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<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 1. NATURE OF OPERATIONS AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Nature of Operations</u></p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Life On Earth, Inc. (“LFER”)
is an innovative brand accelerator, incubator and distribution platform focused on building and scaling concepts in the
natural consumer products category. We focus on building brands within the alternative beverage space. We are a dynamic and
innovative natural consumer packaged-goods company focused on, but not limited to, the emerging beverage industry. We
manufacture and distribute our brands through our distribution subsidiaries in New York and California.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">  </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying condensed consolidated
financial statements include the financial statements of LFER and its wholly owned subsidiaries, Energy Source
Distributors Inc., (“ESD”), Victoria’s Kitchen, LLC (“VK”), The Giant Beverage Company, Inc.
(“GBC”), and The Chill Group (“JCG”).</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">LFER was incorporated in Delaware in April
2013 and acquired ESD in July 2016, VK in October 2017, GBC in April 2018 and JCG in August 2018. The Company currently markets
and sells beverages primarily in New York and California.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Basis of Presentation</u></p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying interim condensed
consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the
United States of America ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission
regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements
prepared in accordance with GAAP have been omitted or condensed pursuant to such regulations. In the opinion of management,
all adjustments considered necessary for a fair presentation of the interim periods presented have been included. All such
adjustments are of a normal recurring nature. The accompanying condensed consolidated financial statements should be read in
conjunction with the Company's audited consolidated financial statements and related notes included in the Company's Form
10-KA as amended of May 31, 2018. Interim results are not necessarily indicative of the results of a full year.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue Recognition</u></p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2014, the FASB issued guidance codified
in ASC 606 which amends the guidance in former ASC 605, “Revenue Recognition.” The core principle of the standard is
to recognize revenue when control of the promised goods or services is transferred to customers in an amount that reflects the
consideration expected to be received for those goods or services. The standard also requires additional disclosures around the
nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes sales of its beverage
products, based on predetermined pricing, upon delivery of the product to its customers, as that is when the customer obtains control
of the goods. We considered several factors in determining that control transfers to the customer upon delivery of products. These
factors include that legal title transfers to the customer, we have a present right to payment, and the customer has assumed the
risk and rewards of ownership at the time of delivery. Payment is typically due within 30 days. The Company has no significant
history of returns or refunds of its products. All sales were to wholesale customers located within the United States with the
majority of sales to customers in New York and California.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Use of Estimates</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of unaudited condensed
consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the
consolidated balance sheets and the reported amounts of revenues and expenses during the reporting periods. Actual results
could differ from those estimates.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Net Loss Per Common Share</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic loss per share is calculated
by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted loss per share
is calculated by dividing net loss by the weighted average number of common shares and dilutive common stock
equivalents outstanding. During periods in which the Company incurs losses, common stock equivalents, if any, are not
considered, as their effect would be anti-dilutive. For the three and nine months ended February 28, 2019 and 2018, warrants and
convertible notes payable could be converted into approximately 4,798,000 and 4,335,000 shares of common stock,
respectively.<font style="font-size: 8pt"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">   </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income Taxes</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company utilizes the accrual method of
accounting for income taxes. Under the accrual method, deferred tax assets and liabilities are determined based on the differences
between the financial reporting basis and the tax basis of the assets and liabilities, and are measured using enacted tax rates
and laws that will be in effect when the differences are expected to reverse. An allowance against deferred tax assets is recognized
when it is more likely than not that such tax benefits will not be realized.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes the financial
statement benefit of an uncertain tax position only after considering the probability that a tax authority would sustain the
position in an examination. For tax positions meeting a “more-likely-than-not” threshold, the amount recognized
in the condensed consolidated financial statements is the benefit expected to be realized upon settlement with the tax
authority. For tax positions not meeting the threshold, no financial statement benefit is recognized. The Company recognizes
interest and penalties, if any, related to uncertain tax positions in income tax expense. The Company did not have any
unrecognized tax benefits as of February
28, 2019 and does not expect this to change significantly over the next 12
months.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cash and Cash Equivalents</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid investments
with an original maturity of three months or less to be cash equivalents.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Accounts Receivable</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company extends credit to its customers
in the normal course of business and performs ongoing credit evaluations of its customers, maintaining an allowance for potential
credit losses. Uncollectible accounts are written off at the time they are deemed uncollectible.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts receivable is reported net of an allowance
for doubtful accounts. The allowance is based on management's estimate of the uncollectible accounts receivable. As of February
28, 2019 and May 31, 2018, the allowance for doubtful accounts was $80,174 and $14,000, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Inventory</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventory consists of finished goods and raw
materials which are stated at the lower of cost (first-in, first-out) and net realizable value. As of February 28,2019 there was
$328,024 of inventory consisting of $222,971 of finished goods and $105,053 of raw materials. <font style="font-size: 8pt"> </font>As
of May 31, 2018 there was $338,920 of inventory consisting of $289,305 of finished goods and $49,615 of raw materials.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-align: justify; text-indent: -0.25in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Equipment</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Equipment is stated at cost. The Company provides
for depreciation based on the useful lives of the assets using straight-line methods. Expenditures for maintenance, repairs, and
betterments that do not materially prolong the normal useful life of an asset have been charged to operations as incurred. Upon
sale or other disposition of assets, the cost and related accumulated depreciation and amortization are removed from these accounts,
and the resulting gain or loss, if any, is reflected in operations.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Goodwill </u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Goodwill is deemed to have an indefinite life,
and accordingly, is not amortized, but evaluated annually (or more frequently if events or changes in circumstances indicate the
carrying value may not be recoverable) for impairment. The most significant assumptions, which are used in this test, are estimates
of future cash flows. If these assumptions differ significantly from actual results, impairment charges may be required in the
future.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Advertising</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Advertising and promotion costs are expensed
as incurred.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Shipping and Handling</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Shipping and handling costs are included in
costs of goods sold.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Business combination</u></p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">GAAP requires that all business combinations
not involving entities or businesses under common control be accounted for under the acquisition method. The Company applies ASC
805, "Business combinations", whereby the cost of an acquisition is measured as the aggregate of the fair values at the
date of exchange of the assets given, liabilities incurred, and equity instruments issued. The costs directly attributable to the
acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured
separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess
of (i) the total of cost of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously
held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill.
If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized
directly in the consolidated statements of operations and comprehensive income.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The determination and allocation of fair values
to the identifiable assets acquired and liabilities assumed is based on various assumptions and valuation methodologies requiring
considerable management judgment. The most significant variables in these valuations are discount rates, terminal values, the number
of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows
and outflows. Management determines discount rates to be used based on the risk inherent in the related activity's current business
model and industry comparisons. Terminal values are based on the expected life of products and forecasted life cycle and forecasted
cash flows over that period. The Company's estimates of fair value are based upon assumptions believed to be reasonable, but which
are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Any changes to provisional
amounts identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined. </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Recent Accounting Pronouncements</u></p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2014, the Financial Accounting
Standards Board (FASB) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”,
effective for fiscal years beginning after December 15, 2018, that attempts to establish a uniform basis for recording
revenue to virtually all industries’ financial statements. The revenue standard’s core principle is to
recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration
expected to be received for those goods or services. Additionally, the new guidance requires enhanced disclosure to help
financial statement users better understand the nature, amount, timing and uncertainty of the revenue recorded. Effective
June 1, 2018, the Company adopted Topic 606 using the modified retrospective method. The Company’s accounting policy
for the new standard is based on a detailed review of its business and contracts. Based on the new guidance, the Company will
continue to recognize revenue at the time its products are delivered, and therefore adoption of the standard did not have a
material impact on the financial statements and is not expected to have a material impact in the future.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">  </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the FASB issued a new accounting
standard on leases. The new standard, among other changes, will require lessees to recognize a right-of-use asset and a lease
liability on the balance sheet for all leases. The lease liability will be measured at the present value of the lease payments
over the lease term. The right-of-use asset will be measured at the lease liability amount, adjusted for lease prepayments, lease
incentives received and the lessee’s initial direct costs. The new standard is effective for annual reporting periods beginning
after December 15, 2018, including interim reporting periods within those annual reporting periods. The adoption currently requires
a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest period presented.
In July 2018, the FASB issued ASU 2018-11 making transition requirements less burdensome. The standard provides an option to apply
the transition provisions of the new standard at its adoption date instead of at the earliest comparative period presented in
the Company’s financial statements. The Company will implement a modified retrospective approach for its leases that currently
exist for is new fiscal year beginning on June 1, 2019. <font style="font-size: 8pt"> </font>The Company does not expect
this to have a material impact on a going forward basis.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> In January 2017, the FASB issued an
update to the accounting guidance to simplify the testing for goodwill impairment. The update removes the requirement to determine
the implied fair value of goodwill to measure the amount of impairment loss, if any, under the second step of the current goodwill
impairment test. A company will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting
unit with its carrying amount. A goodwill impairment charge will be recognized for the amount by which the reporting unit’s
carrying amount exceeds its fair value, not to exceed the carrying amount of the goodwill. The guidance is effective prospectively
for public business entities for annual reporting periods beginning after December 15, 2019. This standard is required to take
effect in the Company’s first quarter (August 2020) of our fiscal year ending May 31, 2021. We do not expect the adoption
of this new guidance will have a material impact on our financial statements.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management does not believe that any other
recently issued, but not yet effective, accounting pronouncements, if adopted, would have a material effect on the accompanying
consolidated financial statements.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 16 - INCOME TAXES</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The deferred tax asset consists of the following:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 12pt"> </td><td style="font-family: Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-family: Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid">February 28, 2019</td><td style="font-family: Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-family: Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid">May 31, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; text-align: left; padding-left: 5.4pt">Net operating loss carryforward</td><td style="width: 8%; font-family: Arial, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 12%; font-family: Arial, Helvetica, Sans-Serif; text-align: right">1,931,000</td><td style="width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 8%; font-family: Arial, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 12%; font-family: Arial, Helvetica, Sans-Serif; text-align: right">1,374,000</td><td style="width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Stock based compensation</td><td style="font-family: Arial, Helvetica, Sans-Serif"> </td>
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: right">514,000</td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Arial, Helvetica, Sans-Serif"> </td>
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: right">449,000</td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Intangible Assets</td><td style="font-family: Arial, Helvetica, Sans-Serif"> </td>
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: right">(114,073</td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left">)</td><td style="font-family: Arial, Helvetica, Sans-Serif"> </td>
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: right">(136,890</td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Valuation allowance</td><td style="font-family: Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Arial, Helvetica, Sans-Serif; text-align: right">(2,330,927</td><td style="padding-bottom: 1pt; font-family: Arial, Helvetica, Sans-Serif; text-align: left">)</td><td style="font-family: Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Arial, Helvetica, Sans-Serif; text-align: right">(1,686,110</td><td style="padding-bottom: 1pt; font-family: Arial, Helvetica, Sans-Serif; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Deferred tax asset, net</td><td style="font-family: Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Arial, Helvetica, Sans-Serif; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Arial, Helvetica, Sans-Serif; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">  </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the nine months ended February 28, 2019
and for the year ended May 31, 2018, the valuation allowance increased by approximately $622,000 and $660,000, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 22, 2017, the enactment date, the
Tax Cuts and Jobs Act ("Act") was signed into law. The Act reduces the top corporate tax rate from 35 percent
to a flat 21 percent beginning January 1, 2018 and eliminates the corporate Alternative Minimum Tax. The Company has adjusted its
deferred tax calculations to reflect this reduction in its tax rate.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The deferred tax asset differs from the amount
computed by applying the statutory federal and state income tax rates to the loss before income taxes. The sources and tax effects
of the differences are as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 70%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">February 28, 2019</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">May 31, 2018</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 59%; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> Federal Rate</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 18%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">21</font></td>
<td style="width: 1%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td>
<td style="width: 0%"> </td>
<td style="width: 1%"> </td>
<td style="width: 18%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">21</font></td>
<td style="width: 1%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> State Rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6</font></td>
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6</font></td>
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> Valuation Allowance</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">-27</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">-27</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> Effective income tax rate</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">  </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center">  </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of February 28, 2019, the Company has net
operating loss carryforwards of approximately $7,152,000 to reduce future federal and state taxable income.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company currently has no federal or state
tax examinations in progress, nor has it had any federal or state examinations since its inception. The Company's tax years from
2016 through the current year are subject to federal and state tax examinations.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 17 - RELATED PARTY TRANSACTIONS</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company had leased office space on a month
to month basis from the Company's Chief Operating Officer and stockholder for $750 per month. The lease terminated in March 2018.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Nature of Operations</u></p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Life On Earth, Inc. (“LFER”)
is an innovative brand accelerator, incubator and distribution platform focused on building and scaling concepts in the
natural consumer products category. We focus on building brands within the alternative beverage space. We are a dynamic and
innovative natural consumer packaged-goods company focused on, but not limited to, the emerging beverage industry. We
manufacture and distribute our brands through our distribution subsidiaries in New York and California.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">  </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying condensed consolidated
financial statements include the financial statements of LFER and its wholly owned subsidiaries, Energy Source
Distributors Inc., (“ESD”), Victoria’s Kitchen, LLC (“VK”), The Giant Beverage Company, Inc.
