Quarterly report pursuant to sections 13 or 15(d)

Consolidated Balance Sheets

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Consolidated Balance Sheets (USD $)
Nov. 30, 2012
May 31, 2012
Current assets:    
Cash $ 1,429,656 $ 284,991
Prepaid expenses 34,038 65,982
Deferred offering costs 559,440 677,327
Total current assets 2,023,134 1,028,300
Furniture and equipment, net 1,071 800
Intangibles 3,500,000  
Other assets 38,927 41,735
Assets, Total 5,563,132 1,070,835
Current liabilities:    
Accounts payable 1,102,547 831,336
Accrued liabilities 316,226 150,573
Indebtedness to related parties 47,601 74,493
Accrued interest payable 53,245 40,618
Accrued salaries 462,270 189,249
Stock rescission liability 3,096,500 3,749,000
Total current liabilities 5,078,389 5,035,269
Long-term liabilities    
Investor convertible notes, net 257,303  
Convertible notes payable 9,000 9,000
Total liabilities 5,344,692 5,044,269
Shareholders' equity (deficit):    
Series B convertible preferred stock, no par value; 400,000 shares authorized, 96,100 and 98,900 shares issued and outstanding at November 30, 2012 and May 31, 2012, respectively 405,718 451,993
Common stock, no par value; 100,000,000 shares authorized, 29,906,371 and 28,636,530 outstanding at November 30, 2012 and May 31, 2012, respectively; 30,106,371 and 28,836,530 issued at November 30, 2012 and May 31, 2012, respectively 15,855,329 15,150,261
Additional paid-in capital 16,021,750 8,020,533
Common stock payable   388,000
Common and preferred stock subject to rescission (3,096,500) (3,749,000)
Treasury stock, at cost, 200,000 shares held at November 30, 2012 and May 31, 2012, respectively (100,000) (100,000)
Additional paid-in capital - treasury stock 290,313 299,297
Accumulated deficit on unrelated dormant operations (1,601,912) (1,601,912)
Accumulated deficit during development stage (27,556,258) (22,832,606)
Total shareholders' equity (deficit) 218,440 (3,973,434)
Total liabilities and shareholders' (deficit) $ 5,563,132 $ 1,070,835