| Reconciliation of Federal Statutory Income Tax |
Reconciliation of the federal statutory income tax rate of 21% for the year ended May 31, 2019,the federal statutory blended rate of 28.6% for the year ended May 31, 2018 and the federal statutory rate of 34% for the year ended May 31, 2017, to the effective income tax rate is as follows for all periods presented:
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2019 |
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2018 |
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|
2017 |
|
Income tax provision at statutory rate: |
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21.0 |
% |
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|
28.6 |
% |
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34.0 |
% |
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— |
|
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— |
|
|
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— |
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|
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— |
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(34.8 |
) |
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— |
|
Loss on debt extinguishment |
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(0.5 |
) |
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— |
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— |
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0.6 |
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1.0 |
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2.8 |
|
Valuation allowance release from Asset Acquisition |
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4.8 |
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— |
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— |
|
Non-deductible debt issuance costs |
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— |
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|
(0.2 |
) |
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— |
|
Non-deductible interest on conversion |
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(0.3 |
) |
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(0.1 |
) |
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— |
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(0.1 |
) |
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(2.0 |
) |
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(1.0 |
) |
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— |
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(1.1 |
) |
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— |
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— |
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(0.1 |
) |
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(0.1 |
) |
Current year credits generated |
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— |
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4.4 |
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— |
|
Credit carry forward generated (released) |
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(3.8 |
) |
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4.1 |
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— |
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(16.9 |
) |
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0.3 |
|
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(35.7 |
) |
| |
|
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4.8% |
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0% |
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0% |
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| Net Deferred Tax Assets and Liabilities |
Net deferred tax assets and liabilities are comprised of the following as of May 31, 2019 and 2018:
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2019 |
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2018 |
|
Deferred tax asset (liability) non-current:
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39,996,561 |
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29,230,279 |
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2,062,692 |
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4,260,470 |
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3,628,085 |
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2,916,585 |
|
Charitable Contribution - Carry forward |
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— |
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— |
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|
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251,293 |
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117,880 |
|
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(340 |
) |
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|
174 |
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329,360 |
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139,875 |
|
Capitalized Debt Issuance Costs |
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— |
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— |
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(308,621 |
) |
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— |
|
Basis difference in acquired assets |
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(2,826,919 |
) |
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— |
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(43,132,111 |
) |
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(36,665,263 |
) |
| |
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— |
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— |
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43,132,111 |
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36,665,263 |
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|
|
(43,132,111 |
) |
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|
(36,665,263 |
) |
| |
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— |
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— |
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|