(“GBC”), and The Chill Group (“JCG”).</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">LFER was incorporated in Delaware in April
2013 and acquired ESD in July 2016, VK in October 2017, GBC in April 2018 and JCG in August 2018. The Company currently markets
and sells beverages primarily in New York and California.</p>
<p style="margin: 0pt"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="23" style="font-size: 12pt; text-align: center">Life On Earth, Inc.</td></tr>
<tr style="vertical-align: bottom">
<td colspan="23" style="font-size: 10pt; text-align: center">Unaudited ProForma Condensed Consolidated Financial Information</td></tr>
<tr style="vertical-align: bottom">
<td colspan="23" style="font-size: 10pt; text-align: center">For the nine months ended February, 2018</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">LFER</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">VK</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">GBC</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">ProForma Adjustments</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">ProForma Combined</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td>Sales, net</td><td> </td>
<td colspan="3" style="text-align: right">$2,330,735</td><td> </td>
<td colspan="3" style="text-align: right">$84,642</td><td> </td>
<td colspan="3" style="text-align: right">$2,337,838</td><td> </td>
<td style="text-align: right">$</td>
<td style="text-align: right">—  </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td colspan="3" style="text-align: right">$4,753,215</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left; padding-bottom: 1pt">Cost of goods sold</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 6%; border-bottom: Black 1pt solid; text-align: right">1,798,250</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 6%; border-bottom: Black 1pt solid; text-align: right">52,902</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 6%; border-bottom: Black 1pt solid; text-align: right">2,087,160</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 6%; border-bottom: Black 1pt solid; text-align: right">—  </td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 8%; text-align: center; padding-bottom: 1pt"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 6%; border-bottom: Black 1pt solid; text-align: right">3,938,312</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Gross profit</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">532,485</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">31,739</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">250,678</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">814,902</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Operating expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,143,523</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">19,032</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">286,271</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">45,525</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt">a</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,494,350</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Net loss before other expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(611,038</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">12,708</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(35,593</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(45,525</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(679,448</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Other expenses, net</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(832,010</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(24,058</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(13,792</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(869,860</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 9px"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9px">Net loss</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,443,048</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(11,350</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(49,385</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(45,525</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: center; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,549,308</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 9px"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td colspan="23" style="text-align: center">See accompanying notes to the condensed consolidated unaudited proforma financial information.</td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="19" style="font-size: 12pt; text-align: center">Life On Earth, Inc.</td></tr>
<tr style="vertical-align: bottom">
<td colspan="19" style="font-size: 10pt; text-align: center">Unaudited ProForma Condensed Consolidated Financial Information</td></tr>
<tr style="vertical-align: bottom">
<td colspan="19" style="font-size: 10pt; text-align: center">For the three months ended February, 2018</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">LFER</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">GBC</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">ProForma Adjustments</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">ProForma Combined</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 35%; text-align: left">Sales, net</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">602,946</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">779,279</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 11%; text-align: center"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,382,225</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Cost of goods sold</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">444,234</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">695,720</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,139,954</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Gross profit</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">158,712</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">83,559</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">242,271</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Operating expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">392,666</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">95,424</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">15,175</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt">a</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">503,265</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Net loss before other expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(233,954</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(11,864</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(15,175</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(260,993</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Other expenses, net</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(250,733</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,597</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(255,330</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9px">Net loss</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(484,687</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(16,462</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(15,175</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: center; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(516,324</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="19" style="text-align: center">See accompanying notes to the condensed consolidated unaudited proforma financial information.</td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 12pt"> </td><td style="font-family: Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-family: Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid">February 28, 2019</td><td style="font-family: Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-family: Arial, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid">May 31, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; text-align: left; padding-left: 5.4pt">Net operating loss carryforward</td><td style="width: 8%; font-family: Arial, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 12%; font-family: Arial, Helvetica, Sans-Serif; text-align: right">1,931,000</td><td style="width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 8%; font-family: Arial, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 12%; font-family: Arial, Helvetica, Sans-Serif; text-align: right">1,374,000</td><td style="width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Stock based compensation</td><td style="font-family: Arial, Helvetica, Sans-Serif"> </td>
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: right">514,000</td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Arial, Helvetica, Sans-Serif"> </td>
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: right">449,000</td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Intangible Assets</td><td style="font-family: Arial, Helvetica, Sans-Serif"> </td>
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: right">(114,073</td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left">)</td><td style="font-family: Arial, Helvetica, Sans-Serif"> </td>
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: right">(136,890</td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Valuation allowance</td><td style="font-family: Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Arial, Helvetica, Sans-Serif; text-align: right">(2,330,927</td><td style="padding-bottom: 1pt; font-family: Arial, Helvetica, Sans-Serif; text-align: left">)</td><td style="font-family: Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Arial, Helvetica, Sans-Serif; text-align: right">(1,686,110</td><td style="padding-bottom: 1pt; font-family: Arial, Helvetica, Sans-Serif; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Deferred tax asset, net</td><td style="font-family: Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Arial, Helvetica, Sans-Serif; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Arial, Helvetica, Sans-Serif; text-align: right">—  </td><td style="padding-bottom: 2.5pt; font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">February 28, 2019</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Arial, Helvetica, Sans-Serif">May 31, 2018</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 59%; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> Federal Rate</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 18%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">21</font></td>
<td style="width: 1%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td>
<td style="width: 0%"> </td>
<td style="width: 1%"> </td>
<td style="width: 18%; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">21</font></td>
<td style="width: 1%"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> State Rate</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6</font></td>
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">6</font></td>
<td><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> Valuation Allowance</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">-27</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">-27</font></td>
<td style="padding-bottom: 1pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif"> Effective income tax rate</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Arial, Helvetica, Sans-Serif">0</font></td>
<td style="padding-bottom: 2.5pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">%</font></td></tr>
</table>
<p style="margin: 0pt"></p>
750000
21800
20000
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 7 – UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL INFORMATION</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">   </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ProForma Note 1. — Basis of presentation</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The unaudited pro forma condensed consolidated
financial statements are based on Life On Earth, Inc.’s (the “Company”, “LFER”) historical consolidated
financial statements as adjusted to give effect to the acquisitions of VK and GBC as if they had occurred on June 1, 2017. </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ProForma Note 2 —Purchase price allocation</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The unaudited pro forma condensed financial
information includes various assumptions, including those related to the purchase price allocation of the assets acquired from
VK and GBC based on management’s best estimates of fair value.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 60pt"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Proforma Note 3 — Pro Forma adjustment</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The pro forma adjustments are based on our
estimates and assumptions. The following adjustments have been reflected in the unaudited pro forma
condensed consolidated financial information:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 33.75pt; text-align: justify">(a) Reflects the depreciation related
to the acquired property and equipment and the amortization of the intangible assets acquired.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 27pt; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Proforma Note 4 — Commitments</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the acquisition of GBC,
the Company assumed a lease for approximately 5,250 square feet of office and warehouse space located in Staten Island, New York
at a base rent of $8,500 per month. The lease terminates on April 26, 2023. In addition, the Company entered into an employment
agreement, beginning April 26, 2018, with a general manager for a period of two years at a rate of $75,000, per year.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="23" style="font-size: 12pt; text-align: center">Life On Earth, Inc.</td></tr>
<tr style="vertical-align: bottom">
<td colspan="23" style="font-size: 10pt; text-align: center">Unaudited ProForma Condensed Consolidated Financial Information</td></tr>
<tr style="vertical-align: bottom">
<td colspan="23" style="font-size: 10pt; text-align: center">For the nine months ended February, 2018</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">LFER</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">VK</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">GBC</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">ProForma Adjustments</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">ProForma Combined</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom">
<td>Sales, net</td><td> </td>
<td colspan="3" style="text-align: right">$2,330,735</td><td> </td>
<td colspan="3" style="text-align: right">$84,642</td><td> </td>
<td colspan="3" style="text-align: right">$2,337,838</td><td> </td>
<td style="text-align: right">$</td>
<td style="text-align: right">—  </td>
<td style="text-align: right"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td colspan="3" style="text-align: right">$4,753,215</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left; padding-bottom: 1pt">Cost of goods sold</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 6%; border-bottom: Black 1pt solid; text-align: right">1,798,250</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 6%; border-bottom: Black 1pt solid; text-align: right">52,902</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 6%; border-bottom: Black 1pt solid; text-align: right">2,087,160</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 6%; border-bottom: Black 1pt solid; text-align: right">—  </td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 8%; text-align: center; padding-bottom: 1pt"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 6%; border-bottom: Black 1pt solid; text-align: right">3,938,312</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Gross profit</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">532,485</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">31,739</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">250,678</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">814,902</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Operating expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,143,523</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">19,032</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">286,271</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">45,525</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt">a</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,494,350</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Net loss before other expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(611,038</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">12,708</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(35,593</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(45,525</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(679,448</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Other expenses, net</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(832,010</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(24,058</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(13,792</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(869,860</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 9px"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9px">Net loss</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,443,048</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(11,350</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(49,385</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(45,525</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: center; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,549,308</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 9px"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td colspan="23" style="text-align: center">See accompanying notes to the condensed consolidated unaudited proforma financial information.</td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="19" style="font-size: 12pt; text-align: center">Life On Earth, Inc.</td></tr>
<tr style="vertical-align: bottom">
<td colspan="19" style="font-size: 10pt; text-align: center">Unaudited ProForma Condensed Consolidated Financial Information</td></tr>
<tr style="vertical-align: bottom">
<td colspan="19" style="font-size: 10pt; text-align: center">For the three months ended February, 2018</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">LFER</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">GBC</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">ProForma Adjustments</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">ProForma Combined</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 35%; text-align: left">Sales, net</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">602,946</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">779,279</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 11%; text-align: center"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,382,225</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Cost of goods sold</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">444,234</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">695,720</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,139,954</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Gross profit</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">158,712</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">83,559</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">242,271</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Operating expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">392,666</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">95,424</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">15,175</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt">a</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">503,265</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Net loss before other expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(233,954</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(11,864</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(15,175</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(260,993</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Other expenses, net</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(250,733</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(4,597</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(255,330</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9px">Net loss</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(484,687</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(16,462</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(15,175</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: center; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(516,324</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="19" style="text-align: center">See accompanying notes to the condensed consolidated unaudited proforma financial information.</td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 15 - COMMITMENTS AND CONTINGENCIES</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the acquisition of ESD,
the Company assumed a lease for approximately 13,000 square feet of warehouse space located in Gilroy, California at a base rent
of $5,248 per month. The lease terminates on June 30, 2021.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the acquisition of GBC,
the Company assumed a lease for approximately 5,250 square feet of office and warehouse space located in Staten Island, New York
at a base rent of $8,500 per month. The lease provides for annual increases of 2.5% over a period of six years and terminates
on April 26, 2023. In addition, the Company entered into an employment agreement with a stockholder, beginning April 26, 2018, for
a period of two years at a cost of $75,000, per year.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Rent expense for the three and nine months
ended February, 2019 totaled $45,439 and $120,5987, respectively, and totaled $18,782 and $49,044 for the three and nine months
ended February 28, 2019, respectively,</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following are the future minimum lease
payments for the Company over the next 5 years:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 80%; font: 12pt Calibri, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="5"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">For the twelve months ended Feb 28:</font><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 11pt; text-align: left; width: 1%"> </td><td style="font-size: 11pt; text-align: right; width: 92%">2020</td>
<td style="width: 4%"> </td>
<td style="font-size: 11pt; text-align: left; width: 2%">$</td><td style="font-size: 11pt; text-align: right; width: 1%">167,526</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 11pt; text-align: left"> </td><td style="font-size: 11pt; text-align: right">2021</td>
<td> </td>
<td style="font-size: 11pt; text-align: left">$</td><td style="font-size: 11pt; text-align: right">170,139</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 11pt; text-align: left"> </td><td style="font-size: 11pt; text-align: right">2022</td>
<td> </td>
<td style="font-size: 11pt; text-align: left">$</td><td style="font-size: 11pt; text-align: right">130,834</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 11pt; text-align: left"> </td><td style="font-size: 11pt; text-align: right">2023</td>
<td> </td>
<td style="font-size: 11pt; text-align: left">$</td><td style="font-size: 11pt; text-align: right">112,588</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 11pt; text-align: left"> </td><td style="font-size: 11pt; text-align: right">2024</td>
<td> </td>
<td style="font-size: 11pt; text-align: left">$</td><td style="font-size: 11pt; text-align: right">19,233</td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
0.094
0.07
0.1025
0.30
57027
539
16674
407996
176149
19018
227210
1959347
2186557
1494350
503265
347799
112769
1842149
616034
392666
95424
15175
503265
1143523
19032
286271
45525
1494350
440000
5000
5000
24180
81000
4302
165000
1100000
0.40
0.20
0.42
0.15
65000
433333
2205041
231773
262625
889161
967218
1870852
565248
21400
355649
625000
1455000
1636363
1636363
Amounts due and owing under the terms of the Revolver are convertible, at the option of the holder, into that number of shares of the Company’s Common Stock equal to the principal and accrued interest due under the terms of the Revolver on the date of conversion divided by $1.50
125000
108079
1360000
730092
921890
726890
195000
1185000
2106890
1.00
125000
622013
1636
636546
638182
0.20
0.4275
0.39
70000
8938
76050
25350
P10Y
P5Y
P5Y
P5Y
P5Y
108600
.65
0.30
0.30
0.15
0.175
0.32
0.30
0.50
131250
1223500
6000
737500
100000
380000
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-align: justify">Cash</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">1,355</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Accounts receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,024</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Inventory and work in process</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">40,564</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Accounts payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(16,343</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Notes payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(108,600</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 2.5pt">Goodwill</td><td style="padding-bottom: 2.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 1pt solid; text-align: right"> </td><td style="vertical-align: bottom; border-bottom: Black 1pt solid; text-align: right">195,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 2.5pt">Net assets acquired</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">125,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
1355
118941
265
13024
36365
167700
40564
79283
72035
16343
402700
65000
108600
61344
825000
825000
103000
125000
380000
6000
198000
737500
109995
100000
60000
0
63844
77000
700000
8654
81000
87500
737500
375000
120000
110000
-246518
-1394814
-1641332
-679448
-260993
-241469
-100886
-920917
-361879
-233954
-11864
-15175
-260993
-611038
12708
-35593
-45525
-679448
-1456910
-1456910
-869860
-255330
-869860
-255330
-250733
-4597
-255330
-832010
-24058
-13792
-869860
6000
(i) $0.30 per share of Common Stock, or (ii) that
number of shares of Common Stock equal to the average closing price of the Company’s Common Stock as reported on the OTC
Markets for the preceding 30 trading days prior to the date of conversion, multiplied by 0.65 (the “<i>Conversion Price</i>”); <i>provided,
however</i>, in the event the Conversion Price is calculated based on (ii) above, the Conversion Price shall not be lower than
$0.20 per share of Common Stock.
