Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.25.2
Income Taxes (Tables)
12 Months Ended
May 31, 2025
Income Taxes  
Schedule of provision for income taxes

    

Years Ended May 31,

2025

2024

Current:

Federal

$

$

State

 

 

Total Current

 

 

Deferred:

 

 

Federal

 

(2,433)

 

57

State

 

 

Change in valuation allowance

2,433

(57)

Total deferred

Total income tax benefit (expense)

$

$

Schedule of reconciliation of federal statutory Income tax

The Company’s provision for income tax differs from the amount computed by applying the statutory federal income tax rate to income before taxes as follows:

Years ended May 31,

    

2025

    

2024

    

Statutory federal income tax rate

 

21.0

%  

21.0

%  

Derivative loss

 

4.8

 

(0.1)

 

Non-deductible debt issuance costs

 

(2.3)

 

(7.1)

 

Non-deductible interest on convertible notes

 

24.8

 

(2.0)

 

Non-deductible loss on induced conversion

6.6

(2.8)

Non-deductible debt discount amortization

 

2.3

 

(0.5)

 

Stock Compensation

 

6.2

 

(7.2)

 

NOL expiration

 

1.5

 

(0.0)

 

Other

 

(0.0)

 

(1.2)

 

Valuation allowance

 

(64.9)

 

(0.1)

 

Total provision for income taxes

 

0.0

%  

0.0

%  

Schedule of net deferred tax assets and liabilities

    

As of May 31,

    

2025

    

2024

Deferred tax assets:

Net operating loss

$

97,626

$

100,897

Credits

 

2,063

 

2,063

ASC 718 expense on non-qualified stock options

 

2,724

 

2,665

Accrued expenses

 

272

 

411

Lease liability

30

59

Inventory charges

6,173

6,173

Inventory write-off

1,953

1,953

Contingent liability

9,150

9,202

Issued warrants

2,901

3,000

Section 174 R&D costs

3,179

2,056

Amortization

 

155

 

207

Fixed assets

 

4

 

5

Other

Total gross deferred tax asset

126,230

128,691

Less valuation allowance

(126,203)

(128,636)

Total deferred tax assets

27

55

Deferred tax liabilities:

Right-of-use asset

 

(27)

 

(55)

Total deferred tax liabilities

(27)

(55)

Net deferred tax asset (liability)

$

$

Schedule of reconciliation of the beginning and ending amount of the valuation allowance

    

May 31,

2025

2024

Valuation allowance at beginning of year

$

128,636

$

128,579

Change in valuation allowance

 

(2,433)

 

57

Valuation allowance at end of year

$

126,203

$

128,636