Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

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Income Taxes (Tables)
12 Months Ended
May. 31, 2015
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:

 

                                       
          2015               2014       

Income tax provision at statutory rate

     34.0     34.0

State income taxes, net

     0.0        0.4   

Rate change

     (0.6     (9.6

Derivative gain/loss

     (1.2     —     

Valuation allowance

     (32.2     (24.8
  

 

 

   

 

 

 
  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, 2015 and 2014:

 

     2015      2014  

Deferred tax asset (liability) current:

     

Accrued expenses

   $ 219,100       $ 159,300   

Debt discount and amortization

        —     

Valuation allowance

     (219,100      (159,300
  

 

 

    

 

 

 
$ —      $ —     
  

 

 

    

 

 

 

Deferred tax asset (liability) non-current:

Net operating loss

$ 16,857,600    $ 9,957,400   

Debt discount

  (902,700   (663,700

Expense on non-qualified stock options

  3,073,500      2,893,300   

Other

  211,700      176,200   
  

 

 

    

 

 

 

Valuation allowance

  (19,240,100   12,363,200   
  

 

 

    

 

 

 
$ —      $ —