181551
177399
338920
328024
812031
575456
111777
89255
47909
5953
801178
697003
22245
20245
1815958
1835899
935000
923045
6000
589768
97684
229595
30937
53548
80822
184997
0.001
0.001
10000000
10000000
1200000
1100000
1200000
1100000
0.001
0.001
100000000
100000000
23581586
34913689
23581586
34913689
2717030
3494802
2000
560000
560000
62319
0
185689
70286
0
35270
68560
7375
12182
151974
42645
52394
109995
-791541
-979989
488979
-962811
23582
34914
1200
1100
5793569
10233670
-6798340
-9864363
405301
28284
30483
1100
1100
8703823
9175524
-7971270
-8718128
762037
18717
18717
21250
21949
1200
1200
1200
1200
3055121
3103056
3988215
4251301
-3794579
-4323823
-4752574
-5237261
-1200285
-741909
2717030
3494802
1200
1100
23582
34914
9889
126697
30312
3297
193846
3057557
3251404
84000
4753215
1382225
421355
91586
5174570
1473811
602946
779279
1382225
2330735
84642
2337838
4753215
213155
2493025
2706179
145000
3938312
1139954
315025
79703
4253337
1219657
444234
695720
1139954
1798250
52902
2087160
3938312
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 3 - CONCENTRATIONS</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Concentration of Credit Risk</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s financial instruments that
are exposed to concentrations of credit risk consist primarily of cash and accounts receivable. The Company places its cash with
high quality credit institutions. At times, balances may be in excess of the Federal Deposit Insurance Corporation (“FDIC”)
insurance limit. Cash in banks is insured by the FDIC up to $250,000 per institution, per entity. The Company routinely assesses
the financial strength of its customers and, as a consequence, believes that its account receivable credit risk exposure is limited.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Sales and Accounts Receivable</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended February 28,
2019, sales to 3 customers accounted for approximately 34% of the Company’s net sales. These four customers accounted
for 12%, 12%, and 10% respectively. During the nine months ended February 28, 2019, no single customer accounted up more than 10%
of the Company’s net sales. During the nine months ended February 28, 2018, no single customer accounted for more than 10%
of the Company’s net sales.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Two customers accounted for approximately 36%
of the Company’s accounts receivable as of February 28, 2019. These two customers accounted for 21% and 15% respectively.
One customer accounted for approximately 11% of the Company’s accounts receivable at May 31, 2018. </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 5 – GBC ACQUISITION</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">To support the company’s strategic initiatives,
the Company acquired GBC for its distribution capabilities in the New York metropolitan region.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Effective April 26, 2018, the Company acquired
all of the outstanding stock of GBC for total consideration of $730,092, of which, $108,079 was paid in cash and $622,013 was paid
by the issuance of 1,455,000 shares of the Company’s common stock at $0.4275 per share. If, after 12 months from the date
of the closing, the shares are trading below twenty ($0.20) cents per share, the Company shall issue 485,000 additional shares
as additional stock consideration. The Company determined the value of these contingent shares were di minimis. On the one year
anniversary<font style="font-size: 8pt"> </font> of the closing the shares were trading above $.20 <font style="font-size: 8pt"> </font>and
therefore the additional shares were not required to be issued. In conjunction with the closing, the stockholders of GBC are subject
to the provisions of a non-competition/non-solicitation/non-disclosure agreement. One of the former stockholders of GBC has been
appointed as the Company’s General Manager pursuant to a 2-year employment agreement.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At April 26, 2018, the fair value of the assets
acquired and liabilities assumed from GBC were as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 70%">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: justify">Assets:</td><td> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify">Cash</td><td style="width: 1%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 9%; font-size: 10pt; text-align: right">118,941</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify">Accounts receivable</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">36,365</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify">Inventory</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">79,283</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify">Equipment</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">65,925</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify">Notes receivable</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">61,344</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify">Goodwill</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">726,890</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify; padding-bottom: 1pt">Customer list</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">507,000</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,595,748</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify">Liabilities:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify">Accounts payable</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">402,700</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify">Intercompany loans</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">116,071</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify">Deferred tax liability</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">136,890</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify">Line of credit</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">15,833</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify; padding-bottom: 1pt">Loans payable</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">194,162</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">865,656</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify; padding-bottom: 2.5pt">Net Assets Acquired</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">730,092</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">   </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The estimated useful life of the customer list
is five (5) years. Amortization expense of $76,050 and $25,350 was recorded during the nine months and three months ended February
28, 2019, respectively. The estimated useful life of the equipment is five (5) years. Depreciation expense of $9,889 and $3,297
was recorded during the nine months and three months ended February 28, 2019, respectively. </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">See Note 6 for the unaudited pro forma condensed
consolidated statements of operations for the nine months ended February 28, 2018.</p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: justify">Assets:</td><td> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%; font-size: 10pt; text-align: justify">Cash</td><td style="width: 10%; font-size: 10pt"> </td>
<td style="width: 1%; font-size: 10pt; text-align: left">$</td><td style="width: 18%; font-size: 10pt; text-align: right">118,941</td><td style="width: 1%; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify">Accounts receivable</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">36,365</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify">Inventory</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">79,283</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify">Equipment</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">65,925</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify">Notes receivable</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">61,344</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify">Goodwill</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">726,890</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify; padding-bottom: 1pt">Customer list</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">507,000</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">1,595,748</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify">Liabilities:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify">Accounts payable</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left">$</td><td style="font-size: 10pt; text-align: right">402,700</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify">Intercompany loans</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">116,071</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify">Deferred tax liability</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">136,890</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify">Line of credit</td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: left"> </td><td style="font-size: 10pt; text-align: right">15,833</td><td style="font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 10pt; text-align: justify; padding-bottom: 1pt">Loans payable</td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">194,162</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 1pt"> </td><td style="font-size: 10pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 1pt solid; font-size: 10pt; text-align: right">865,656</td><td style="padding-bottom: 1pt; font-size: 10pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 10pt; text-align: justify; padding-bottom: 2.5pt">Net Assets Acquired</td><td style="font-size: 10pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 10pt; text-align: right">730,092</td><td style="padding-bottom: 2.5pt; font-size: 10pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
865656
1595748
195000
507000
1185000
65925
116071
730092
485000
If, after 12 months from the date of the Closing, the
shares are trading below twenty ($0.20) cents per share, then the Company shall issue 485,000 additional shares
If these
shares are trading below $0.30 after August 2, 2019, the Company will issue additional shares so that the value of the 1,636,363
shares plus these additional shares, with a floor price of $0.20, will be equal to $900,000. The JCG Agreement also provides for
the issuance of 850,000 warrants for the purchase of common stock with a two-year term and an exercise price of $0.85 with a value
of approximately $9,400. The JCG Agreement also provides for an additional 1,090,909 shares of restricted common stock to be issued
when the gross revenues of the JCG brands reach $900,000 in a twelve-month period. The JCG Agreement also provides for additional
shares of restricted common stock, with a market value of $500,000 on the date of issuance, to be issued when the gross revenues
of the JCG brands reach $3,000,000 in a twelve-month period, and again when the gross revenues of the JCG brands reach $5,000,000
in a twelve-month period. The JCG Agreement also provides for the issuance of the restricted common stock and warrants to the shareholders
of JCG on a pro rata basis according to their respective percentage of ownership as of August 2, 2018. The restricted common stock
may not be transferred, sold, gifted, assigned, pledged, or otherwise disposed of, directly or indirectly, for a period of twelve
months (the “Lock-Up Period”). After the Lock-Up Period, the maximum shares that may be sold by each restricted common
stockholder during any given one-day period shall be 5% of their total holdings or no more than 20% of the average trading volume
of the preceding 30 days, whichever is less. The Company has determined the value of the contingent shares and warrants, in excess
of the initial 1,636,363 shares, to be approximately $722,000, for a total purchase price value of approximately $1,360,000
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 6 – VK ACQUISITION</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">To support the Company’s strategic initiatives,
the Company acquired VK and the VK brands.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Effective October 19, 2017, the Company acquired
100% of the outstanding membership interests of VK, for 312,500 restricted shares of the Company’s common stock at a price
of $0.40 per share for a total consideration of $125,000.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At October 19, 2017, the fair value of the
assets acquired and liabilities assumed from VK were as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 70%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Cash</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,355</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Accounts receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">13,024</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Inventory and work in process</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">40,564</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify">Accounts payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(16,343</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify">Notes payable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(108,600</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: justify; padding-bottom: 2.5pt">Goodwill</td><td style="padding-bottom: 2.5pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 1pt solid; text-align: right"> </td><td style="vertical-align: bottom; border-bottom: Black 1pt solid; text-align: right">195,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 2.5pt">Net assets acquired</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">125,000</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 10 - LOANS PAYABLE – STOCKHOLDERS</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the acquisition of GBC,
the Company entered into a loan agreement with the former owners of GBC in the amount of $109,995. The former owners of GBC became
stockholders of the Company when the acquisition of GBC was completed. The loan bears interest at 7% per annum, requires monthly
payments of principal and interest totaling $4,925, and matures in April 2020, at which time all unpaid principal and interest
is due. The loan is secured by all of the assets of GBC. At February 28, 2019 and May 31, 2018 the outstanding balance of the loan
was $109,995.</p>
<p style="font: 12pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of February 28, 2019, future principal payments
of the loan were approximately as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif">For the twelve months ended February 28,</td><td> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">Current portion</td><td style="width: 10%; font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 18%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 1pt solid">109,995</td><td style="width: 1%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">  </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 11 – NOTES PAYABLE</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In July 2016, the Company entered into a Senior
Secured Revolving Credit Facility Agreement (the “Credit Facility”) with TCA Global Credit Master Fund L.P. (“TCA”)
for a total amount of $7.5 million. Energy Source Distributors is Corporate Guarantor to the Credit Facility. Under the terms of
