Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows

v2.4.0.8
Consolidated Statements of Cash Flows (USD $)
 3 Months Ended
Aug. 31, 2014
Aug. 31, 2013
Cash flows from operating activities    
Net loss $ (3,379,520) $ (2,573,551)
Adjustments to reconcile net loss to net cash used by operating activities:    
Amortization and depreciation 89,913 87,696
Amortization of debt issuance costs   20,000
Amortization of discount on convertible debt 355,875 1,452,397
Gain on settlement of accounts payable   (8,405)
Stock-based compensation 137,463 225,911
Changes in current assets and liabilities:    
Decrease/(increase) in prepaid expenses 178,072 (1,181)
Increase/(decrease) in accounts payable, accrued salaries, accrued interest and accrued liabilities 44,794 (7,592)
Net cash used in operating activities (2,573,403) (804,725)
Cash flows from investing activities:    
Furniture and equipment purchases (16,943) (2,347)
Net cash used in investing activities (16,943) (2,347)
Cash flows from financing activities:    
Proceeds from issuance of convertible notes payable   1,200,000
Deferred offering costs   (320,139)
Net cash provided by financing activities   879,861
Net change in cash (2,590,346) 72,789
Cash, beginning of period 4,886,122 603,681
Cash, end of period 2,295,776 676,470
Cash paid during the period for:    
Income taxes 2,198  
Interest 3,472 26,619
Non-cash investing and financing transactions:    
Common stock issued for convertible debt   920,000
Common stock issued or to be issued for accrued interest payable   31,118
Original issue discount and intrinsic value of beneficial conversion feature related to debt issued with warrants   $ 1,200,000