Annual report pursuant to Section 13 and 15(d)

Consolidated Balance Sheets

v2.4.0.8
Consolidated Balance Sheets (USD $)
May 31, 2014
May 31, 2013
Current assets:    
Cash $ 4,886,122 $ 603,681
Prepaid expenses 488,821 139,849
Deferred offering costs 68,292 96,930
Total current assets 5,443,235 840,460
Furniture and equipment, net 16,797  
Intangibles, net 2,967,239 3,317,239
Total Assets 8,427,271 4,157,699
Current liabilities:    
Accounts payable 1,286,715 1,111,285
Accrued liabilities 65,000 321,884
Accrued salaries and severance 395,364 364,698
Accrued interest payable 41,276 56,884
Indebtedness to related parties   509,000
Convertible notes payable, net   328,347
Stock rescission liability 378,000 536,500
Total current liabilities 2,166,355 3,228,598
Long-term liabilities    
Convertible notes payable, net 2,338,684 1,153,017
Total liabilities 4,505,039 4,381,615
Shareholders' equity (deficit):    
Series B convertible preferred stock, no par value; 400,000 shares authorized, 95,100 shares issued and outstanding at May 31, 2014 and 2013, respectively 266,251 274,091
Common stock, no par value; 100,000,000 shares authorized, 55,753,311 and 30,908,292 outstanding at May 31, 2014 and 2013, respectively; 55,753,311 and 30,908,292 issued at May 31, 2014 and May 31, 2013, respectively 30,367,779 16,144,673
Common stock payable   117,778
Additional paid-in capital 20,100,434 17,778,861
Common and preferred stock subject to rescission (378,000) (536,500)
Accumulated deficit (46,434,232) (34,002,819)
Total shareholders' equity (deficit) 3,922,232 (223,916)
Total liabilities and shareholders' (deficit) $ 8,427,271 $ 4,157,699