XML 28 R5.htm IDEA: XBRL DOCUMENT v3.7.0.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
9 Months Ended
Feb. 28, 2017
Feb. 29, 2016
Cash Flows From Operating Activities:    
Net loss $ (1,067,675) $ (1,162,738)
Adjustments to reconcile net loss to net cash used in operating activities:    
Stock based compensation 293,122
Gain on settlement of liability 120,580
Issuance of warrants for services 158,399
Depreciation 791 527
Amortization of debt discount 51,308
Issuance of common stock for inducement 14,398
Issuance of common stock for services 323,000
Changes in operating assets and liabilities:    
Accounts receivable 180,099 (76,298)
Inventory 58,599 59,835
Prepaid expenses and other current assets 65,272 1,882
Security deposits (18,510)
Accounts payable and accrued expenses 16,519 233,967
Deferred revenue (260,637) (181,022)
Accrued income tax benefits
Net Cash Used In Operating Activities (497,746) (690,836)
Cash Flows From Investing Activities:    
Purchases of property and equipment (8,432)
Purchases of software (10,000)
Net Cash Used In Investing Activities (10,000) (8,432)
Cash Flows From Financing Activities:    
Proceeds from sales of common stock 503,000
Proceeds from related party advance
Proceeds from short-term note 150,000
Payment of debt (60,000)
Proceeds from convertible debt issuance 312,000 60,000
Net Cash Provided By Financing Activities 462,000 503,000
Net Decrease In Cash (45,746) (196,268)
Cash - Beginning of Period 56,172 234,994
Cash - End of Period 10,426 38,726
Non Cash Investing and Financing Activities    
Common stock issued for accrued stock based compensation 250,833
Stock options issued for accrued stock based compensation 1,622,778
Common stock issued for debt exchange 41,332
Original issue discount in connection with convertible debt issued 31,000
Deferred finance costs in connection with convertible debt issued 9,000
Debt discount in connection with restricted shares issued with convertible debt 64,529
Beneficial conversion feature in connection with convertible debt issued 184,416
Cash paid for:    
Interest paid
Income taxes paid