v3.19.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
9 Months Ended
Feb. 28, 2019
Feb. 28, 2018
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $ (24,187,649) $ (5,592,341)
Adjustments to reconcile net loss to net cash used in operating activities:    
Imputed interest 807 804
Change in fair value of derivative 0 25,863
Warrants issued to placement agent 3,783,130 610,414
Warrants and Special Warrants issued to penalty 8,084,522 0
Units issued to placement agent 557,335 0
Non-cash offering costs of equity financing 403,588 0
Stock-based compensation 328,513 55,000
Fair value of shares issued to consultants 490,000 0
Fair value of shares issued in settlement 47,500 0
Gain / loss on modification of debt 0 29,145
(Gain) loss on note exchange 0 404,082
Loss on extinguishment of debt 0 989,032
(Gain) loss on note exchange 0 (3,480)
Expense from derivative triggering event 12,659 0
Amortization of debt discounts 2,481,674 1,391,110
Amortization of deferred financing costs 0 22,569
Depreciation and amortization expense 184,068 993
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)
Other assets 0 50,000
Redemption premium in transit (964,788) (46,000)
Accounts payable and accrued expenses (353,832) 937,895
Accrued compensation (16,667) 167,584
Due to related parties (50,000) 0
Accrued interest, related party 5,943 87,966
Accrued interest 588,312 21,045
Deferred rent liability 1,667 (49,565)
Net cash used in operating activities (9,770,345) (909,072)
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, net of cash received of $14,612 (5,982,710) (2,050,000)
Net cash used in investing activities (11,867,944) (2,050,000)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from related party convertible notes payable 0 601,070
Proceeds from related party notes payable 211,700 0
Proceeds from notes payable 0 410,000
Proceeds from convertible notes payable 18,369,000 880,000
Principal payments on notes payable (310,000) 0
Principal payments on related party notes payable (211,838) 0
Repayments of convertible notes payable (37,500) 0
Proceeds from sale of equity 15,535,978 1,012,425
Net cash provided by financing activities 33,557,340 2,903,495
Net increase in cash and cash equivalents 11,919,051 (55,577)
Cash and cash equivalents at beginning of period 52,964 78,310
Cash and cash equivalents at end of period 11,972,015 22,733
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Interest paid 8,964 0
Income taxes paid 0 0
NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Convertible note issued for unpaid accrued salary 75,000 112,500
Related party notes payable reclassified as related party convertible notes payable 0 1,116,856
Beneficial conversion feature on convertible notes 9,039,096 1,681,946
Note payable exchanged for common stock 1,295,690 936,478
Shares issued for settlement of accounts payable 0 6,000
Discount on convertible notes payable due to derivative 0 1,321,862
Charge to paid-in capital for par value of shares issued in cashless exercise of warrants 3,362 0
Reclassify derivative liability to paid-in capital upon adoption of ASU 2017-11 1,265,751 0
Shares issued for services from stock payable $ 25,313 $ 0

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