Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended 48 Months Ended
May 31, 2023
May 31, 2022
May 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES      
Net income (loss) $ (14,844,285) $ (2,440,390)  
Adjustments to reconcile net loss to net cash used in operating activities:      
Loss on equity investment 178,674 112,139  
Amortization of debt discounts 801,535 327,509  
Gain on settlement of note receivable (348,165) (2,740,820)  
Fair value of shares vested by officers 656 8,780  
Impairment of investment 1,590,742 0  
Impairment of intangible assets 866,288 0  
Loss on extinguishment of debt 6,659,359 0  
Gain on settlement of legal fees (146,092) 0  
Gain on settlement of accounts payable (145,106) 0  
Gain on debt settlement (2,384) 0  
Depreciation and amortization expense 952,133 753,740  
Bad debt expense 43,122 79,847  
Changes in assets and liabilities:      
Accounts receivable 143,901 64,361  
Prepaid expenses and other current assets 185,916 (111,056)  
Inventory 404,670 (2,189,550)  
Right of use asset 353,797 324,904  
Accounts payable and accrued expenses 650,483 709,273  
Accrued interest 534,680 235,425  
Deferred tax liability 2,220,675 2,041,487  
Financing lease liability 1,407 (40,895) $ (2,197,934)
Operating lease liability (331,865) (292,424)  
Net cash used in operating activities (229,859) (3,157,670)  
CASH FLOWS FROM INVESTING ACTIVITIES      
Payments to purchase property, plant and equipment (152,275) (1,104,806)  
Investment in Quinn River (304,145) (581,714)  
Cash paid for construction deposit on grow facility 0 (62,045)  
Proceeds from collection of note receivable 348,165 2,740,820  
Net cash used in investing activities (108,255) 992,255  
CASH FLOWS FROM FINANCING ACTIVITIES      
Proceeds from loan payable 1,717,115 2,322,875  
Repayments of loan payable (2,356,806) (1,393,966)  
Proceeds from debenture offering 0 2,500,000  
Principal payments on notes payable 0 (365,991)  
Repayments on convertible debt (500,000) 0  
Principal payments on finance leases (75,633) (10,907)  
Net cash provided by (used in) financing activities (1,215,324) 3,052,011  
Net increase in cash and cash equivalents (1,553,438) 886,596  
Cash and cash equivalents at beginning of period 2,551,859 1,665,263  
Cash and cash equivalents at end of period 998,421 2,551,859 $ 998,421
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:      
Interest paid 1,476,945 1,656,774  
Income taxes paid 0 0  
NONCASH INVESTING AND FINANCING ACTIVITIES:      
Common stock issued for conversion of convertible notes payable 11,532,680 281,000  
Fair value of shares issued from stock payable 4,390 0  
Initial ROU asset and lease liability - operating 46,745 229,412  
Original issue discount on notes payable 0 1,875,000  
Capitalized interest 3,283 0  
Initial ROU asset and lease liability – finance 12,400 400,795  
Fair value of warrants issued with debenture offering $ 0 $ 98,448