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12. Related Party Transactions
9 Months Ended
Feb. 28, 2019
Related Party Transactions [Abstract]  
Related Party Transactions

12. Related Party Transactions:

 

The Company made a long-term investment of $250,000 to Breakwater MB LLC in March 2017 formed by the Company’s former board member and former CFO, Paul Dickman. In September 2018, Breakwater MB LLC returned $75,000 of investment to the Company. The Company’s equity position in Breakwater MB, LLC stands at 8.75% as of February 28, 2019. Refer to Note 6 for investment details.

 

Mrs. Lan Jiang is the spouse of the Company’s CEO, Mr. Warren Wang. During the three months ended February 28, 2019 and 2018, she received salary compensation of $45,000 and $92,000, respectively. During the nine months ended February 28, 2019 and 2018, she received salary compensation of $135,000 and $220,000, respectively.

 

The Company purchased the shares of Medicine Man Technologies, Inc. (“MDCL”) in April 2014 using the equity method of accounting initially and accounted for the ownership as an investment available for sale as of May 31, 2015 as the Company no longer had “significant influence” over MDCL as a result of shares issuance. The Company liquidated 1,306,378 shares of MDCL for $1,996,939 cash during the year ended May 31, 2017. The Company received 31,250 shares of MDCL stock for IR services which will be provided for a period of six months starting January 15, 2019. As of February 28, 2019 and May 31, 2018, the Company still held 72,488 shares of MDCL stock representing $139,902 and $76,496, respectively, of value based upon the closing market price of $1.93 and $1.86, respectively.