New York
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13-2538207
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(State or other jurisdiction
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(I.R.S. Employer
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of incorporation or organization)
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Identification No.)
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Large
accelerated filer
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☐
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Accelerated
filer
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☐
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Non-accelerated
filer
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☐
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Smaller
reporting company
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☑
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(Do
not check if a smaller
reporting company)
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Class
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Outstanding
April 12, 2017
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Common
Stock $.001 par value
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|
63,622,316
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Item 1.
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Financial Statements.
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1
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Item 2.
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Management’s Discussion and Analysis of Financial Condition
and Results of Operations.
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5
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Item 3.
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Quantitative and Qualitative Disclosures About Market
Risk.
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6
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Item 4.
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Controls and Procedures.
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6
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Item 1.
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Legal Proceedings.
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7
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Item 1A.
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Risk Factors.
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7
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Item 2.
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Unregistered Sales of Equity Securities and Use of
Proceeds.
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7
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Item 3.
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Defaults Upon Senior Securities.
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7
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Item 4.
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Submission of Matters to a Vote of Security Holders.
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7
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Item 5.
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Other Information.
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7
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Item 6.
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Exhibits.
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8
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SIGNATURES
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10
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February 28,
2017
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May 31,
2016
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ASSETS
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Current assets:
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Cash
and cash equivalents
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$88,985
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$4,252
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Accounts
receivable
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11,751
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1,279
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Inventory
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66,342
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197,978
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Total current assets
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167,078
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203,509
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Total assets
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$167,078
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$203,509
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LIABILITIES AND STOCKHOLDERS' DEFICIT
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Current liabilities:
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Accounts
payable and accrued expenses
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$256,869
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$309,403
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Shareholder
loan
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268,765
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278,765
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Total liabilities
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525,634
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588,168
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Stockholders' deficit
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Convertible
preferred stock - $.02 par value, authorized 2,000,000 shares,
issued and outstanding 92,000 shares
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1,840
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1,840
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Common
stock - $.001 par value, authorized 200,000,000 shares, 63,622,316
issued and outstanding at February 28, 2017 and May 31,
2016
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63,622
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63,622
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Additional
paid-in capital
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17,505,936
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17,505,936
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Accumulated
deficit
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(17,929,954)
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(17,956,057)
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Stockholders' deficit
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(358,556)
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(384,659)
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Total liabilities and stockholders' deficit
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$167,078
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$203,509
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For the three months ended
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For the nine months ended
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||
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February 28,
2017
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February 29,
2016
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February 28,
2017
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February 29,
2016
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Revenues:
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Product
sales
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$24,950
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$69,902
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$416,745
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$112,421
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Total revenues
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24,950
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69,902
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416,745
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112,421
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Operating costs and expenses:
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Cost
of sales
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3,570
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4,655
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168,429
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7,471
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Salaries
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25,679
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7,088
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46,165
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48,347
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Professional
fees and consulting
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26,677
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26,970
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90,057
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76,135
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Rent
and office expense
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3,226
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3,721
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9,532
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12,667
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Insurance
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9,061
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5,780
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31,729
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25,905
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Commission
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0
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2,675
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19,434
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2,675
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Other
administrative expenses
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6,810
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12,663
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17,870
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17,499
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Total operating costs and expenses
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75,023
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63,552
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383,216
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190,699
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Other expenses:
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Interest
expense
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(3,811)
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—
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(7,426)
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—
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Net (loss) income
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$(53,884)
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$6,350
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$26,103
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$(78,278)
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Net (loss) income per share – basic and diluted
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$(0.00)
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$0.00
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$0.00
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$(0.00)
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Weighted average number of common shares outstanding – basic
and diluted
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63,622,316
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63,622,316
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63,622,316
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63,622,316
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For the
nine months ended
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February
28,
2017
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February
29,
2016
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Cash flows from operating activities:
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Net
income (loss)
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$26,103
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$(78,278)
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Adjustments
to reconcile net income (loss) to net cash provided by (used in)
operating activities:
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Changes
in operating assets and liabilities
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(Increase)
decrease in accounts receivable
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(10,472)
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47,389
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Decrease
(increase) in inventory
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131,636
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(74,358)
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(Decrease)
increase in accounts payable and accrued expenses
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(52,534)
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104,079
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Net cash provided by (used in) operating activities
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94,733
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(1,168)
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Cash flows from financing activities:
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Borrowings
on shareholder loan
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50,000
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—
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Repayment
of shareholder loan
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(60,000)
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—
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Cash used in financing activities
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(10,000)
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—
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Net
increase (decrease) in cash
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84,733
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(1,168)
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Cash
- beginning of period
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4,252
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37,207
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Cash
– end of period
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$88,985
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$36,039
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Supplemental disclosure of cash flow information:
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Cash
paid for:
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Interest
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$7,426
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—
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Income
taxes
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56
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380
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Exhibit No.
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Description
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Certification pursuant to Exchange Act Rule 13a – 14
(a)/15d-14(a)
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Certification pursuant to 18 U.S.C. Section 1350 as adopted
pursuant to section 906 of the Sarbanes-Oxley Act of
2002
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LESCARDEN INC.
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(Registrant)
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/s/ William E. Luther
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William E. Luther
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Chief Executive and Chief Financial Officer
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