the Credit Facility, the Company paid advisory fees to TCA in the amount of $350,000, through the issuance of 374,332 shares of
common stock. On July 5, 2016, the Company borrowed $650,000 from the Credit Facility and used the proceeds to acquire Energy Source
Distributors for $450,000; payoff a note payable in the amount of $32,534; $74,466 was used to pay vendors for inventory purchases
and $93,000 was paid to TCA for closing fees. The credit facility had a maturity date of December 27, 2017. The credit facility
required fees and interest only payments at 12% during the first two months. Principal payments began in the third month. At the
maturity date, all unpaid principal and interest was due. The advisory fees and closing fees totaling $443,000 were recognized
as deferred financing costs.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">On June 14, 2017, the
Company filed a lawsuit in the Seventeenth Judicial Circuit in and for Broward County, Florida (the “Broward County Court”)
against TCA Global Credit Master Fund, LP, a Cayman Islands limited partnership (“TCA”). The lawsuit was filed in connection
with loan transactions (the “Loans”) with TCA as the lender and the Company as the borrower and that alledged: (a)
over 100% interest charged on the Loans is usurious in violation of Florida law; (b) TCA violated the Florida Deceptive and Unfair
Trade Practices Act, including disguising interest charges as advisory fees in the amount of $550,000; (c) breach of contract by,
among other things, TCA seeking payment of usurious, illegal, unconscionable and unenforceable fees and failing to fund the full
amount of the $1.6 million loan; and (d) breach of implied covenant of good faith and fair dealing. On June 15, 2017, TCA filed
a lawsuit in the Broward County Court against the Company for breach of contract pertaining to the transaction documents associated
with the Loans, claiming that it suffered damages and seeking compensatory damages and prejudgment interest upon the compensatory
damages at a default rate of 25% plus accrued interest.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On June 28, 2018, the Company and TCA mutually
agreed to settle the outstanding debt for a total amount of $560,000, of which $410,000 is to be paid in cash in 6 equal monthly
installments of $68,333 beginning in June 2018 and $150,000 to be paid with shares of the Company’s common stock. As of February
28, 2019 and May 31, 2018, the outstanding balance was $0 and $560,000, respectively<font style="font-size: 8pt"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 29, 2018, the Company issued a Secured
Promissory Note (“SPN”), in the principal amount of $125,000 which matures on November 15, 2019. The SPN does not bear
interest. The SPN was issued with a 5% original issue discount. The Company will repay the SPN note holder in 12 equal monthly
installments of $10,937.50 <font style="font-size: 8pt"> </font>beginning December 15, 2018. As additional consideration for
the funding of the SPN, the Company has issued an aggregate of 100,000 restricted shares of the Company’s common stock as
of the date of the SPN at $0.32 per share and is obligated to issue an additional 100,000 shares, 180 days from the date of the
SPN and an additional 100,000 shares, 270 days from the date of the SPN. As a result of this transaction, the Company recorded
a deferred finance cost of $102,250, which was amortized over the life of the SPN, and of which, $8,811 was amortized during the
month ended November 30, 2018. <font style="font-size: 8pt"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of February 28, 2019, future principal payments
of the notes payable were approximately as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 70%">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">For the twelve months ending February 28,</font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"> </td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">2020</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">131,250</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Note 19 - SUBSEQUENT EVENTS<font style="font-size: 8pt"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During May 2019, the Company discovered
that an error was made in the accounting for the extinguishment of debt on January 26, 2018. The correction of the error resulted
in the Company recording deferred financing costs in the amount of $538,333 as of May 31, 2018, reporting a decrease in interest
and financing costs of $159,466 for the six months ended November 30, 2018 and reporting an increase in financing costs of $663,796
for the year ended May 31, 2018. In addition, during May 2019, the Company discovered that an error was made in the accounting
for goodwill for the GBC acquisition which did not include a component for the related deferred tax liability. The correction of
this error resulted in the Company recording an income tax benefit in the amount of $136,890, for the year ended May 31, 2018.
The total impact of these corrections was to increase the Company’s Stockholders’ Equity (Deficiency) by $170,893 for
the six months ended November 30, 2018 and to decrease the Company’s Equity (Deficiency) by $11,427 for the year ended May
31, 2018.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The impact on the condensed consolidated financial
statements is as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The condensed consolidated balance sheet as
of November 30, 2018 includes an increase in goodwill of $136,890, a decrease in convertible notes payable of $34,003, an increase
in additional paid-in capital of $538,333, an increase in the accumulated deficit of $367,440, and an increase in stockholders’
equity (deficiency) of $170,893.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> The condensed consolidated statement
of operations includes a decrease in interest and financing costs and net loss of $79,737 and $159,466 for the three and six months
ended November 30, 2018, respectively, and an increase in the basic and diluted loss per share of $0.01 for the six months ended
November 30, 2018.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> The condensed consolidated statement
of changes in stockholders’ equity (deficiency) includes an increase in additional paid-in capital of $538,333 as of June
1, 2018 and November 30, 2018, an increase in the accumulated deficit of $526,906 and $367,440 as of June 1, 2018 and November
30, 2018, respectively, a decrease in stockholders’ equity (deficiency) of $11,427 as of June 30, 2018, and an increase in
stockholders’ equity (deficiency) of $170,893 as of November 30, 2018.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> The condensed consolidated statement
of cash flows includes a decrease in net loss of $159,466, and a decrease in amortization of interest and financing costs of $159,466
for the six months ended November 30, 2018.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"></p>
<p style="font: 12pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">On May 7, 2019, Life
On Earth, Inc. (“LFER”), Giant Beverage, Inc. (“Giant”), and Frank Iemmiti and Anthony Iemmiti (“Frank
and Anthony Iemmiti”) entered into a Dispute Resolution and Resale agreement that will resolve all existing disputes between
the two parties and will also result in the sale of the ownership of Giant to the Frank and Anthony Iemmiti. Under the terms of
the agreement, LFER deposited $50,000 into an Attorney’s Trust Account. Frank and Anthony Iemmiti have a continuing obligation
to provide LFER with all financial information of Giant (the “Giant Financial Information”) that LFER needs to complete
its SEC reporting requirements. Upon successful filing of all SEC documents this monery will be released from the Attorney’s
Trust account to Frank and Anthony Iemmiti. In addition LFER will pay to Frank and Anthony Iemmiti the additional stated consideration
in the Settlement Agreement, specifically $62,718.03 worth of <font style="font-size: 8pt"> </font>LFER shares, the number
of shares of which will be determined by the closing price the day prior to execution of the Settlement Agreement (the “LFER
Shares”). This will release all current and future causes of actions and claims against LFER. At the Closing, LFER will
sell the Giant Company to Frank and Anthony Iemmiti in exchange for their transfer to LFER of 1,455,000 Common Stock Shares held
by Frank and Anthony Iemmiti.</p>
<p style="font: 12pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">Effective May 31, 2019,
Separation and Mutual Release Agreement was entered into between Life On Earth, Inc, (“LFER”) and Roy DiBenerdini,
a member of LFER’s Board of Director’s (“Director”). The Director and LFER entered into the mutual agreement
with respect to other Director’s resignation from his position as a director on the Board of LFER. LFER and the Director
agree that the Company shall issue to the Director 967,218 restricted shares of the Company’s common stock (the “Restricted
Shares”) to compensate him for his services performed as a director on the Company’s Board through the Resignation
Date. LFER and the Director agree that the Company will also pay the Director the amount of $10,000 which is the cash fee for
Director’s service as an independent director on the Company’s Board of Directors. </p>
<p style="font: 12pt Times New Roman, Times, Serif; text-align: justify; margin-right: 0; margin-left: 0">Effective May 31, 2019,
Separation and Mutual Release Agreement was entered into between Life On Earth, Inc, (“LFER”) and Randy Berholtz,,
a member of LFER’s Board of Director’s (“Director”). The Director and LFER entered into the mutual agreement
with respect to other Director’s resignation from his position as a director on the Board of LFER. LFER and the Director
agree that the Company shall issue to the Director 1,870,852 restricted shares of the Company’s common stock (the “Restricted
Shares”) to compensate him for his services performed as a director on the Company’s Board through the Resignation
Date. LFER and the Director agree that the Company will also pay the Director the amount of $10,000.00 which is the cash fee for
Director’s service as an independent director on the Company’s Board of Directors. </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Also, subsequent to February 28, 2019, the
Company issued 2,205,041 shares of its common stock, valued at approximately $771,764, for financing and services.<b> </b></p>
-246518
-2851724
-3098242
61000
-1549308
-516324
-241469
-100886
-1790777
-617210
-484687
-16462
-15175
-516324
-1443048
-11350
-49385
-45525
-1549308
7500000
560000
358714
150000
0.12
350000
5248
8500
8500
75000
660000
622000
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 14 – LINES OF CREDIT</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the acquisition of GBC,
the Company acquired a $15,833 credit line with a small business lender which has no expiration date and bears interest at 10.25%.
The facility is guaranteed by one of the former stockholders of GBC. During the nine months ended February 28, 2019, the Company
borrowed $21,800 against the credit line. At February 28, 2019 and May 31, 2018, the outstanding balance was $32,357 and $16,044,
respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In April 2017, the Company entered into a credit
line with a small business lender that allows the Company to borrow up to $35,000 and bears interest at approximately 94% per annum.
The facility requires weekly payments of principal and interest. At February 28, 2019 and May 31, 2018, the outstanding balance
was $17,708 and $22,854, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In December 2018, the Company entered into
a credit line with a small business lender that allows the Company to borrow up to $20,000 and bears interest at approximately
30% per annum. The facility requires weekly payments of principal and interest. At February 28, 2019 and May 31, 2018, the outstanding
balance was $20,699 and $0, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In November 2018, the Company entered into
a credit line with a small business lender that allows the Company to borrow up to $50,000 and bears interest at 8% per annum.
At February 28, 2019 and May 31, 2018, the outstanding balance was $44,834 and $0, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 26, 2017, the Company entered
into a revolving credit note (the “Revolver”), providing for borrowings of up to $750,000 at an annual interest rate
of 7%. Amounts due under the terms of the Revolver are convertible, at the option of the holder, into shares of the Company’s
common stock equal to the principal and accrued interest due on the date of conversion divided by $1.50. As of February 28, 2019
and May 31, 2018, the Company has not made any borrowings from the Revolver.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of February 28, 2019, the future principal
payments of our lines of credit were approximately as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 50%">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid"><font style="font: 11pt Calibri, Helvetica, Sans-Serif"><b>For the twelve months ending February 28,</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 9%; text-align: right"> </td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 2.5pt; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">2020</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">115,598</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr></table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 13 – LOANS PAYABLE</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In July 2016, the Company entered into an agreement
(the “Purchase and Sale Agreement”) with ESBF California LLC (“ESBF”). Under the terms of the agreement,
the Company received $197,370 of cash proceeds from ESBF and agreed to repay the amount of $266,000 secured by future sales proceeds.
In March 2017, the Company entered into a second Purchase and Sale Agreement with ESBF. Under the terms of the second agreement,
the Purchase and Sale Agreement entered into in July 2016 was paid in full and the Company received $131,370 of cash proceeds from
ESBF in exchange for a loan payable in the amount of $266,000 secured by future sales proceeds. In January 2018, the Company entered
into a third Purchase and Sale Agreement with ESBF. Under the terms of the third agreement, the Purchase and Sale Agreement entered
into in March 2017 <u>the remaining</u> of $24,180 was paid in full<font style="font-size: 8pt"> </font>and the Company received
approximately $170,000 of cash proceeds from the Buyer in exchange for a loan payable in the amount of $272,000 secured by future
sales proceeds. In addition, the Company paid a management fee of $6,000 to complete this transaction. The difference between the
aggregate of the Purchase and Sale Agreement pay-off, the management fee and the cash received and the cash to be paid from future
sales proceeds of $272,000 was recognized as financing costs which has been capitalized and is being amortized over the repayment
period. This amount has been reflected as a direct reduction of the loan payable in the accompanying condensed consolidated balance
sheets. During the nine months ended February 28, 2019, the Company made payments aggregating $151,974<font style="font-size: 8pt"> </font>.
