Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.22.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Feb. 28, 2022
Aug. 31, 2021
Feb. 28, 2021
Aug. 31, 2020
Feb. 28, 2022
Feb. 28, 2021
May 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:              
Net income $ (4,930,586) $ 2,023,416 $ 1,264,998 $ (574,137) $ 1,581,055 $ 2,088,044  
Adjustments to reconcile net income to net cash used in operating activities:              
Depreciation and amortization         585,019 573,443  
Amortization of debt discount         776,515 606,519  
Amortization of right of use assets         1,103,649 1,044,792  
Share-based compensation         91,666  
Bad debt expense         850,000 110,000  
Gain on forgiveness of note payable   (1,646,062)   (358,236) (1,646,062)  
Loss on extinguishment of convertible notes payable 1,344,087     564,037 1,147,856  
Change in deferred tax asset         99,000 (140,000)  
Change in fair value of derivative liabilities 4,275,986     4,275,986  
Accretion of consulting agreement         (212,004) (212,004)  
Changes in operating assets and liabilities:              
Accounts receivable - trade         (82,890,241) (16,850,718)  
Contract assets         (12,706,657) (11,638,673)  
Factoring reserve         7,593,665 (1,453,563)  
Other prepaid expenses and current assets         256,716 63,029  
Deposits and other assets         (20,000) 1,042  
Accounts payable - trade         18,807,393 26,165,558  
Accrued expenses and other current liabilities         2,962,457 (1,159,684)  
Accrued freight         5,397,339 1,611,915  
Contract liabilities         10,403,335  
Operating lease liability         (1,098,769) (981,967)  
Net Cash Used in Operating Activities         (42,029,741) (578,807)  
CASH FLOWS FROM INVESTING ACTIVITIES:              
Purchase of property and equipment         (54,474) (26,543)  
Net Cash Used in Investing Activities         (54,474) (26,543)  
CASH FLOWS FROM FINANCING ACTIVITIES:              
Proceeds from notes payable         2,000,000 3,816,666  
Repayments of notes payable         (2,821,664) (491,667)  
Repayments of long-term debt due to related parties         (239,924) (2,627,420)  
Borrowings on revolving credit facility, net         43,888,787  
Cash paid for debt issuance costs         (50,000)  
Net Cash Provided by Financing Activities         42,827,199 647,579  
Net change in cash and cash equivalents         742,984 42,229  
Cash and cash equivalents - Beginning of Period   $ 252,615   $ 1,349,363 252,615 1,349,363 $ 1,349,363
Cash and cash equivalents - End of Period $ 995,598   $ 1,349,363   995,598 1,349,363 $ 252,615
Cash Paid During the Period for:              
Income taxes         2,375,900 398,110  
Interest         4,072,366 49,028  
SUPPLEMENTARY DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:              
Conversion of Series B Preferred to Common Stock         125,673  
Issuance of common stock for the conversion of principal net of accrued interest capitalized to principal to Notes Payable         244,931  
Operating asset and liability         223,242  
Reduction of debt due to exchange of Convertible Notes for Preferred Stock Series C & D         3,861,162  
Non-cash forgiveness of due to UL HK resulting in goodwill remeasurement         310,455  
Fair value of warrants issued with convertible debt         1,126,497  
Beneficial conversion feature of convertible notes         2,540,169  
Gain on forgiveness of notes payable (PPP)         $ 1,646,062