Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows - USD ($)
12 Months Ended
Aug. 31, 2018
Aug. 31, 2017
OPERATING ACTIVITIES    
Net loss $ (16,576,479) $ (7,491,990)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 274,321 65,369
Amortization debt discount, debt issuance cost 704,746
Stock issued for services 162,857 329,645
Stock based compensation 200,332 43,415
Registration rights penalties 3,500,000
Changes in operating assets and liabilities    
Restricted cash- workers' compensation (305,218)
Accounts receivable 317,859 (372,352)
Unbilled accounts receivable (6,192,631)  
Prepaid expenses (210,814) (2,344,192)
Other current assets (242,985) 57,566
Deposits - workers' compensation (1,233,435)  
Deposits and other assets 5,874 (21,867)
Accounts payable 85,987 334,027
Payroll related liabilities 7,088,187 1,665,739
Accrued workers' compensation costs 1,206,195
Other current liabilities 1,676,939 157,713
Net cash used in operating activities (9,538,265) (7,576,927)
INVESTING ACTIVITIES    
Purchase of fixed assets (3,018,580) (4,661)
Net cash used in investing activities (3,018,580) (4,661)
FINANCING ACTIVITIES    
Proceeds from issuance of common stock 12,000,000
Issuance costs related to common stock issuance (1,112,739)
Proceeds from issuance of common stock and warrants 1,577,500
Proceeds from issuance of convertible notes 9,000,000
Issuance costs related to convertible notes (765,077)
Proceeds from exercise of warrants 75,000 145,000
Net cash provided by financing activities 8,309,923 12,609,761
Net (decrease) increase in cash and cash equivalents (4,246,922) 5,028,173
Cash - beginning of year 5,896,705 868,532
Cash - end of year 1,649,783 5,896,705
SUPPLEMENTAL INFORMATION:    
Cash paid during the year for: Interest 133,333
Cash paid during the year for: Income taxes
Non-cash investing and financing activities:    
Debt discount due to the intrinsic value of beneficial conversion feature 924,000
Debt discount due to warrants included with convertible notes $ 859,155