Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.7.0.1
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
May 31, 2017
May 31, 2016
Cash flows from operating activities:    
Net loss $ (25,763,801) $ (25,703,612)
Adjustments to reconcile net loss to net cash used by operating activities:    
Amortization and depreciation 366,385 361,610
Amortization of debt issuance costs   604,625
Amortization of discount on convertible notes   1,791,967
Amortization of discount on related party notes   94,344
Interest expense associated with derivative liability 540,330  
Gain on extinguishment of accounts payable   72,898
Change in fair value of derivative liability (2,164,533) (646,505)
Loss on extinguishment of convertible notes   584,177
Inducement interest expense 72,437 1,954,108
Stock-based compensation 1,204,791 2,353,194
Changes in current assets and liabilities:    
(Increase) decrease in prepaid expenses (2,492,789) (864,817)
(Decrease) increase in accounts payable and accrued expenses 1,504,712 (5,412,640)
Net cash used in operating activities (26,732,468) (24,810,651)
Cash flows from investing activities:    
Furniture and equipment purchases (11,114) (11,949)
Net cash used in investing activities (11,114) (11,949)
Cash flows from financing activities:    
Proceeds from sale of common stock and warrants 19,133,755 37,569,964
Proceeds from warrant exercises 397,883 548,619
Proceeds from convertible notes payable 1,150,000  
Payment of principal and interest on convertible notes payable   (789,140)
Payment of offering costs (1,804,249) (3,915,127)
Net cash provided by financing activities 18,877,389 33,414,316
Net change in cash (7,866,193) 8,591,716
Cash, beginning of period 9,641,776 1,050,060
Cash, end of period 1,775,583 9,641,776
Cash paid during the period for:    
Interest   26,890
Non-cash investing and financing transactions:    
Common stock issued upon conversion of convertible debt   7,947,342
Common stock issued or to be issued for accrued interest payable   143,479
Accounts payable extinguished through settlements   $ 72,898
Financing costs associated with investor warrants 819,200  
Debt discount associated with convertible notes payable 91,389  
Derivative liability associated with certain warrants $ 5,179,200