Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.7.0.1
Income Taxes (Tables)
 12 Months Ended
May 31, 2017
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:

 

    2017     2016  

Income tax provision at statutory rate

     34.0 %      34.0 % 

State income taxes, net

     —         —    

Rate change

     —         —    

Derivative gain/loss

     2.8       0.9  

Loss on debt conversion

     —         (0.8 ) 

Inducement expense

     (1.0 )      (1.0 ) 

Miscellaneous

     (0.1 )      (0.5 ) 

Valuation allowance

     (35.7 )      (32.9 ) 
 

 

 

    

 

 

  
    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, 2017 and 2016:

 

    2017     2016  

Deferred tax asset (liability) non-current:

    

Net operating loss

   $ 32,530,436     $ 23,510,608  

SFAS 123r expense on non-qualified stock options

     4,284,246       3,873,597  

Charitable contributions

     25,500       56,950  

Accrued expenses

     216,645       378,321  

Fixed assets

     1,300       (1,236 ) 

Amortization

     186,772       147,098  

Capitalized debt issuance costs

     157,992       —    

Debt discount

     (31,072 )      —    

Valuation allowance

     (37,371,819 )      (27,965,338 ) 
 

 

 

    

 

 

  
  $ —       $ —