11. Commitments and Contingencies

9 Months Ended

Feb. 28, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

11. Commitments and Contingencies:

Operating Leases

The Company currently maintains leased space in Shanghai, China San Gabriel, California, New York City, NY, Flushing, NY and Richmond British Columbia Canada. It also maintains a correspondence address in Arcadia, California on a month to month basis.

On September 4, 2018, the Company entered into a lease agreement in New York at 40 Wall St., Room 2877, New York, NY 10005 as a support office. The lease term is 24 months and monthly rent is $7,500.

Future minimum lease commitments for office facilities as of February 28, 2019 are as follows:

For the fiscal years ending May 31,
2019 (3 months)	$	129,101
2020		360,966
2021		176,989
2022		–
	$	667,056

Litigation – The Company is involved in legal proceedings from time to time in the ordinary course of its business.

On September 1, 2016, the Company entered into a Service Provider Agreement with SINO-GLOBAL SHIPPING AMERICA LTD (“SINO”) to perform investor relations services for SINO in exchange for 60,000 shares of SINO Rule of 144 restricted stock. When entering the 2016 Note Agreements, the Company believed that the SINO shares would be delivered as provided for in the agreement. However, the shares were not delivered purportedly due to a disagreement among SINO’s management, and as a result, the Company has not obtained the SINO shares as of February 28, 2019. On January 9, 2018, the Company filed a lawsuit in the Los Angeles County Superior Court, Case No. EC067692 for breach of contract and common counts against SINO-GLOBAL SHIPPING AMERICA LTD. Currently the case is pending with arbitration to commence in the coming months.