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Reconciliation of the federal statutory income tax rate of 21% for the years ended May 31, 2021, May 31, 2020 and May 31, 2019, to the effective income tax rate is as follows for all periods presented:
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Years ended May 31, |
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2021 |
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2020 |
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2019 |
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Income tax provision at statutory rate: |
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21.0 |
% |
21.0 |
% |
21.0 |
% |
State income taxes net |
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— |
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— |
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— |
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Rate change |
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— |
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— |
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— |
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Loss on debt extinguishment |
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— |
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— |
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(0.5) |
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Derivative gain (loss) |
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— |
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(1.6) |
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0.6 |
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Valuation allowance release from asset acquisition |
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— |
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— |
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4.8 |
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Non-deductible debt issuance costs |
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— |
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(0.1) |
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— |
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Non-deductible interest on convertible notes |
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(0.6) |
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(1.2) |
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(0.3) |
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Inducement interest expense |
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(1.5) |
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(1.3) |
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(0.1) |
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Other |
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— |
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(0.3) |
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— |
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Credit carry forward generated (released) |
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(0.1) |
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(0.1) |
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(3.8) |
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Non-deductible loss on extinguishment of debt |
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(2.6) |
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— |
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— |
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Non-deductible debt discount amortization |
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(0.6) |
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(0.3) |
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— |
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IRC section 162(m) limitation |
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(1.1) |
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(2.4) |
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— |
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Stock compensation in excess of ASC 718 |
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1.7 |
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3.2 |
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— |
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Non-deductible legal settlement expense |
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(1.2) |
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(3.8) |
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— |
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Valuation allowance |
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(15.0) |
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(13.1) |
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(16.9) |
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Effective income tax rate |
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0.0 |
% |
0.0 |
% |
4.8 |
% |
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