Annual report pursuant to section 13 and 15(d)

Consolidated Balance Sheets

v2.4.0.8
Consolidated Balance Sheets (USD $)
May 31, 2013
May 31, 2012
Current Assets:    
Cash $ 603,681 $ 284,991
Prepaid expenses 139,849 65,982
Deferred offering costs 96,930 677,327
Total current assets 840,460 1,028,300
Intangible assets, net 3,317,239 38,610
Furniture and equipment, net   800
Other assets   3,125
Total Assets 4,157,699 1,070,835
Current liabilities:    
Accounts payable 1,111,285 831,336
Accrued liabilities 321,884 150,573
Accrued salaries and severance 364,698 189,249
Indebtedness to related parties 509,000 83,493
Accrued interest payable 56,884 40,618
Convertible notes payable, net 328,347  
Stock rescission liability 536,500 3,749,000
Total current liabilities 3,228,598 5,044,269
Long-term liabilities    
Convertible notes payable, net 1,153,017  
Total liabilities 4,381,615 5,044,269
Shareholders' (deficit):    
Series B Convertible Preferred Stock, no par value; 400,000 shares authorized, 95,100 and 98,900 shares issued and outstanding at May 31, 2013 and 2012, respectively 274,091 451,993
Common stock, no par value; 100,000,000 shares authorized, 30,798,150 and 28,636,530 outstanding at May 31, 2013 and 2012, respectively; 30,998,150 and 28,836,530 issued at May 31, 2013 and May 31, 2012, respectively 16,244,673 15,150,261
Common stock payable 117,778 388,000
Additional paid-in capital 17,523,796 8,020,533
Common and Preferred Stock subject to rescission (536,500) (3,749,000)
Treasury stock, at cost, 200,000 and 200,000 shares held at May 31, 2013 and 2012, respectively (100,000) (100,000)
Additional paid-in capital - treasury stock 255,065 299,297
Accumulated deficit on unrelated dormant operations (1,601,912) (1,601,912)
Deficit accumulated during development stage (32,400,907) (22,832,606)
Total shareholders' (deficit) (223,916) (3,973,434)
Total liabilities and shareholders' (deficit) $ 4,157,699 $ 1,070,835