The Company recognized amortization expense of $28,033 and $49,058 for the three and nine months ended February 28, 2019,
respectively. As of February 28, 2019 and May 31, 2018, the outstanding balance was $0 and $151,974, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In April 2018, the Company entered into an
agreement (“Purchase and Sale Agreement”) with Premium Business Services LLC (“PBS”). Under the terms of
the agreement, the Company received $60,000 of cash proceeds from PBS in exchange for a loan payable in the amount of $81,000,
secured by future sales proceeds. The difference between the aggregate of the Purchase and Sale Agreement pay-off and the cash
to be paid from future sales proceeds of $81,000 was recognized as capitalized financing costs and is being amortized over the
repayment period. This amount has been reflected as a direct reduction of the loan payable in the accompanying consolidated balance
sheets. During the nine months ended February 28, 2019, the Company has made payments aggregating $81,000. The Company recognized
amortization expense of $2,682 and $18,776 for the three and nine months ended February 28, 2019. As of February 28, 2019
and May 31, 2018, the outstanding balance was $0 and $70,286, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the acquisition of GBC,
the Company acquired a loan payable with the US Small Business Administration in the amount of $135,812. In April 2018, the Company
repaid $60,000 in accordance with the</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">terms of the acquisition. The loan bears
interest at prime plus 2.75% per annum, matures on December 31, 2020, and is guaranteed by both of the former owners of GBC.
Minimum monthly payments of principal and interest amount to $4,383. The loan balance at February 28, 2019 and May 31, 2018
was $35,270 and $68,560, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the acquisition of GBC,
the Company acquired a bank loan with a balance due of $12,182 for a delivery vehicle. The loan matures in April 2020 and bears
interest at 7% per annum. The monthly payments are $578. As of February 28, 2019 and May 31, 2018, the outstanding balance of the
auto loan is $7,375 and $12,182, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of November 30, 2018, future principal payments
of loans payable were approximately as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 50%">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font: 11pt Calibri, Helvetica, Sans-Serif"><b>For the twelve months ending February 28,</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td colspan="3" style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">2020</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">$</font></td>
<td style="text-align: right; width: 9%">39,440</td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: right"> 2021</td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right">3,205 </td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; text-align: justify"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right">42,645</td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 12 – CONVERTIBLE <font style="font-size: 8pt"> </font>NOTES
<font style="font-size: 8pt"> </font>PAYABLE<font style="font-size: 8pt"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font>The
following table summarizes the Company’s convertible notes payable as of February 28, 2019: </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"></font></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Unamortized deferred financing costs</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Principal</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Net</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; font: bold 10pt Arial, Helvetica, Sans-Serif; text-decoration: underline; text-align: left">The 2016 Notes</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">6,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">6,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-decoration: underline; text-align: left">Related Party</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-decoration: underline; text-align: left">2017 NPA Notes</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">147,732</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">737,500</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">589,768</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-decoration: underline; text-align: left">The Note Offering</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,317</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">100,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">97,684</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-decoration: underline; text-align: left; padding-bottom: 1pt">The 2nd Note Offering</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">150,405</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">380,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">229,595</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">300,453</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,223,500</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">923,047</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-size: 8pt"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">- <u>The 2016 Notes</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the quarter ended November 30, 2016,
<font style="font-size: 8pt"> </font>the Company entered into Convertible Promissory Note Agreements (The “Convertible
Notes”) with seven (7) individuals (“Holders”) pursuant to which they purchased the Company’s unsecured
fixed price convertible promissory notes in the aggregate principal amount of $803,000. The Convertible Notes carry interest at
the rate of 5% per annum and mature at various dates through November 7, 2017. The Convertible Notes were issued with a 10% original
issue discount. As additional consideration for the purchase of the Convertible Notes, the Company has issued an aggregate of 1,790,000
<font style="font-size: 8pt"> </font>shares of its common stock to the Holders, during March 2017. Pursuant to the Convertible
Notes, the Company issued common stock purchase warrants (the “Warrants“). The Warrants allow the Holders to purchase
up to an aggregate of 730,000 shares of the Company’s common stock at an exercise price of $0.85 per share until September
30, 2021. Also, under the terms of the Convertible Notes, the Company and the Holders entered into a registration rights agreement
covering the 1,790,000 shares issued. Pursuant to the terms of the registration rights agreement, the Company has filed a registration
statement with the U.S. Securities and Exchange Commission covering up to an aggregate of 6,033,131 shares of the Company’s
common stock. The registration became effective on March 29, 2017.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 20, 2017 and upon maturity, the
Company repaid one Convertible Note Holder the principal amount of $440,000 and, accrued and unpaid interest in the amount of $21,156.
In addition, the Company purchased 1,100,000 shares of treasury stock from the Holder for $63,844 and subsequently cancelled the
shares.<font style="font-size: 8pt"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 6, 2017 and upon maturity, the
Company repaid two Convertible Note Holders the aggregate principal amount of $165,000 and, accrued and unpaid interest in the
amount of $8,747.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During November 2017, the Company and the remaining
four Convertible Note Holders agreed to extend the maturity date of their respective Convertible Notes to September 30, 2018.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0">In July 2018, the Company and one Convertible Note Holder agreed
to convert the outstanding principal balance of $110,000 and related accrued interest of $10,648 into 804,557 shares of the Company’s
common stock.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0">In February 2019, the Company and two Convertible Note Holders
agreed to convert the outstanding principal balance of $77,000 and related accrued interest of $4,804 into 163,608 shares of the
Company’s common stock at $0.50 per share.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0">As of February 28, 2019 and May 31, 2018, the outstanding balance
of the Convertible Notes was $6,000 and $198,000, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> <font style="font-size: 8pt"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">- <u>Convertible note with related party</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In November 2017, the Company borrowed $20,000
from a related party. The note matured in May 2018, bore interest at 7% per annum and was convertible into common stock of the
Company at a fixed price of $0.15 per share. As additional consideration for the issuance of the convertible note, the Company
issued 40,000 shares of the Company’s common stock on March 1, 2018. As a result of this transaction the Company recorded
a deferred finance cost of $20,000, all of which was amortized during the year ended May 31, 2018. In June 2018, the note was converted
into 133,333 shares of the Company’s common stock.   </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">- <u>The 2017 NPA Note</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 25, 2017, the Company entered
into a note purchase agreement (“NPA”), pursuant to which the Company issued a 7% secured promissory note (“SPN”)
in the principal amount of $650,000 (the “650K Note”), which matures on March 25, 2019. As additional consideration
for the issuance of the SPN, the Company issued 1,500,000 restricted shares of the Company’s common stock at $0.20 per share,
which was recorded as a deferred finance cost. The deferred finance cost is being amortized over the life of the SPN.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 3, 2017, the NPA was amended and
an additional 7% SPN was issued to the purchaser in the principal amount of $175,000 (the “$175K Note”), which matures
on May 3, 2019. As additional consideration for the issuance of the $175K Note, the Company issued 800,000 restricted shares of
the Company’s common stock at $0.42 per share, which was recorded as a deferred finance cost. The deferred finance cost is
being amortized over the life of the SPN.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Both SPN’s are secured by a continuing
security interest in substantially all assets of the Company. Under the terms of the NPA, the Company was required to pay a consulting
fee of $65,000 to the purchaser. In November 2017, the purchaser agreed to and accepted from the Company, 433,333 shares of the
Company’s common stock, which shares were issued at $0.40 per share, in lieu of payment of the consulting fee, which was
recorded by the Company as a deferred finance cost. The deferred finance cost is being amortized over the life of the SPN’s.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0">On January 26, 2018, the Company entered into an NPA, pursuant to
which the Company issued a Note in the amount of $125,000 <font style="font-size: 8pt"> </font>(the “Note Purchase”).
The Note bears interest at 7% per annum and matures on January 26, 2019. In connection with the NPA, the Company and the Purchaser
also entered into a Side Letter, pursuant to which, as additional consideration for the NPA, the Company agreed to (i) pay to the
Purchaser, the first $125,000 in cash proceeds received by the Company in connection with a NPA from third parties unaffiliated
with the Purchaser (the “Cash Payment”) shall be used to reduce the amount due to the Purchaser under the $175K Note
, and (ii), with certain exceptions, not issue any shares of common stock or other securities convertible into shares of common
stock unless and until the Cash Payment has been made in full. In January 2019, the $125,000 note issued on January 26, 2018 plus
accrued and unpaid interest amounting to $8,654 was converted into 891,026 shares of the Company’s common stock at $0.15
per share. As of February 28, 2019 and May 31, 2018, the outstanding balance was $0 and $125,000, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0">As further consideration for the Note Purchase, the Company entered
into an agreement to amend certain SPN’s (the “Note Amendment”), pursuant to which the $175K Note and the $650K
Note (together, the “Old Notes”) were amended to provide the Purchaser with the ability to convert the principal amount
of such Old Notes, together with accrued interest thereon, into shares of the Company’s common stock (the “Conversion
Shares”). Pursuant to the Note Amendment, the conversion price shall be equal to $0.30, subject to adjustments as set forth
in the Note Amendment, and the number of Conversion Shares issuable upon conversion of the Old Notes shall be equal to the outstanding
principal amount and accrued but unpaid interest due under the terms of the Old Notes to be converted, divided by the Conversion
Price. The Note Amendment was treated as an extinguishment of the old notes and an issuance of new notes (the “New Notes”).</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0">As a result of this transaction the Company recorded deferred financing
costs on the New Notes, and the $125,000 note purchase, of $538,335, of which $106,336 was amortized during the year ended May
31, 2018 and expensed the unamortized deferred financing costs of $557,462. The Company recorded amortization of the deferred finance
costs of the New Notes of $94,755 and $284,265 during the three months and nine months ended February 28, 2019, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In July 2018, the Company (i) issued 500,000
common shares to note holder at a conversion price of $0.175 per share, to cancel $87,500 of principal amount due by the Company
regarding the $175K Note; (ii) issued 300,000 shares at $0.175 per share to the note holder representing 100,000 shares per month
penalty for the 3 month period from February 2018 through April 2018; (iii) paid the note holder an aggregate of $19,250 representing
4 months of accrued interest due by the Company from January 2018 through April 30, 2018 regarding the $650K and the $175K Notes;
and, (iv) shall issue 196,677 shares to the note holder representing the remainder of interest due through December 31, 2018, representing
$4,302 per month due on the total principal amount due of $737,500. As a result of these transactions, the Company recorded finance
costs of $151,250 and $143,250, during the nine months ended February 28, 2019 and for the year ended May 31, 2018, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of February 28, 2019 and May 31, 2018, the
outstanding balance was $737,500 and $825,000, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accrued and unpaid interest expense on the
NPA of $14,273 and $45,226 was recorded by the Company during the three and nine months ended February 28, 2019, respectively,
and is reported as accounts payable and accrued expenses.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the acquisition of VK, the
Company assumed a promissory note in the amount of $108,600. The note accrued interest at an annual rate of 6.5% and matured on
March 31, 2018. During the year ended May 31, 2018, the Company recorded interest expense of $1,883. In December 2017, the Company
made a principal payment of $5,000. On January 26, 2018, the Company entered into a Note Exchange Agreement (the “NEA”)
with the owner of the promissory note assumed from VK, pursuant to which the owner agreed to cancel the promissory note in exchange
for a new secured convertible promissory note (the “Note”) in the aggregate principal amount equal to $103,000, the
outstanding balance. On February 14, 2018, the owner of the promissory note elected to convert the Note into 343,333 shares of
the Company’s common stock.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">  </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">- <u>The Note offering</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2018, the Company offered a note
purchase agreement, in the aggregate amount of up to $700,000 (the “Note Offering”).</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Notes issued under the Note Offering shall
mature one year from the date of issuance (the “Maturity Date”), shall accrue interest at the simple rate of 7% per
annum, and are convertible, at the holder’s option, prior to the Maturity Date into that number of shares of the Company’s
common stock, equal to the lower of (i) $0.30 per share of common stock, or (ii) that number of shares of common stock equal to
the average closing price of the Company’s common stock as reported on the OTC Markets for the preceding 30 trading days
prior to the date of conversion, multiplied by 0.65 (the “Conversion Price”); provided, however, in the event
the Conversion Price is calculated based on (ii) above, the Conversion Price shall not be lower than $0.20 per share of common
stock. All amounts due under the terms of the Notes shall be secured by a continuing security interest in substantially all of
the assets of the Company. </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In March 2018, the Company issued secured convertible
promissory notes to six (6) investors under the terms of the Note Offering in the aggregate amount of $448,900. <font style="font-size: 8pt"> </font>As
a result of these transactions the Company recorded deferred finance costs in the aggregate amount of $76,117, of which $19,018
and $57,027 was amortized during the three and nine months ended February 28, 2019, respectively, and $16,674 was amortized during
the year ended May 31, 2018.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the nine months ended February 29, 2019
three investors converted an aggregate amount of $120,000 secured convertible promissory notes plus accrued and unpaid interest
of $4,629 into 415,431 shares of the Company’s common stock at $0.30 per share.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three and nine months ended February
28, 2019, the Company recorded interest expense of $1,750 and $7,350, respectively. As of February 28, 2019, the outstanding balance
was $100,000.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">- <u>The Second Note offering</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2018, the Company offered a NPA, in
the aggregate amount of up to $500,000 (the “2nd Note Offering”) and, as of February 28, 2019, issued secured convertible
promissory notes to eighteen (18) investors under the terms of the 2nd Note Offering in the aggregate amount of $755,000.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Notes issued under the 2<sup>nd</sup> Note
Offering shall mature one year from the date of issuance (the “Maturity Date”), shall accrue interest at the simple
rate of 7% per annum, and are convertible, at the holder’s option, prior to the Maturity Date into that number of shares
of the Company’s common stock, equal to the lower of (i) $0.30 per share of common stock, or (ii) that number of shares of
common stock equal to the average closing price of the Company’s common stock as reported on the OTC Markets for the preceding
30 trading days prior to the date of conversion, multiplied by 0.65 (the “Conversion Price”); provided, however,
in the event the Conversion Price is calculated based on (ii) above, the Conversion Price shall not be lower than $0.20 per share
of common stock. All amounts due under the terms of the Notes shall be secured by a continuing security interest in substantially
all of the assets of the Company. As additional consideration for the issuance of the notes issued under the 2<sup>nd</sup>
Note Offering, the Company issued one (1) restricted share of the Company’s common stock to each note holder for each $1
invested, which was recorded as deferred finance cost.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 3pt 0 0"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of this transaction, the Company
recorded deferred finance costs in the aggregate amount of $558,940, of which, $176,149 and $407,996 was amortized during the three
and nine months ended February 28, 2019, respectively, and $539 was amortized during the year ended May 31, 2018.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended February 28,
2019, thirteen (13) investors converted an aggregate amount of $375,000 of notes issued under the 2<sup>nd</sup> Note Offering
plus accrued and unpaid interest of $12,482.70 into 1,291,609 shares of the Company’s common stock at $0.30 per share.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of February 28, 2019 and May 31, 2018, the
outstanding balance was $380,000 and $60,000, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of February 28, 2019, future principal payments
