depreciation and amortization expense 993 957
Changes in assets and liabilities:    
Prepaid expenses (16,049) 17,638
Accounts payable and accrued expenses 137,699 198,464
Deferred liabilities 0 47,888
Accrued compensation, related party 112,500 106,250
Due to related parties 0 (525)
Accrued interest, related party 131,042 39,647
Accrued interest 16,402 22,521
Net cash used in operating activities (899,291) (871,924)
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments to acquire equipment 0 (2,674)
Payment for construction in progress (35,013) (41,803)
Net cash used in investing activities (35,013) (44,477)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from related party convertible notes payable 150,000 345,000
Proceeds from related party notes payable 838,000 392,750
Repayments of related party notes payable (61,000) 0
Repayments of convertible notes payable (75,000) 0
Net cash provided by financing activities 852,000 737,750
Net increase in cash and cash equivalents (82,304) (178,651)
Cash and cash equivalents at beginning of period 88,244 208,821
Cash and cash equivalents at end of period 5,940 30,170
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Interest paid 49,265 0
Income taxes paid 0 0
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Convertible note issued for unpaid accrued salary 250,000 0
Related party notes payable reclassified as related party convertible notes payable 222,750 0
Discount on convertible notes payable due to derivatives 518,720 945,000
Extinguishment of debt – related party 254,114 0
Common stock issued for conversion of notes payable 222,657 0
Transfer principle from related party notes payable to related party convertible notes payable $ 0 $ 945,000