Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.5.0.2
Income Taxes (Tables)
 12 Months Ended
May 31, 2016
Reconciliation of Federal Statutory Income Tax

Reconciliation of the federal statutory income tax rate of 34% to the effective income tax rate is as follows for all periods presented:

 

     2016     2015  

Income tax provision at statutory rate

      34.0 %      34.0 % 

State income taxes, net

      —          —     

Rate change

      —          (0.6 ) 

Derivative gain/loss

      0.9        (1.2 ) 

Loss on debt conversion

      (0.8 )      —     

Inducement charge

      (1.0 )      —     

Miscellaneous

      (0.5 )      —     

Valuation allowance

      (32.9 )      (32.2 ) 
  

 

 

    

 

 

  
     0.0 %      0.0 % 
  

 

 

    

 

 

  
Net Deferred Tax Assets and Liabilities

Net deferred tax assets and liabilities are comprised of the following as of May 31, 2016 and 2015:

 

     2016      2015  

Deferred tax asset (liability) current:

      

Accrued salary and expenses

    $ 378,321       $ 219,100   

Valuation allowance

      (378,321 )       (219,100 ) 
  

 

 

     

 

 

  
   $ —         $ —     
  

 

 

     

 

 

  

Deferred tax asset (liability) non-current:

      

Net operating loss

    $ 23,510,608       $ 16,857,600   

Debt discount

      —           (902,700 ) 

Expense on non-qualified stock options

      3,873,597         3,073,500   

Other

      202,812         211,700   
  

 

 

     

 

 

  

Valuation allowance

      (27,587,017 )       (19,240,100 ) 
  

 

 

     

 

 

  
   $ —         $ —