of the convertible notes payable were approximately as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 12pt Times New Roman, Times, Serif; width: 80%">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font: 11pt Calibri, Helvetica, Sans-Serif"><b>For the twelve months ending February 28,</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="text-align: justify; width: 81%"> </td>
<td style="width: 4%"> </td>
<td style="width: 1%"> </td>
<td style="width: 13%; text-align: right"> </td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">2020</font></td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">1,223,500</font></td>
<td style="padding-bottom: 2.5pt"><font style="font-size: 10pt"> </font><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The convertible notes payable are listed net of unamortized deferred financing costs of $300,455 on the balance
sheet.</p>
14000
80174
49479
57601
39440
42645
109995
1374000
1931000
449000
514000
726890
2018-03-31
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 8 - GOODWILL</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Goodwill represents the excess of the purchase
price over the fair value of the net assets acquired from JCG, VK and GBC as disclosed in Notes 4, 5 and 6. <font style="font-size: 8pt"> </font>The
changes in the carrying amount of goodwill for the nine months ended February 28, 2019 and for the year ended May 31, 2018
were as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid">Nine months ended <br /> February 28, 2019</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid">Year ended <br /> May 31, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt">Balance at beginning of the period/year</td><td style="width: 8%; font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 12%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">921,890</td><td style="width: 1%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 8%; font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 12%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">—  </td><td style="width: 1%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt">Acquisition of GBC (Note 4)</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">—  </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">726,890</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt">Acquisition of VK (Note 5)</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">—  </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">195,000</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Acquisition of JCG (Note 3)</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">1,185,000</td><td style="padding-bottom: 1pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">—  </td><td style="padding-bottom: 1pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Balance at the end of the period/year</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">2,106,890</td><td style="padding-bottom: 2.5pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">921,890</td><td style="padding-bottom: 2.5pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Goodwill resulting from the business acquisitions
completed during the nine months ended February 28, 2019 and in the year ended May 31, 2018 have been allocated to the financial
records of the acquired entity. For the nine months ended February 28, 2019 and for the year ended May 31, 2018, the Company
did not recognize goodwill impairment<font style="font-size: 8pt"> </font>. As of February 28, 2019 and May 31, 2018,
there had not been any accumulated goodwill impairment recognized.<font style="font-size: 8pt"> </font></p>
<p style="margin: 0pt"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid">Nine months ended <br /> February 28, 2019</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid">Year ended <br /> May 31, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 56%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt">Balance at beginning of the period/year</td><td style="width: 8%; font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 12%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">921,890</td><td style="width: 1%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 8%; font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 12%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">—  </td><td style="width: 1%; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt">Acquisition of GBC (Note 4)</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">—  </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">726,890</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt">Acquisition of VK (Note 5)</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">—  </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">195,000</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Acquisition of JCG (Note 3)</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">1,185,000</td><td style="padding-bottom: 1pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">—  </td><td style="padding-bottom: 1pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Balance at the end of the period/year</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">2,106,890</td><td style="padding-bottom: 2.5pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">921,890</td><td style="padding-bottom: 2.5pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 9 – INTANGIBLE ASSETS</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Intangible assets as of February 28, 2019
and May 31, 2018 are summarized as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 70%">
<tr style="vertical-align: bottom">
<td> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid">February 28, 2019</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid">May 31, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">Intangible assets:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">Intangible assets to be amortized:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 20pt">Business relationships and customer lists</td><td style="width: 1%; font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">882,000</td><td style="width: 1%; padding-bottom: 1pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 0; font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">882,000</td><td style="width: 1%; padding-bottom: 1pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt">Less: accumulated amortization:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-left: 10pt">Intangible assets to be amortized:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 20pt">Business relationships and customer lists</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">184,997</td><td style="padding-bottom: 1pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">80,822</td><td style="padding-bottom: 1pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Net book value at the end of the period/year</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">697,003</td><td style="padding-bottom: 2.5pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">801,178</td><td style="padding-bottom: 2.5pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s intangible assets are tested
for impairment if impairment indicators arise. The Company amortizes its intangible assets using the straight-line method over
a period ranging from 5-10 years.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Amortization expense for the nine months ended
February 28, 2019 and 2018 was approximately $104,175 and $28,125, respectively. Amortization expense for the three months ended
February 28, 2019 and 2018 was approximately $34,725 and $9,375, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The annual estimated amortization expense for
intangible assets for the five succeeding years is as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 70%">
<tr style="vertical-align: bottom">
<td><font style="font: 11pt Calibri, Helvetica, Sans-Serif">For the twelve months ended February 28,</font></td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">2020</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">$</font></td>
<td style="width: 9%; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">138,900</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">2021</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">138,900</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">138,900</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">2023</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">138,900</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">2024</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">54,738</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">Thereafter</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">87,020</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">697,003</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="margin: 0pt"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid">February 28, 2019</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="3" style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: center; border-bottom: Black 1pt solid">May 31, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">Intangible assets:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">Intangible assets to be amortized:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 20pt">Business relationships and customer lists</td><td style="width: 1%; font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">882,000</td><td style="width: 1%; padding-bottom: 1pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="width: 0; font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">882,000</td><td style="width: 1%; padding-bottom: 1pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-left: 5.4pt">Less: accumulated amortization:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-left: 10pt">Intangible assets to be amortized:</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt; padding-left: 20pt">Business relationships and customer lists</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">184,997</td><td style="padding-bottom: 1pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">80,822</td><td style="padding-bottom: 1pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 5.4pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt; padding-left: 5.4pt">Net book value at the end of the period/year</td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">697,003</td><td style="padding-bottom: 2.5pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right">801,178</td><td style="padding-bottom: 2.5pt; font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td><font style="font: 11pt Calibri, Helvetica, Sans-Serif">For the twelve months ended February 28,</font></td>
<td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">2020</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">$</font></td>
<td style="width: 9%; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">138,900</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">2021</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">138,900</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">2022</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">138,900</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 5.4pt; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">2023</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">138,900</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-left: 5.4pt; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">2024</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">54,738</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">Thereafter</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">87,020</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">697,003</font></td>
<td style="padding-bottom: 2.5pt"> </td></tr>
</table>
<p style="margin: 0pt"></p>
882000
882000
15833
194162
Life On Earth, Inc.
0001579010
10-Q
2019-02-28
false
--05-31
Yes
Non-accelerated Filer
Q3
2019
217598
189317
185337
69956
14000
80174
-3066043
-1442681
-1146259
-484687
-1172930
-746858
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-1172930
-746858
-529244
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-484687
-529244
-428751
284265
189510
1353316
509418
151250
143250
392535
94755
106336
15853
29903
1670149
819971
64232
757
138
172
519782
115705
64060
520539
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2733
817238
821071
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Basis of Presentation</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying interim condensed
consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the
United States of America ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission
regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements
prepared in accordance with GAAP have been omitted or condensed pursuant to such regulations. In the opinion of management,
all adjustments considered necessary for a fair presentation of the interim periods presented have been included. All such
adjustments are of a normal recurring nature. The accompanying condensed consolidated financial statements should be read in
conjunction with the Company's audited consolidated financial statements and related notes included in the Company's Form
10-KA as amended of May 31, 2018. Interim results are not necessarily indicative of the results of a full year.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Revenue Recognition</u></p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2014, the FASB issued guidance codified
in ASC 606 which amends the guidance in former ASC 605, “Revenue Recognition.” The core principle of the standard
is to recognize revenue when control of the promised goods or services is transferred to customers in an amount that reflects
the consideration expected to be received for those goods or services. The standard also requires additional disclosures around
the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.</p>
<p style="font: 7pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes sales of its beverage
products, based on predetermined pricing, upon delivery of the product to its customers, as that is when the customer obtains control
of the goods. We considered several factors in determining that control transfers to the customer upon delivery of products. These
factors include that legal title transfers to the customer, we have a present right to payment, and the customer has assumed the
risk and rewards of ownership at the time of delivery. PaymenAll sales were to wholesale customers located within the United States with the
majority of sales to customers in New York and California.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Use of Estimates</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of unaudited condensed
consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the
consolidated balance sheets and the reported amounts of revenues and expenses during the reporting periods. Actual results
could differ from those estimates.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Net Loss Per Common Share</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Basic loss per share is calculated
by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted loss per share
is calculated by dividing net loss by the weighted average number of common shares and dilutive common stock
equivalents outstanding. During periods in which the Company incurs losses, common stock equivalents, if any, are not
considered, as their effect would be anti-dilutive. For the three and nine months ended February 28, 2019 and 2018, warrants and
convertible notes payable could be converted into approximately 4,798,000 and 4,335,000 shares of common stock,
respectively.<font style="font-size: 8pt"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Income Taxes</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company utilizes the accrual method of
accounting for income taxes. Under the accrual method, deferred tax assets and liabilities are determined based on the differences
between the financial reporting basis and the tax basis of the assets and liabilities, and are measured using enacted tax rates
and laws that will be in effect when the differences are expected to reverse. An allowance against deferred tax assets is recognized
when it is more likely than not that such tax benefits will not be realized.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes the financial
statement benefit of an uncertain tax position only after considering the probability that a tax authority would sustain the
position in an examination. For tax positions meeting a “more-likely-than-not” threshold, the amount recognized
in the condensed consolidated financial statements is the benefit expected to be realized upon settlement with the tax
authority. For tax positions not meeting the threshold, no financial statement benefit is recognized. The Company recognizes
interest and penalties, if any, related to uncertain tax positions in income tax expense. The Company did not have any
unrecognized tax benefits as of February 28, 2019 and does not expect this to change significantly over the next 12
months.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Cash and Cash Equivalents</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid investments
with an original maturity of three months or less to be cash equivalents.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Accounts Receivable</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company extends credit to its customers
in the normal course of business and performs ongoing credit evaluations of its customers, maintaining an allowance for potential
credit losses. Uncollectible accounts are written off at the time they are deemed uncollectible.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts receivable is reported net of an allowance
for doubtful accounts. The allowance is based on management's estimate of the uncollectible accounts receivable. As of February
28, 2019 and May 31, 2018, the allowance for doubtful accounts was $80,174 and $14,000, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Inventory</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventory consists of finished goods and raw
materials which are stated at the lower of cost (first-in, first-out) and net realizable value. As of February 28,2019 there was
$328,024 of inventory consisting of $222,971 of finished goods and $105,053 of raw materials. <font style="font-size: 8pt"> </font>As
of May 31, 2018 there was $338,920 of inventory consisting of $289,305 of finished goods and $49,615 of raw materials.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 8pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Equipment</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Equipment is stated at cost. The Company provides
for depreciation based on the useful lives of the assets using straight-line methods. Expenditures for maintenance, repairs, and
betterments that do not materially prolong the normal useful life of an asset have been charged to operations as incurred. Upon
sale or other disposition of assets, the cost and related accumulated depreciation and amortization are removed from these accounts,
and the resulting gain or loss, if any, is reflected in operations.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Goodwill </u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Goodwill is deemed to have an indefinite life,
and accordingly, is not amortized, but evaluated annually (or more frequently if events or changes in circumstances indicate the
carrying value may not be recoverable) for impairment. The most significant assumptions, which are used in this test, are estimates
of future cash flows. If these assumptions differ significantly from actual results, impairment charges may be required in the
future.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Advertising</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Advertising and promotion costs are expensed
as incurred. </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Shipping and Handling</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Shipping and handling costs are included in
costs of goods sold.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Business combination</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">GAAP requires that all business combinations
not involving entities or businesses under common control be accounted for under the acquisition method. The Company applies ASC
805, "Business combinations", whereby the cost of an acquisition is measured as the aggregate of the fair values at the
date of exchange of the assets given, liabilities incurred, and equity instruments issued. The costs directly attributable to the
acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured
separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess
of (i) the total of cost of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously
held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill.
