Income Taxes (Tables)

12 Months Ended

May 31, 2019

Reconciliation of Federal Statutory Income Tax

Reconciliation of the federal statutory income tax rate of 21% for the year ended May 31, 2019,the federal statutory blended rate of 28.6% for the year ended May 31, 2018 and the federal statutory rate of 34% for the year ended May 31, 2017, to the effective income tax rate is as follows for all periods presented:

	2019			2018			2017
Income tax provision at statutory rate:		21.0	%		28.6	%		34.0	%
State income taxes net		—			—			—
Rate Change		—			(34.8	)		—
Loss on debt extinguishment		(0.5	)		—			—
Derivative gain/loss		0.6			1.0			2.8
Valuation allowance release from Asset Acquisition		4.8			—			—
Non-deductible debt issuance costs		—			(0.2	)		—
Non-deductible interest on conversion		(0.3	)		(0.1	)		—
Inducement charge		(0.1	)		(2.0	)		(1.0	)
Other		—			(1.1	)		—
Miscellaneous		—			(0.1	)		(0.1	)
Current year credits generated		—			4.4			—
Credit carry forward generated (released)		(3.8	)		4.1			—
Valuation allowance		(16.9	)		0.3			(35.7	)
		4.8%			0%			0%

Net Deferred Tax Assets and Liabilities

Net deferred tax assets and liabilities are comprised of the following as of May 31, 2019 and 2018:

	2019			2018
Deferred tax asset (liability) non-current:
Net Operating Loss		39,996,561			29,230,279
Credits		2,062,692			4,260,470
ASC 718 Expense on NQO’s		3,628,085			2,916,585
Charitable Contribution - Carry forward		—			—
Accrued Expenses		251,293			117,880
Fixed Assets		(340	)		174
Amortization		329,360			139,875
Capitalized Debt Issuance Costs		—			—
Debt Discount		(308,621	)		—
Basis difference in acquired assets		(2,826,919	)		—
Valuation allowance		(43,132,111	)		(36,665,263	)
		—			—
Noncurrent asset		43,132,111			36,665,263
Valuation Allowance		(43,132,111	)		(36,665,263	)
		—			—