Iota Communications (IOTC) 10-Q/A 22 Jan 20 2020 Q2 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Nov. 30, 2019	Jan. 20, 2020
Document And Entity Information
Entity Registrant Name	IOTA COMMUNICATIONS, INC.
Entity Central Index Key	0001095130
Document Type	10-Q/A
Document Period End Date	Nov. 30, 2019
Amendment Flag	true
Amendment Description	For the purposes of filing XBRL.
Current Fiscal Year End Date	--05-31
Is Entity's Reporting Status Current?	Yes
Is Entity Emerging Growth Company?	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Common Stock, Shares Outstanding		253,892,778
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020
Entity Shell Company	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Nov. 30, 2019	May 31, 2019
Current Assets:
Cash	$ 203,675	$ 788,502
Accounts receivable, net of allowances for doubtful accounts of $1,007,036 and $810,132, respectively	534,404	507,345
Contract assets	171,492	435,788
Other current assets	599,349	635,746
Total current assets	1,508,920	2,367,381
Property and equipment, net of accumulated depreciation of $4,156,990 and $3,759,229, respectively	11,890,089	10,124,763
ROU Asset	17,926,862	0
Intangible assets, net of accumulated amortization of $18,153 and $90, 750, respectively	4,423,720	286,538
Other assets	169,076	198,946
Total assets	35,918,667	12,977,628
Current Liabilities:
Accounts payable and accrued expenses	6,712,696	18,563,550
Payroll liability	1,200,249	1,276,333
Service obligations	97,900	331,280
Current portion of lease liabilitites	1,179,155	0
Deferred revenue	303,269	228,893
Contract liabilities	205,245	188,738
Warranty reserve	150,000	313,881
Convertible debentures, net of debt discount of $1,028,192 and $312,902, respectively	905,637	4,450,296
Contingent liability	3,000,000	0
Notes payable - related party	911,459	0
Notes payable - officers	0	173,769
Notes payable, net of debt discount of $730,008 and $0, respectively	4,331,943	479,102
Total current liabilities	18,997,553	26,005,842
Deferred rent liability	0	1,975,815
Lease liabilities, net of current portion	17,729,382	0
Revenue-based notes, net of debt discount of $765,822 and $914,408	75,409,098	76,489,220
Long-term notes payable - related party	1,176,596	666,154
Long-term notes payable - officer	0	827,348
Asset retirement obligations	1,737,378	1,771,227
Total liabilities	115,050,007	107,735,606
Commitments and contingencies
Deficit:
Convertible preferred stock, $.0001 par value; 5,000,000 shares authorized, no shares issued and outstanding, Series A; 5,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $.0001 par value; 600,000,000 shares authorized; 247,893,229 and 219,205,439 shares issued and outstanding, respectively	24,790	21,921
Additional paid-in capital	37,486,851	24,539,004
Accumulated deficit	(119,964,868)	(119,318,903)
Total Iota Communications, Inc. Stockholders' Deficit	(82,453,227)	(94,757,978)
Non-controlling Interest in variable Interest Entity	3,321,887	0
Total Stockholders' Deficit	(79,131,340)	(94,757,978)
Total liabilities and stockholders' deficit	$ 35,918,667	$ 12,977,628

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Nov. 30, 2019	May 31, 2019
Statement of Financial Position [Abstract]
Allowances for doubtful accounts	$ 1,007,036	$ 810,132
Accumulated depreciation	4,156,990	3,759,229
Accumulated amortization	18,153	90,750
Convertible debenture, debt discount	1,028,192	312,902
Notes payable, debt discount	730,008	0
Revenue-based notes, debt discount	$ 765,822	$ 914,408
Convertible preferred stock, par value	$ 0.0001	$ 0.0001
Convertible preferred stock, shares authorized	5,000,000	5,000,000
Convertible preferred stock, shares issued	0	0
Convertible preferred stock, shares outstanding	0	0
Common stock, par value	$ .0001	$ .0001
Common stock, shares authorized	600,000,000	600,000,000
Common stock, shares issued	247,893,229	219,205,439
Common stock, shares outstanding	247,893,229	219,205,439

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Income Statement [Abstract]
Net sales	$ 257,605	$ 835,869	$ 1,015,566	$ 885,665
Cost of sales	102,033	730,398	816,916	763,375
Gross profit (loss)	155,572	105,471	102,050	198,650
Operating expenses:
Network site expenses	1,120,412	1,656,535	2,378,103	2,827,682
Research and development	1,144	671,544	3,288	2,064,234
Selling, general and administrative	572,318	3,902,845	5,147,867	9,639,176
Depreciation and amortization	283,912	299,720	556,829	554,398
Stock based compensation	597,573	10,521,482	1,299,986	10,521,482
Gain on settlement of past due lease obligations	(11,167,962)	0	(11,167,962)	0
Total operating expenses	(8,592,603)	17,052,126	(1,781,889)	25,606,972
Income (loss) from operations	8,748,175	(16,946,655)	1,980,539	(25,484,682)
Other income (expense):
Interest expense, net	(1,897,898)	(172,242)	(3,161,077)	(177,322)
Total other income (expense)	(1,897,898)	(172,242)	(3,161,077)	(177,322)
Income (loss) before provision for income taxes	6,850,277	(17,118,897)	(1,180,538)	(25,662,004)
Provision for income taxes	0	0	0	0
Net income/(loss)	6,850,277	(17,118,897)	(1,180,538)	(25,662,004)
Net loss attributable to non-controlling interest	(24,577)	0	(24,577)	0
Net income/(loss) attributable to Iota Communications, Inc.	$ 6,874,854	$ (17,118,897)	$ (1,155,961)	$ (25,662,004)
Net income/(loss) per common share - basic	$ 0.03	$ (0.11)	$ (0.01)	$ (0.18)
Net income/(loss) per common share - diluted	$ 0.03	$ (0.11)	$ (0.01)	$ (0.18)
Weighted average shares outstanding - basic	230,721,378	161,245,806	225,778,381	145,372,474
Weighted average shares outstanding - diluted	234,052,033	161,245,806	225,778,381	145,372,474

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($)	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total Iota Communications, Inc. Stockholders' Deficit	Noncontrolling Interest	Total
Beginning balance (in shares) at May. 31, 2018	0	129,671,679
Beginning balance at May. 31, 2018	$ 0	$ 12,967	$ 0	$ (62,541,502)	$ (62,528,535)	$ 0	$ (62,528,535)
Net loss				(8,543,107)	(8,543,107)		(8,543,107)
Ending balance (in shares) at Aug. 31, 2018	0	129,671,679
Ending balance at Aug. 31, 2018	$ 0	$ 12,967	0	(71,084,609)	(71,071,642)	0	(71,071,642)
Beginning balance (in shares) at May. 31, 2018	0	129,671,679
Beginning balance at May. 31, 2018	$ 0	$ 12,967	0	(62,541,502)	(62,528,535)	0	(62,528,535)
Stock based compensation - stock options							202,782
Stock based compensation - common stock							0
Advance payments converted to members equity prior to merger							2,392,441
Common stock issued for exercise of warrants							0
Net loss							(25,662,004)
Ending balance (in shares) at Nov. 30, 2018	0	196,829,076
Ending balance at Nov. 30, 2018	$ 0	$ 19,683	9,543,142	(88,203,506)	(78,640,681)	0	(78,640,681)
Beginning balance (in shares) at Aug. 31, 2018	0	129,671,679
Beginning balance at Aug. 31, 2018	$ 0	$ 12,967	0	(71,084,609)	(71,071,642)	0	(71,071,642)
Stock based compensation - stock options			202,782		202,782		202,782
Advance payments converted to members equity prior to merger, shares	0	7,266,499
Advance payments converted to members equity prior to merger	$ 0	$ 727	2,391,714		2,392,441		2,392,441
Distribution to M2M's former parent company			(5,061,334)		(5,061,334)		(5,061,334)
Recapitalization under reverse merger on September 1, 2018, shares		43,434,034
Recapitalization under reverse merger on September 1, 2018		$ 4,343	876,259		880,602		880,602
Warrants issued in connection with reverse merger			3,992,000		3,992,000		3,992,000
Common stock issued for PPU's in connection with reverse merger, shares		15,906,864
Common stock issued for PPU's in connection with reverse merger		$ 1,591	5,965,409		5,967,000		5,967,000
Common stock issued for inducement and issuances of convertible debt holders		300,000
Common stock issued for inducement and issuances of convertible debt holders		$ 30	277,170		277,200		277,200
Common stock issued for services (in shares)		250,000
Common stock issued for services		$ 25	82,475		82,500		82,500
Beneficial conversion feature on convertible debt			816,667		816,667		816,667
Net loss				(17,118,897)	(17,118,897)		(17,118,897)
Ending balance (in shares) at Nov. 30, 2018	0	196,829,076
Ending balance at Nov. 30, 2018	$ 0	$ 19,683	9,543,142	(88,203,506)	(78,640,681)	0	(78,640,681)
Beginning balance (in shares) at May. 31, 2019	0	219,205,439
Beginning balance at May. 31, 2019	$ 0	$ 21,921	24,029,008	(118,808,907)	(94,757,978)	0	(94,757,978)
Stock based compensation - stock options			202,782		202,782		202,782
Stock based compensation - common stock (in shares)		445,000
Stock based compensation - common stock		$ 45	189,506		189,551		189,551
Common stock issued for the settlement of liabilities (in shares)		300,000
Common stock issued for the settlement of liabilities		$ 30	188,970		189,000		189,000
Warrants issued to investors			310,081		310,081		310,081
Common stock issued for exercise of warrants (in shares)		408,736
Common stock issued for exercise of warrants		$ 41	807		848		848
Common stock issued for inducement and issuances of convertible debt holders		2,100,000
Common stock issued for inducement and issuances of convertible debt holders		$ 210	882,790		883,000		883,000
Common stock issued for services (in shares)		1,133,334
Common stock issued for services		$ 113	759,887		760,000		760,000
Net loss				(8,030,815)	(8,030,815)		(8,030,815)
Ending balance (in shares) at Aug. 31, 2019	0	223,592,509
Ending balance at Aug. 31, 2019	$ 0	$ 22,360	26,563,831	(126,839,722)	(100,253,531)	0	(100,253,531)
Beginning balance (in shares) at May. 31, 2019	0	219,205,439
Beginning balance at May. 31, 2019	$ 0	$ 21,921	24,029,008	(118,808,907)	(94,757,978)	0	(94,757,978)
Stock based compensation - stock options							405,564
Stock based compensation - common stock							189,551
Advance payments converted to members equity prior to merger							0
Common stock issued for exercise of warrants							848
Net loss							(1,180,538)
Ending balance (in shares) at Nov. 30, 2019	0	247,893,229
Ending balance at Nov. 30, 2019	$ 0	$ 24,790	37,486,851	(119,964,868)	(82,453,227)	3,321,887	(79,131,340)
Beginning balance (in shares) at Aug. 31, 2019	0	223,592,509
Beginning balance at Aug. 31, 2019	$ 0	$ 22,360	26,563,831	(126,839,722)	(100,253,531)	0	(100,253,531)
Stock based compensation - stock options			202,782		202,782		202,782
Conversion of revenue based notes			410,703		410,703	3,322,964	3,733,667
Iota Spectrum Partners, LP limited partnership interests issued for cash			76,500		76,500	23,500	100,000
Common stock issued in connection with private placement, shares		6,919,782
Common stock issued in connnection with private placement		$ 692	2,213,638		2,214,330		2,214,330
Common stock issued for the settlement of liabilities (in shares)		2,500,000
Common stock issued for the settlement of liabilities		$ 250	849,750		850,000		850,000
Warrants issued to investors			394,791		394,791		394,791
Common stock issued for purchase of Link Labs assets, shares		12,146,241
Common stock issued for purchase of Link Labs assets		$ 1,214	3,764,121		3,765,335		3,765,335
Common stock issued for inducement and issuances of convertible debt holders		2,219,697
Common stock issued for inducement and issuances of convertible debt holders		$ 222	730,384		730,606		730,606
Common stock issued for services (in shares)		515,000
Common stock issued for services		$ 52	156,448		156,500		156,500
Beneficial conversion feature on convertible debt				2,123,903		2,123,903	2,123,903
Net loss				6,874,854	6,874,854	(24,577)	6,850,277
Ending balance (in shares) at Nov. 30, 2019	0	247,893,229
Ending balance at Nov. 30, 2019	$ 0	$ 24,790	$ 37,486,851	$ (119,964,868)	$ (82,453,227)	$ 3,321,887	$ (79,131,340)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended				6 Months Ended		12 Months Ended
	Nov. 30, 2019	Aug. 31, 2019	Nov. 30, 2018	Aug. 31, 2018	Nov. 30, 2019	Nov. 30, 2018	May 31, 2019
Cash flows from operating activities:
Net loss	$ 6,850,277	$ (8,030,815)	$ (17,118,897)	$ (8,543,107)	$ (1,180,538)	$ (25,662,004)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for doubtful accounts					196,904	0
Stock based compensation - stock options					405,564	202,782
Stock based compensation - common stock		189,551			189,551	0
Loss on sale of property and equipment					311,895	36,053
Warrants issued in connection with reverse merger					0	3,992,000
Common stock issued for PPU's in connection with reverse merger					0	5,967,000
Write off of asset retirement obligation due to tower decomissioning					(69,684)	0	$ 0
Loss on settlement of liabilities					146,508	0
Gain on settlement of past due lease obligations					(11,167,962)	0
Gain on lease terminations and decommissioning of towers					(1,100,435)
Warrants issued to investors					704,872	0
Depreciation and amortization					556,829	556,802
Amortization of debt discount and deferred finance costs					917,838	223,516
Issuance of common stock for inducement of convertible debt holders					1,613,606	277,200
Issuance of common stock for services					916,500	82,500
Issuance of common stock for the exercise of warrants		848			848	0
Accretion of asset retirement obligations	10,642		13,149		26,279	26,401	53,306
Amortization in financing costs (revenue-based notes)					148,586	0
Provision for warranty claims					(163,881)	39,122
Noncash lease impact					91,733	0
Changes in operating assets and liabilities:
Accounts receivable					(223,963)	(280,614)
Contract assets					301,714	153,155
Other current assets					36,397	(338,723)
Due - related party					0	(42,315)
Accounts payable and accrued expenses					454,983	1,770,701
Payroll liability					(76,084)	709,787
Lease liability	(475,298)				169,321	0
Deferred revenue					74,376	(5,746)
Deferred rent liability					0	106,492
Service obligations					(233,380)	0
Contract liabilites					16,507	34,439
Accrued interest on revenue-based notes					97,452	63,952
Net cash used in operating activities					(6,837,664)	(12,087,500)
Cash flows from investing activities:
Purchases of property and equipment					(33,759)	(76,575)
Purchase of note receivable - Solbright					0	(5,038,712)
Advances to Solbright					0	(827,700)
Security deposit					29,870	172,326
Cash acquired in merger					0	72,059
Net cash used in investing activities					(3,889)	(5,698,602)
Cash flows from financing activities:
Proceeds from common stock issuance, net					2,375,968	0
Common stock issuance costs					(161,638)	0
Proceeds from revenue-based notes					2,407,505	14,452,871
Proceeds from convertible notes payable					1,964,320	2,600,616
Proceeds from note payable - officer					0	150,000
Proceeds from notes payable, related party					140,000	0
Proceeds from issuance of limited partnership interests in Iota Spectrum Partners, LP					100,000	0
Payments on convertible notes					(433,197)	(69,300)
Payments on notes payable					(17,131)	(50,000)
Payments on notes payable - related party					(119,101)	(101,933)
Net cash provided by financing activities					6,256,726	16,982,254
Net decrease in cash					(584,827)	(803,848)
Cash - beginning of period		$ 788,502		$ 1,492,784	788,502	1,492,784	1,492,784
Cash - end of period	$ 203,675		688,936		203,675	688,936	$ 788,502
Supplemental cash flow information:
Interest					343,667	223,325
Income taxes					0	0
Noncash investing and financing activities:
Additions to asset retirement costs					8,774	26,920
Non-cash distribution to M2M's former parent company					0	5,061,334
Common stock issued for purchase of Link Labs assets					$ 3,765,335	$ 0
Common stock issued for settlement of accounts payable					887,692	0
Original issue discount in connection with convertible debt issued					$ 118,830	$ 0
Deferred finance costs in connection with convertible debt issued					85,680	0
Debt discount in connection with restricted shares issued with convertible debt					212,815
Beneficial conversion feature in connection with convertible debt issued and Black-Scholes market value of warrants					2,123,903	816,667
Software acquired in connection with Link Labs acquisition					2,610,000	0
Intangible assets acquired in connection with Link Labs acquisition					4,155,335	0
Contingent liabilities incurred in connection with Link Labs asset acquisition					(3,000,000)	0
Note payable - related party					911,459	0
Fair value of revenue - based notes transferred to Iota Spectrum Partners, LP					3,733,667	0
Right of Use asset recorded upon adoption of ASC 842					19,867,608	0
Lease Liability recorded upon adoption of ASC 842					(21,843,423)	0
Deferred rent reclassified to ROU asset upon ad option of ASC 842					1,975,815	0
Advance payments converted to equity			$ 2,392,441		$ 0	$ 2,392,441

