Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.20.2
Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Aug. 31, 2020
Aug. 31, 2019
OPERATING ACTIVITIES    
Net Loss $ (75,347,000) $ (18,082,000)
Income from discontinued operations 15,121,000 6,528,000
Net loss from continuing operations (90,468,000) (24,610,000)
Adjustments to reconcile net loss from continuing operations to net cash used in continuing operating activities:    
Expense related to Preferred Options 62,091,000  
Depreciation and amortization 272,000 194,000
Impaired asset expense 3,543,000 0
Gain on convertible note settlement   (811,000)
Gain on convertible note penalties accrual (760,000)  
Amortization of debt discount and debt issuance cost 6,749,000 5,607,000
Stock issued for services 75,000 263,000
Stock-based compensation- general and administrative 1,300,000 369,000
Expense related to warrant modification 22,000  
Inducement loss on note conversions 624,000  
Expense related to warrant exchange 552,000  
Change in fair value of note receivable 1,074,000  
Non-cash interest   509,000
Change in fair value of derivative and warrant liability   (2,569,000)
Financing costs   2,588,000
Changes in operating assets and liabilities    
Accounts receivable (223,000) (236,000)
Unbilled accounts receivable (885,000) (643,000)
Prepaid expenses (374,000) 97,000
Other current assets 171,000 15,000
Deposits - workers' compensation (40,000) (794,000)
Deposits and other assets (325,000) (3,000)
Accounts payable (623,000) 1,372,000
Payroll related liabilities 3,193,000 4,118,000
Accrued workers' compensation 984,000 700,000
Other current liabilities (803,000) (25,000)
Total Adjustments 74,840,000 14,580,000
Net cash used in continuing operating activities (15,628,000) (10,030,000)
Net cash provided by discontinued operating activities (1,255,000) 7,946,000
Net cash used in operating activities (16,883,000) (2,084,000)
INVESTING ACTIVITIES    
Purchase of fixed assets (235,000) (1,169,000)
Proceeds from working capital adjustment - sale of assets 88,000  
Proceeds from sale of assets 9,500,000  
Issuance of related party note receivable   (325,000)
Net cash provided by (used in) investing activities 9,353,000 (1,494,000)
FINANCING ACTIVITIES    
Proceeds from underwritten public offering, net of offering costs 11,479,000  
Proceeds from issuance of convertible notes   3,750,000
Issuance costs related to convertible notes   (485,000)
Repayment of convertible notes (1,240,000) (436,000)
Proceeds from exercise of warrants 33,000 660,000
Net cash provided by financing activities 10,272,000 3,489,000
Net increase (decrease) in cash 2,742,000 (89,000)
Cash - Beginning of Period 1,561,000 1,650,000
Cash - End of Period 4,303,000 1,561,000
Supplemental Disclosure of Cash Flows Information:    
Cash paid for interest 315,000 226,000
Income taxes
Non-cash Investing and Financing Activities:    
Conversion of debt and accrued interest into common stock 6,238,000 8,904,000
Additional Principal to settle registration rights penalties   889,000
Common stock issued for note exchange 200,000  
Additional principal issued for note exchange 433,000  
Interest capitalized into notes receivable 59,000  
Common stock issued in exchange for warrants 552,000  
Discount recorded for asset sale note receivable 1,818,000  
Reclassification of derivative liabilities to paid in capital $ 1,979,000  
Discharge of related party note receivable for common shares   325,000
Allocated fair value of beneficial conversion feature   1,479,000
Allocated fair value of warrants included with convertible notes   $ 2,271,000