Quarterly report pursuant to Section 13 or 15(d)

Consolidated Balance Sheets

v2.4.0.8
Consolidated Balance Sheets (USD $)
Aug. 31, 2014
May 31, 2014
Current assets:    
Cash $ 2,295,776 $ 4,886,122
Prepaid expenses 310,749 488,821
Deferred offering costs 68,292 68,292
Total current assets 2,674,817 5,443,235
Furniture and equipment, net 31,320 16,797
Intangibles, net 2,879,739 2,967,239
Total Assets 5,585,876 8,427,271
Current liabilities:    
Accounts payable 1,413,539 1,286,715
Accrued liabilities 57,500 65,000
Accrued salaries and severance 254,114 395,364
Accrued interest payable 107,996 41,276
Stock rescission liability 378,000 378,000
Total current liabilities 2,211,149 2,166,355
Long-term liabilities    
Convertible notes payable, net 2,694,559 2,338,684
Total liabilities 4,905,708 4,505,039
Shareholders' equity:    
Series B convertible preferred stock, no par value; 400,000 shares authorized, 95,100 shares issued and outstanding at August 31, 2014 and May 31, 2014, respectively 266,251 266,251
Common stock, no par value; 100,000,000 shares authorized, 55,752,503 and 55,753,311 issued and outstanding at August 31, 2014 and May 31, 2014, respectively 30,367,779 30,367,779
Additional paid-in capital 20,237,892 20,100,434
Common and preferred stock subject to rescission (378,000) (378,000)
Accumulated (deficit) (49,813,754) (46,434,232)
Total shareholders' equity 680,168 3,922,232
Total liabilities and shareholders' equity $ 5,585,876 $ 8,427,271