DESCRIPTION OF BUSINESS AND BAS

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	6 Months Ended
	Nov. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND BUSINESS OPERATIONS	Description of Business Iota Communications, Inc., (f/k/a Solbright Group, Inc.) (the “Parent” or “Iota Communications”), was formed in the State of Delaware on May 7, 1998. Iota Communications conducts business activities principally through its three wholly-owned subsidiaries and one consolidated variable interest entity, Iota Networks, LLC (f/k/a M2M Spectrum Networks, LLC (“M2M”)) (“Iota Networks”), an Arizona limited liability company, Iota Commercial Solutions, LLC (f/k/a SolBright Energy Solutions, LLC) (“ICS” or “Iota Commercial Solutions”), a Delaware limited liability company, Iota Spectrum Holdings, LLC, an Arizona limited liability company (“Iota Holdings”), and Iota Spectrum Partners, LP, an Arizona limited partnership (“Iota Partners”), a consolidated variable-interest entity (collectively, the “Company”). On July 30, 2018, Iota Communications, entered into an Agreement and Plan of Merger and Reorganization (as amended on September 5, 2018, the “Merger Agreement”) with its newly-formed, wholly owned Arizona subsidiary (“Merger Sub”), Iota Networks, and Spectrum Networks Group, LLC, an Arizona limited liability company and the majority member of M2M. Upon closing, Merger Sub merged into and with Iota Networks, with Iota Networks continuing as the surviving entity and a wholly owned subsidiary of Iota Communications (the “Merger”) (See Note 3). In connection with the Merger, on November 26, 2018, a Certificate of Amendment was filed with the State of Delaware to amend the name of the Company from “Solbright Group, Inc.” to “Iota Communications, Inc.” In addition, as of November 28, 2018, our trading symbol changed from “SBRT” to “IOTC”. Immediately following the Merger, the Company had 196,279,076 shares of common stock issued and outstanding. The pre-Merger stockholders of the Company retained an aggregate of 43,434,034 shares of common stock of the Company, representing approximately 22.1% ownership of the post-Merger Company. Therefore, upon consummation of the Merger, there was a change in control of the Company, with the former owners of Iota Networks effectively acquiring control of the Company. The Merger was treated as a recapitalization and reverse acquisition of the Company for financial reporting purposes. Iota Networks is considered the acquirer for accounting purposes, and the Company’s historical financial statements before the Merger have been replaced with the historical financial statements of Iota Networks before the Merger in future filings with the SEC. The Company is a vertically integrated wireless network carrier and software-as-a-service (“SaaS”) company dedicated to the Internet of Things (“IoT”). The Company combines long range wireless connectivity with software applications to provide commercial customers turn-key services to optimize energy efficiency, sustainability and operations for their facilities. The Company’s value proposition is to provide turn-key services to its commercial customers, focusing on the development of IoT solutions around Smart Buildings, and its related services including energy management, asset tracking, and predictive maintenance. In order to be turn-key, our business strategy aims to bundle connectivity with data aggregation and analysis into an “as-a-service” offering with a focus on Smart Buildings and Smart Cities. The Company operates its business across four segments: (1) Iota Communications, (2) Iota Networks, (3) Iota Commercial Solutions, and (4) Iota Holdings. Operating activities related to the parent company are classified within Iota Communications. Iota Communications The parent company operations are primarily related to running the operations of the public Company. The Company re-organized its operating segments in September 2018 in conjunction with the Merger with M2M. The significant expenses included within the parent company are executive and employee salaries, stock-based compensation, professional and service fees, rent, and interest on convertible and other notes. Iota Networks Iota Networks is the network and research and development segment of the business where all activities related to the development of the network and application technology are conducted. Iota Commercial Solutions The ICS business segment is the sales and marketing segment of our business focusing on the commercialization of applications that leverage our connectivity and analytics to reduce costs, optimize operations, and advance sustainability. Data collected from sensors and other advanced end-point devices as well as other external data, such as weather patterns and utility pricing, is run through a data analysis engine to yield actionable insights for our commercial customers. Additionally, ICS may act as a general contractor for energy management-related services, such as solar photovoltaic system installation and LED lighting retrofits. Iota Holdings Iota Holdings was formed to act as the general partner for Iota Partners. Iota Partners is a variable interest entity of Iota Holdings (“Iota Partners”). The purpose of Iota Partners is to own spectrum licenses that Iota Networks uses to operate its network. Upon approval by the FCC, Iota Networks will contribute the licenses it owns to Iota Partners in exchange for General Partnership Units issued to Iota Holdings, then lease back those licenses pursuant to a master lease agreement covering all licenses owned by Iota Partners. Through November 30, 2019, Iota Networks has transferred licenses representing 16,246,612 MHz-POPs, or $3,733,667 in revenue-based notes, to Iota Partners for 4,873,984 LP units. In addition, and through November 30, 2019, Iota Networks transferred licenses representing 1,922,474 MHz-POPs to Iota Partners for 576,742 GP Units. Additionally, three investors purchased a total of 30,000 LP Units for an aggregate total of $100,000. At November 30, 2019, Iota owns 11% of the outstanding LP Units resulting in a noncontrolling interest of 89%. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission including Form 10-Q and Regulation S-X. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly state the operating results for the respective periods. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been omitted pursuant to such rules and regulations. These financial statements and the information included under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” should be read in conjunction with the audited financial statements and explanatory notes for the year ended May 31, 2019 as disclosed in our Form 10-K filed on September 13, 2019. The results of the six months ended November 30, 2019 (unaudited) are not necessarily indicative of the results to be expected for the pending full year ending May 31, 2020. Liquidity and Going Concern The Company’s primary need for liquidity is to fund the working capital needs of the business. The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred net losses of approximately $120 million since inception, including a net loss of approximately $1.2 million for the six months ended November 30, 2019. Additionally, the Company had negative working capital of approximately $17.5 million and $23.6 million at November 30, 2019 and May 31, 2019, respectively, and has negative cash flows from operations of approximately $6.8 million for the six months ended November 30, 2019. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management expects to incur additional losses in the foreseeable future and recognizes the need to raise capital to remain viable. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. The Company’s plan, through potential acquisitions and the continued promotion of its services to existing and potential customers, is to generate sufficient revenues to cover its anticipated expenses. The Company believes it can raise additional capital to meet its short-term cash requirements, including an equity raise and debt funding from third parties. Subsequent to November 30, 2019, and in connection with the September 23, 2019 private placement offering, the Company received cash proceeds of $1,620,767, net of $128,078 in equity issuance fees. The cumulative equity raise under the September 23, 2019 private placement offering through the date of this report is $3,835,097, net of $289,926 in equity issuance fees. In addition, and subsequent to November 30, 2019, there were 48,158,215 MHz-POPs transferred to Iota Partners, from Iota Networks, resulting in the termination of $11,076,435 of revenue-based notes. The MHz-POPs transferred represent 14,447,465 LP Units. As of the date of this report, the Company owns 3% of the outstanding LP Units of Iota Partners with a corresponding non-controlling interest of 97%. On December 20, 2019, the Company entered into a secured non-convertible note with AIP totaling $1,400,000, with a maturity date of June 20, 2020. The principal on the note bears an interest rate of LIBOR + 10% per annum, which, along with required monthly principal payments of $50,000, is payable monthly. On January 16, 2020, the Company entered into a Promissory Note in the principal amount of $320,000. The principal bears interest at 3% per annum and has a maturity date of February 29, 2020. As an inducement to enter into the Note, the Company will issue 1,000,000 shares of the Company’s common stock to the buyer (See Note 21). Although no assurances can be given as to the Company’s ability to deliver on its revenue or capital raise plans, or that unforeseen expenses may arise, management believes that the revenue to be generated from operations together with potential equity and debt financing or other potential financing will provide the necessary funding for the Company to continue as a going concern. However, management cannot guarantee any potential equity or debt financing will be available on favorable terms. Without raising additional capital, there is substantial doubt about the Company’s ability to continue as a going concern through January 21, 2021. As such, management does not believe they have sufficient cash for 12 months from the date of this report. If adequate funds are not available on acceptable terms, or at all, the Company will need to curtail operations, or cease operations completely.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Nov. 30, 2019
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Iota Communications, its three wholly owned subsidiaries, Iota Networks, ICS, and Iota Holdings, and Iota Partners, a variable interest entity controlled by the Company. Intercompany accounts and transactions have been eliminated in consolidation. Reclassifications The following reclassifications have been made to conform the prior period data to the current presentation: (i) for the fiscal year ended May 31, 2019, $110,451 was reclassed from Other Current Assets to Other Assets on the consolidated balance sheet, (ii) for the three and six months ended November 30, 2018, we renamed “Network related costs” on the consolidated statement of operations to “Network site expenses”, (iii) for the six months ended November 30, 2018, $38,719 was reclassed from Interest income to Interest expense, net, (iv) for the three and six months ended November 30, 2018, $403,508 and $782,523, respectively, was reclassed from Network site expense to Research and development, and (v) for the three and six months ended November 30, 2018, $(33,172) was reclassed from Other income (expense) to Selling, general and administrative. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity-based transactions, and disclosure of contingent liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company believes the following critical accounting policies affect its more significant judgments and estimates used in the preparation of the accompanying unaudited consolidated financial statements. Significant estimates include revenue recognition, the allowance for doubtful accounts, the useful life of property and equipment, valuation of long-lived assets for impairment, deferred tax asset and valuation allowance, accounting for variable interest entities, and assumptions used in Black-Scholes-Merton, or BSM, valuation methods, such as expected volatility, risk-free interest rate, and expected dividend rate. Noncontrolling Interests in Consolidated Financial Statements The Company follows Accounting Standards Codification (“ASC”) Topic 810-10-65, Noncontrolling Interests in Consolidated Financial Statements. This statement clarifies that a noncontrolling (minority) interest in a subsidiary is an ownership interest in the entity that should be reported as equity in the unaudited consolidated financial statements. It also requires consolidated net income (loss) to include the amounts attributable to both the parent and the noncontrolling interest, with disclosure on the face of the consolidated statement of operations of the amounts attributed to the parent and to the noncontrolling interest. In accordance with ASC Topic 810-10-45-21, the losses attributable to the parent and the noncontrolling interest in subsidiary may exceed the parent’s interest in the subsidiary’s equity. The excess and any further losses attributable to the parent and the noncontrolling interest shall be attributable to those interests even if that attribution results in a deficit of noncontrolling interest balance. As of November 30, 2019 and May 31, 2019, the Company reflected a noncontrolling interest of $3,321,887 and $0 in connection with its variable interest entity, Iota Partners, as reflected in the accompanying November 30, 2019 unaudited consolidated balance sheet and May 31, 2019 consolidated balance sheet, respectively. Variable Interest Entities The Company follows ASC Topic 810-10-15 guidance with respect to accounting for variable interest entities (“VIEs”). VIEs do not have sufficient equity at risk to finance their activities without additional subordinated financial support from other parties or whose equity investors lack any of the characteristics of a controlling financial interest. A variable interest is an investment or other interest that will absorb portions of a VIE’s expected losses or receive portions of its expected residual returns and are contractual, ownership, or pecuniary in nature and change with changes in the fair value of the entity’s net assets. A reporting entity is the primary beneficiary of a VIE and must consolidate it when that party has a variable interest, or combination of variable interests, that provide it with a controlling financial interest. A party is deemed to have a controlling financial interest if it meets both of the power and losses/benefits criteria. The power criterion is the ability to direct the activities of the VIE that most significantly impact its economic performance. The losses/benefits criterion is the obligation to absorb losses from, or right to receive benefits from, the VIE that could potentially be significant to the VIE. The VIE model requires an ongoing reconsideration of whether a reporting entity is the primary beneficiary of the VIE due to changes in facts and circumstances. The Company currently consolidates one VIE, Iota Partners, as of November 30, 2019. The Company is the primary beneficiary due to its ability to direct the activities of Iota Partners through its wholly owned subsidiary, Iota Holdings. Revenue The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which the Company adopted beginning June 1, 2016. The Company did not record a retrospective adjustment upon adoption, and instead opted to apply the full retrospective method for all customer contracts. As part of ASC Topic 606, the Company adopted several practical expedients including that the Company has determined that it need not adjust the promised amount of consideration for the effects of a significant financing component since the Company expects, at contract inception, that the period between when the Company transfers a promised service to the customer and when the customer pays for that service will be one year or less. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC Topic 606. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Amounts received prior to being earned are recognized as deferred revenue on the accompanying unaudited condensed consolidated balance sheets. For purposes of this presentation, activities related to the Company’s wireless network carrier and application technology segment are classified under Iota Networks, activities related to the Company’s Energy as a Service “EaaS” subscriptions and solar energy, LED lighting, and HVAC implementation services are classified under ICS, activities related to the parent company are classified under Iota Communications, and activities related to the spectrum licenses owned by Iota Partners that Iota Networks uses to operate its networks are classified under Iota Holdings. Iota Networks Iota Networks derives revenues in part The Company has determined there are three performance obligations related to the Network Hosting Services agreements. The first performance obligation arises from the services related to obtaining FCC license perfection, the second performance obligation arises from maintaining the license in compliance with regulatory affairs, and the third performance obligation arises from the services related to acting as a future sales or lease agent for the customer. Given the nature of the service in the first performance obligation, Iota Networks recognizes revenue from the upfront fees at the point in time that the license is perfected. Iota Networks recognizes the annual fee revenue related to the second performance obligation ratably over the contract term as the services are transferred to and performed for the customer. Pursuant to its Network Hosting Services agreements, Iota Networks also derives revenues from annual renewal fees from its customers for the purpose of covering costs associated with maintaining and operating the customer licenses. Annual renewal fee revenue is recognized ratably over the renewal period as the services are performed. The third performance obligation is for future possible services and is recognized when and if the performance obligation is satisfied. Iota Commercial Solutions ICS derives revenues through both Energy as a Service (“EaaS”) recurring subscriptions and solar energy, LED lighting, and HVAC implementation services. Revenues for EaaS offerings sold on a subscription basis are generally recognized ratably over the contract term commencing with the date the service is made available to customers. Revenues from the sale of hardware products are generally recognized upon delivery of the hardware product to the customer provided all other revenue recognition criteria are satisfied. Sales of services are recognized as the performance obligations are fulfilled, and the customer takes risk of ownership and assumes the risk of loss. Service revenue is recognized as the service is completed under ASC Topic 606. Most ICS customer contracts have a single performance obligation which is not separately identifiable from other promises in the contracts and is, therefore, is not distinct. Payment is generally due within 30 to 45 days of invoicing. There is no financing or variable component. ICS serves as the principal in its customer contracts. ICS recognizes solar panel and LED lighting system design, construction, and installation services revenue over time, as performance obligations are satisfied, due to the continuous transfer of control to the customer. ICS has determined that individual contracts at a single location are generally accounted for as a single performance obligation and are not segmented between types of services provided on these contracts. ICS recognizes revenue on these contracts using the cost to cost percentage of completion method, based primarily on contract costs incurred to date compared to total estimated contract costs. The percentage of completion method (an input method) is the most accurate depiction of ICS’s performance because it directly measures the value of the services transferred to the customer, and the consideration that is required to be paid by the customer based on the contract. Changes to total estimated contract costs or losses, if any, are recognized in the period in which they are determined as assessed at the contract level. Pre-contract costs are expensed as incurred unless they are expected to be recovered from the client. Customer payments on solar and LED lighting system contracts are typically billed upon the successful completion of milestones written into the contract and are due within 30 to 45 days of billing, depending on the contract. Contract assets represent revenue recognized in excess of amounts billed and include unbilled receivables (typically for cost reimbursable contracts). Contract liabilities represent amounts billed to clients in excess of revenue recognized to date. ICS has recorded a loss reserve on contract assets of $0 as of November 30, 2019 and $71,624 as of May 31, 2019. The nature of ICS’s solar panel and LED lighting system design, construction, and installation services contracts gives rise to several types of variable consideration, including claims and unpriced change orders. ICS recognizes revenue for variable consideration when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. ICS estimates the amount of revenue to be recognized on variable consideration using the expected value (i.e., the sum of a probability-weighted amount) or the most likely amount method, whichever is expected to better predict the revenue amount. Change orders are modifications of an original contract. Either ICS or its customer may initiate change orders. They may include changes in specifications or design, manner of performance, facilities, equipment, materials, sites and period of completion of the work. ICS evaluates when a change order is probable based upon its experience in negotiating change orders, the customer’s written approval of such changes, or separate documentation of change order costs that are identifiable. Change orders may take time to be formally documented and terms of such change orders are agreed with the customer before the work is performed. Sometimes circumstances require that work progresses before an agreement is reached with the customer. If ICS is having difficulties in renegotiating the change order, it will stop work, record all costs incurred to date, and determine, on a project by project basis, the appropriate final revenue recognition. Factors considered in determining whether revenue associated with claims (including change orders in dispute and unapproved change orders in regard to both scope and price) should be recognized include the following: (a) the contract or other evidence provides a legal basis for the claim, (b) additional costs were caused by circumstances that were unforeseen at the contract date and not the result of deficiencies in ICS’s performance, (c) claim-related costs are identifiable and considered reasonable in view of the work performed, and (d) evidence supporting the claim is objective and verifiable. If the requirements for recognizing revenue for claims or unapproved change orders are met, revenue is recorded only when the costs associated with the claims or unapproved change orders have been incurred. Back charges to suppliers or subcontractors are recognized as a reduction of cost when it is determined that recovery of such cost is probable, and the amounts can be reliably estimated. Disputed back charges are recognized when the same requirements described above for claims accounting have been satisfied. ICS generally provides limited warranties for work performed under its solar and LED lighting system contracts. The warranty periods typically extend for a limited duration following substantial completion of ICS’s work on a project. ICS does not charge customers for or sell warranties separately, and as such, warranties are not considered a separate performance obligation. Most warranties are guaranteed by subcontractors. ICS has recognized a warranty reserve of approximately $150,000 as of November 30, 2019, and approximately $314,000 as of May 31, 2019. ICS’s remaining unsatisfied performance obligations as of November 30, 2019 represent a measure of the total dollar value of work to be performed on contracts awarded and in progress. ICS had $1,455,771 in remaining unsatisfied performance obligations as of November 30, 2019. ICS expects to satisfy its remaining unsatisfied performance obligations as of November 30, 2019 over the following twelve months. Although the remaining unsatisfied performance obligations reflects business that is considered to be firm; cancellations, deferrals, or scope adjustments may occur. The remaining unsatisfied performance obligations is adjusted to reflect any known project cancellations, revisions to project scope and cost, and project deferrals, as appropriate. Disaggregated Revenues Revenue consists of the following by service offering for the six months ended November 30, 2019: Solar Energy, LED Lighting, and HVAC Implementation Service Revenues (a) Network Hosting Services (b) Subscription Revenues (a) Total $ 833,182 $ 156,506 $ 25,878 $ 1,015,566 Revenue consists of the following by service offering for the six months ended November 30, 2018: Solar Energy, LED Lighting, and HVAC Implementation Service Revenues (a) Network Hosting Services (b) Subscription Revenues (a) Total $ 775,500 $ 104,913 $ 5,252 $ 885,665 Revenue consists of the following by service offering for the three months ended November 30, 2019: Solar Energy, LED Lighting, and HVAC Implementation Service Revenues (a) Network Hosting Services (b) Subscription Revenues (a) Total $ 117,910 $ 129,067 $ 10,628 $ 257,605 Revenue consists of the following by service offering for the three months ended November 30, 2018: Solar Energy, LED Lighting, and HVAC Implementation Service Revenues (a) Network Hosting Services (b) Subscription Revenues (a) Total $ 772,570 $ 58,047 $ 5,252 $ 835,869 (a) (b) Cash The Company considers all highly liquid short-term instruments that are purchased with an original maturity of three months or less to be cash equivalents. The Company did not have any cash equivalents as of November 30, 2019 and May 31, 2019. Accounts Receivable Accounts receivable are reported at realizable value, net of allowances for doubtful accounts, which is estimated and recorded in the period the related revenue is recorded. The Company provides for allowances for doubtful receivables based on management’s estimate of uncollectible amounts considering age, collection history, and any other factors considered appropriate. The Company writes off accounts receivable against the allowance for doubtful accounts when a balance is determined to be uncollectible. As of November 30, 2019, and May 31, 2019, the Company’s allowance for doubtful accounts was $1,007,036 and $810,132, respectively. Other receivables are included in other assets on the balance sheet and include amounts due under the various Iota Networks programs including Network Hosting, Spectrum Partners, and Reservation Programs services (See Note 10). Contract Assets The Company records capitalized job costs on the balance sheet and expenses the costs upon completion of related jobs based on when revenue is earned. At November 30, 2019 and May 31, 2019, the Company had $171,492 and $435,788, respectively, of contract assets. Property and Equipment Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, generally three to fifteen years. Expenditures that enhance the useful lives of the assets are capitalized and depreciated. All network site setup costs are capitalized as construction-in-progress ("CIP"), as incurred. As tower and billboard sites become operational and are placed in service as radios are installed, the Company transfers site specific CIP to capitalized tower and billboard site equipment costs and begins to depreciate those assets on a straight-line basis over ten years. Network equipment costs for hardware are capitalized, as incurred, and depreciated on a straight-line basis over five years. Furniture, fixtures, and equipment are capitalized at cost and depreciated on a straight-line basis over useful lives ranging from five to seven years. Software costs are capitalized at cost and depreciated on a straight-line basis over three to five years. Maintenance and repairs are charged to expense as incurred. At the time of retirement or other disposition of property and equipment, the cost and accumulated depreciation will be removed from the accounts and the resulting gain or loss, if any, will be reflected in operations. Software Development Costs The Company is developing application platforms that will utilize the spectrum network and other leased network availability, to provide solutions for customers. The Company follows the guidance of ASC Topic 985-20, Costs of software to be sold, leased, or marketed, which calls for the expense of costs until technical feasibility is established. Any costs the Company had incurred during planning, designing, coding, and testing activities that are necessary to establish that the product can be produced to meet its design specifications are expensed as incurred. Once technical feasibility of the product has been established, the Company capitalizes the costs until the product is available for general release to customers. The capitalized costs are amortized on a product-by-product basis over the estimated economic life of the product. When conditions indicate a potential impairment, the Company compares the unamortized capitalized costs to the estimated net realizable value, and if the unamortized costs are greater than the expected future revenues, the excess is written down to the net realizable value. On November 15, 2019, the Company entered into an asset purchase agreement with Link Labs, Inc. to purchase certain assets, including and not limited to, all work product, know-how, work in process, developments, and deliverables related to Iota Link and the Conductor system, as well as certain software, including source code that is used in connection with the development and operation of dedicated network technology using FCC Parts 22, 24, 90 and 101 spectrum for bi-directional wireless data transmission including the Conductor platform modified for provisioning and managing the Iota Link system and related intellectual property (See Note 3). As of November 30, 2019, Iota Link and the Conductor system have reached technological feasibility and as such appropriate costs have been capitalized. As of November 30, 2019, there were no other software or related products that have reached technical feasibility. For the three and six months ending November 30, 2019 and 2018, approximately $1,144 and $3,288 and $403,509 and $782,524, respectively, in software development costs have been expensed within research and development costs in the statement of operations. Impairment of Long-Lived Assets and Right of Use Asset The Company reviews long-lived assets, including definite-lived intangible assets and right of use (“ROU”) lease assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows of the operation to which the assets relate to the carrying amount. If the operation is determined to be unable to recover the carrying amount of its assets, then these assets are written down first, followed by other long-lived assets of the operation, to fair value. Fair value is determined based on discounted cash flows or appraised values, depending on the nature of the assets. For the six months ending November 30, 2019 and 2018, there were no impairment losses recognized for long-lived assets. Leases Leases in which the Company is the lessee include leases of office facilities, office equipment, and tower and billboard space. All of the Company’s leases are classified as operating leases. The Company is obligated under certain lease agreements for office space and office equipment with lease terms expiring on various dates from 2019 through 2022. The Company leases tower and billboard space in various geographic locations across the United States, upon and through which its spectrum network is being developed. Generally, these leases are for an initial five-year term with annual lease rate escalations of approximately 3%. With limited exceptions, the leases provide anywhere from one to as many as five, 5-year options to extend. Most of these leases require the Company to restore the towers and billboards to their original pre-lease condition, which creates asset retirement obligations (see Note 13). In accordance with ASC Topic 842, Leases, and upon its adoption by the Company on June 1, 2019, the Company recognized right of use assets and corresponding lease liabilities on its unaudited condensed consolidated balance sheet for its operating lease agreements. The Company elected the package of practical expedients for its operating leases, which permits the Company not to reassess under the new standard the prior conclusions about lease identification, lease classification, and initial direct costs. See Note 17 - Leases for further discussion, including the impact on the Company’s unaudited condensed consolidated financial statements and required disclosures. Intangible Assets The Company records its intangible assets at cost in accordance with ASC Topic 350, Intangibles – Goodwill and Other. Definite lived intangible assets are amortized over the estimated life using the straight-line method, which is determined by identifying the period over which the cash flows from the asset are expected to be generated. During the six months ended November 30, 2019, the Company had no impairment losses relating to its intangible assets (See Note 6). Convertible Instruments The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with accounting standards for Accounting for Derivative Instruments and Hedging Activities, ASC Topic 815. ASC Topic 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable GAAP with changes in fair value reported in earnings as they occur, and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional as defined under professional standards as “The Meaning of Conventional Convertible Debt Instrument”. The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with professional standards when “Accounting for Convertible Securities with Beneficial Conversion Features,” as those professional standards pertain to “Certain Convertible Instruments.” Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Original issue discounts (“OID”) under these arrangements are amortized over the term of the related debt to their earliest date of redemption. ASC Topic 815-40 provides that, among other things, generally if an event is not within the entity’s control, or could require net cash settlement, then the contract shall be classified as an asset or a liability. Contingent Liability On November 15, 2019, the Company entered into an asset purchase agreement (the “Purchase Agreement”) with Link Labs, Inc. Pursuant to the Purchase Agreement, the Company will acquire certain assets from Link Labs (the “Purchased Assets”) in a series of three closings on the Purchase Agreement terms and subject to the conditions set forth therein, for consideration totaling $6,765,335 in cash and stock. Through November 30, 2019, the first of these closings had occurred for consideration totaling $3,765,335. The contingent obligation for the second and third closings, totaling $3,000,000, has been accrued on the Company’s unaudited consolidated balance sheet at November 30, 2019 as a contingent liability (See Note 3). Asset Retirement Obligations The Company accounts for asset retirement obligations in accordance with authoritative guidance that requires entities to record the fair value of a liability for an asset retirement obligation in the period in which it is incurred. An asset retirement obligation is defined as a legal obligation associated with the retirement of tangible long-lived assets in which the timing and/or method of settlement may or may not be conditional on a future event that may or may not be within the control of the Company. When the liability is initially recorded, the Company capitalizes the estimated cost of retiring the asset as part of the carrying amount of the related long-lived asset. The Company estimates the fair value of its asset retirement obligations based on the discounting of expected cash flows using various estimates, assumptions, and judgments regarding certain factors such as the existence of a legal obligation for an asset retirement obligation; estimated amounts and timing of settlements; the credit-adjusted risk-free rate to be used; and inflation rates. The asset retirement obligations of the Company are associated with leases for its tower and billboard site locations. For purposes of estimating its asset retirement obligations, the Company assumes all lease extension options will be exercised for the tower and billboard site locations, consequently resulting in measurement periods of 5 - 30 years. Accretion associated with asset retirement costs is recognized over the full term of the respective leases, including extension options. Deferred Rent The Company recognizes escalating rent provisions on a straight-line basis over the corresponding lease term. Prior to its adoption of ASC Topic 842, and for leases associated with its tower and billboard site locations, the Company assumed all lease extension options would be exercised resulting in lease terms of 5 – 30 years. For leases associated with office space, the Company assumed the initial lease term, generally 5 years. A deferred rent liability is recognized for the difference between actual scheduled lease payments and the rent expense determined on a straight-line basis. On June 1, 2019, the Company adopted ASC Topic 842 – Leases, and, as such, included all unamortized deferred rent as a component of the ROU asset for the Company’s tower, billboard, and long-term office lease. Research & Development Costs In accordance with ASC Topic 730-10-25, research and development costs are charged to expense when incurred. Total research and development costs were $1,144 and $3,288 and $671,544 and $2,064,234 for the three and six months ended November 30, 2019 and 2018, respectively. License Service Costs The Company incurs costs related to providing license services to its Spectrum Partners. These costs include frequency coordination fees and FCC filing fees. Per the Company’s accounting policy, these costs are expensed as incurred and totaled $72,890 and $1,029,670 and $285,840 and $405,140 for the three and six months ended November 30, 2019 and 2018, respectively, and are recorded within selling, general and administrative expenses on the unaudited condensed consolidated statements of operations. Advertising and Marketing Costs and Deferred Finance Charges The Company expenses advertising and marketing costs as they are incurred. Advertising and marketing expenses were $81,570 and $250,268 and $84,77 and $201,223 for the three and six months ended November 30, 2019 and 2018, respectively. Broker fees associated with the administration of the Spectrum Partners program are capitalized as deferred financing costs offset against the revenue-based loans. These financing costs are amortized over the initial five-year term of the Spectrum Partners program. Amortization of previously deferred financing costs was $94,671 and $148,586 and $53,915 and $104,601 for the three and six months ended November 30, 2019 and 2018, respectively, and are recorded in selling, general and administrative expenses on the unaudited condensed consolidated statements of operations. Segment Policy The Company’s reportable segments include Iota Networks, Iota Commercial Solutions, Iota Communications, and Iota Holdings, and are distinguished by types of service, customers, and methods used to provide services. The operating results of these business segments are regularly reviewed by the Company’s chief operating decision maker. The Company evaluates performance based primarily on income (loss) from operations. Fair Value Measurements ASC Topic 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally uno

