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
May 31, 2017
May 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ (4,865,724) $ (2,610,299)
Adjustments to reconcile net loss to net cash used in operating activities:    
Imputed interest 1,075 1,078
Change in fair value of derivative (310,975) (61,757)
Interest expense - excess of discount over principal 0 11,330
Gain / loss on modification of debt 43,334 0
Loss on modification of debt – related party 951,239 0
Issuance of stock for services 3,250 118,050
Note issued as commitment 0 200,000
Stock-based compensation 0 327,500
Amortization of debt discounts 2,274,519 286,317
Depreciation and amortization expense 1,324 1,288
Start-up costs 141,739 0
Changes in assets and liabilities:    
Prepaid expenses 5,332 25,058
Accounts payable and accrued expenses 238,387 285,993
Accrued compensation 150,000 161,243
Due to related parties 0 (525)
Accrued interest, related party 204,364 64,811
Accrued interest (20,169) 38,486
Net cash used in operating activities (1,182,305) (1,151,427)
CASH FLOWS FROM INVESTING ACTIVITIES    
Payments to acquire equipment 0 (2,674)
Payment for construction in progress (35,013) (106,726)
Net cash used in investing activities (35,013) (109,400)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from related party convertible notes payable 150,000 767,500
Proceeds from related party notes payable 1,447,550 72,750
Proceeds from issuance of convertible note 0 300,000
Principal payments on related party notes payable (61,000) 0
Principal payments on notes payable (329,166) 0
Net cash provided by financing activities 1,207,384 1,140,250
Net increase in cash and cash equivalents (9,934) (120,577)
Cash and cash equivalents at beginning of period 88,244 208,821
Cash and cash equivalents at end of period 78,310 88,244
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Interest paid 53,837 0
Income taxes paid 0 0
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Convertible note issued for unpaid accrued salary 362,500 0
Related party notes payable reclassified as related party convertible notes payable 849,750 1,367,500
Settlement of derivative liability 612,850 0
Non-Related Party Debt [Member]    
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Discount on notes 600,564 502,296
Common stock issued for conversion of notes payable 137,500 0
Related Party Debt [Member]    
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Discount on notes 0 1,321,176
Common stock issued for conversion of notes payable $ 2,704,240 $ 0