If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized
directly in the consolidated statements of operations and comprehensive income.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The determination and allocation of fair values
to the identifiable assets acquired and liabilities assumed is based on various assumptions and valuation methodologies requiring
considerable management judgment. The most significant variables in these valuations are discount rates, terminal values, the number
of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the cash inflows
and outflows. Management determines discount rates to be used based on the risk inherent in the related activity's current business
model and industry comparisons. Terminal values are based on the expected life of products and forecasted life cycle and forecasted
cash flows over that period. The Company's estimates of fair value are based upon assumptions believed to be reasonable, but which
are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Any changes to provisional
amounts identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined. </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Recent Accounting Pronouncements</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2014, the Financial Accounting Standards
Board (FASB) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”, effective for fiscal
years beginning after December 15, 2018, that attempts to establish a uniform basis for recording revenue to virtually all industries’
financial statements. The revenue standard’s core principle is to recognize revenue when promised goods or services
are transferred to customers in an amount that reflects the consideration expected to be received for those goods or services.
Additionally, the new guidance requires enhanced disclosure to help financial statement users better understand the nature, amount,
timing and uncertainty of the revenue recorded. Effective June 1, 2018, the Company adopted Topic 606 using the modified retrospective
method. The Company’s accounting policy for the new standard is based on a detailed review of its business and contracts.
Based on the new guidance, the Company will continue to recognize revenue at the time its products are delivered, and therefore
adoption of the standard did not have a material impact on the financial statements and is not expected to have a material impact
in the future.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">  </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the FASB issued a new accounting
standard on leases. The new standard, among other changes, will require lessees to recognize a right-of-use asset and a lease
liability on the balance sheet for all leases. The lease liability will be measured at the present value of the lease payments
over the lease term. The right-of-use asset will be measured at the lease liability amount, adjusted for lease prepayments, lease
incentives received and the lessee’s initial direct costs. The new standard is effective for annual reporting periods beginning
after December 15, 2018, including interim reporting periods within those annual reporting periods. The adoption currently requires
a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest period presented.
In July 2018, the FASB issued ASU 2018-11 making transition requirements less burdensome. The standard provides an option to apply
the transition provisions of the new standard at its adoption date instead of at the earliest comparative period presented in
the Company’s financial statements. The Company will implement a modified retrospective approach for its leases that currently
exist for is new fiscal year beginning on June 1, 2019. <font style="font-size: 8pt"> </font>The Company does not expect
this to have a material impact on a going forward basis.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In January 2017, the FASB issued an update
to the accounting guidance to simplify the testing for goodwill impairment. The update removes the requirement to determine the
implied fair value of goodwill to measure the amount of impairment loss, if any, under the second step of the current goodwill
impairment test. A company will perform its annual or interim goodwill impairment test by comparing the fair value of a reporting
unit with its carrying amount. A goodwill impairment charge will be recognized for the amount by which the reporting unit’s
carrying amount exceeds its fair value, not to exceed the carrying amount of the goodwill. The guidance is effective prospectively
for public business entities for annual reporting periods beginning after December 15, 2019. This standard is required to take
effect in the Company’s first quarter (August 2020) of our fiscal year ending May 31, 2021. We do not expect the adoption
of this new guidance will have a material impact on our financial statements.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management does not believe that any other
recently issued, but not yet effective, accounting pronouncements, if adopted, would have a material effect on the accompanying
consolidated financial statements.</p>
0
0
2
2
3
0.36
0.21
0.34
0.15
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 4 – JCG ACQUISITION</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">To support the company’s strategic initiatives,
the Company acquired JCG and the JCG brands.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Effective August 2, 2018, the Company
entered into an agreement (the “JCG Agreement”) to acquire all of the outstanding stock of JCG in exchange for
1,636,363 shares of the Company’s restricted common stock valued at $0.39 per share for a total value of approximately
$638,000. If these shares are trading below $0.30 after August 2, 2019, the Company will issue additional shares so that the
value of the 1,636,363 shares plus these additional shares, with a floor price of $0.20, will be equal to $900,000. T The JCG
Agreement also provides for the issuance of a warrant for 850,000<font style="font: 8pt Times New Roman, Times, Serif"> </font><font style="font: 12pt Times New Roman, Times, Serif">shares</font>
for the purchase of common stock with a two-year term and an exercise price of $0.85 with a value of approximately $9,400.
The JCG Agreement also provides for an additional 1,090,909 shares of restricted common stock to be issued when the gross
revenues of the JCG brands reach $900,000 in a twelve-month period. The JCG Agreement also provides for additional shares of
restricted common stock, with a market value of $500,000 on the date of issuance, to be issued when the gross revenues of the
JCG brands reach $3,000,000 in a twelve-month period, and again when the gross revenues of the JCG brands reach $5,000,000 in
a twelve-month period. The JCG Agreement also provides for the issuance of the restricted common stock and warrants to the
shareholders of JCG on a pro rata basis according to their respective percentage of ownership as of August 2, 2018. The
restricted common stock may not be transferred, sold, gifted, assigned, pledged, or otherwise disposed of, directly or
indirectly, for a period of twelve months (the “Lock-Up Period”). After the Lock-Up Period, the maximum shares
that may be sold by each restricted common stockholder during any given one-day period shall be 5% of their total holdings or
no more than 20% of the average trading volume of the preceding 30 days, whichever is less. The Company has determined the
value of the contingent shares and warrants, in excess of the initial 1,636,363 shares, to be approximately $722,000, for a
total purchase price value of approximately $1,360,000. The Company has not received a summary of the shareholders of JCG as
of August 2, 2018 and, as a result, has not issued any shares or warrants as of October 19, 2018. The purchase price of
$1,360,000 has been recorded by the Company and is included in Accrued expenses at August 31, 2018.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table summarizes the allocation of the
purchase price to the fair values of the assets acquired and liabilities assumed at the date of acquisition:</p>
<p style="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; background-color: white"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 70%">
<tr style="vertical-align: bottom; background-color: White">
<td style="font-family: Arial, Helvetica, Sans-Serif">Issuance of 1,636,363 shares of common stock with an estimated fair value of $.39 per share</td><td style="width: 1%; font-family: Arial, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 9%; font-family: Arial, Helvetica, Sans-Serif; text-align: right">638,182</td><td style="width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left">Contingent consideration for additional shares and warrants (included in additional paid-in capital)</td><td style="font-family: Arial, Helvetica, Sans-Serif"> </td>
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: right">721,818</td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt">         Total purchase consideration</td><td style="font-family: Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Arial, Helvetica, Sans-Serif; text-align: right">1,360,000</td><td style="padding-bottom: 2.5pt; font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 70%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: 16pt; padding-left: 5.4pt">Cash</td><td style="width: 1%; font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font-family: Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 9%; font-family: Calibri, Helvetica, Sans-Serif; text-align: right">265</td><td style="width: 1%; font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: 16pt; padding-left: 5.4pt">Accounts receivable</td><td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: right">167,700</td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: 16pt; padding-left: 5.4pt">Inventory</td><td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: right">72,035</td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: 16pt; padding-left: 5.4pt">Accounts payable</td><td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: right">(65,000</td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: 16pt; padding-left: 5.4pt">Goodwill</td><td style="font-family: Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri, Helvetica, Sans-Serif; text-align: right">1,185,000</td><td style="padding-bottom: 1pt; font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: 16pt; padding-left: 5.4pt">Net assets acquired</td><td style="font-family: Calibri, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Calibri, Helvetica, Sans-Serif; text-align: right">1,360,000</td><td style="padding-bottom: 2.5pt; font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">From the date of acquisition through February
28, 2019, JCG generated sales of approximately $84,000, cost of goods sold of approximately $145,000, and a net loss of approximately
$61,000.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following table presents the unaudited
pro forma condensed consolidated statements of operations for the six months ended February
28, 2019:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3" style="text-align: center">LFER</td><td> </td>
<td colspan="3" style="text-align: center">JCG</td><td> </td>
<td colspan="3" style="text-align: center">ProForma Adjustments</td><td> </td>
<td colspan="3" style="text-align: center">ProForma Combined</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Sales, net</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,057,557</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">193,846</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,251,404</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Cost of goods sold</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,493,025</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">213,155</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,706,179</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Gross profit</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">564,533</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(19,308</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">545,224</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Operating expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,959,347</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">227,210</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,186,557</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Net loss before other expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,394,814</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(246,518</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,641,332</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Other expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,456,910</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,456,910</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt">Net loss</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2,851,724</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(246,518</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(3,098,242</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td colspan="17" style="font: 10pt Times New Roman, Times, Serif; text-align: center">See accompanying notes to the condensed consolidated unaudited proforma financial information.</td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Proforma Note 1. — Basis of presentation</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The unaudited pro forma condensed
consolidated financial statements are based on Life On Earth, Inc.’s (the “Company” or “LFER”)
historical consolidated financial statements as adjusted to give effect to the acquisition of JCG as if it had occurred on
June 1, 2018. </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="19" style="font-size: 10pt; text-align: center">Unaudited ProForma Condensed Consolidated Financial Information</td></tr>
<tr style="vertical-align: bottom">
<td colspan="19" style="font-size: 10pt; text-align: center">For the nine months ended February, 2018</td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td colspan="3" style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td colspan="3" style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td colspan="3" style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td colspan="3" style="font-size: 10pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">LFER</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">JCG</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">ProForma Adjustments</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; border-bottom: Black 1pt solid">Notes</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">ProForma Combined</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 35%; text-align: left">Sales, net</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,753,215</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">421,355</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%; font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="width: 11%; font: 11pt Calibri, Helvetica, Sans-Serif"></td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,174,570</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Cost of goods sold</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,938,312</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">315,025</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,253,337</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Gross profit</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">814,902</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">106,330</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">921,232</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Operating expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,494,350</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">347,799</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,842,149</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Net loss before other expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(679,448</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(241,469</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(920,917</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Other expenses, net</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(869,860</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(869,860</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9px">Net loss</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,549,308</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(241,469</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,790,777</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="19" style="text-align: center">See accompanying notes to the condensed consolidated unaudited proforma financial information.</td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="19" style="font-size: 10pt; text-align: center">Unaudited ProForma Condensed Consolidated Financial Information</td></tr>
<tr style="vertical-align: bottom">
<td colspan="19" style="font-size: 10pt; text-align: center">For the three months ended February, 2018</td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td colspan="3" style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td colspan="3" style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td colspan="3" style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td colspan="3" style="font-size: 10pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">LFER</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">JCG</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">ProForma Adjustments</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; border-bottom: Black 1pt solid">Notes</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">ProForma Combined</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 35%; text-align: left">Sales, net</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,382,225</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">91,586</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 11%; text-align: center"></td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,473,811</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Cost of goods sold</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,139,954</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">79,703</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,219,657</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Gross profit</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">242,271</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">11,883</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">254,154</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Operating expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">503,265</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">112,769</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">616,034</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Net loss before other expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(260,993</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(100,886</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(361,879</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Other expenses, net</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(255,330</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(255,330</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9px">Net loss</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(516,324</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(100,886</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: center; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(617,210</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="19" style="text-align: center">See accompanying notes to the condensed consolidated unaudited proforma financial information.</td></tr></table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 11pt/normal Arial, Helvetica, Sans-Serif; margin: 0; background-color: white"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 80%">
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 70%; font-family: Arial, Helvetica, Sans-Serif">Issuance of 1,636,363 shares of common stock with an estimated fair value of $.39 per share</td><td style="width: 10%; font-family: Arial, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 18%; font-family: Arial, Helvetica, Sans-Serif; text-align: right">638,182</td><td style="width: 1%; font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left">Contingent consideration for additional shares and warrants (included in additional paid-in capital)</td><td style="font-family: Arial, Helvetica, Sans-Serif"> </td>