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Nov. 30, 2019
Business Combinations [Abstract]
ACQUISITIONS	Merger Agreement with Iota Networks, LLC Effective September 1, 2018, Iota Communications consummated the Merger pursuant to its Merger Agreement with Merger Sub, Iota Networks, and Spectrum Networks Group, LLC. Pursuant to the terms of the Merger Agreement, Merger Sub merged with and into Iota Networks. Iota Networks was the surviving corporation and, as a result of the Merger, became a wholly owned subsidiary of Iota Communications. On September 5, 2018, the parties to the Merger Agreement entered into an amendment to the Merger Agreement (the “Amendment”), pursuant to which the terms of the Merger Agreement were amended to reflect that: · for all bookkeeping and accounting purposes, the closing of the Merger (the “Closing”) was to be deemed to have occurred at 12:01 am local time on the first calendar day of the month in which the Closing occurred; · for the purposes of calculating the number of shares of Iota Communications’ common stock, $0.0001 par value per share, to be issued in exchange for common equity units of Iota Networks in connection with the Merger, the conversion ratio was to be 1.5096; and · 43,434,034 shares of Iota Communications’ common stock were issued and outstanding as of the Closing. Except as specifically amended by the Amendment, all the other terms of the Merger Agreement remained in full force and effect. Pursuant to the Merger Agreement, as amended, at the effective time of the Merger: · Iota Networks outstanding 90,925,518 common equity units were exchanged for an aggregate of 129,671,679 shares of Iota Communications’ common stock; · Iota Networks outstanding 14,559,737 profit participation units were exchanged for an aggregate of 15,824,972 shares of Iota Communications’ common stock; · Warrants to purchase 1,372,252 common equity units of Iota Networks were exchanged for Warrants to purchase an aggregate of 18,281,494 shares of Iota Communications’ common stock; and · A total of $2,392,441 of advance payments from an investor were converted into 7,266,499 common equity units prior to the Merger. Additionally, prior to the Merger, in July 2018, Iota Communications converted $5,038,712 of convertible debt and accrued interest of Iota Communications into 5,038,712 shares of Iota Communications’ common stock, which was distributed to the former parent of Iota Networks. As a result of the exchange of the profit participation units (“PPUs”) for the 15,824,972 shares of Iota Communications’ common stock, the Company recognized approximately $6.0 million of stock compensation expense for the period ended November 30, 2018. The Warrants are exercisable for a period of five years from the date the original warrants to purchase common equity units of Iota Networks were issued to the holders. The Warrants provide for the purchase of shares of Iota Communications’ common stock an exercise price of $0.3753 per share. The Warrants are exercisable for cash only. The number of shares of common stock to be deliverable upon exercise of the Warrants is subject to adjustment for subdivision or consolidation of shares and other standard dilutive events. As a result of these Warrants, Iota Communications recognized approximately $4.0 million of stock compensation expense for the period ended November 30, 2018. Immediately following the Merger, Iota Communications had 196,279,076 shares of common stock issued and outstanding. The pre-Merger stockholders of Iota Communications retained an aggregate of 43,434,034 shares of common stock of Iota Communications, representing approximately 22.1% ownership of the post-Merger company. Therefore, upon consummation of the Merger, there was a change in control of Iota Communications, with the former owners of Iota Networks effectively acquiring control of Iota Communications. The Merger has been treated as a recapitalization and reverse acquisition for financial accounting purposes. Iota Networks is considered the acquirer for accounting purposes, and the registrant’s historical financial statements before the Merger has been replaced with the historical financial statements of Iota Networks before the Merger in the financial statements and filings with the Securities and Exchange Commission. The Company accounted for these transactions in accordance with the acquisition method of accounting for business combinations. Assets and liabilities of the acquired business were included in the unaudited condensed consolidated balance sheet, based on the respective estimated fair value on the date of acquisition as determined in a purchase price allocation using available information and making assumptions management believed are reasonable. The Company obtained a third-party valuation on the fair value of the assets acquired and liabilities assumed for use in the purchase price allocation, as well as the value the consideration exchanged in the Merger. It was determined that the market price of the Company’s common stock was not the most readily determinable measurement for calculating the fair value of the consideration, and instead the estimation of the consideration was based on an income approach to value the equity interest exchanged. The following table summarizes the allocation of the purchase price to the fair values of the assets acquired and liabilities assumed as of the transaction date: Consideration paid $ 880,602 Tangible assets acquired: Cash 72,059 Accounts receivable, net 184,165 Contract assets 473,998 Other current assets & prepaid expenses 354,955 Fixed assets, net 20,291 Security deposit 30,289 Total tangible assets 1,135,757 Assumed liabilities: Accounts payable 2,983,537 Accrued expenses 673,736 Contract liabilities 59,385 Accrued income tax 63,082 Warranty reserve 210,594 Debt subject to equity being issued 179,180 Advances from related party 827,700 Convertible debentures, net of debt discount 850,000 Notes payable 535,832 Total assumed liabilities 6,383,046 Net tangible assets (liabilities) (5,247,289) Intangible assets acquired: (a.) IP/technology/patents 210,000 Customer base 17,000 Tradenames - trademarks 510,500 Non-compete agreements 140,500 Total intangible assets acquired 878,000 Net assets acquired (4,369,289) Goodwill (b.)(c.) $ 5,249,891 a. These intangible assets have a useful life of 4 to 5 years (See Note 6). The useful life of the intangible assets for amortization purposes was determined considering the period of expected cash flows generated by the assets used to measure the fair value of the intangible assets adjusted as appropriate for the entity-specific factors, including legal, regulatory, contractual, competitive, economic, or other factors that may limit the useful life of intangible assets. The primary items that generate goodwill include the value of the synergies between the acquired company and Iota Communications and the acquired assembled workforce, neither of which qualifies for recognition as an intangible asset. b. Goodwill is the excess of the purchase price over the fair value of the underlying net assets acquired. In accordance with applicable accounting standards, goodwill is not amortized, but instead is tested for impairment at least annually or more frequently if certain indicators are present. Goodwill and intangibles are not deductible for tax purposes. c. At May 31, 2019, the Company performed an impairment analysis on Goodwill, and due to the carrying value of the reporting unit being greater than the fair value of the reporting unit, management determined that Goodwill was impaired. The Company recorded a $5,249,891 impairment charge for the fiscal year ended May 31, 2019, to write Goodwill down to $0. Unaudited Pro Forma Financial Information The following unaudited pro forma information presents the consolidated results of operations of Iota Communications and Iota Networks’ as if the Merger consummated on September 1, 2018 had been consummated on June 1, 2017. Such unaudited pro forma information is based on historical unaudited financial information with respect to the 2018 Merger and does not include operational or other charges which might have been affected by the Company. The unaudited pro forma information for the six months ended November 30, 2018 presented below is for illustrative purposes only and is not necessarily indicative of the results which would have been achieved or results which may be achieved in the future: Six Months Ended November 30, 2018 Net revenue $ 1,731,147 Net loss $ (30,515,798 ) Link Labs Asset Acquisition On November 15, 2019, the Company entered into an asset purchase agreement (the “Purchase Agreement”) with Link Labs, Inc., a Delaware corporation (“Link Labs”) and completed the first closing thereunder. Link Labs is the creator of (i) Symphony Link, a low power, wide area wireless network platform that allows for monitoring and two-way communication with Internet of Things (“IoT”) network devices, and (ii) Conductor, which is an enterprise-grade data and network management service for use with Symphony Link. Pursuant to the Purchase Agreement, the Company will acquire certain assets from Link Labs (the “Purchased Assets”) in a series of three closings on the terms and subject to the conditions set forth therein, for total consideration of $6,765,335 in cash and stock. The Purchased Assets consist of: (i) All work product, know-how, work in process, developments, and deliverables related to the Iota Link system under development by Link Labs, including hardware designs, firmware, and related documentation; (ii) All work product, know-how, work in process, developments, and deliverables related to the Conductor system associated with the Iota Link system under development by Link Labs prior to transfer of the source code to Iota Link; and (iii) All software, including source code, as of the first closing, that is used in connection with the development and operation of dedicated network technology using FCC Parts 22, 24, 90 and 101 spectrum for bi-directional wireless data transmission (collectively, the “Iota Exclusive Business”), including the Conductor platform modified for provisioning and managing the Iota Link system, for use by the Company in furtherance of the Iota Exclusive Business (the “Purchased Software”). The assets in (i), (ii) and (iii) represent the Purchased Assets at the first closing (the “First Closing Assets”). (iv) Termination of the existing agreements between Link Labs and the Company relating to the development, purchase, and ongoing usage and maintenance fees for Iota Link and the Conductor system supplied by Link Labs to the Company. The assets in (iv) represent the Purchased Assets to be delivered at the second closing (the “Second Closing Assets”). (v) All improvements, developments, ideas, and inventions related to the Purchased Intellectual Property (as defined in (vi) below) through the date of the final closing (the “Final Closing Date”). (vi) Full ownership and title to certain network technology patents of Link Labs, which constitute all patents that will be filed by or issued to Link Labs through the Final Closing Date that may be used in the Iota Exclusive Business (the “Purchased Intellectual Property”). The assets in (v) and (vi) represent the Purchased Assets to be delivered at the third and final closing (the “Final Closing Assets”). At the first closing, and as consideration for the First Closing Assets, the Company issued 12,146,241 shares of restricted common stock of the Company (the “Common Stock”) to Link Labs for consideration totaling $3,765,335. The Company also made a cash payment of $215,333 to Link Labs, representing a partial payment on certain overdue invoice payments. The Company and Link Labs also entered into a Grant-Back License Agreement on the first closing date whereby, subject to the terms and conditions set forth therein, the Company granted an exclusive, world-wide, royalty free license to Link Labs for its use of the Purchased Intellectual Property. The Company has not assigned any value to the Grant-Back License as Link Labs future use, if any, is not presently known and the license does not have a readily determinable market value. On December 31, 2019, the Company completed the first phase of the second closing which included (i) Link Labs’ provision of evidence of termination of the existing agreements (the “Termination of Agreements”) constituting the Second Closing Assets under the Purchase Agreement (which assets relate to the development, purchase, and ongoing usage and maintenance fees for Iota Link and the Conductor system supplied by Link Labs to the Company), (ii) payment of $1,000,000 in cash by the Company to Link Labs, (iii) payment of an additional $430,666 in cash to Link Labs, (representing the second and final payment of certain overdue invoice payments owed to Link Labs), and (iv) issuance of two promissory notes by the Company to Link Labs (the “Notes”), each in the principal amount of $1,000,000, with the first of such notes due on or before March 31, 2020 and the second due on or before June 30, 2020. The $1,000,000 cash payment and Notes issued are accrued as a $3,000,000 contingent liability on the Company’s unaudited consolidated balance sheet at November 30, 2019. Because the Company was unable to make the cash payments to Link Labs described in (ii) and (iii) above by the December 31, 2019 due date under the Purchase Agreement, it entered into a Side Letter Agreement with Link Labs whereby the parties agreed to break the second closing into three phases. The first phase of the second closing which involved issuance of the Notes was completed on December 31, 2019. The second phase which involved the payment of $1,000,000 to Link Labs was completed on January 3, 2020. The third and final phase of the second closing which involves payment of $430,666 to Link Labs and Link Labs’ provision of the Termination of Agreements was scheduled to be completed on January 17, 2020. Because the Company was unable to make the cash payment to Link Labs described in the third and final phase of the second closing by the January 17, 2020 due date under the Side Letter Agreement, it entered into a Second Side Letter Agreement with Link Labs whereby the parties agreed to extend the due date of the third and final phase of the second closing to January 21, 2020. The third and final closing shall take place on the date on which the Notes have been satisfied in full which may be on or before June 30, 2020, the maturity date of the second Note. At the third and final closing, the Company will acquire the Final Closing Assets. The following table summarizes the allocation of the purchase price to the fair values of the assets acquired as of the transaction date: Consideration: 12,146,241 shares of Common Stock $ 3,765,335 Cash payment (2) 1,000,000 Notes payable (2) 2,000,000 Total Consideration: $ 6,765,335 Tangible assets acquired: Software $ 2,610,000 Intangible assets acquired: In process research and development and Patents (1) $ 4,155,335 Total assets acquired $ 6,765,335 (1) The Company assessed that the acquired in process research and development has future alternative use to the Company and its continued research and development. As such, the acquired asset was not written off upon acquisition. (2) As the second closing has not been completed as of November 30, 2019, the Company recorded the $1,000,000 cash payment and the $2,000,000 in notes payable as a contingent liability on the November 30, 2019, consolidated balance sheet. The Company considered ASC Topic 805, Business Combinations, in its assessment of whether the acquisition from Link Labs constituted the acquisition of a business or an asset acquisition. ASC Topic 805-10-55-3A defines a business as an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs, or other economic benefits directly to investors or other owners, members, or participants. In addition, ASU 2017-01 establishes a screen to determine when a set of assets is not a business. Per this ASU, the screen requires that when substantially all the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The Company believes all the assets acquired from Link Labs can be considered a single asset as one cannot be removed without significant impact to the usability of the others. As such, the Company accounted for the Purchase Agreement as an asset acquisition.

OTHER CURRENT ASSETS

OTHER CURRENT ASSETS	6 Months Ended
	Nov. 30, 2019
Other Assets [Abstract]
OTHER CURRENT ASSETS	Other current assets consist of: November 30, 2019 May 31, 2019 Prepaid expenses $ 574,371 $ 630,746 Prepaid inventory 24,978 5,000 Total other current assets $ 599,349 $ 635,746

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Nov. 30, 2019
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	Property and equipment consist of the following: November 30, 2019 May 31, 2019 Site, tower and billboard equipment $ 6,528,446 $ 6,678,148 Network equipment 859,829 859,829 Asset retirement costs 1,481,399 1,530,163 Furniture, fixtures and equipment 211,544 208,903 Software 2,610,000 - Construction in progress 4,355,861 4,606,949 16,047,079 13,883,992 Less: accumulated depreciation (4,156,990 ) (3,759,229 ) Property and equipment, net $ 11,890,089 $ 10,124,763 Total depreciation expense for the three and six months ended November 30, 2019 and 2018 was $275,143 and $539,291 and $254,045 and $511,427, respectively.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Nov. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	The below table summarizes the identifiable intangible assets as of November 30, 2019 and May 31, 2019: Useful life November 30, 2019 May 31, 2019 In process R&D and Patents (2)(3) $ 4,155,335 $ - Tradename/marks 5 years 165,900 510,500 FCC licenses (1) 114,950 114,950 Non-compete 3 years 5,688 140,500 IP/Technology 5 years - 210,000 Customer base 5 years - 17,000 4,441,873 992,950 Less accumulated amortization (18,153) (90,750) Less impairment charge (-) (615,662) Total $ 4,423,720 $ 286,538 (1) While FCC licenses are issued for only a fixed time, generally ten years, such licenses are subject to renewal by the FCC. License renewals have occurred routinely and at nominal cost in the past. There are currently no legal, regulatory, contractual, competitive, economic, or other factors that limit the useful life of the Company’s FCC licenses. As a result, the Company has determined that the FCC licenses should be treated as an indefinite-lived intangible asset. The Company will evaluate the useful life determination for its FCC licenses each year to determine whether events and circumstances continue to support their treatment as an indefinite useful life asset. (2) The in-process R&D will not begin amortization until all deliverables are complete, at which time useful lives will be determined. (3) Patents have a useful life of 15 years. The weighted average useful life remaining of identifiable intangible assets remaining is 9.43 years. Amortization of identifiable intangible assets for the three and six months ended November 30, 2019 and 2018 was $9,384 and $18,153 and $45,735 and $45,735, respectively. As of November 30, 2019, the estimated annual amortization expense for each of the next five fiscal years is approximately $600,000 per year through 2025 and approximately $1,300,000 in total for the years 2026 - 2035.

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES	6 Months Ended
	Nov. 30, 2019
Accounts Payable and Accrued Liabilities [Abstract]
ACCOUNTS PAYABLE AND ACCRUED EXPENSES	Accounts payable and accrued expenses consist of the following amounts: November 30, 2019 May 31, 2019 Accounts payable $ 5,228,933 $ 14,136,259 Tower and billboard rent accrual - 2,910,483 Accrued expenses 1,483,763 1,516,808 $ 6,712,696 $ 18,563,550 On October 30, 2019, the Company entered into a Collocation and Settlement of Past Due Balance Agreement (the “Collocation Agreement”) with a third-party lessor (See Note 17). As of the date of the Collocation Agreement the Company had a past due balance of rental amounts owed to the Lessor of $11,167,962. Pursuant to the Collocation Agreement, the third-party lessor forgave the past due balance and the Company recorded a gain on settlement for the full amount which is included in operating expenses on the unaudited condensed consolidated statement of operations.

WARRANTY RESERVE

WARRANTY RESERVE	6 Months Ended
	Nov. 30, 2019
Warranty Reserve
WARRANTY RESERVE	As of November 30, 2019, the Company has recognized a warranty reserve of $150,000. Warranty expense (recovery) was $(203,003) and $(163,881) and $0 and $39,122 for the three and six months ended November 30, 2019 and 2018, respectively. The following table provides a roll forward of the Company’s warranty reserve: Opening balance, May 31, 2019 $ 313,881 Accrual for warranties issued 56,436 Settlements made - Adjustments made (220,317 ) Ending balance, November 30, 2019 $ 150,000

