Income Taxes (Tables)

12 Months Ended

May 31, 2016

Reconciliation of Federal Statutory Income Tax

Reconciliation of the federal statutory income tax rate of 34% to the effective income tax rate is as follows for all periods presented:

	2016			2015
Income tax provision at statutory rate		34.0	%		34.0	%
State income taxes, net		—			—
Rate change		—			(0.6	)
Derivative gain/loss		0.9			(1.2	)
Loss on debt conversion		(0.8	)		—
Inducement charge		(1.0	)		—
Miscellaneous		(0.5	)		—
Valuation allowance		(32.9	)		(32.2	)
		0.0	%		0.0	%

Net Deferred Tax Assets and Liabilities

Net deferred tax assets and liabilities are comprised of the following as of May 31, 2016 and 2015:

	2016			2015
Deferred tax asset (liability) current:
Accrued salary and expenses	$	378,321		$	219,100
Valuation allowance		(378,321	)		(219,100	)
	$	—		$	—
Deferred tax asset (liability) non-current:
Net operating loss	$	23,510,608		$	16,857,600
Debt discount		—			(902,700	)
Expense on non-qualified stock options		3,873,597			3,073,500
Other		202,812			211,700
Valuation allowance		(27,587,017	)		(19,240,100	)
	$	—		$	—