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: right">721,818</td><td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-family: Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 2.5pt">         Total purchase consideration</td><td style="font-family: Arial, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Arial, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Arial, Helvetica, Sans-Serif; text-align: right">1,360,000</td><td style="padding-bottom: 2.5pt; font-family: Arial, Helvetica, Sans-Serif; text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" align="center" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse; width: 80%">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; text-indent: 16pt; padding-left: 5.4pt">Cash</td><td style="width: 10%; font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="width: 1%; font-family: Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="width: 18%; font-family: Calibri, Helvetica, Sans-Serif; text-align: right">265</td><td style="width: 1%; font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: 16pt; padding-left: 5.4pt">Accounts receivable</td><td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: right">167,700</td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-indent: 16pt; padding-left: 5.4pt">Inventory</td><td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: right">72,035</td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: 16pt; padding-left: 5.4pt">Accounts payable</td><td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: right">(65,000</td><td style="font-family: Calibri, Helvetica, Sans-Serif; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; text-indent: 16pt; padding-left: 5.4pt">Goodwill</td><td style="font-family: Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-family: Calibri, Helvetica, Sans-Serif; text-align: right">1,185,000</td><td style="padding-bottom: 1pt; font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt; text-indent: 16pt; padding-left: 5.4pt">Net assets acquired</td><td style="font-family: Calibri, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-family: Calibri, Helvetica, Sans-Serif; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-family: Calibri, Helvetica, Sans-Serif; text-align: right">1,360,000</td><td style="padding-bottom: 2.5pt; font-family: Calibri, Helvetica, Sans-Serif; text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="margin: 0pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: bottom">
<td colspan="19" style="font-size: 10pt; text-align: center">Unaudited ProForma Condensed Consolidated Financial Information</td></tr>
<tr style="vertical-align: bottom">
<td colspan="19" style="font-size: 10pt; text-align: center">For the nine months ended February, 2019</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3" style="text-align: center">LFER</td><td> </td>
<td colspan="3" style="text-align: center">JCG</td><td> </td>
<td colspan="3" style="text-align: center">ProForma Adjustments</td><td> </td>
<td colspan="3" style="text-align: center">ProForma Combined</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Sales, net</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,057,557</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">193,846</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">3,251,404</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Cost of goods sold</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,493,025</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">213,155</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,706,179</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Gross profit</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">564,533</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(19,308</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">545,224</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Operating expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,959,347</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">227,210</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">2,186,557</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Net loss before other expenses</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,394,814</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(246,518</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(1,641,332</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Other expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,456,910</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,456,910</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 2.5pt">Net loss</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(2,851,724</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(246,518</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(3,098,242</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td colspan="17" style="font: 10pt Times New Roman, Times, Serif; text-align: center">See accompanying notes to the condensed consolidated unaudited proforma financial information.</td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="19" style="font-size: 10pt; text-align: center">Unaudited ProForma Condensed Consolidated Financial Information</td></tr>
<tr style="vertical-align: bottom">
<td colspan="19" style="font-size: 10pt; text-align: center">For the nine months ended February, 2018</td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td colspan="3" style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td colspan="3" style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td colspan="3" style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td colspan="3" style="font-size: 10pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">LFER</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">JCG</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">ProForma Adjustments</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; border-bottom: Black 1pt solid">Notes</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">ProForma Combined</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 35%; text-align: left">Sales, net</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">4,753,215</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">421,355</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%; font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="width: 11%; font: 11pt Calibri, Helvetica, Sans-Serif"></td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">5,174,570</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Cost of goods sold</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">3,938,312</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">315,025</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">4,253,337</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Gross profit</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">814,902</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">106,330</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">921,232</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Operating expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,494,350</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">347,799</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,842,149</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Net loss before other expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(679,448</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(241,469</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(920,917</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Other expenses, net</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(869,860</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(869,860</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9px">Net loss</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,549,308</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(241,469</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,790,777</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="19" style="text-align: center">See accompanying notes to the condensed consolidated unaudited proforma financial information.</td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 8pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="19" style="font-size: 10pt; text-align: center">Unaudited ProForma Condensed Consolidated Financial Information</td></tr>
<tr style="vertical-align: bottom">
<td colspan="19" style="font-size: 10pt; text-align: center">For the three months ended February, 2018</td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td colspan="3" style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td colspan="3" style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td colspan="3" style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td style="font-size: 10pt; text-align: center"> </td><td style="font-size: 10pt"> </td>
<td colspan="3" style="font-size: 10pt; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">LFER</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">JCG</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">ProForma Adjustments</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; border-bottom: Black 1pt solid">Notes</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">ProForma Combined</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td colspan="3"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td colspan="3"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 35%; text-align: left">Sales, net</td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,382,225</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">91,586</td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 11%; text-align: center"></td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,473,811</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt">Cost of goods sold</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,139,954</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">79,703</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">1,219,657</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Gross profit</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">242,271</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">11,883</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">254,154</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Operating expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">503,265</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">112,769</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">616,034</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 9px">Net loss before other expenses</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(260,993</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(100,886</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(361,879</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1pt">Other expenses, net</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(255,330</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: center; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(255,330</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 9px">Net loss</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(516,324</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(100,886</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="text-align: center; padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">(617,210</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 9px"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: center"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="19" style="text-align: center">See accompanying notes to the condensed consolidated unaudited proforma financial information.</td></tr></table>
75000
7152000
2037-05-31
49058
16094
2682
28033
79737
159467
374000
410000
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138900
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3103056
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721818
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<p style="margin: 0pt"> </p>
<table cellspacing="0" cellpadding="0" align="center" style="font: 10pt Times New Roman, Times, Serif; width: 70%">
<tr style="vertical-align: bottom">
<td style="font-size: 12pt"> </td><td> </td>
<td colspan="3" style="text-align: center">Total Stockholders'</td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 12pt"> </td><td> </td>
<td colspan="3" style="text-align: center">Equity</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 5.4pt">As reported</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">318,086</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Adjustments recorded during the year ended May 31, 2018:</td><td style="font-size: 12pt"> </td>
<td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="font-size: 12pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Discount on extinguishment of convertible debt</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">538,335</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Financings costs associated with the exinguishment of debt</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">(663,798</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Tax benefit</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">136,890</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Adjustments recorded during the quarter ended August 31, 2018:</td><td style="font-size: 12pt"> </td>
<td style="font-size: 12pt; text-align: left"> </td><td style="font-size: 12pt; text-align: right"> </td><td style="font-size: 12pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Financings costs associated with the extinguishment of debt</td><td> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">$</td><td style="border-bottom: Black 1pt solid; text-align: right">159,466</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt">Restated</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">488,979</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="margin: 0pt"></p>
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5000
17
4983
5000
605000
195742
53438
-19308
564533
545224
814902
242271
106330
11883
921232
254154
158712
83559
242271
532485
31739
250678
814902
-136890
-114073
700619
289305
222971
49615
105053
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Note 2 - Liquidity and Going Concern</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited condensed consolidated
financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the recoverability
of assets and the satisfaction of liabilities in the normal course of business.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has incurred losses from inception
of approximately $9,864,000 and has a working capital deficiency of approximately $2,515,000 as of February 28, 2019. Management
believes these conditions raise substantial doubt about the Company's ability to continue as a going concern for the twelve months
following the date the unaudited condensed consolidated financial statements are issued. The Company does not have enough cash
to fund the next 12 months of operations. Management intends to finance operations over the next twelve months through borrowings
from related parties, existing lenders, and others.<font style="font-size: 8pt"> </font></p>
2515000
9864000
3205
167526
170139
130834
112588
19233
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Note 18 – CAPITAL STOCK</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">As of May 31, 2018, the authorized common
stock of the Company was 100,000,000 shares of common stock, $0.001 par value per share, and 10,000,000 shares of preferred stock,
$0.001 par value per share. At February 28, 2019 and May 31, 2018, respectively, there were 34,913,689 and 23,581,586 shares of
common stock outstanding. At February 28, 2019 and May 31, 2018, respectively, there were 1,100,000and 1,200,000 shares of preferred
stock outstanding.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Preferred Stock</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0"> The Preferred Stock has the following
rights and privileges:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Voting – One share of preferred
stock has the equivalent voting rights as 50 shares of common stock.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Other rights and preferences may be determined
from time to time by the Board of Directors of the Company.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Common Stock</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Shares of common stock have the following
rights and privileges:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Voting – The holder of each share
of common stock is entitled to one vote per share held. The holders of common stock are entitled to elect members of the Board
of Directors.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin-right: 0; margin-left: 0">Dividends – Common stockholders
are entitled to receive dividends, if and when declared by the Board of Directors. The Company has not declared dividends since
inception.</p>
One share of preferred stock has the equivalent voting rights as 50 shares of common stock.
62718
1455000
50000
false
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Unamortized deferred financing costs</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Principal</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Net</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 46%; font: bold 10pt Arial, Helvetica, Sans-Serif; text-decoration: underline; text-align: left">The 2016 Notes</td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">6,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 11%; text-align: right">6,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-decoration: underline; text-align: left">Related Party</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-decoration: underline; text-align: left">2017 NPA Notes</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">147,732</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">737,500</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">589,768</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-decoration: underline; text-align: left">The Note Offering</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,317</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">100,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">97,684</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; text-decoration: underline; text-align: left; padding-bottom: 1pt">The 2nd Note Offering</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">150,405</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">380,000</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">229,595</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">300,453</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">1,223,500</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">923,047</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" align="center" style="border-collapse: collapse; width: 100%; font: 12pt Calibri, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="5"><font style="font: 11pt Calibri, Helvetica, Sans-Serif">For the twelve months ended Feb 28:</font><font style="font-size: 8pt"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 11pt; text-align: left; width: 1%"> </td><td style="font-size: 11pt; text-align: right; width: 92%">2020</td>
<td style="width: 4%"> </td>
<td style="font-size: 11pt; text-align: left; width: 2%">$</td><td style="font-size: 11pt; text-align: right; width: 1%">167,526</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 11pt; text-align: left"> </td><td style="font-size: 11pt; text-align: right">2021</td>
<td> </td>
<td style="font-size: 11pt; text-align: left">$</td><td style="font-size: 11pt; text-align: right">170,139</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 11pt; text-align: left"> </td><td style="font-size: 11pt; text-align: right">2022</td>
<td> </td>
<td style="font-size: 11pt; text-align: left">$</td><td style="font-size: 11pt; text-align: right">130,834</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 11pt; text-align: left"> </td><td style="font-size: 11pt; text-align: right">2023</td>
<td> </td>
<td style="font-size: 11pt; text-align: left">$</td><td style="font-size: 11pt; text-align: right">112,588</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 11pt; text-align: left"> </td><td style="font-size: 11pt; text-align: right">2024</td>
<td> </td>
<td style="font-size: 11pt; text-align: left">$</td><td style="font-size: 11pt; text-align: right">19,233</td></tr>
</table>
1100000
-1100000
-1100
1100
318086
538333
-11427
526906