CONVERTIBLE DEBENTURES AND NOTE

CONVERTIBLE DEBENTURES AND NOTES PAYABLE	6 Months Ended
	Nov. 30, 2019
Notes Payable [Abstract]
CONVERTIBLE DEBENTURES AND NOTES PAYABLE	As of November 30, 2019, convertible debentures, net of debt discount, consist of the following amounts: November 30, 2019 May 31, 2019 LIBOR + 10% Convertible note payable, due October 31, 2019 – AIP $ - $ 2,283,198 LIBOR + 10% Convertible note payable, due December 7, 2019 – AIP - 1,000,000 LIBOR + 10% Convertible note payable, due May 24, 2020 – AIP - 1,000,000 10% Convertible note payable due December 19, 2020 150,000 150,000 8% Convertible note payable due January 31, 2020 365,000 17,098 8% Convertible note payable, due March 31, 2020 125,635 - 8% Convertible note payable, due April 20, 2020 265,002 - $ 905,637 $ 4,450,296 The above convertible notes included debt discounts totaling $1,613,114 and $796,509 as of November 30, 2019 and May 31, 2019, respectively. Total amortization expense related to these debt discounts was $679,919 and $838,717 and $223,516 and $223,516 for the three and six months ended November 30, 2019 and 2018, respectively. The total unamortized debt discount was $1,028,192 and $312,902 at November 30, 2019 and May 31, 2019, respectively. As of November 30, 2019, notes payable consisted of the following amounts: November 30, 2019 May 31, 2019 Note payable, dated October 4, 2019, with interest at LIBOR + 10% $ 3,869,972 $ - Note payable, dated August 11, 2016, currently in default, with interest of 12% 150,000 150,000 Note payable, dated March 1, 2017, currently in default, with interest at 12% 100,000 100,000 Notes payable dated 2011, currently in default, at interest of 8% 74,812 74,812 Notes payable dated 2011, currently in default, at interest of 0% to 16% 67,159 84,290 Note payable, dated April 20, 2018, currently in default, with interest at 10% 50,000 50,000 Note payable, dated March 31, 2016, currently in default, with interest at 12% 10,000 10,000 Note payable, dated May 6, 2016, currently in default, with interest at 12% 10,000 10,000 $ 4,331,943 $ 479,102 The above notes payable included debt discounts totaling $810,493 and $0 as of November 30, 2019 and May 31, 2019, respectively. Total amortization expense related to these debt discounts was $80,483 and $80,483 for the three and six months ended November 30, 2019. The total unamortized debt discount was $730,008 and $0 at November 30, 2019 and May 31, 2019, respectively. Total expense related to interest for the above convertible debentures and notes payable was $1,129,107 and $2,170,450 and $15,162 and $15,162 for the three and six months ended November 30, 2019 and 2018, respectively. Debentures Assumed in Merger On June 19, 2018, Iota Communications entered into a convertible note payable for $150,000 with interest at 10%, due June 19, 2019, convertible in 180 days at an exercise price equal to a 40% discount of lowest trading price of Iota Communications’ common stock over the 20 trading days prior to conversion. Interest expense on this note was $3,699 and $7,500 and $3,740 and $3,740 for the three and six months ended November 30, 2019 and 2018, respectively. On June 19, 2019, the Company entered into a second amendment with the noteholder extending the maturity date to June 19, 2020. On December 19, 2019, the Company paid $150,000 in principal and $67,521 in accrued interest to satisfy the note. Convertible Debentures and Notes Payable Issued Post-Merger May 21, 2019 On May 21, 2019, the Company entered into a Securities Purchase Agreement (the “May Purchase Agreement”) with an “accredited investor” (the “Buyer”), pursuant to which, for a purchase price of $300,000, the Buyer purchased (a) a Convertible Promissory Note in the principal amount of $330,000 (the “May Convertible Note”), (b) warrants (the “May Warrants”) to purchase 600,000 shares of the Company’s Common Stock, and (c) 100,000 restricted shares of the Company’s Common Stock (the “Shares”). On June 7, 2019, the Company issued 100,000 restricted shares of the Company’s Common Stock resulting in a charge to interest expense of $63,000 for the six months ended November 30, 2019. The Company used the net proceeds for working capital and general corporate purposes. The May Convertible Note has a principal balance of $330,000 (taking into consideration a $30,000 original issue discount received by the Buyer), and a stated maturity date of November 30, 2019. Upon issuance of the May Convertible Note, a one-time interest charge of 8% was applied to the principal amount of the May Convertible Note, which is also payable on maturity. Upon the occurrence of an event of default, which is not cured within 7 business days, the principal balance of the May Convertible Note shall immediately increase to 140% of the outstanding balance immediately prior to the occurrence of the event of default. In addition, upon the occurrence of an event of default, the entire unpaid principal balance of the May Convertible Note, together with any accrued and unpaid interest thereon, will become due and payable, without presentment, demand, or protest of any kind. Amounts due under the May Convertible Note may be converted into shares (“Conversion Shares”) of the Company’s common stock at any time, at the option of the holder, at a conversion price of $0.35 per share. The Company has agreed to at all times reserve and keep available out of its authorized common stock a number of shares equal to at least two times the full number of Conversion Shares. The Company may redeem the May Convertible Note, upon 10 business days’ notice to the holder, by paying the holder: (i) if the redemption is within the first 90 days after the issuance of the May Convertible Note, an amount equal to 100% of the outstanding balance of the May Convertible Note, plus any accrued and unpaid interest, or (ii) if the redemption is on or after the 91st day after issuance of the May Convertible Note, an amount equal to 120% of the outstanding balance of the May Convertible Note, plus any accrued and unpaid interest. If, while the May Convertible Note is outstanding, the Company, or any of its subsidiaries, issues any security with any term more favorable to the holder of such security, or with a term in favor of the holder of such security that was not similarly provided to the Buyer, then the Company will notify the holder of the May Convertible Note of such additional or more favorable term and such term, at holder’s option, shall become a part of the May Convertible Note. The Company has granted the holder piggyback registration rights with respect to the Conversion Shares. The May Warrants are exercisable for a period of three years from the date of issuance, at an exercise price of $0.35 per share. The May Warrants are exercisable for cash, or on a cashless basis. The number of shares of common stock to be deliverable upon exercise of the May Warrants is subject to adjustment for subdivision or consolidation of shares and other standard dilutive events. On November 29, 2019, the Company entered into an amendment in connection with the May Convertible Note. Pursuant to the amendment the maturity date was extended to January 31, 2020 and $35,000 was added to the outstanding principal balance which the Company recorded as interest expense for the three and six months ended November 30, 2019. The issuance of the May Convertible Note resulted in a discount totaling $165,796 related to the conversion feature and a discount from the issuance of warrants of $134,204. Total straight-line amortization of these discounts totaled $157,306 and $330,000 during the three and six months ended November 30, 2019. Total interest expense on this note was approximately $6,654 and $13,200 for the three and six months ended November 30, 2019. September 16, 2019 On September 16, 2019, the Company entered into a Securities Purchase Agreement (the “September Purchase Agreement”) with an “accredited investor” (the “Buyer”), pursuant to which, for a purchase price of $300,000, the Buyer purchased (a) a Convertible Promissory Note in the principal amount of $330,000 (the “September Convertible Note”), (b) warrants (the “September Warrants”) to purchase 600,000 shares of the Company’s Common Stock, and (c) 150,000 restricted shares of the Company’s Common Stock (the “Shares”) (the “Purchase and Sale Transaction”). On September 16, 2019, the Company issued 150,000 restricted shares of the Company’s Common Stock. The Company used the net proceeds for working capital and general corporate purposes. The September Convertible Note has a principal balance of $330,000 (taking into consideration a $30,000 original issue discount received by the Buyer), and a stated maturity date of March 31, 2020. Upon issuance of the September Convertible Note, a one-time interest charge of 8% was applied to the principal amount of the September Convertible Note, which is also payable on maturity. Upon the occurrence of an event of default, which is not cured within 7 business days, the principal balance of the September Convertible Note shall immediately increase to 140% of the outstanding balance immediately prior to the occurrence of the event of default. In addition, upon the occurrence of an event of default, the entire unpaid principal balance of the September Convertible Note, together with any accrued and unpaid interest thereon, will become due and payable, without presentment, demand, or protest of any kind. Amounts due under the September Convertible Note may be converted into shares (“Conversion Shares”) of the Company’s common stock at any time, at the option of the holder, at a conversion price of $0.35 per share. The Company has agreed to at all times reserve and keep available out of its authorized common stock a number of shares equal to at least two times the full number of Conversion Shares. The Company may redeem the September Convertible Note, upon 10 business days’ notice to the holder, by paying the holder: (i) if the redemption is within the first 90 days after the issuance of the September Convertible Note, an amount equal to 100% of the outstanding balance of the September Convertible Note, plus any accrued and unpaid interest, or (ii) if the redemption is on or after the 91st day after issuance of the September Convertible Note, an amount equal to 120% of the outstanding balance of the September Convertible Note, plus any accrued and unpaid interest. If, while the September Convertible Note is outstanding, the Company, or any of its subsidiaries, issues any security with any term more favorable to the holder of such security, or with a term in favor of the holder of such security that was not similarly provided to the Buyer, then the Company will notify the holder of the September Convertible Note of such additional or more favorable term and such term, at holder’s option, shall become a part of the September Convertible Note. The Company has granted the holder piggyback registration rights with respect to the Conversion Shares. The September Warrants are exercisable for a period of three years from the date of issuance, at an exercise price of $0.35 per share. The September Warrants are exercisable for cash, or on a cashless basis. The number of shares of common stock to be deliverable upon exercise of the May Warrants is subject to adjustment for subdivision or consolidation of shares and other standard dilutive events. The issuance of the September Convertible Note resulted in a discount from the beneficial conversion feature totaling $152,531, a discount from the issuance of warrants of $114,282 valued using the Black-Scholes Method, a discount from the issuance of restricted stock of 150,000 shares for $33,187 and a $30,000 original issue discount. Total straight-line amortization of these discounts totaled $125,635 and $125,635 during the three and six months ended November 30, 2019. Total interest expense on this note was approximately $5,500 and $5,500 for the three and six months ended November 30, 2019. October 3, 2019 On October 3, 2019, the Company entered into a Securities Purchase Agreement (the “October Purchase Agreement”) with an “accredited investor” (the “Buyer”), pursuant to which, for a purchase price of $250,000, the Buyer purchased (a) a Convertible Promissory Note in the principal amount of $225,000 (the “October Convertible Note”) and (b) 100,000 restricted shares of the Company’s Common Stock (the “Shares”) (the “Purchase and Sale Transaction”). On October 3, 2019, the Company issued 100,000 restricted shares of the Company’s Common Stock. The Company used the net proceeds for working capital and general corporate purposes. The October Convertible Note has a principal balance of $250,000 (taking into consideration a $25,000 original issue discount received by the Buyer), and a stated maturity date of April 30, 2020. Upon issuance of the September Convertible Note, a one-time interest charge of 8% was applied to the principal amount of the October Convertible Note, which is also payable on maturity. Upon the occurrence of an event of default, which is not cured within 7 business days, the principal balance of the October Convertible Note shall immediately increase to 140% of the outstanding balance immediately prior to the occurrence of the event of default. In addition, upon the occurrence of an event of default, the entire unpaid principal balance of the October Convertible Note, together with any accrued and unpaid interest thereon, will become due and payable, without presentment, demand, or protest of any kind. Amounts due under the October Convertible Note may be converted into shares (“Conversion Shares”) of the Company’s common stock at any time, at the option of the holder, at a conversion price of $0.35 per share. The Company has agreed to at all times reserve and keep available out of its authorized common stock a number of shares equal to at least two times the full number of Conversion Shares. The Company may redeem the October Convertible Note, upon 10 business days’ notice to the holder, by paying the holder: (i) if the redemption is within the first 90 days after the issuance of the October Convertible Note, an amount equal to 100% of the outstanding balance of the October Convertible Note, plus any accrued and unpaid interest, or (ii) if the redemption is on or after the 91st day after issuance of the October Convertible Note, an amount equal to 120% of the outstanding balance of the October Convertible Note, plus any accrued and unpaid interest. If, while the October Convertible Note is outstanding, the Company, or any of its subsidiaries, issues any security with any term more favorable to the holder of such security, or with a term in favor of the holder of such security that was not similarly provided to the Buyer, then the Company will notify the holder of the October Convertible Note of such additional or more favorable term and such term, at holder’s option, shall become a part of the October Convertible Note. The Company has granted the holder piggyback registration rights with respect to the Conversion Shares. The issuance of the October Convertible Note resulted in a discount from the beneficial conversion feature totaling $70,197, a discount from the issuance of restricted stock of 100,000 shares for $34,483 and a $25,000 original issue discount. On October 13, 2019, the Company repaid the October Convertible Note in full. As a result of repayment, the total debt discount associated with the October Convertible Note was expensed at November 30, 2019. Total straight-line amortization of these discounts totaled $129,680 and $129,680 during the three and six months ended November 30, 2019. Total interest expense on this note was approximately $3,333 and $3,333 for the three and six months ended November 30, 2019. October 29, 2019 On October 29, 2019, the Company entered into a Securities Purchase Agreement (the “Oasis Purchase Agreement”) with an “accredited investor” (the “Buyer”), pursuant to which, for a purchase price of $1,088,830, the Buyer purchased (a) a Promissory Note in the principal amount of $1,000,000 (the “Oasis Note”), (b) warrants (the “Oasis Warrants”) to purchase 3,888,679 shares of the Company’s Common Stock and (c) 969,697 restricted shares of the Company’s Common Stock (the “Shares”). On October 29, 2019, the Company issued 969,697 restricted shares of the Company’s Common Stock. The Company used the net proceeds for working capital and general corporate purposes. The Oasis Note has a principal balance of $1,088,830 (taking into consideration a $63,830 original issue discount received by the Buyer and $25,000 in fees), and a stated maturity date of April 30, 2020. Upon issuance of the Oasis Note, a one-time interest charge of 8% was applied to the principal amount of the Oasis Note, which is also payable on maturity. Upon the occurrence of any event of default, the Oasis Note shall become immediately due and payable and the Company shall pay to the Buyer an amount equal to 135% (plus an additional 5% per each additional Event of Default) multiplied by the then outstanding entire balance of the Oasis Note (including unpaid principal and accrued interest) plus Default Interest from the date of the Event of Default, if any, plus any amounts owed to the Buyer (collectively, in the aggregate of all of the above, the “Default Amount”). Upon an Event of Default, the Buyer shall have the right at any time thereafter to convert all or any part of the Oasis Note (including without limitation, accrued and unpaid interests, Default Interest, and any other amounts owed to the Buyer under the Note) into fully paid and non-assessable shares of the Company’s Common Stock at the conversion price, which is equal to the lesser of (i) $0.50 and (ii) 50% of the lowest VWAP of the Common Stock during the thirty (30) Trading Day period ending on either (i) the last complete Trading Day prior to the conversion date or (ii) the conversion date, as determined by the Buyer in its sole discretion upon such conversion (the “Conversion Price”). If the Company fails to reserve a sufficient amount of shares of common stock as required or fails to issue shares of Common Stock to the Buyer upon exercise by the Buyer in accordance with the default terms the amount due upon demand will be the Default Amount multiplied by two (2). The Company has granted the holder piggyback registration rights with respect to the Conversion Shares. The Oasis Warrants are exercisable for a period of five years from the date of issuance, at an exercise price of $0.308 per share. The Oasis Warrants are exercisable for cash, or on a cashless basis. The number of shares of common stock to be deliverable upon exercise of the Oasis Warrants is subject to adjustment for subdivision or consolidation of shares and other standard dilutive events. The issuance of the Oasis Convertible Note resulted in a discount from the beneficial conversion feature totaling $345,334, a discount from the issuance of warrants of $417,955, a discount from the issuance of restricted stock of 969,697 shares for $145,144 and $88,830 of original issue discount. Total straight-line amortization of these discounts totaled $173,437 and $173,437 during the three and six months ended November 30, 2019. Total interest expense on this note was $7,259 and $7,259 for the three and six months ended November 30, 2019. AIP Financing On October 31, 2018, the Company, entered into a Note Purchase Agreement (the “AIP Purchase Agreement”) with a group of noteholders (“AIP”), pursuant to which AIP will purchase, under certain circumstances, U.S. Libor + 10% Senior Secured Collateralized Convertible Promissory Notes of the Company (each, a “AIP Convertible Note” and, collectively, the “AIP Convertible Notes”) in the aggregate principal amount of up to $5,000,000, at a purchase price of 100% (par) per AIP Convertible Note (the “Note Purchase and Sale Transaction”). At the initial closing of the Note Purchase and Sale Transaction, which occurred on October 31, 2018 (the “Initial Closing”), the Company sold AIP an AIP Convertible Note in the principal amount of $2,500,000. The net proceeds from the Initial Closing, in the aggregate amount of $2,261,616 (after deducting fees and expenses related to the Initial Closing in the aggregate amount of $238,384 (including a closing fee and a facility fee paid to the Security Agent, and legal fees and expenses)), were utilized by the Company for working capital and general corporate purposes. The AIP Convertible Note issued in the Initial Closing has a principal balance of $2,500,000, and a stated maturity date on the one-year anniversary of the date of issuance. The principal on the AIP Convertible Note bears interest at a rate of U.S. Libor + 10% per annum, which is also payable on maturity. Upon the occurrence of an event of default, the interest rate will increase by an additional 10% per annum. Amounts due under the AIP Convertible Note may be converted into shares (“AIP Conversion Shares”) of the Company’s common stock, $0.0001 par value per share, at any time at the option of the Holder, at a conversion price of $1.50 per share, which was amended to $1.00 per share pursuant to the May 31, 2019 waiver (the “Conversion Price”). Upon the occurrence of an event of default under the terms of the AIP Convertible Note, and the passage of five business days following AIP giving notice of such event of default to the Company, the entire unpaid principal balance of the AIP Convertible Note, together with any accrued and unpaid interest thereon, will become due and payable, without presentment, demand, or protest of any kind. The Security Agent may also exercise all other rights given to the Security Agent and Holder under the AIP Purchase Agreement. The Conversion Price and number of AIP Conversion Shares are subject to adjustment from time to time for subdivision or consolidation of shares, or upon the issuance by the Company of additional shares of common stock, or common stock equivalents, while the AIP Convertible Note is outstanding, or other standard dilutive events. As condition precedents to AIP purchasing the AIP Convertible Note: · the Company granted to the Security Agent (on behalf of itself and the Holder) a first priority security interest in, and lien on, all now owned or hereafter acquired assets and property, real and personal, of the Company and its subsidiaries (collectively, the “Subsidiaries”), to secure all of the Company’s obligations under the AIP Purchase Agreement and the AIP Convertible Note, pursuant to the terms and conditions of a Security Agreement by and among the Company, the Subsidiaries, and the Security Agent; · the Company, and each Subsidiary, delivered to the Security Agent (on behalf of itself and the Holder) a notarized affidavit of Confession of Judgment to further secure all the Company’s obligations under the AIP Purchase Agreement and the AIP Convertible Note; · each Subsidiary executed and delivered to the Security Agent (on behalf of itself and the Holder) a Guarantee, guaranteeing all the Company’s obligations under the AIP Purchase Agreement and the AIP Convertible Note; · the Company pledged to the Security Agent (on behalf of itself and AIP) all the shares or membership interests (as applicable) of all the Subsidiaries held by the Company; and · certain principals of the Company executed and delivered to the Security Agent (on behalf of itself and the Holder) a Lock-Up Agreement, which provided that each such shareholder will not sell or dispose of its equity securities in the Company at any time the AIP Convertible Note is outstanding and for 60 days thereafter without the consent of the Security Agent. In relation to this transaction, the Company recorded a debt discount related to the beneficial conversion feature, and deferred finance costs totaling $288,384. On December 7, 2018, the Company drew Convertible Note Tranche #2 (“Tranche #2”) totaling $1,000,000, including $83,751 of deferred financing costs, receiving net proceeds of $916,249 against the October 31, 2018, Note Purchase Agreement with a group of noteholders (“AIP”), with a maturity date of December 7, 2019. The principal on Tranche #2 bears an interest rate of U.S. Libor + 10% per annum, which is also payable on maturity. Amounts due under Tranche #2 may be converted into shares of the Company’s common stock, $0.0001 par value per share, at any time at the option of the Holder, at a conversion price of $1.50 per share, which was amended to $1.00 per share pursuant to the May 31, 2019 waiver. On May 24, 2019, the Company drew Convertible Note Tranche #3 (“Tranche #3”) totaling $1,000,000, including $94,376 of deferred financing costs, receiving net proceeds of $905,627 against the October 31, 2018, Note Purchase Agreement with a group of noteholders (“AIP”), with a maturity date of May 24, 2020. The principal on Tranche #3 bears an interest rate of U.S. Libor + 10% per annum, which is also payable on maturity. Amounts due under Tranche #3 may be converted into shares of the Company’s stock, $0.0001 par value per share, at any time at the option of the Holder, at a conversion price of $1.50 per share, which was amended to $1.00 per share pursuant to the May 31, 2019 waiver. During the fiscal year ended May 31, 2019, and through the six months ended November 30, 2019, the Company entered into various waivers and amendments with AIP to satisfy certain covenant requirements. The following terms were changed as a result of the waiver and amendment agreements: · Waiver was conditioned upon the following: o One of the Company’s major vendors agreed in writing to extend the December 31, 2019, date on which the balloon payment is due to the earlier of (i) the date on which the Company raises $20 million of equity capital or (2) date of written approval by AIP to payment of such balloon payment; and o The conversion price of AIP Convertible Notes (Tranche #1, Tranche #2 and Tranche #3) was changed from $1.50 to $1.00 per share. · The Company agreed to issue, and the Holders agree to purchase, additional notes in the aggregate principal amount of $1,000,000 as soon as practicable; · AIP, on behalf of the Holders, agreed that 4,000,000 shares of the AIP Global Macro Fund LP shall be restricted and non-transferable through September 30, 2019, unless the closing price of the Company’s shares of Common Stock is at or below $0.45 per share, in which case such shares become freely tradeable. · The Company may issue, and the Holders may at their option purchase, additional notes in the aggregate principal amount of $500,000 on or after the date of 60 days following the execution of the AIP Waiver, provided the Company has satisfied the following conditions: o One of the Company’s major vendors has entered into a settlement agreement with the Company covering all claims the vendor has or may have against the Company; and o The Company has raised or has binding commitments from investors to invest at least $10 million in common or preferred equity. · The Company shall, if requested by the Holders issue additional notes in the aggregate principal amount of $5,000,000 subject to the terms and conditions of the Note Purchase and Sale Transaction, provided the Company has satisfied the following: the Company has raised, or has binding commitments from investors to invest at least $10 million in common or preferred equity; and the Company has issued, and the Holders have purchased, the additional notes described, as follows: o AIP, on behalf of the Holders agreed that 4,000,000 shares held by AIP Global Macro Fund LP be restricted and non-transferable through September 30, 2019, unless the closing price of the Company’s shares on Common Stock is at or below $0.45 per share, in which case such shares become freely tradeable; and o The Company may issue, and the Holders may at their option purchase, additional notes in the aggregate principal amount of $500,000 on or after the date of 60 days following the execution of the waiver, provided the Company has satisfied the following conditions: (i) one of the Company’s major vendors has entered into a settlement agreement with the Company covering all claims the vendor has or may have against the Company; and (ii) the Company has raised or has binding commitments from investors to invest at least $10 million in the Company’s common or preferred stock. · The Note Purchase and Sale Transaction was amended in its entirety to read as follows with respect to a monthly pay down: “Beginning May 2019, the Company will pay down the outstanding principal amount in an amount equal to $50,000 at the beginning of each month.” · The Holders agreed to extend the maturity date for Tranches #1, #2 and #3 of the Note Purchase and Sale Transaction by six months if (i) the Company’s shares become listed on Nasdaq before the existing maturity date or (ii) the weighted average price of the Company’s shares exceeds two times the conversion price for 20 consecutive trading days, each with a daily volume of 300,000 shares or more. In connection with the above-mentioned waiver the Company issued 2,000,000 shares of the Company’s common stock to AIP on August 29, 2019, resulting in a charge to interest expense of $820,000 for the three and six months ended November 30, 2019. On August 22, 2019, the Company drew Convertible Note Tranche #4 (“Tranche #4) totaling $500,000, including $60,680 of deferred financing costs, receiving net proceeds of $439,320 against the October 31, 2018, Note Purchase Agreement with a group of noteholders (“AIP”), with a maturity date of August 22, 2020. The principal on Tranche #4 bears an interest rate of U.S. Libor + 10% per annum, which is also payable on maturity. Amounts due under Tranche #4 may be converted into shares of the Company’s stock, $0.0001 par value per share, at any time at the option of the Holder, at a conversion price of $1.00 per share. Total straight-line amortization for this transaction amounted to $15,087 and $16,579 for the three and six months ended November 30, 2019 and is included in interest expense. On October 4, 2019, the Company entered into a secured non-convertible note (the “AIP Replacement Note”) with AIP Global Macro Fund, L.P. for a principal amount of $4,600,000 with a maturity date of April 4, 2021. The AIP Replacement Note calls for principal payments of $50,000 per month. The outstanding principal on the note bears interest at a rate of U.S. Libor + 10% per annum. The AIP Replacement Note replaces Tranches #1, #2, #3 and #4 drawn under the Note Purchase Agreement. Due to the AIP Replacement Note not having a conversion feature and replacing the convertible tranches under the Note Purchase Agreement, the Company treated the transaction as an extinguishment of debt as per ASC Topic 470-50 Debt – Modifications and Extinguishment. On October 4, 2019, the Company entered into an Agreement and Extension (the “Extension Agreement”) with AIP to satisfy certain covenant requirements relative to the Note Purchase Agreement. The following terms were agreed to as a result of the Extension Agreement: · No later than October 16, 2019, (i) the Company shall make a principal payment on the tranches stemming from the Note Purchase Agreement in the amount of $33,197 and (ii) the tranches are cancelled and replaced by the AIP Replacement Note with a principal amount of $4,600,000; · The Company shall issue AIP warrants to purchase up to 14,500,000 shares of the Company’s common stock at an exercise price of $0.32 per share (of which 4,350,000 were issued on December 18,2019), as follows; o The five-day volume weighted average price of the Company’s common stock on the last trading day of each calendar month (the “VWAP”) shall be computed. If the VWAP for any month is less than the VWAP for the previous month, the Company shall issue to the Noteholders, upon written request of AIP, up to 1,450,000 new warrants for each such $0.01 decrease; o The Company shall issue to AIP 14,500,000 new warrants (less the amount of warrants previously issued) before the Company prepays the AIP Replacement Note in full on April 4, 2020 if the Company chooses to prepay the AIP Replacement Note on such date; o The Company shall issue to AIP 14,500,000 new warrants (less the amount of warrants previously issued) before the Company prepays the AIP Replacement Note in full on October 4, 2020, if the Company chooses to prepay the AIP Replacement Note on such date; o The Company shall issue to AIP 14,500,000 new warrants (less the amount of warrants previously issued) on the maturity date of the AIP Replacement Note. · The Company issued to AIP 1,000,000 shares of the Company’s common stock on October 22, 2019, with

REVENUE-BASED NOTES AND ACCRUED

REVENUE-BASED NOTES AND ACCRUED INTEREST	6 Months Ended
	Nov. 30, 2019
Notes Payable [Abstract]
REVENUE-BASED NOTES AND ACCRUED INTEREST	Revenue based notes and accrued interest consists of the following: November 30, 2019 May 31, 2019 Spectrum Partners Program $ 66,927,335 $ 68,253,496 Reservation Program 2,045,075 2,045,075 Accrued interest on Reservations Program 341,273 243,820 Solutions Pool Program 6,861,237 6,861,237 Total revenue-based notes 76,174,920 77,403,628 Financing costs, unamortized (765,822) (914,408) Total revenue-based notes, net $ 75,409,098 $ 76,489,220 Spectrum Partners Program The Company’s Spectrum Partners Program include revenue-based notes and represents a noncurrent liability of the Company, which is a component provision of its spectrum lease agreements with its licensees. The Company determined that due to the provisions of ASC Topic 470-10-25, the Company’s “significant continuing involvement in the generation of the cash flows due to the Spectrum Partners,” that the Company should record this as a debt obligation as opposed to deferred income. Maturities of these noncurrent debt obligations over the next five years are not readily determinable because of the uncertainty of the amount of future revenues subject to the ten percent revenue pool described below. The source of repayment is the respective licensees' allocable shares of a quarterly revenue pool established by the Company, payable one quarter in arrears. The loans are deemed fully repaid when all principal has been fully paid. The revenue pool consists of ten percent of the monthly recurring revenue generated from the operation of the Company's network during each fiscal quarter. Recurring network revenues are limited to revenues collected on a continuing basis for the provision of machine-to-machine communication services for the Company's network clients, and are net of all refunds of recurring revenue, including customer or reseller discounts, commissions, referral fees and/or revenue sharing arrangements. Specifically excluded revenues include: revenues from Network Hosting Services; revenues collected to construct licenses; brokerage fees and commissions; and any one-time nonrecurring revenue including set-up, installation, termination, and nonrecurring services; return/restocking revenue; revenues from sales or analysis of network data; revenue from the sale or lease of devices; revenue from the sale of software licensing; and revenue from consulting services. Allocation of revenue pool payments are to be applied in the following order of priority: 1. First, to any outstanding loan amount until fully paid; 2. Thereafter, to lease payments; 3. If, however, the agreement has been terminated or not renewed before a payment is due, then such payment shall be reduced to the amount necessary to pay the loan amount. There was no interest expense related to financing costs for this program for the three and six months ended November 30, 2019 and 2018. Reservation Program Notes The Company’s reservation program, initially launched in April 2017, is intended to facilitate the (i) application for FCC spectrum licenses and (ii) the build-out of FCC granted licenses and (iii) the leasing of those spectrum licenses for clients previously under contract with Smartcomm, LLC, a related party (“Smartcomm”) (the “Reservation Program”). Pursuant to the terms of the Company’s Reservation Program, a Licensee agrees to loan funds to the Company for the purpose of constructing its spectrum licenses when granted by the FCC. The loan term is ten years with simple interest thereon at the rate of 7% per annum. Interest payments due to licensees, payable quarterly in arrears, are made from a separate reservation pool the funding of which is based on a percentage formula of monthly recurring revenue and MHz/Pops under reservation. If, or when, a license is granted and at such time that the Company certifies that license construction is complete, the outstanding loan amount is deemed to be paid in full. Thereafter, the licensee is transferred into the Spectrum Partners Program and future lease payments to the Licensees are made from the revenue pool related thereto and discussed above. If an FCC spectrum license is not granted within ten years of the effective date of the Reservation Program agreement effective date, then the outstanding loan amount and unpaid accrued interest becomes due and payable. The Company intends to convert all the Reservation Program notes to the Spectrum Program Partners revenue notes prior to expiration of the notes. Total interest expense related to financing costs of this program was $61,925 and $97,453 and $33,347 and $64,889 for the six months ended November 30, 2019 and 2018, respectively. Solutions Pool Program The Company’s Solutions Pool Program, initially launched in April 2017, is intended to increase investor returns for the spectrum partner returns on their investment and enable them to receive additional funds from the pool. Pursuant to the terms of the Solutions Pool Program, a Licensee agrees to invest additional funds in the Company for the purpose of obtaining a larger revenue percentage payment as consideration for the additional funds. Payments due to Solutions Pool participants, payable quarterly in arrears, are made from the same Spectrum Partners lease pool payments on a percentage formula of the total investment in the solutions pool. Formation of Iota Spectrum Holdings, LLC and Iota Spectrum Partners, LP On April 17, 2019, the Company formed Iota Holdings to act as the general partner for Iota Partners, which was formed on April 24, 2019. At November 30, 2019, Iota Partners is a variable interest entity controlled by Iota Holdings. The purpose of Iota Partners is to own the spectrum licenses that Iota Networks leases to operate its nationwide IoT communications network. Iota Networks will contribute the licenses it owns to Iota Partners in exchange for general partnership units issued to Iota Holdings, then lease back those licenses pursuant to a master lease agreement covering all licenses owned by Iota Partners. The limited partners will receive Iota Partners units in exchange for the licenses they contribute to Iota Partners, which they currently own and lease to Iota Networks. Iota Partners may raise additional capital by selling Iota Partners units for cash, using the proceeds to obtain additional spectrum to be attributed to those additional Iota Partners units (1 MHz-Pop per Iota Partners unit sold). Lease payments will be made to Iota Partners out of a revenue pool consisting of 10% of the monthly recurring connectivity revenues generated by connecting devices to the Iota Networks network. Revenue Pool payments go to the limited partners only, and those payments are calculated based on the MHz-Pops of the licenses they contributed to Iota Partners. Payments are not paid to Iota Partners for the licenses that were contributed by Iota Networks. Upon a sale or liquidation of Iota Partners’ licenses or assets, all Iota Holdings and Iota Partners units share equally in those proceeds on a per unit basis. When limited partners contribute their licenses to Iota Partners, they also transfer and extinguish their lease agreements with Iota Networks associated with those licenses. Transferring their spectrum licenses and contract rights to Iota Networks, which is subject to FCC approval, will eliminate them as liabilities from the Company’s balance sheet. Similar debt obligations from a Reservation Program can also be eliminated by trading those lease agreements, which have a loan component, to Iota Partners in exchange for Iota Partners units. On November 5, 2019, Iota Partners, Iota Holdings, Iota Communications, Iota Networks, and the Revenue-based Note Holders (the “Exchange Investors”) entered into a Contribution and Exchange Agreement (the “Exchange Agreement”) whereas the Exchange Investors, upon approval from the FCC, will contribute and transfer their FCC licenses to Iota Partners. Pursuant to the Exchange Agreement, the individual Exchange Investors and Iota Networks agree, that effective as of the Closing Date, each existing lease shall be fully and irrevocably terminated. As consideration for the transferred licenses, each Exchange Investor will receive one Iota Partner Unit for each MHz-POP contributed. Through November 30, 2019, Iota Networks has transferred licenses representing 16,246,612 MHz-POPs, or $3,733,667 in revenue-based notes, to Iota Partners for 4,873,984 GP units. In addition, and through November 30, 2019, Iota Networks transferred licenses representing 1,922,474 MHz-POPs to Iota Partners for 576,742 LP Units. Additionally, three investors purchased a total of 30,000 LP Units for an aggregate total of $100,000. At November 30, 2019, Iota owns 11% of the outstanding LP Units resulting in a noncontrolling interest of 89%. There was no interest expense related to financing costs for this program for the six months ended November 30, 2019 and 2018. Total amortization expense related to deferred financing costs was $94,672 and $148,586 and $53,915 and $104,601 for the three and six months ended November 30, 2019 and 2018, respectively.

