1. Liquidity and Capital Resources

9 Months Ended

Feb. 28, 2015

Capital [Abstract]

Liquidity and Capital Resources

Cash Flows – During the nine months ending February 28, 2015, the Company primarily utilized cash and cash equivalents and proceeds from the sale of its available for sale securities to fund its operations and proceeds from the sale of its class B convertible preferred stock.

Cash flows used in operations for the nine months ending February 28, 2015 and 2014 were ($1,311,739) and ($431,459), respectively, which was an increase from prior years. The increase of cash used in operations was primarily from the reduced revenue received as available for sale securities, the net loss generated from increased operating costs, and a reduced gross profit.

Capital Resources – As of February 28, 2015, the Company had cash and cash equivalents of $687,649 as compared to cash and cash equivalents of $429,199 as of May 31, 2014.

Since inception in 1997, the Company has primarily relied upon proceeds from private placements of its equity securities to fund its operations. The Company anticipates continuing to rely on sales of our securities in order to continue to fund business operations. Issuances of additional shares will result in dilution to its existing stockholders. There is no assurance that the Company will be able to complete any additional sales of our equity securities or that it will be able arrange for other financing to fund our planned business activities.