Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statement of Cash Flows

Consolidated Statement of Cash Flows - USD ($)
6 Months Ended
Nov. 30, 2016
Nov. 30, 2015
Cash flows from operating activities:    
Net loss $ (10,821,721) $ (14,159,607)
Adjustments to reconcile net loss to net cash used by operating activities:    
Amortization and depreciation 185,140 180,382
Amortization of debt issuance costs   604,628
Amortization of discount on convertible notes   2,121,491
Amortization of discount on related party notes   94,344
Interest expense associated with derivative liability 540,333  
Change in fair value of derivative liability (1,223,466) (646,505)
Loss on extinguishment of convertible notes   584,177
Interest expense associated with conversion and exercise inducement   757,611
Interest expense associated with extension of warrant expiration   866,713
Stock-based compensation 687,634 590,661
Changes in current assets and liabilities:    
(Increase) decrease in prepaid expenses (2,899,658) 139,857
(Decrease) increase in accounts payable and accrued expenses 2,760,563 350,119
Net cash used in operating activities (10,771,175) (8,516,129)
Cash flows from investing activities:    
Furniture and equipment purchases (3,480)  
Net cash used in investing activities (3,480)  
Cash flows from financing activities:    
Proceeds from sale of common stock and warrants 10,729,500 12,941,248
Proceeds from warrant exercises 397,880  
Payment of principal and interest on convertible notes payable   (789,140)
Payment of offering costs (1,183,264) (1,433,569)
Net cash provided by financing activities 9,944,116 10,718,539
Net change in cash (830,539) 2,202,410
Cash, beginning of period 9,641,776 1,050,060
Cash, end of period 8,811,237 3,252,470
Cash paid during the period for:    
Interest   26,890
Non-cash investing and financing transactions:    
Common stock issued upon conversion of convertible debt and extinguishment of derivative liability   7,947,342
Common stock issued or to be issued for accrued interest payable   $ 143,479
Derivative liability associated with warrants $ 5,179,200