NOTES PAYABLE TO OFFICER

NOTES PAYABLE TO OFFICER	6 Months Ended
	Nov. 30, 2019
Notes Payable [Abstract]
NOTES PAYABLE TO OFFICER	Short-Term Notes Payable In April 2019, the Company issued two demand promissory notes to an officer and a director, respectively, collectively totaling $110,726. The notes call for periodic graduated annual adjusted rates of interest beginning at 2.89%. In April 2019, the Company issued a demand promissory note to an officer for $140,000 with a graduated annual adjusted interest rate beginning at 2.13%. In May 2019, the Company issued two additional demand promissory notes to two different officers, collectively totaling $62,500. The notes call for an interest rate of 2.74% per annum. In July 2019, the Company issued an additional on demand promissory note totaling $140,000 with an interest rate of 2.13% per annum. The outstanding principal balance of these loans is $557,237 and $173,769 as of November 30, 2019 and May 31, 2019, respectively. Interest accrued on these loans is $4,011 and $543 as of November 30, 2019 and May 31, 2019, respectively. As of November 30, 2019, the holders of the promissory notes are no longer officers, but remain directors of the Company. As such, the Company reclassed these amounts to note payable – related party on the consolidated balance sheet as of November 30, 2019 (See Note 12). Long-Term Notes Payable On February 6, 2017, the Company issued a new promissory note to an officer to replace three prior notes that were held by the officer, collectively totaling $950,000. Accrued interest of $60,714 under the prior notes, has been added to the principal under the new note. The note calls for periodic graduated annual adjusted rates of interest beginning at 2% and ending at 8%. Fifty percent (50%) of the annual interest was required to be paid beginning on or before December 31, 2017, and each year thereafter, with the remaining accrued balance added to principal. Interest is to compound annually. If not paid sooner, the note matures on December 31, 2023. As of November 30, 2019, the Company has paid $76,906 and $42,195 towards principal and accrued interest, respectively. The note provides for alternative payments in equity, where at the discretion of the Company, it may pay all or part of the outstanding loan balance through the issuance of shares of common stock at the fair market value of such shares at the time of issuance. As of November 30, 2019, the note holder is no longer an officer of the Company but remains the Chairman of our Board of Directors. As such, the Company reclassed the note to note payable – related party on the consolidated balance sheet as of November 30, 2019 (See Note 12). The outstanding long-term portion of the principal balance of this loan is $510,442 and $827,348 as of November 30, 2019 and May 31, 2019, respectively. Interest paid under this note was $6,368 and $16,242 and $6,805 and $13,061 for the three and six months ended November 30, 2019 and 2018, respectively.

NOTES PAYABLE TO RELATED PARTIE

NOTES PAYABLE TO RELATED PARTIES AND RELATED PARTY TRANSACTIONS	6 Months Ended
	Nov. 30, 2019
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	Smartcomm Transactions and Promissory Note The Company has engaged in transactions with Smartcomm, and its related entities, including advances of funds and allocations of shared expenses. A Director of the Company is the majority member in Smartcomm. Smartcomm License Services, LLC (“Smartcomm Services”) is a single member limited liability company wholly owned by Smartcomm. In prior periods, the Company maintained an informal employee payroll expense sharing arrangement with Smartcomm. The Company recognized a credit offset to employee payroll costs with a corresponding charge against its outstanding liability to Smartcomm pertaining to Smartcomm's allocated share of employee payroll costs. The employee payroll cost allocations under this arrangement were determined by management based on the estimated amounts of time employees were providing services to the two companies. Smartcomm filed for Chapter 7 bankruptcy protection on March 25, 2019. Therefore, for the three and six months ended November 30, 2019 and 2018, the employee payroll cost allocation to Smartcomm by the Company was $0 and $0 and $35,807 and $64,344, respectively. The Company does not anticipate engaging in such allocations in the future. In addition, the Company shared office space with Smartcomm through March 25, 2019, at which time the Company stopped allocating a portion of the rent expense to Smartcomm. For the three and six months ended November 30, 2019 and 2018, the Company expensed $0 and $0 and $54,614 and $109,229, respectively, in lease payments, net of $0 and $0 and $1,404 and $2,341, respectively, which was allocated to Smartcomm. On September 1, 2016, the Company issued a promissory note to Smartcomm with an original principal balance of $3,971,824. The note calls for periodic graduated annual adjusted rates of interest beginning at 2% and ending at 8%. Fifty percent (50%) of the annual interest is required to be paid beginning on or before December 31, 2017, and each year thereafter, with the remaining accrued balance added to principal. Interest is to compound annually. If not paid sooner, the note matures on December 31, 2023. The note provides for alternative payments in equity, where under the Company may pay all or part of the outstanding loan balance through the issuance of shares of common stock, at the fair market value of such shares at the time of issuance. As satisfaction for a portion of this note, in April 2018 Iota Networks assumed specific license application service obligations of Smartcomm. For the six months ended November 30, 2019, Smartcomm advanced no additional funds and the Company made no payments against the note. The outstanding principal balance of this note is $666,154 and $666,154, as of November 30, 2019 and May 31, 2019, respectively. Guaranteed Payments to Spectrum Officers and Promissory Note The Company made periodic disbursements of guaranteed payments to the two members of Spectrum Networks, Carole Downs and Barclay Knapp (the “Spectrum Officers” or each individually “Spectrum Officer”). The Spectrum Officers have an understanding that they shall receive guaranteed payments as compensation. All such guaranteed payments made to the Spectrum Officers are expensed as incurred on the Company’s statement of operations. For the six months ended November 30, 2019 and 2018, the Company did not make any guaranteed payments to the Spectrum Officers. Pursuant to the agreement between the Spectrum Officers, to the extent the one Spectrum Officer received additional guaranteed payments in excess of those received by the other Spectrum Officer as of the close of the fiscal year, such excess shall not be considered a guaranteed payment. Rather the excess shall be applied as payments against the Note Payable with Officer (See Note 11 for additional disclosure about this note). Avalton, Inc. Exchange Agreement and Promissory Note On October 16, 2019, the Company entered into an Exchange Agreement (the “Exchange Agreement”) with Avalton, Inc. (“Avalton”), a related party. An employee of the Company is the current Chief Executive Officer of Avalton. In connection with the Company’s September 23, 2019, private placement offering, the Company requested Avalton to exchange $800,000 of debt (the “Exchanged Debt”) in exchange for shares of the Company’s common stock at $0.32 per share (the “Exchange”). As per the Exchange Agreement, the Company issued 2,500,000 shares of the Company’s common stock on October 16, 2019. As a result, the Company recorded a loss on settlement of liability of $50,000 for the three months ended November 30, 2019. Pursuant to the Exchange, the Company is to repay the remaining $404,222 balance of the debt owed to Avalton according to the following payment schedule: (i) $50,000 on the date of the Exchange Agreement, (ii) $50,000 on November 15, 2019, (iii) $150,000 on December 15, 2019, and (iv) the balance of $154,222 on January 15, 2020. As of November 30, 2019, the outstanding balance of the debt owed to Avalton is $354,222.

ASSET RETIREMENT OBLIGATION

ASSET RETIREMENT OBLIGATION	6 Months Ended
	Nov. 30, 2019
Asset Retirement Obligation Disclosure [Abstract]
ASSET RETIREMENT OBLIGATION	The following is a summary of the Company’s asset retirement obligations: November 30, 2019 May 31, 2019 Balance, beginning of period $ 1,771,227 $ 1,676,932 Liabilities incurred 9,556 40,989 Tower decommission write-off (69,684) - Accretion expense 26,279 53,306 Balance, end of period $ 1,737,378 $ 1,771,227 Accretion expense related to the asset retirement obligations was $10,642 and $26,279 and $13,149 and $26,401 for the three and six months ended November 30, 2019 and 2018, respectively.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Nov. 30, 2019
Deficit:
STOCKHOLDERS' EQUITY	Convertible Preferred Stock On April 28, 2017, the Company’s Board of Directors adopted resolutions authorizing an amendment (the “Amendment”) to the Company’s amended certificate of incorporation to authorize the Board of Directors, without further vote or action by the stockholders, to create out of the unissued shares of the Company’s preferred stock, par value $0.0001 per share (“Preferred Stock”), series of Preferred Stock and, with respect to each such series, to fix the number of shares, designations, preferences, voting powers, qualifications, and special or relative rights or privileges as the Board of Directors shall determine, which may include, among others, dividend rights, voting rights, liquidation preferences, conversion rights and preemptive rights (the “Board Authorization”). Upon effectiveness of the Amendment, the Board of Directors has authority to issue shares of Preferred Stock from time to time on terms it may determine, to divide shares of preferred stock into one or more series, and to fix the designations, preferences, privileges, and restrictions of preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preference, and the number of shares constituting any series or the designation of any series to the fullest extent permitted by the General Corporation Law of Delaware. The issuance of Preferred Stock could have the effect of decreasing the trading price of the common stock, restricting dividends on the capital stock, diluting the voting power of the common stock, impairing the liquidation rights of the capital stock, or delaying or preventing a change in control of the Company. On May 1, 2017, the Company’s Board of Directors approved the designation of 5,000,000 shares of Preferred Stock as Series A preferred stock (“Series A Preferred Stock”). No shares of Series A Preferred Stock were outstanding as of November 30, 2019 and May 31, 2019. Cash dividends accrue on each share of Series A Preferred Stock, at the rate of 4% per annum of the stated value and are payable quarterly in arrears in cash on the first day of March, June, September and December each year, commencing June 1, 2017. Dividends accrue whether or not they are declared and whether or not the Company has funds legally available to make the cash payment. As of November 30, 2019, the Company had no undeclared dividends in arrears. Private Placement Offering On September 23, 2019, the Company commenced a private placement offering (the “Offering”) of up to $15,000,000 of Units at a purchase price of $0.32 per Unit. Each Unit consists of (i) one share of common stock, par value $0.0001 per share of the Company (the “Purchase Shares”) and (ii) a five-year warrant to purchase twenty percent (20%) of the number of shares of Purchase Shares by such subscriber in the Offering (the “Warrants”). The Warrants have a five (5) year term (See Note 15). As of November 30, 2019, the Company has issued 6,919,782 shares of common stock and 1,383,957 warrants and has received $2,214,330 in cash proceeds, net of $161,848 in equity issuance fees, in connection with the Offering. The Company also entered into a registration rights agreement with the subscribers of the Offering, pursuant to which the Company will be obligated to file with the Securities and Exchange Commission (the “SEC”) as soon as practicable, but in any event no later than sixty (60) days after the final closing, a registration statement on Form S-1 (the “Registration Statement”) to register the Purchase Shares and the Warrant Shares for resale under the Securities Act of 1933, as amended (the “Securities Act”). The Company is obligated to use its commercially reasonable best efforts to cause the Registration Statement to be declared effective by the SEC within 60 days after the filing of the Registration Statement, or within ninety (90) days in the event the Commission reviews and has written comments to the Registration Statement or within ninety (90) days if the Registration Statement is subject to a full review by the SEC). Equity Transactions During the Period Issuance of Common Stock During the three months ended August 31, 2019, the Company issued 445,000 shares of common stock with a range of fair values of $0.41 - $0.44 per share to various employees in lieu of cash for compensation. During the three months ended August 31, 2019, the Company issued 300,000 shares of common stock with a fair value of $0.63 per share to vendors for satisfaction of outstanding payables. During the three months ended August 31, 2019, the Company issued 408,736 shares of common stock to investors as a result of the exercise of warrants, of which, 324,000 shares of common stock were issued as a cashless exercise with a fair value of $0.67 per share and 84,736 shares of common stock were issued with an exercise price of $0.01 per share (See Note 15). During the three months ended August 31, 2019, the Company issued 2,100,000 shares of common stock with a range of fair values of $.041 - $0.63 per share to investors in connection with convertible notes payable. During the three months ended August 31, 2019, the Company issued 1,133,334 shares of common stock with a range of fair values of $0.63 - $0.74 per share to consultants for services rendered. During the three months ended November 30, 2019, the Company issued 6,919,782 shares of common stock with a fair value of $0.32 per share pursuant to the September 23, 2019, private placement offering. During the three months ended November 30, 2019, the Company issued 2,500,000 shares of common stock with a fair value of $0.34 per share to vendors for satisfaction of outstanding payables. During the three months ended November 30, 2019, the Company issued 12,146,241 shares of common stock with a fair value of $0.31 per share to Link Labs, Inc. pursuant to the Purchase Agreement dated November 15, 2019 (See Note 3). During the three months ended November 30, 2019, the Company issued 2,219,697 shares of common stock with a range of fair values of $0.31 - $0.40 per share to investors in connection with convertible notes payable. During the three months ended November 30, 2019, the Company issued 515,000 shares of common stock with a range of fair values of $0.30 - $0.32 per share to consultants for services rendered. See Note 16 and Note 20 for additional disclosure of equity related transactions.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Nov. 30, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]
STOCK-BASED COMPENSATION	The Company accounted for its stock-based compensation in accordance with the fair value recognition provisions of ASC Topic 718, Compensation – Stock Compensation. 2017 Equity Incentive Plan The Board of Directors approved the Company’s 2017 Equity Incentive Plan (the “2017 Plan”) on April 27, 2017 and the stockholders of the Company holding a majority in interest of the outstanding voting capital stock of the Company approved and adopted the 2017 Plan on April 28, 2017. The maximum number of shares of the Company’s common stock that may be issued under the Company’s 2017 Plan, is 10,000,000 shares. Options The Company granted 1,000,000 options during the six months ended November 30, 2019. There were no options issued during the six months ended November 30, 2018. Compensation based stock option activity for qualified and unqualified stock options are summarized as follows: Weighted Average Shares Exercise Price Outstanding at May 31, 2019 6,812,500 $ 1.02 Granted 1,000,000 0.41 Exercised - - Expired or cancelled - - Outstanding at November 30, 2019 7,812,500 $ 0.94 The following table summarizes information about options to purchase shares of the Company’s common stock outstanding and exercisable at November 30, 2019: Weighted- Weighted- Average Average Range of Outstanding Remaining Life Exercise Number exercise prices Options In Years Price Exercisable $ 0.41 1,000,000 2.96 $ 0.41 - 0.60 1,000,000 6.40 0.60 1,000,000 0.99 4,000,000 8.77 0.99 1,250,000 1.20 1,562,500 5.08 1.20 1,562,500 2.00 250,000 6.40 2.00 250,000 7,812,500 6.91 $ 0.94 4,062,500 The compensation expense attributed to the issuance of the options is recognized as they are vested. The employee stock option plan stock options are exercisable for ten years from the grant date and vest over various terms from the grant date to three years. The aggregate intrinsic value totaled $0 based on the Company’s closing stock price of $0.30 on November 30, 2019, which would have been received by the option holders had all option holders exercised their options as of that date. On November 15, 2019, the Company granted 1,000,000 options to Brian Ray, Chief Technology Officer, in connection with his employment agreement dated November 15, 2019, with an exercise price of $0.41 per share, and a fair value of $272,836. The employment agreement calls for vesting of 250,000 options on the one-year anniversary of the agreement and the remaining options shall vest monthly on a pro-rata basis over the 36-month period following the one-year anniversary of the agreement. The options issued were valued using the Black-Scholes option pricing model under the following assumptions: stock price - $0.31; strike price - $0.41; expected volatility – 319.47%; risk-free interest rate – 1.75%; dividend rate – 0%; and expected term – 6.25 years. Total compensation expense related to the options was $202,782 and $405,564 and $202,782 and $202,782 for the three and six months ended November 30, 2019 and 2018, respectively. As of November 30, 2019, there was future compensation cost of $2,503,436 related to non-vested stock options with a recognition period from 2019 through 2023. Warrants The issuance of warrants to purchase shares of the Company's common stock including those attributed to debt issuances are summarized as follows: Weighted Average Shares Exercise Price Outstanding at May 31, 2019 16,501,252 $ 0.635 Granted 11,462,636 0.36 Exercised (684,736 ) ) 0.28 Expired or cancelled (2,868,823 ) 1.20 Outstanding at November 30, 2019 24,410,329 $ 0.44 The following table summarizes information about warrants outstanding and exercisable at November 30, 2019: Outstanding and exercisable Weighted- Weighted- Range of Average Average Exercise Number Remaining Life Exercise Number Prices Outstanding in Years Price Exercisable $ 0.01 555,652 4.33 $ 0.01 555,652 0.30 4,350,000 2.85 0.30 4,350,000 0.31 3,888,679 4.92 0.31 3,888,679 0.35 1,200,000 2.64 0.35 1,200,000 0.38 6,024,725 4.12 0.38 6,024,725 0.40 998,500 4.62 0.40 998,500 0.48 1,703,957 4.92 0.48 1,703,957 0.54 1,985,000 4.07 0.54 1,985,000 0.60 1,208,928 2.88 0.60 1,208,928 1.00 2,494,888 0.45 1.00 2,494,888 24,410,329 3.59 $ 0.44 24,410,329 The expense attributed to the issuances of the warrants was recognized as they vested/earned. These warrants are exercisable for three to five years from the grant date. All are currently exercisable. On September 20, 2018, as part of a securities purchase agreement with an “accredited investor”, the Company issued warrants to purchase 600,000 shares of the Company’s common stock at an exercise price of $0.60 per share. The warrants were exercisable for cash, or on a cashless basis. The number of shares of common stock to be deliverable upon exercise of the warrants was subject to adjustment for subdivision or consolidation of shares and other standard dilutive events. As a result of the December 2018 Tender Offer Statement, the exercise price of the warrants reset to $0.3128 per share. On June 20, 2019, the Company issued 324,000 shares of common stock as a result of a cashless exercise of the warrants. On August 7, 2019, the Company issued 84,736 shares of common stock to an investor as a result of the exercise of warrants with a fair value of $0.01 per share. Issuances of warrants to purchase shares of the Company's common stock during the three months ending November 30, 2019 were as follows: During the three months ended November 30, 2019, the Company issued warrants to purchase 905,000 shares of the Company’s common stock with an exercise price of $0.40 per share to several investors who provided financing to the Company. During the three months ended November 30, 2019, the Company issued warrants to purchase 8,853,679 shares of the Company’s common stock with a range of exercise prices of $0.30 - $0.40 per share to investors. During the three months ended November 30, 2019, the Company issued warrants to purchase 1,383,957 shares of the Company’s common stock with an exercise price of $0.48 per share in connection with the September 23, 2019, private placement. During the three months ended November 30, 2019, the Company issued warrants to purchase 320,000 shares of the Company’s common stock with an exercise price of $0.48 per share in connection with a consulting agreement. As a result of the issuances of these warrants, the Company recognized $394,791 and $704,872 of stock compensation expense for the three and six months ended November 30, 2019.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Nov. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Compensatory Arrangements of Certain Officers Employment Agreement – James F. Dullinger, Chief Financial Officer On December 9, 2019, James F. Dullinger was appointed as Chief Financial Officer of the Company, pursuant to the terms and provisions of the Employment Agreement dated December 9, 2019 (the “Dullinger Employment Agreement”) by and between the Company and Mr. Dullinger. In connection with his appointment as Chief Financial Officer, Mr. Dullinger was designated as the Company’s “Principal Financial and Accounting Officer” for SEC reporting purposes. The Dullinger Employment Agreement has an initial term of two years and is subject to automatic one-year renewals unless either party provides the other with written notice of non-renewal no less than 90 days prior to the end of the then current term. Under the Dullinger Employment Agreement, Mr. Dullinger will be paid an annual base salary of $210,000, subject to review for possible increases as determined by the Chief Executive Officer of the Company. Mr. Dullinger is also entitled to receive annual bonuses in accordance with the Company’s Annual Incentive Plan at the discretion of the Company’s Board of Directors. The target amount of his annual bonus is 50% of his annual base salary, with 25% paid in cash and 25% issued in Common Stock with the first bonus to be paid at the end of the current fiscal year. The Dullinger Employment Agreement further provides for the issuance of stock options to Mr. Dullinger to purchase 2,000,000 shares of the Company’s Common Stock under its 2017 Equity Incentive Plan. The options are subject to a three-year vesting schedule, with 8.33% of the options vesting in 12 successive equal quarterly installments, provided Mr. Dullinger is employed by the Company on each vesting date. The exercise price for 50% of the options is $0.40, 25% are at $0.80, and 25% are at $1.20. Should either Mr. Dullinger or the Company choose not to extend the Dullinger Employment Agreement per the terms, all remaining unvested options will be canceled. The Dullinger Employment Agreement can be terminated voluntarily by either party upon 60 days prior written notice to the other. The Company has the right to terminate Mr. Dullinger immediately without cause and without notice if the Company pays Mr. Dullinger (i) any accrued and unpaid base salary for the unexpired notice period, (ii) any unreimbursed business expenses, and (iii) any accrued and unused paid vacation time. The Employment Agreement provides for severance benefits payable to Mr. Dullinger in the event of termination by the Company without cause or by Mr. Dullinger for good reason. If his employment is terminated by the Company without cause or if Mr. Dullinger resigns for good reason within 60 days before or within 12 months following a change in control, Mr. Dullinger will be entitled to his annual base salary (as determined on a monthly basis) for 6 months, a pro rata bonus, and reimbursement of his COBRA expenses for 6 months. In addition, all outstanding equity grants which vest over the 12 months following such termination will become fully and immediately vested. The Employment Agreement also contains customary non-solicitation and non-compete provisions that apply during the term of employment and for a period of 6 months following such employment. Employment Agreement with Brian Ray, Chief Technology Officer Concurrent with the first closing of the Link Labs Purchase Agreement on November 15, 2019, the Company entered into a two-year Employment Agreement with Brian Ray (the “Ray Employment Agreement”), pursuant to which he will serve as the Company’s Chief Technology Officer. The term will automatically renew for periods of one year unless either party gives written notice to the other party that the agreement shall not be further extended at least 60 days prior to the end of the term, as it may have been extended. Pursuant to the Ray Employment Agreement, Mr. Ray will earn an initial base annual salary of $250,000, which may be increased in accordance with the Company’s normal compensation and performance review policies for senior executives generally. He is entitled to receive an annual bonus in an amount of up to 50% of his base annual salary, at the Board’s discretion, based on certain provided milestones. Mr. Ray is also entitled to receive stock options, under the Company’s 2017 Equity Incentive Plan, to purchase 1,000,000 shares of the Company’s common stock, with an exercise price equal to the fair market value of the Company’s common stock on the grant date. The stock options will vest in accordance with the following schedule: (i) 250,000 on the one-year anniversary of the Ray Employment Agreement and (ii) the remaining unvested shares shall vest monthly thereafter on a pro-rata basis over the 36-month period following the one-year anniversary of the Ray Employment Agreement. Mr. Ray will also be eligible to participate in any long-term equity incentive programs established by the Company for its senior level executives generally, and benefits under any benefit plan or arrangement that may be in effect from time to time and made available to similarly situated executives of the Company. Employment Agreement with Barclay Knapp Simultaneous with the consummation of the Merger, the Company entered into a two-year Employment Agreement with Barclay Knapp (the “Knapp Employment Agreement”), pursuant to which he will serve as the Company’s Chief Executive Officer. The term will automatically renew for periods of one year unless either party gives written notice to the other party that the agreement shall not be further extended at least 90 days prior to the end of the term, as it may have been extended. Pursuant to the Knapp Employment Agreement, Mr. Knapp will earn an initial base annual salary of $450,000, which may be increased in accordance with the Company’s normal compensation and performance review policies for senior executives generally. He is entitled to receive semi-annual bonuses in a yearly aggregate amount of up to 100% of his base annual salary, at the Board’s discretion, based on the attainment of certain individual and corporate performance goals and targets and the business condition of the Company. Mr. Knapp is also entitled to receive stock options, under the Company’s 2017 Equity Incentive Plan, to purchase a number of shares of the Company’s common stock yet to be determined by the Board, with an exercise price equal to the fair market value of the Company’s common stock on the grant date. The stock options will vest in a series of 16 successive equal quarterly installments, provided that Mr. Knapp is employed by the Company on each such vesting date. As of November 30, 2019, no options have been issued. Mr. Knapp will also be eligible to participate in any long-term equity incentive programs established by the Company for its senior level executives generally, and benefits under any benefit plan or arrangement that may be in effect from time to time and made available to similarly situated executives of the Company. On May 20, 2019, the Knapp Employment Agreement was amended, in connection with Mr. Knapp’s resignation as Chief Executive Officer, to reflect the title change from Chairman and Chief Executive Officer to Executive Chairman. On September 12, 2019, the Knapp Employment agreement was terminated by mutual agreement of the parties. Mr. Knapp will continue as Executive Chairman of the Company’s Board of Directors. Employment Agreement with Terrence DeFranco Simultaneous with the consummation of the Merger, the Company entered into a two-year Employment Agreement (the “DeFranco Employment Agreement”) with Terrence DeFranco, pursuant to which he will serve as the Company’s President and Chief Financial Officer. The term will automatically renew for periods of one year unless either party gives written notice to the other party that the agreement shall not be further extended at least 90 days prior to the end of the term, as it may have been extended. Pursuant to the DeFranco Employment Agreement, Mr. DeFranco will earn an initial base annual salary of $375,000, which may be increased in accordance with the Company’s normal compensation and performance review policies for senior executives generally. He is entitled to receive semi-annual bonuses in a yearly aggregate amount of up to 100% of his base annual salary, at the discretion of the Board, based on the attainment of certain individual and corporate performance goals and targets and the business condition of the Company. Mr. DeFranco will also receive stock options, under the Company’s 2017 Plan, to purchase 4,000,000 shares of the Company’s common stock, with an exercise price equal to the fair market value of the Company’s common stock on the grant date. The stock options will vest in a series of 16 successive equal quarterly installments, provided that Mr. DeFranco is employed by the Company on each such vesting date. Mr. DeFranco will also be eligible to participate in any long-term equity incentive programs established by the Company for its senior level executives generally, and benefits under any benefit plan or arrangement that may be in effect from time to time and made available to similarly situated executives of the Company. On May 20, 2019, the DeFranco Employment Agreement was amended, in connection with Mr. DeFranco’s resignation as Chief Financial Officer and appointment to Chief Executive Officer, to reflect the title change. Legal Claims Except as described below, there are no material pending legal proceedings in which the Company or any of its subsidiaries is a party or in which any director, officer or affiliate of the Company, any owner of record or beneficially of more than 5% of any class of its voting securities, or security holder is a party adverse to us or has a material interest adverse to the Company. David Alcorn Professional Corporation, et al. v. M2M Spectrum Networks, LLC, et al. On September 7, 2018, David Alcorn Professional Corporation and its principal, David Alcorn (“Alcorn”) filed a complaint in Superior Court of Arizona, Maricopa County, CV2108-011966, against the Company for fraudulent transfer and successor liability as to Iota networks, based on claims that the Company is really just a continuation of Smartcomm, LLC’s business, a related party of the Company, and that money was improperly transferred from Smartcomm, LLC to the Company to avoid Smartcomm, LLC’s creditors. The Company believes the true nature of this dispute is between Alcorn and Smartcomm, LLC. Alcorn is owed approximately $900,000 by Smartcomm, LLC, for which the parties have been negotiating settlement options before suit was filed. The Company has tried to facilitate settlement between those parties by offering to prepay its note payable to Smartcomm, LLC, allowing the proceeds to be used by Smartcomm, LLC to pay Smartcomm, LLC’s judgment creditors. On March 25, 2019, Smartcomm, LLC filed for Chapter 7 bankruptcy and the claims against the Company now reside with the Chapter 7 trustee. The Company believes it is more likely than not that the Chapter 7 trustee will not relinquish these claims to Alcorn and the case will dismissed. On November 1, 2019, the Alcorn parties filed a motion for summary judgment claiming they are entitled to collect their judgments from the Company and defendant Carole Downs, among others, on the theories of fraudulent transfer, alter ego/corporate veil, and successor liability. The Company hired new counsel in the case to respond to the motion and file a motion to dismiss the case on the basis that the court lacks subject matter jurisdiction, due to the fact that Bankruptcy Court has not relinquished its jurisdiction over the allegedly fraudulently transferred funds. The Company has appropriately accrued for all potential liabilities at November 30, 2019. Vertical Ventures II, LLC et al v. Smartcomm, LLC et al On July 21, 2015, Vertical Ventures II, LLC, along with Carla Marshall, its principal, and her investors (“Vertical”) filed a complaint in Superior Court of Arizona, Maricopa County, CV2015-009078, against Smartcomm, LLC, a related party, including Iota Networks. The complaint alleges breach of contract on the part of Smartcomm, LLC and Iota Networks, among other allegations, related to FCC licenses and construction permits. Vertical seeks unspecified damages, believed to be approximately $107,000 against Iota Networks and $1.4 million against Smartcomm. Management intends to defend the counts via summary judgment. To date, Smartcomm, LLC has been paying the cost to defend against this complaint. Smartcomm, LLC and Iota Networks are seeking indemnity from certain of the plaintiffs for all legal expenses and intend to do the same as to the other plaintiffs for issues relating to the first public notice licenses because they each signed indemnity agreements. On March 25, 2019, Smartcomm, LLC filed for Chapter 7 bankruptcy. As a result of the bankruptcy, the case has been temporarily delayed and is expected to resume at a date determined at a hearing held on November 25, 2019. At the hearing, the Court agreed to delay proceedings until May 4, 2020. The Company has appropriately accrued for all potential liabilities at November 30, 2019. Ladenburg Thalmann & Co. Inc. v. Iota Communications, Inc. On April 17, 2019, Ladenburg Thalmann & Co. Inc. (“Ladenburg”) filed a complaint in The Circuit Court of the 11 th Other Proceedings The Company is currently the defendant in various smaller cases with total claimed damages of approximately $735,000. The Company has responded to these lawsuits and is prepared to vigorously contest these matters. As such, the Company has appropriately accrued for all potential liabilities as of November 30, 2019.

LEASES

LEASES	6 Months Ended
	Nov. 30, 2019
Leases [Abstract]
LEASES	A lease is defined as a contract that conveys the right to control the use of identified tangible property for a period of time in exchange for consideration. On June 1, 2019, the Company adopted ASC Topic 842 which primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee including Company leases of office facilities, office equipment, and tower and billboard space. All the Company’s leases are classified as operating leases, and as such, were previously not recognized on the Company’s unaudited condensed consolidated balance sheet. With the adoption of Topic 842, operating lease agreements are required to be recognized on the condensed consolidated balance sheet as ROU assets and corresponding lease liabilities. On June 1, 2019, the Company recognized ROU assets of $17,221,387, net of deferred rent liabilities of approximately $1,975,000, and lease liabilities of $19,197,202. The Company elected to not recognize ROU assets and lease liabilities arising from short-term leases with initial lease terms of twelve months or less (deemed immaterial) on the unaudited condensed consolidated balance sheets. During the three months ended November 30, 2019, the Company identified certain billboard leases tied to billboard sites not established at June 1, 2019, that were not recorded as part of the initial ASC Topic 842 adoption calculation. The Company recognized additional ROU assets of $2,646,221 and lease liabilities of $2,646,221 during the three months ended November 30, 2019 (See Note 20). On October 30, 2019, the Company entered into a Collocation and Settlement of Past Due Balance Agreement (the “Collocation Agreement”) with a third-party lessor (the “Lessor”) of one hundred and eighty-six collocation agreements (the “Terminated License Agreements”) pursuant to which the Lessor granted the Company a license to install, operate, and maintain equipment at certain telecommunication sites owned, leased, or licensed by the Lessor. As of the date of the Collocation Agreement, the Company had a past due balance of rental amounts owed to the Lessor of approximately $11,000,000 (the “Past Due Balance”). Pursuant to the Collocation Agreement: · The parties agree that the Terminated License Agreements terminated effective January 31, 2019 (the “Termination Date”); · As settlement for its Past Due Balance: o The Company paid the Lessor $1,000,000; and o Within twelve (12) months of the date of the Collocation Agreement, the Company shall execute one hundred eighty-six (186) new collocation agreements with the Lessor. At least one hundred sixty-six (166) of the new license agreements shall be for old sites. No more than twenty (20) of the new license agreements shall be for new sites. Each new license agreement shall be for one term of seven years and neither party may terminate a new lease agreement during the term. The initial monthly license rent due under each of the one hundred eighty-six (186) new license agreements shall be eight hundred eighty-four dollars ($884). The monthly license rent shall be increased on the first anniversary of the Term Commencement Date thereafter by 3%. Management deemed the Collocation Agreement to be a termination of the existing license agreements with the Lessor. As a result, the Company wrote-off $12,517,049, $12,593,786 and $1,041,245 of net ROU assets, lease liabilities and deferred rent, respectively, resulting in a gain of $1,100,435, including the gain on decommissioning of towers. In addition, and pursuant to the Collocation Agreement, the Company’s outstanding liabilities owed to the Lessor of $11,167,962 was forgiven. The gains are recorded in the statement of operations as part of selling, general and administrative expenses and gain on settlement past due lease obligations, respectively. On November 1, 2019, and as a result of the Collocation Agreement, the Company recognized net ROU assets and lease liabilities of $10,715,441 stemming from the new one hundred eighty-six (186) collocation agreements. ROU assets include any prepaid lease payments and exclude any lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The lease terms may include options to extend or terminate the lease if it is reasonably certain that the Company will exercise that option. When measuring lease liabilities for leases that were classified as operating leases, the Company discounted lease payments using its estimated incremental borrowing rate at June 1, 2019. The weighted average incremental borrowing rate utilized was 10%. As of November 30, 2019, the Company’s leases had a remaining weighted average term of 8.53 years. Rent expense amounted to approximately $1,050,000 and $2,200,000 and $1,300,000 and $2,500,000 for the three and six months ended November 30, 2019 and 2018, respectively. The following table presents net lease cost and other supplemental lease information: Six Months Ended November 30, 2019 Three Months Ended November 30, 2019 Lease cost Operating lease cost (cost resulting from lease payments) $ 2,089,625 $ 967,013 Short term lease cost 82,493 43,533 Sublease income - - Net lease cost $ 2,172,118 $ 1,010,546 Operating lease – operating cash flows (fixed payments) $ 594,923 $ 361,243 Operating lease – operating cash flows (liability reduction) $ 169,321 $ (475,298) Non-current leases – right of use assets $ 17,926,862 $ 17,822,645 Current liabilities – operating lease liabilities $ 1,179,155 $ 1,179,155 Non-current liabilities – operating lease liabilities $ 17,729,382 $ 17,729,382 Future minimum payments under non-cancelable leases for the remaining terms of the leases ending after November 30, 2019, are as follows: Fiscal Year Operating Leases 2020 (excluding the six months ended November 30, 2019) $ 1,237,312 2021 3,204,606 2022 3,301,555 2023 3,389,941 2024 3,491,534 After 2024 14,355,185 Total future minimum lease payments 28,980,133 Amount representing interest (10,071,596) Present value of net future minimum lease payments $ 18,908,537

CONCENTRATION OF CREDIT RISK

CONCENTRATION OF CREDIT RISK	6 Months Ended
	Nov. 30, 2019
Risks and Uncertainties [Abstract]
CONCENTRATION OF CREDIT RISK	Cash Deposits Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. As of November 30, 2019, and May 31, 2019, the Company had $0 and $583,500, respectively, in excess of the FDIC insured limit. Revenues Two customers accounted for 99% of the revenue for the six months ended November 30, 2019, as set forth below: Customer 1 85 % Customer 2 14 % Two customers accounted for 55% of the revenue for the six months ended November 30, 2018, as set forth below: Customer 1 36 % Customer 2 19 % Accounts Receivable Three customers accounted for 65% of the accounts receivable as of November 30, 2019, as set forth below: Customer 1 38 % Customer 2 16 % Customer 3 11 % Two customers accounted for 73% of the accounts receivable as of May 31, 2019, as set forth below: Customer 1 37 % Customer 2 36 % Accounts Payable Two customers accounted for 31% of the accounts payable as of November 30, 2019, as set forth below: Customer 1 16 % Customer 2 15 % One customer accounted for 53% of the accounts payable as of May 31, 2019.

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION	6 Months Ended
	Nov. 30, 2019
Segment Reporting [Abstract]
BUSINESS SEGMENT INFORMATION	The Company’s reportable segments include, Iota Networks, Iota Commercial Solutions, Iota Communications, and Iota Holdings, and are distinguished by types of service, customers, and methods used to provide services. The operating results of these business segments are regularly reviewed by the Company’s chief operating decision maker. The Company evaluates performance based primarily on income (loss) from operations. The accounting policies of each of the segments are the same as those described in the Summary of Significant Accounting Policies in Note 2. Operating results and total assetsfor the business segments of the Company were as follows: Iota Communications ICS Iota Networks Iota Holdings Total Three Months Ended November 30, 2019 Net Sales $ - $ 128,538 $ 129,067 $ - $ 257,605 Income (loss) from operations $ (1,013,958) $ (424,875) $ 10,201,607 $ (14,599) $ 8,748,175 Six Months Ended November 30, 2019 Net Sales $ - $ 859,060 $ 156,506 $ - $ 1,015,566 Income (loss) from operations $ (3,979,065) $ (830,324) $ 7,030,410 $ (240,482) $ 1,980,539 Three Months Ended November 30, 2018 Net sales $ - $ 777,822 $ 58,047 $ - $ 835,869 Loss from operations $ (12,409,125) $ (397,063) $ (4,140,467) $ - $ (16,946,655) Six Months Ended November 30, 2018 Net sales $ - $ 780,752 $ 104,913 $ - $ 885,665 Loss from operations $ (13,117,971) $ (756,291) $ (11,610,420) $ - $ (25,484,682) Total Assets November 30, 2019 $ 170,281 $ 1,111,312 $ 34,585,309 $ 51,765 $ 35,918,667 May 31, 2019 $ 845,063 $ 1,471,678 $ 10,660,887 $ - $ 12,977,628

REVISION OF PRIOR QUARTER IMMAT

REVISION OF PRIOR QUARTER IMMATERIAL MISSTATEMENTS	6 Months Ended
	Nov. 30, 2019
Quantifying Prior Year Misstatements Corrected in Current Year Financial Statements [Abstract]
REVISION OF PRIOR PERIOD IMMATERIAL MISSTATEMENTS	During the three months ended November 30, 2018, the Company incorrectly recorded $895,785 of Network site expense in Selling, general and administrative expense in the consolidated statements of operations. As such, the Company reclassed this amount to accurately reflect the nature of the expenses. During the three months ended August 31, 2019, the Company did not record certain billboard leases per their lease agreements. Upon further review, it was determined that these leases should be included in the Company’s implementation of ASC Topic 842 lease accounting. These leases have been recorded for the six months ended November 30, 2019. During the nine months ended February 28, 2019, the Company incorrectly recorded $509,996 of equity issuance fees in Selling, general and administrative expense relating to the December 11, 2018 Tender Offer in the consolidated statements of operations. Upon further review, it was determined that these equity issuance fees should be recorded as a reduction of additional paid in capital. As such, the Company reclassed this amount to accurately reflect the accounting for these fees. The following tables summarize the effects of the revisions on the financial statements for the periods reported: Previously Consolidated Statements of Operations for the 3 months ended November 30, 2018 Reported Adjustments As Restated Network site expense $ 796,750 $ 859,785 $ 1,656,535 Selling, general and administrative $ 4,762,930 $ (859,785) $ 3,903,145 Previously Consolidated Balance Sheets as of August 31, 2019 Reported Adjustments As Restated ROU Assets $ 16,718,780 $ 2,646,221 $ 19,365,001 Current portion of lease liabilities $ 2,595,994 $ 137,574 $ 2,733,568 Lease liabilities, net of current portion $ 15,956,589 $ 2,508,647 $ 18,465,236 Additional paid in capital $ 27,073,827 $ (509,996) $ 26,563,831 Accumulated deficit $(127,344,968) $ 509,996 $(126,834,972) Previously Consolidated Statements of Operations for the 3 months ended August 31, 2019 Reported Adjustments As Restated Selling, general and administrative $ 4,582,066 $ 29,363 $ 4,611,429 Net loss $ (8,026,065) $ (29,363) $ (8,055,428) Basic and diluted net loss per share $ (0.04) $ 0.00 $ (0.04) Previously Consolidated Statements of Operations for the 3 months ended February 28, 2019 Reported Adjustments As Restated Selling, general and administrative $ 2,883,924 $ (509,996) $ 2,373,928 Net loss $ (13,603,661) $ 509,996 $ (13,093,665) Basic and diluted net loss per share $ (0.07) $ 0.00 $ (0.07) Previously Consolidated Statements of Operations for the 9 months ended February 28, 2019 Reported Adjustments As Restated Selling, general and administrative $ 12,364,253 $ (509,996) $ 11,854,257 Net loss $(40,256,330) $ 509,996 $ (39,746,334) Basic and diluted net loss per share $ (0.25) $ 0.01 $ (0.24) Previously Consolidated Balance Sheets as of February 28, 2019 Reported Adjustments As Restated Additional paid in capital $ 20,574,650 $ (509,996) $ 20,064,564 Accumulated deficit $(102,867,832) $ 509,996 $(102,357,836) Previously Consolidated Statements of Operations for the year ended May 31, 2019 Reported Adjustments As Restated Selling, general and administrative $ 16,730,695 $ (509,996) $ 16,220,699 Net loss $(56,777,401) $ 509,996 $(56,267,405) Basic and diluted net loss per share $ (0.32) $ 0.00 $ (0.32) Previously Consolidated Balance Sheets as of May 31, 2019 Reported Adjustments As Restated Additional paid in capital $ 24,539,004 $ (509,996) $ 24,029,008 Accumulated deficit $(119,318,903) $ 509,996 $(118,808,907)

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Nov. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	Issuance of Debt On January 16, 2020, the Company entered into a Promissory Note in the principal amount of $320,000. The principal bears interest at 3% per annum and has a maturity date of February 29, 2020. As an inducement to enter into the Note, the Company will issue 1,000,000 shares of the Company’s common stock to the buyer. Issuance of Common Stock On December 16, 2019, the Company issued 100,000 shares of restricted common stock with a fair value of $0.30 per share in connection with a convertible debenture. On December 18, 2019, the Company issued 434,410 shares of common stock with a fair value of $0.01 per share as a result of the exercise of warrants. On January 10, 2020, the Company issued 5,465,139 shares of common stock with a fair value of $0.32 to investors pursuant to the September 23, 2019, private placement offering. Issuance of Options On December 9, 2019, the Company granted 2,000,000 options to James F. Dullinger, Chief Financial Officer, in connection with his employment agreement dated December 9, 2019, with an exercise price as follows: (i) 1,000,000 options have an exercise price of $0.40 per share, (ii) 500,000 options have an exercise price of $0.80 per share, and (iii) 500,000 options have an exercise price of $1.20 per share. Issuance of Warrants During December and January 2019, the Company issued warrants to purchase 1,593,028 shares of the Company’s common stock with an exercise price of $0.48 per share in connection with the September 23, 2019, private placement. On December 18, 2019, the Company entered into a Waiver and Agreement with AIP to satisfy certain covenant requirements relative to the AIP Note (See Note 9). Pursuant to the Waiver Agreement, all Events of Default relative to the AIP Note are waived through December 31, 2020. The waiver is conditioned upon (i) the Company agreeing to issue 500,000 shares of its common stock to AIP, (ii) the Company agreeing to issue warrants to purchase 4,350,000 shares of the Company’s common stock at an exercise price of $0.32 per share, (iii) the Company agreeing to issue additional notes in the aggregate principal amount of $1,400,000 with a maturity date 6 months from the date of issuance, (iv) the Company agreeing to issue an additional 500,000 shares of the Company’s common stock to AIP, and (v) the Company agreeing to issue additional warrants to purchase 4,350,000 shares of the Company’s common stock at an exercise price of $0.30 to AIP. On December 20, 2019, the Company entered into a secured non-convertible note with AIP totaling $1,400,000, with a maturity date of June 20, 2020. The principal on the note bears an interest rate of LIBOR + 10% per annum, which is also payable on maturity. As of the date of this report the Company has received $1,291,471 of principal (See Note 9). Pursuant to the Waiver Agreement describe above, the Company issued warrants to purchase 4,350,000 shares of the Company’s common stock with an exercise price of $0.30 per share in connection with the note. On January 10, 2020, the Company issued warrants to purchase 500,000 shares of the Company’s common stock with an exercise price of $0.48 per share in connection with the October 16, 2019, Exchange Agreement. Link Labs Acquisition On December 31, 2019, the Company entered into a Side Letter Agreement with Link Labs whereby the parties agreed to break the second closing into three phases. On December 31, 2019, and in satisfaction of the first phase, the Company entered into two promissory notes with Link Labs for a principal amount of $1,000,000 each with a maturity date of March 31, 2020 and June 30, 2020. The principal on the notes bear interest at 1.61% per annum. On January 3, 2020, and in satisfaction of the second phase, the Company paid Link Labs $1,000,000 in cash. The third and final phase of the second closing which involves payment of $430,666 to Link Labs and Link Labs’ provision of the Termination of Agreements, was scheduled to be completed on January 17, 2020. the Company entered into a Second Side Letter Agreement with Link Labs whereby the parties agreed to extend the due date of the third and final phase of the second closing to January 21, 2020. Private Placement Subsequent to November 30, 2019, and in connection with the September 23, 2019 private placement offering, the Company received cash proceeds of $1,620,767, net of $128,078 in equity issuance fees. Spectrum Revenue Based Notes and Iota Spectrum Partners, LP Units During January 2020, there were 48,158,215 MHz-POPs transferred to Iota Partners resulting in the termination of $11,076,435 of revenue-based notes. The MHz-POPs transferred represent 14,447,465 LP Units. As of the date of this report, Iota owns 3% of the outstanding LP Units resulting in a non-controlling interest of 97%.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Nov. 30, 2019
Accounting Policies [Abstract]
Principles of Consolidation	The unaudited condensed consolidated financial statements include the accounts of Iota Communications, its three wholly owned subsidiaries, Iota Networks, ICS, and Iota Holdings, and Iota Partners, a variable interest entity controlled by the Company. Intercompany accounts and transactions have been eliminated in consolidation.
Reclassifications	The following reclassifications have been made to conform the prior period data to the current presentation: (i) for the fiscal year ended May 31, 2019, $110,451 was reclassed from Other Current Assets to Other Assets on the consolidated balance sheet, (ii) for the three and six months ended November 30, 2018, we renamed “Network related costs” on the consolidated statement of operations to “Network site expenses”, (iii) for the six months ended November 30, 2018, $38,719 was reclassed from Interest income to Interest expense, net, (iv) for the three and six months ended November 30, 2018, $403,508 and $782,523, respectively, was reclassed from Network site expense to Research and development, and (v) for the three and six months ended November 30, 2018, $(33,172) was reclassed from Other income (expense) to Selling, general and administrative.
Use of Estimates	The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity-based transactions, and disclosure of contingent liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company believes the following critical accounting policies affect its more significant judgments and estimates used in the preparation of the accompanying unaudited consolidated financial statements. Significant estimates include revenue recognition, the allowance for doubtful accounts, the useful life of property and equipment, valuation of long-lived assets for impairment, deferred tax asset and valuation allowance, accounting for variable interest entities, and assumptions used in Black-Scholes-Merton, or BSM, valuation methods, such as expected volatility, risk-free interest rate, and expected dividend rate.
Non-controlling Interests in Consolidated Financial Statements	The Company follows Accounting Standards Codification (“ASC”) Topic 810-10-65, Noncontrolling Interests in Consolidated Financial Statements. This statement clarifies that a noncontrolling (minority) interest in a subsidiary is an ownership interest in the entity that should be reported as equity in the unaudited consolidated financial statements. It also requires consolidated net income (loss) to include the amounts attributable to both the parent and the noncontrolling interest, with disclosure on the face of the consolidated statement of operations of the amounts attributed to the parent and to the noncontrolling interest. In accordance with ASC Topic 810-10-45-21, the losses attributable to the parent and the noncontrolling interest in subsidiary may exceed the parent’s interest in the subsidiary’s equity. The excess and any further losses attributable to the parent and the noncontrolling interest shall be attributable to those interests even if that attribution results in a deficit of noncontrolling interest balance. As of November 30, 2019 and May 31, 2019, the Company reflected a noncontrolling interest of $3,321,887 and $0 in connection with its variable interest entity, Iota Partners, as reflected in the accompanying November 30, 2019 unaudited consolidated balance sheet and May 31, 2019 consolidated balance sheet, respectively.
Variable Interest Entities	The Company follows ASC Topic 810-10-15 guidance with respect to accounting for variable interest entities (“VIEs”). VIEs do not have sufficient equity at risk to finance their activities without additional subordinated financial support from other parties or whose equity investors lack any of the characteristics of a controlling financial interest. A variable interest is an investment or other interest that will absorb portions of a VIE’s expected losses or receive portions of its expected residual returns and are contractual, ownership, or pecuniary in nature and change with changes in the fair value of the entity’s net assets. A reporting entity is the primary beneficiary of a VIE and must consolidate it when that party has a variable interest, or combination of variable interests, that provide it with a controlling financial interest. A party is deemed to have a controlling financial interest if it meets both of the power and losses/benefits criteria. The power criterion is the ability to direct the activities of the VIE that most significantly impact its economic performance. The losses/benefits criterion is the obligation to absorb losses from, or right to receive benefits from, the VIE that could potentially be significant to the VIE. The VIE model requires an ongoing reconsideration of whether a reporting entity is the primary beneficiary of the VIE due to changes in facts and circumstances. The Company currently consolidates one VIE, Iota Partners, as of November 30, 2019. The Company is the primary beneficiary due to its ability to direct the activities of Iota Partners through its wholly owned subsidiary, Iota Holdings.
Revenue	The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which the Company adopted beginning June 1, 2016. The Company did not record a retrospective adjustment upon adoption, and instead opted to apply the full retrospective method for all customer contracts. As part of ASC Topic 606, the Company adopted several practical expedients including that the Company has determined that it need not adjust the promised amount of consideration for the effects of a significant financing component since the Company expects, at contract inception, that the period between when the Company transfers a promised service to the customer and when the customer pays for that service will be one year or less. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC Topic 606. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Amounts received prior to being earned are recognized as deferred revenue on the accompanying unaudited condensed consolidated balance sheets. For purposes of this presentation, activities related to the Company’s wireless network carrier and application technology segment are classified under Iota Networks, activities related to the Company’s Energy as a Service “EaaS” subscriptions and solar energy, LED lighting, and HVAC implementation services are classified under ICS, activities related to the parent company are classified under Iota Communications, and activities related to the spectrum licenses owned by Iota Partners that Iota Networks uses to operate its networks are classified under Iota Holdings. Iota Networks Iota Networks derives revenues in part The Company has determined there are three performance obligations related to the Network Hosting Services agreements. The first performance obligation arises from the services related to obtaining FCC license perfection, the second performance obligation arises from maintaining the license in compliance with regulatory affairs, and the third performance obligation arises from the services related to acting as a future sales or lease agent for the customer. Given the nature of the service in the first performance obligation, Iota Networks recognizes revenue from the upfront fees at the point in time that the license is perfected. Iota Networks recognizes the annual fee revenue related to the second performance obligation ratably over the contract term as the services are transferred to and performed for the customer. Pursuant to its Network Hosting Services agreements, Iota Networks also derives revenues from annual renewal fees from its customers for the purpose of covering costs associated with maintaining and operating the customer licenses. Annual renewal fee revenue is recognized ratably over the renewal period as the services are performed. The third performance obligation is for future possible services and is recognized when and if the performance obligation is satisfied. Iota Commercial Solutions ICS derives revenues through both Energy as a Service (“EaaS”) recurring subscriptions and solar energy, LED lighting, and HVAC implementation services. Revenues for EaaS offerings sold on a subscription basis are generally recognized ratably over the contract term commencing with the date the service is made available to customers. Revenues from the sale of hardware products are generally recognized upon delivery of the hardware product to the customer provided all other revenue recognition criteria are satisfied. Sales of services are recognized as the performance obligations are fulfilled, and the customer takes risk of ownership and assumes the risk of loss. Service revenue is recognized as the service is completed under ASC Topic 606. Most ICS customer contracts have a single performance obligation which is not separately identifiable from other promises in the contracts and is, therefore, is not distinct. Payment is generally due within 30 to 45 days of invoicing. There is no financing or variable component. ICS serves as the principal in its customer contracts. ICS recognizes solar panel and LED lighting system design, construction, and installation services revenue over time, as performance obligations are satisfied, due to the continuous transfer of control to the customer. ICS has determined that individual contracts at a single location are generally accounted for as a single performance obligation and are not segmented between types of services provided on these contracts. ICS recognizes revenue on these contracts using the cost to cost percentage of completion method, based primarily on contract costs incurred to date compared to total estimated contract costs. The percentage of completion method (an input method) is the most accurate depiction of ICS’s performance because it directly measures the value of the services transferred to the customer, and the consideration that is required to be paid by the customer based on the contract. Changes to total estimated contract costs or losses, if any, are recognized in the period in which they are determined as assessed at the contract level. Pre-contract costs are expensed as incurred unless they are expected to be recovered from the client. Customer payments on solar and LED lighting system contracts are typically billed upon the successful completion of milestones written into the contract and are due within 30 to 45 days of billing, depending on the contract. Contract assets represent revenue recognized in excess of amounts billed and include unbilled receivables (typically for cost reimbursable contracts). Contract liabilities represent amounts billed to clients in excess of revenue recognized to date. ICS has recorded a loss reserve on contract assets of $0 as of November 30, 2019 and $71,624 as of May 31, 2019. The nature of ICS’s solar panel and LED lighting system design, construction, and installation services contracts gives rise to several types of variable consideration, including claims and unpriced change orders. ICS recognizes revenue for variable consideration when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. ICS estimates the amount of revenue to be recognized on variable consideration using the expected value (i.e., the sum of a probability-weighted amount) or the most likely amount method, whichever is expected to better predict the revenue amount. Change orders are modifications of an original contract. Either ICS or its customer may initiate change orders. They may include changes in specifications or design, manner of performance, facilities, equipment, materials, sites and period of completion of the work. ICS evaluates when a change order is probable based upon its experience in negotiating change orders, the customer’s written approval of such changes, or separate documentation of change order costs that are identifiable. Change orders may take time to be formally documented and terms of such change orders are agreed with the customer before the work is performed. Sometimes circumstances require that work progresses before an agreement is reached with the customer. If ICS is having difficulties in renegotiating the change order, it will stop work, record all costs incurred to date, and determine, on a project by project basis, the appropriate final revenue recognition. Factors considered in determining whether revenue associated with claims (including change orders in dispute and unapproved change orders in regard to both scope and price) should be recognized include the following: (a) the contract or other evidence provides a legal basis for the claim, (b) additional costs were caused by circumstances that were unforeseen at the contract date and not the result of deficiencies in ICS’s performance, (c) claim-related costs are identifiable and considered reasonable in view of the work performed, and (d) evidence supporting the claim is objective and verifiable. If the requirements for recognizing revenue for claims or unapproved change orders are met, revenue is recorded only when the costs associated with the claims or unapproved change orders have been incurred. Back charges to suppliers or subcontractors are recognized as a reduction of cost when it is determined that recovery of such cost is probable, and the amounts can be reliably estimated. Disputed back charges are recognized when the same requirements described above for claims accounting have been satisfied. ICS generally provides limited warranties for work performed under its solar and LED lighting system contracts. The warranty periods typically extend for a limited duration following substantial completion of ICS’s work on a project. ICS does not charge customers for or sell warranties separately, and as such, warranties are not considered a separate performance obligation. Most warranties are guaranteed by subcontractors. ICS has recognized a warranty reserve of approximately $150,000 as of November 30, 2019, and approximately $314,000 as of May 31, 2019. ICS’s remaining unsatisfied performance obligations as of November 30, 2019 represent a measure of the total dollar value of work to be performed on contracts awarded and in progress. ICS had $1,455,771 in remaining unsatisfied performance obligations as of November 30, 2019. ICS expects to satisfy its remaining unsatisfied performance obligations as of November 30, 2019 over the following twelve months. Although the remaining unsatisfied performance obligations reflects business that is considered to be firm; cancellations, deferrals, or scope adjustments may occur. The remaining unsatisfied performance obligations is adjusted to reflect any known project cancellations, revisions to project scope and cost, and project deferrals, as appropriate. Disaggregated Revenues Revenue consists of the following by service offering for the six months ended November 30, 2019: Solar Energy, LED Lighting, and HVAC Implementation Service Revenues (a) Network Hosting Services (b) Subscription Revenues (a) Total $ 833,182 $ 156,506 $ 25,878 $ 1,015,566 Revenue consists of the following by service offering for the six months ended November 30, 2018: Solar Energy, LED Lighting, and HVAC Implementation Service Revenues (a) Network Hosting Services (b) Subscription Revenues (a) Total $ 775,500 $ 104,913 $ 5,252 $ 885,665 Revenue consists of the following by service offering for the three months ended November 30, 2019: Solar Energy, LED Lighting, and HVAC Implementation Service Revenues (a) Network Hosting Services (b) Subscription Revenues (a) Total $ 117,910 $ 129,067 $ 10,628 $ 257,605 Revenue consists of the following by service offering for the three months ended November 30, 2018: Solar Energy, LED Lighting, and HVAC Implementation Service Revenues (a) Network Hosting Services (b) Subscription Revenues (a) Total $ 772,570 $ 58,047 $ 5,252 $ 835,869 (a) (b)
Cash	The Company considers all highly liquid short-term instruments that are purchased with an original maturity of three months or less to be cash equivalents. The Company did not have any cash equivalents as of November 30, 2019 and May 31, 2019.
Account Receivable	Accounts receivable are reported at realizable value, net of allowances for doubtful accounts, which is estimated and recorded in the period the related revenue is recorded. The Company provides for allowances for doubtful receivables based on management’s estimate of uncollectible amounts considering age, collection history, and any other factors considered appropriate. The Company writes off accounts receivable against the allowance for doubtful accounts when a balance is determined to be uncollectible. As of November 30, 2019, and May 31, 2019, the Company’s allowance for doubtful accounts was $1,007,036 and $810,132, respectively. Other receivables are included in other assets on the balance sheet and include amounts due under the various Iota Networks programs including Network Hosting, Spectrum Partners, and Reservation Programs services (See Note 10).
Contract Assets	The Company records capitalized job costs on the balance sheet and expenses the costs upon completion of related jobs based on when revenue is earned. At November 30, 2019 and May 31, 2019, the Company had $171,492 and $435,788, respectively, of contract assets.
Property and Equipment	Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets, generally three to fifteen years. Expenditures that enhance the useful lives of the assets are capitalized and depreciated. All network site setup costs are capitalized as construction-in-progress ("CIP"), as incurred. As tower and billboard sites become operational and are placed in service as radios are installed, the Company transfers site specific CIP to capitalized tower and billboard site equipment costs and begins to depreciate those assets on a straight-line basis over ten years. Network equipment costs for hardware are capitalized, as incurred, and depreciated on a straight-line basis over five years. Furniture, fixtures, and equipment are capitalized at cost and depreciated on a straight-line basis over useful lives ranging from five to seven years. Software costs are capitalized at cost and depreciated on a straight-line basis over three to five years. Maintenance and repairs are charged to expense as incurred. At the time of retirement or other disposition of property and equipment, the cost and accumulated depreciation will be removed from the accounts and the resulting gain or loss, if any, will be reflected in operations.
Software Development Costs	The Company is developing application platforms that will utilize the spectrum network and other leased network availability, to provide solutions for customers. The Company follows the guidance of ASC Topic 985-20, Costs of software to be sold, leased, or marketed, which calls for the expense of costs until technical feasibility is established. Any costs the Company had incurred during planning, designing, coding, and testing activities that are necessary to establish that the product can be produced to meet its design specifications are expensed as incurred. Once technical feasibility of the product has been established, the Company capitalizes the costs until the product is available for general release to customers. The capitalized costs are amortized on a product-by-product basis over the estimated economic life of the product. When conditions indicate a potential impairment, the Company compares the unamortized capitalized costs to the estimated net realizable value, and if the unamortized costs are greater than the expected future revenues, the excess is written down to the net realizable value. On November 15, 2019, the Company entered into an asset purchase agreement with Link Labs, Inc. to purchase certain assets, including and not limited to, all work product, know-how, work in process, developments, and deliverables related to Iota Link and the Conductor system, as well as certain software, including source code that is used in connection with the development and operation of dedicated network technology using FCC Parts 22, 24, 90 and 101 spectrum for bi-directional wireless data transmission including the Conductor platform modified for provisioning and managing the Iota Link system and related intellectual property (See Note 3). As of November 30, 2019, Iota Link and the Conductor system have reached technological feasibility and as such appropriate costs have been capitalized. As of November 30, 2019, there were no other software or related products that have reached technical feasibility. For the three and six months ending November 30, 2019 and 2018, approximately $1,144 and $3,288 and $403,509 and $782,524, respectively, in software development costs have been expensed within research and development costs in the statement of operations.
Impairment of Long-Lived Assets	The Company reviews long-lived assets, including definite-lived intangible assets and right of use (“ROU”) lease assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows of the operation to which the assets relate to the carrying amount. If the operation is determined to be unable to recover the carrying amount of its assets, then these assets are written down first, followed by other long-lived assets of the operation, to fair value. Fair value is determined based on discounted cash flows or appraised values, depending on the nature of the assets. For the six months ending November 30, 2019 and 2018, there were no impairment losses recognized for long-lived assets.
Leases	Leases in which the Company is the lessee include leases of office facilities, office equipment, and tower and billboard space. All of the Company’s leases are classified as operating leases. The Company is obligated under certain lease agreements for office space and office equipment with lease terms expiring on various dates from 2019 through 2022. The Company leases tower and billboard space in various geographic locations across the United States, upon and through which its spectrum network is being developed. Generally, these leases are for an initial five-year term with annual lease rate escalations of approximately 3%. With limited exceptions, the leases provide anywhere from one to as many as five, 5-year options to extend. Most of these leases require the Company to restore the towers and billboards to their original pre-lease condition, which creates asset retirement obligations (see Note 13). In accordance with ASC Topic 842, Leases, and upon its adoption by the Company on June 1, 2019, the Company recognized right of use assets and corresponding lease liabilities on its unaudited condensed consolidated balance sheet for its operating lease agreements. The Company elected the package of practical expedients for its operating leases, which permits the Company not to reassess under the new standard the prior conclusions about lease identification, lease classification, and initial direct costs. See Note 17 - Leases for further discussion, including the impact on the Company’s unaudited condensed consolidated financial statements and required disclosures.
Intangible Assets	The Company records its intangible assets at cost in accordance with ASC Topic 350, Intangibles – Goodwill and Other. Definite lived intangible assets are amortized over the estimated life using the straight-line method, which is determined by identifying the period over which the cash flows from the asset are expected to be generated. During the six months ended November 30, 2019, the Company had no impairment losses relating to its intangible assets (See Note 6).
Convertible Instruments	The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with accounting standards for Accounting for Derivative Instruments and Hedging Activities, ASC Topic 815. ASC Topic 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable GAAP with changes in fair value reported in earnings as they occur, and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional as defined under professional standards as “The Meaning of Conventional Convertible Debt Instrument”. The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with professional standards when “Accounting for Convertible Securities with Beneficial Conversion Features,” as those professional standards pertain to “Certain Convertible Instruments.” Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Original issue discounts (“OID”) under these arrangements are amortized over the term of the related debt to their earliest date of redemption. ASC Topic 815-40 provides that, among other things, generally if an event is not within the entity’s control, or could require net cash settlement, then the contract shall be classified as an asset or a liability.
Contingent Liability	On November 15, 2019, the Company entered into an asset purchase agreement (the “Purchase Agreement”) with Link Labs, Inc. Pursuant to the Purchase Agreement, the Company will acquire certain assets from Link Labs (the “Purchased Assets”) in a series of three closings on the Purchase Agreement terms and subject to the conditions set forth therein, for consideration totaling $6,765,335 in cash and stock. Through November 30, 2019, the first of these closings had occurred for consideration totaling $3,765,335. The contingent obligation for the second and third closings, totaling $3,000,000, has been accrued on the Company’s unaudited consolidated balance sheet at November 30, 2019 as a contingent liability (See Note 3).
Asset Retirement Obligations	The Company accounts for asset retirement obligations in accordance with authoritative guidance that requires entities to record the fair value of a liability for an asset retirement obligation in the period in which it is incurred. An asset retirement obligation is defined as a legal obligation associated with the retirement of tangible long-lived assets in which the timing and/or method of settlement may or may not be conditional on a future event that may or may not be within the control of the Company. When the liability is initially recorded, the Company capitalizes the estimated cost of retiring the asset as part of the carrying amount of the related long-lived asset. The Company estimates the fair value of its asset retirement obligations based on the discounting of expected cash flows using various estimates, assumptions, and judgments regarding certain factors such as the existence of a legal obligation for an asset retirement obligation; estimated amounts and timing of settlements; the credit-adjusted risk-free rate to be used; and inflation rates. The asset retirement obligations of the Company are associated with leases for its tower and billboard site locations. For purposes of estimating its asset retirement obligations, the Company assumes all lease extension options will be exercised for the tower and billboard site locations, consequently resulting in measurement periods of 5 - 30 years. Accretion associated with asset retirement costs is recognized over the full term of the respective leases, including extension options.
Deferred Rent	The Company recognizes escalating rent provisions on a straight-line basis over the corresponding lease term. Prior to its adoption of ASC Topic 842, and for leases associated with its tower and billboard site locations, the Company assumed all lease extension options would be exercised resulting in lease terms of 5 – 30 years. For leases associated with office space, the Company assumed the initial lease term, generally 5 years. A deferred rent liability is recognized for the difference between actual scheduled lease payments and the rent expense determined on a straight-line basis. On June 1, 2019, the Company adopted ASC Topic 842 – Leases, and, as such, included all unamortized deferred rent as a component of the ROU asset for the Company’s tower, billboard, and long-term office lease.
Research & Development Costs	In accordance with ASC Topic 730-10-25, research and development costs are charged to expense when incurred. Total research and development costs were $1,144 and $3,288 and $671,544 and $2,064,234 for the three and six months ended November 30, 2019 and 2018, respectively.
License Service Costs	The Company incurs costs related to providing license services to its Spectrum Partners. These costs include frequency coordination fees and FCC filing fees. Per the Company’s accounting policy, these costs are expensed as incurred and totaled $72,890 and $1,029,670 and $285,840 and $405,140 for the three and six months ended November 30, 2019 and 2018, respectively, and are recorded within selling, general and administrative expenses on the unaudited condensed consolidated statements of operations.
Advertising and Marketing Costs and Deferred Finance Charges	The Company expenses advertising and marketing costs as they are incurred. Advertising and marketing expenses were $81,570 and $250,268 and $84,77 and $201,223 for the three and six months ended November 30, 2019 and 2018, respectively. Broker fees associated with the administration of the Spectrum Partners program are capitalized as deferred financing costs offset against the revenue-based loans. These financing costs are amortized over the initial five-year term of the Spectrum Partners program. Amortization of previously deferred financing costs was $94,671 and $148,586 and $53,915 and $104,601 for the three and six months ended November 30, 2019 and 2018, respectively, and are recorded in selling, general and administrative expenses on the unaudited condensed consolidated statements of operations.
Segment Policy	The Company’s reportable segments include Iota Networks, Iota Commercial Solutions, Iota Communications, and Iota Holdings, and are distinguished by types of service, customers, and methods used to provide services. The operating results of these business segments are regularly reviewed by the Company’s chief operating decision maker. The Company evaluates performance based primarily on income (loss) from operations.
Fair Value Measurements	ASC Topic 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement). This fair value measurement framework applies at both initial and subsequent measurement. The three levels of the fair value hierarchy defined by ASC Topic 820 are as follows: · Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities, and listed equities. · Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options, and collars. · Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.
Fair Value of Financial Instruments	The carrying value of cash, accounts receivable, accounts payable and accrued expenses, and payroll liabilities, approximate their fair values based on the short-term maturity of these instruments. The carrying amount of notes payable and convertible debentures approximates the estimated fair value for these financial instruments as management believes that such notes constitute substantially all the Company’s debt, and interest payable on the notes approximates the Company’s current incremental borrowing rate. The carrying amount of lease liabilities approximates the estimated fair value for these financial instruments as management believes that such liabilities approximates the present value of the lease obligation owed over the reasonably certain term of the lease.
Net Income (loss) per Common Share	Net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. All vested outstanding options and warrants are considered potential common stock. All outstanding convertible securities are considered common stock at the beginning of the period or at the time of issuance, if later, pursuant to the if-converted method. The dilutive effect, if any, of stock options and warrants are calculated using the treasury stock method. Since the effect of common stock equivalents is anti-dilutive with respect to losses, the convertible securities, options, and warrants have also been excluded from the Company’s computation of net loss per common share for the six month period ended November 30, 2019 and the three and six month period ended November 30, 2018. For the three month period ended November 30, 2019, the if-converted method was used for the convertible securities to calculate the dilutive net income per common share. Three Months Ended November 30, 2019 November 30, 2018 Numerator: Numerator for basic and diluted earnings (loss) per share: Net income (loss) $ 6,850,277 $ (17,118,897) Net loss attributable to noncontrolling interest (24,577) - Net income (loss) applicable to Iota Communications, Inc. $ 6,874,854 $ (17,118,897) Denominator: Denominator for basic earnings (loss) per share – weighted average shares outstanding 230,721,378 161,245,806 Warrants converted to common stock 961,738 - Shares issuable on conversion of debt 2,368,917 - Denominator for diluted earnings (loss) per share – weighted average and assumed conversion 234,052,033 161,245,806 Net income (loss) per share: Basic net income (loss) per share $ 0.03 $ (0.11) Diluted net income (loss) per share $ 0.03 $ (0.11) The following table summarizes the securities that were excluded from the diluted per share calculation because the effect of including these potential shares was anti-dilutive due to the Company’s net loss position even though the exercise price could be less than the average market price of the common shares: Three Months Ended November 30, 2019 November 30, 2018 Convertible notes - 3,100,000 Stock options 7,812,500 7,112,500 Warrants 15,015,998 25,620,800 Potentially dilutive securities 22,828,498 35,833,300 Six Months Ended November 30, 2019 November 30, 2018 Convertible notes 2,652,381 3,100,000 Stock options 7,812,500 7,112,500 Warrants 23,810,329 25,620,800 Potentially dilutive securities 34,275,210 35,833,300
Stock-Based Compensation	The Company applies the provisions of ASC Topic 718, Compensation – Stock Compensation, which requires the measurement and recognition of compensation expense for all stock-based awards made to employees, including employee stock options, in the statement of operations. For stock options issued to employees and members of the board of directors for their services, the Company estimates the grant date fair value of each option using the Black-Scholes option pricing model. The use of the Black-Scholes option pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the common stock consistent with the expected life of the option, risk-free interest rates, and expected dividend yields of the common stock. For awards subject to service-based vesting conditions, including those with a graded vesting schedule, the company recognizes stock-based compensation expense equal to the grant date fair value of the stock options on a straight-line basis over the requisite service period, which is generally the vesting term. Forfeitures are recorded as they are incurred as opposed to being estimated at the time of grant and revised. Pursuant to Accounting Standards Update (“ASU”) 2018-07 Compensation – Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting, the Company accounts for stock options issued to non-employees for their services in accordance with ASC Topic 718. The Company uses valuation methods and assumptions to value the stock options granted to nonemployees that are in line with the process for valuing employee stock options described above.
Income Taxes	Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carry forwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company utilizes ASC Topic 740, Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the unaudited condensed consolidated financial statements or tax returns. The Company accounts for income taxes using the asset and liability method to compute the differences between the tax basis of assets and liabilities and the related financial amounts, using currently enacted tax rates. A valuation allowance is recorded when it is “more likely-than-not” that a deferred tax asset will not be realized. For uncertain tax positions that meet a “more likely than not” threshold, the Company recognizes the benefit of uncertain tax positions in the unaudited condensed consolidated financial statements. The Company’s practice is to recognize interest and penalties, if any, related to uncertain tax positions in income tax expense in the unaudited condensed consolidated statements of operations.
Recent Accounting Pronouncements	On February 25, 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842), which the Company adopted as of June 1, 2019. Topic 842 requires recognition of lease rights and obligations as assets and liabilities on the balance sheet. On June 1, 2019, the Company adopted the new lease standard using the optional transition method. The comparative financial information will not be restated and will continue to be reported under the previous lease standard in effect during those periods. In addition, the new lease standard provides several optional practical expedients in transition. The Company elected the package of practical expedients, and as such, the Company will not reassess whether expired of existing contracts are or contain a lease, will not need to reassess the lease classifications, or reassess the initial direct costs associated with expired or expiring leases. The Company did not elect the use of hindsight or the practical expedient pertaining to land easements; the latter not being applicable to the Company. The new lease standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases that qualify. For those leases that qualify, the Company will not recognize ROU assets or lease liabilities, including not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company elected the practical expedient to not separate lease and non-lease components for certain classes of assets (office facilities and office equipment). On June 1, 2019, the Company recognized ROU assets of $17,221,387, net of deferred rent liabilities of approximately $1,975,000, and lease liabilities of $19,197,202. During the three months ended November 30, 2019, the Company identified certain billboard leases tied to billboard sites not established at June 1, 2019, that were not recorded as part of the initial ASC Topic 842 adoption. The Company recognized additional ROU assets of $2,646,221 and lease liabilities of $2,646,221 during the three months ended November 30, 2019 (See Note 20). When measuring lease liabilities for leases that were classified as operating leases, the Company discounted lease payments using its estimated incremental borrowing rate at June 1, 2019. The weighted average incremental borrowing rate utilized was 10%. The Company’s adoption of the new lease standard did not materially impact its condensed consolidated statements of operations and its statements of cash flows. No cumulative effect adjustment was recognized upon adoption as the effect was not material. See Note 17 - Leases for further discussion, including the impact on the Company’s condensed consolidated financial statements and required disclosures. All other newly issued but not yet effective accounting pronouncements have been deemed to be not applicable or immaterial to the Company.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Nov. 30, 2019
Accounting Policies [Abstract]
Disaggregated revenues	Solar Energy, LED Lighting, and HVAC Implementation Service Revenues (a) Network Hosting Services (b) Subscription Revenues (a) Total $ 833,182 $ 156,506 $ 25,878 $ 1,015,566 Revenue consists of the following by service offering for the six months ended November 30, 2018: Solar Energy, LED Lighting, and HVAC Implementation Service Revenues (a) Network Hosting Services (b) Subscription Revenues (a) Total $ 775,500 $ 104,913 $ 5,252 $ 885,665 Revenue consists of the following by service offering for the three months ended November 30, 2019: Solar Energy, LED Lighting, and HVAC Implementation Service Revenues (a) Network Hosting Services (b) Subscription Revenues (a) Total $ 117,910 $ 129,067 $ 10,628 $ 257,605 Revenue consists of the following by service offering for the three months ended November 30, 2018: Solar Energy, LED Lighting, and HVAC Implementation Service Revenues (a) Network Hosting Services (b) Subscription Revenues (a) Total $ 772,570 $ 58,047 $ 5,252 $ 835,869 (a) (b)
Dilutive earnings per share	Three Months Ended November 30, 2019 November 30, 2018 Numerator: Numerator for basic and diluted earnings (loss) per share: Net income (loss) $ 6,850,277 $ (17,118,897 ) Net loss attributable to non-controlling interest (24,577 ) - Net income (loss) applicable to Iota Communications, Inc. $ 6,874,854 $ (17,118,897 ) Denominator: Denominator for basic earnings (loss) per share – weighted average shares outstanding 230,721,378 161,245,806 Warrants converted to common stock 961,738 - Shares issuable on conversion of debt 2,368,917 - Denominator for diluted earnings (loss) per share – weighted average and assumed conversion 234,052,033 161,245,806 Net income (loss) per share: Basic net income (loss) per share $ 0.03 $ (0.11 ) Diluted net income (loss) per share $ 0.03 $ (0.11 )
Securities excluded from the diluted per share calculation	Three Months Ended November 30, 2019 November 30, 2018 Convertible notes - 3,100,000 Stock options 7,812,500 7,112,500 Warrants 15,015,998 25,620,800 Potentially dilutive securities 22,828,498 35,833,300 Six Months Ended November 30, 2019 November 30, 2018 Convertible notes 2,652,381 3,100,000 Stock options 7,812,500 7,112,500 Warrants 23,810,329 25,620,800 Potentially dilutive securities 34,275,210 35,833,300

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Nov. 30, 2019
Business Combinations [Abstract]
Purchase price allocation, assets acquired and assumed liabilities	Consideration paid $ 880,602 Tangible assets acquired: Cash 72,059 Accounts receivable, net 184,165 Contract assets 473,998 Other current assets & prepaid expenses 354,955 Fixed assets - net 20,291 Security deposit 30,289 Total tangible assets 1,135,757 Assumed liabilities: Accounts payable 2,983,537 Accrued expenses 673,736 Contract liabilities 59,385 Accrued income tax 63,082 Warranty reserve 210,594 Debt subject to equity being issued 179,180 Advances from related party 827,700 Convertible debentures, net of debt discount 850,000 Notes payable 535,832 Total assumed liabilities 6,383,046 Net tangible (liabilities) (5,247,289 ) Intangible assets acquired: (a.) IP/technology/patents 210,000 Customer base 17,000 Tradenames - trademarks 510,500 Non-compete agreements 140,500 Total intangible assets acquired 878,000 Net assets acquired (4,369,289 ) Goodwill (b.)(c.) $ 5,249,891
Proforma financial information	Six Months Ended November 30, 2018 Net revenue $ 1,731,147 Net loss $ (30,515,798 )
Allocation of the purchase price to the fair value of assets acquired	Consideration: 12,146,241 shares of common stock $ 3,765,335 Cash payment (2) 1,000,000 Notes payable (2) 2,000,000 Total Consideration: $ 6,765335 Tangible assets acquired: Software 2,610,000 Intangible assets acquired: In process research and development and Patents (1) 4,155,335 Total net assets acquired $ 6,765,335

OTHER CURRENT ASSETS (Tables)

OTHER CURRENT ASSETS (Tables)	6 Months Ended
	Nov. 30, 2019
Other Assets [Abstract]
Other current assets	November 30, 2019 May 31, 2019 Prepaid expenses $ 574,371 $ 630,746 Prepaid inventory 24,978 5,000 Total other current assets $ 599,349 $ 635,746

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Nov. 30, 2019
Property, Plant and Equipment [Abstract]
Property and equipment	November 30, 2019 May 31, 2019 Site, tower and billboard equipment $ 6,528,446 $ 6,678,148 Network equipment 859,829 859,829 Asset retirement costs 1,481,399 1,530,163 Furniture, fixtures and equipment 211,544 208,903 Software 2,610,000 - Construction in progress 4,355,861 4,606,949 16,047,079 13,883,992 Less: accumulated depreciation (4,156,990 ) (3,759,229 ) Property and equipment, net $ 11,890,089 $ 10,124,763

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Nov. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets	Useful life November 30, 2019 May 31, 2019 In process R&D and Patents (2)(3) $ 4,155,335 $ - Tradename/marks 5 years 165,900 510,500 FCC licenses (1) 114,950 114,950 Non-compete 3 years 5,688 140,500 IP/Technology 5 years - 210,000 Customer base 5 years - 17,000 4,441,873 992,950 Less accumulated amortization (18,153) (90,750) Less impairment charge (-) (615,662) Total $ 4,423,720 $ 286,538

ACCOUNTS PAYABLE AND ACCRUED _2

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)	6 Months Ended
	Nov. 30, 2019
Accounts Payable and Accrued Liabilities [Abstract]
Accounts payable and accrued expenses	November 30, 2019 May 31, 2019 Accounts payable $ 5,228,933 $ 14,136,259 Tower and billboard rent accrual - 2,910,483 Accrued expenses 1,483,763 1,516,808 $ 6,712,696 $ 18,563,550

WARRANTY RESERVE (Tables)

WARRANTY RESERVE (Tables)	6 Months Ended
	Nov. 30, 2019
Warranty Reserve Abstract
Warranty reserve	Opening balance, May 31, 2019 $ 313,881 Accrual for warranties issued 56,436 Settlements made - Adjustments made (220,317 ) Ending balance, November 30, 2019 $ 150,000

CONVERTIBLE DEBENTURES AND NO_2

CONVERTIBLE DEBENTURES AND NOTES PAYABLE (Tables)	6 Months Ended
	Nov. 30, 2019
Notes Payable [Abstract]
Convertible debentures net of debt discount	November 30, 2019 May 31, 2019 LIBOR + 10% Convertible note payable, due October 31, 2019 – AIP $ - $ 2,283,198 LIBOR + 10% Convertible note payable, due December 7, 2019 – AIP - 1,000,000 LIBOR + 10% Convertible note payable, due May 24, 2020 – AIP - 1,000,000 10% Convertible note payable due December 19, 2020 150,000 150,000 8% Convertible note payable due January 31, 2020 365,000 17,098 8% Convertible note payable, due March 31, 2020 125,635 - 8% Convertible note payable, due April 20, 2020 265,002 - $ 905,637 $ 4,450,296
Notes payable assumed as part of the Merger	November 30, 2019 May 31, 2019 Note payable, dated October 4, 2019, with interest at LIBOR + 10% $ 3,869,972 $ - Note payable, dated August 11, 2016, currently in default, with interest of 12% 150,000 150,000 Note payable, dated March 1, 2017, currently in default, with interest at 12% 100,000 100,000 Notes payable dated 2011, currently in default, at interest of 8% 74,812 74,812 Notes payable dated 2011, currently in default, at interest of 0% to 16% 67,159 84,290 Note payable, dated April 20, 2018, currently in default, with interest at 10% 50,000 50,000 Note payable, dated March 31, 2016, currently in default, with interest at 12% 10,000 10,000 Note payable, dated May 6, 2016, currently in default, with interest at 12% 10,000 10,000 $ 4,331,943 $ 479,102

REVENUE-BASED NOTES AND ACCRU_2

REVENUE-BASED NOTES AND ACCRUED INTEREST (Tables)	6 Months Ended
	Nov. 30, 2019
Notes Payable [Abstract]
Revenue based notes, debt securities and accrued interest	November 30, 2019 May 31, 2019 Spectrum Partners program $ 66,927,335 $ 68,253,496 Reservations program 2,045,075 2,045,075 Accrued interest on reservations pool program 341,273 243,820 Solutions pool program 6,861,237 6,861,237 Total revenue-based notes 76,174,920 77,403,628 Financing costs, unamortized (765,822 ) (914,408 ) Total revenue-based notes, net $ 75,409,098 $ 76,489,220

ASSET RETIREMENT OBLIGATION (Ta

ASSET RETIREMENT OBLIGATION (Tables)	6 Months Ended
	Nov. 30, 2019
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligations	November 30, 2019 May 31, 2019 As of beginning of period $ 1,771,227 $ 1,676,932 Liabilities incurred 9,556 40,989 Tower decommission write-off (69,684 ) - Accretion expense 26,279 53,306 At end of period $ 1,737,378 $ 1,771,227

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Nov. 30, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract]
Stock option activity	Weighted Average Shares Exercise Price Outstanding at May 31, 2019 6,812,500 $ 1.02 Granted 1,000,000 0.41 Exercised - - Expired or cancelled - - Outstanding at November 30, 2019 7,812,500 $ 0.94
Stock options outstanding	Outstanding Weighted-Average Remaining Life Weighted-Average Exercise Number Range of exercise prices Options In Years Price Exercisable $ 0.41 1,000,000 2.96 $ 0.41 - 0.60 1,000,000 6.40 0.60 1,000,000 0.99 4,000,000 8.77 0.99 1,250,000 1.20 1,562,500 5.08 1.20 1,562,500 2.00 250,000 6.40 2.00 250,000 7,812,500 6.91 $ 0.94 4,062,500
Warrant activity	Weighted Average Shares Exercise Price Outstanding at May 31, 2019 16,501,252 $ 0.635 Granted 11,462,636 0.36 Exercised (684,736 ) 0.28 Expired or cancelled (2,868,823 ) 1.20 Outstanding at November 30, 2019 24,410,329 $ 0.44
Warrants outstanding	Outstanding and exercisable Range of Exercise Prices Number Outstanding Weighted-Average Remaining Life in Years Weighted-Average Exercise Price Number Exercisable $ 0.01 555,652 4.33 $ 0.01 555,652 0.30 4,350,000 2.85 0.30 4,350,000 0.31 3,888,679 4.92 0.31 3,888,679 0.35 1,200,000 2.64 0.35 1,200,000 0.38 6,024,725 4.12 0.38 6,024,725 0.40 998,500 4.62 0.40 998,500 0.48 1,703,957 4.92 0.48 1,703,957 0.54 1,985,000 4.07 0.54 1,985,000 0.60 1,208,928 2.88 0.60 1,208,928 1.00 2,494,888 0.45 1.00 2,494,888 24,410,329 3.59 $ 0.44 24,410,329

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Nov. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Lease cost	Six Months Ended November 30, 2019 Lease cost Operating lease cost (cost resulting from lease payments) $ 2,089,625 Short term lease cost 82,493 Sublease income - Net lease cost $ 2,172,118 Operating lease – operating cash flows (fixed payments) $ 594,923 Operating lease – operating cash flows (liability reduction) $ 169,321 Non-current leases – right of use assets $ 17,926,862 Current liabilities – operating lease liabilities $ 1,179,155 Non-current liabilities – operating lease liabilities $ 17,729,382 Three Months Ended November 30, 2019 Lease cost Operating lease cost (cost resulting from lease payments) $ 967,013 Short term lease cost 43,533 Sublease income - Net lease cost $ 1,010,546 Operating lease – operating cash flows (fixed payments) $ 361,243 Operating lease – operating cash flows (liability reduction) $ (475,298 ) Non-current leases – right of use assets $ 17,822,645 Current liabilities – operating lease liabilities $ 1,179,155 Non-current liabilities – operating lease liabilities $ 17,729,382
Future minimum rental payments	Fiscal Year Operating Leases 2020 (excluding the six months ended November 30, 2019) $ 1,237,312 2021 3,204,606 2022 3,301,555 2023 3,389,941 2024 3,491,534 After 2024 14,355,185 Total future minimum lease payments 28,142,647 Amount representing interest (10,071,596 ) Present value of net future minimum lease payments $ 18,908,537

CONCENTRATION OF CREDIT RISK (T

CONCENTRATION OF CREDIT RISK (Tables)	6 Months Ended
	Nov. 30, 2019
Risks and Uncertainties [Abstract]
Concentrations	Two customers accounted for 99% of the revenue for the six months ended November 30, 2019, as set forth below: Customer 1 85 % Customer 2 14 % Two customers accounted for 55% of the revenue for the six months ended November 30, 2018, as set forth below: Customer 1 36 % Customer 2 19 % Accounts Receivable Three customers accounted for 65% of the accounts receivable as of November 30, 2019, as set forth below: Customer 1 38 % Customer 2 16 % Customer 3 11 % Two customers accounted for 73% of the accounts receivable as of May 31, 2019, as set forth below: Customer 1 37 % Customer 2 36 % Accounts Payable Two customers accounted for 31% of the accounts payable as of November 30, 2019, as set forth below: Customer 1 16 % Customer 2 15 % One customer accounted for 53% of the accounts payable as of May 31, 2019.

BUSINESS SEGMENT INFORMATION (T

BUSINESS SEGMENT INFORMATION (Tables)	6 Months Ended
	Nov. 30, 2019
Segment Reporting [Abstract]
Business segments	Iota Communications ICS Iota Networks Iota Holdings Total Three Months Ended November 30, 2019 Net Sales $ - $ 128,538 $ 129,067 $ - $ 257,605 Income (loss) from operations $ (1,013,958) $ (424,875) $ 10,201,607 $ (14,599) $ 8,748,175 Six Months Ended November 30, 2019 Net Sales $ - $ 859,060 $ 156,506 $ - $ 1,015,566 Income (loss) from operations $ (3,979,065) $ (830,324) $ 7,030,410 $ (240,482) $ 1,980,539 Three Months Ended November 30, 2018 Net sales $ - $ 777,822 $ 58,047 $ - $ 835,869 Loss from operations $ (12,409,125) $ (397,063) $ (4,140,467) $ - $ (16,946,655) Six Months Ended November 30, 2018 Net sales $ - $ 780,752 $ 104,913 $ - $ 885,665 Loss from operations $ (13,117,971) $ (756,291) $ (11,610,420) $ - $ (25,484,682) Total Assets November 30, 2019 $ 170,281 $ 1,111,312 $ 34,585,309 $ 51,765 $ 35,918,667 May 31, 2019 $ 845,063 $ 1,471,678 $ 10,660,887 $ - $ 12,977,628

REVISION OF PRIOR QUARTER IMM_2

REVISION OF PRIOR QUARTER IMMATERIAL MISSTATEMENTS (Tables)	6 Months Ended
	Nov. 30, 2019
Quantifying Prior Year Misstatements Corrected in Current Year Financial Statements [Abstract]
Revision of prior quarter immaterial misstatements	Previously Consolidated Statements of Operations for the 3 months ended November 30, 2018 Reported Adjustments As Restated Network site expense $ 796,750 $ 859,785 $ 1,656,535 Selling, general and administrative $ 4,762,930 $ (859,785) $ 3,903,145 Previously Consolidated Balance Sheets as of August 31, 2019 Reported Adjustments As Restated ROU Assets $ 16,718,780 $ 2,646,221 $ 19,365,001 Current portion of lease liabilities $ 2,595,994 $ 137,574 $ 2,733,568 Lease liabilities, net of current portion $ 15,956,589 $ 2,508,647 $ 18,465,236 Additional paid in capital $ 27,073,827 $ (509,996) $ 26,563,831 Accumulated deficit $(127,344,968) $ 509,996 $(126,834,972) Previously Consolidated Statements of Operations for the 3 months ended August 31, 2019 Reported Adjustments As Restated Selling, general and administrative $ 4,582,066 $ 29,363 $ 4,611,429 Net loss $ (8,026,065) $ (29,363) $ (8,055,428) Basic and diluted net loss per share $ (0.04) $ 0.00 $ (0.04) Previously Consolidated Statements of Operations for the 3 months ended February 28, 2019 Reported Adjustments As Restated Selling, general and administrative $ 2,883,924 $ (509,996) $ 2,373,928 Net loss $ (13,603,661) $ 509,996 $ (13,093,665) Basic and diluted net loss per share $ (0.07) $ 0.00 $ (0.07) Previously Consolidated Statements of Operations for the 9 months ended February 28, 2019 Reported Adjustments As Restated Selling, general and administrative $ 12,364,253 $ (509,996) $ 11,854,257 Net loss $(40,256,330) $ 509,996 $ (39,746,334) Basic and diluted net loss per share $ (0.25) $ 0.01 $ (0.24) Previously Consolidated Balance Sheets as of February 28, 2019 Reported Adjustments As Restated Additional paid in capital $ 20,574,650 $ (509,996) $ 20,064,564 Accumulated deficit $(102,867,832) $ 509,996 $(102,357,836) Previously Consolidated Statements of Operations for the year ended May 31, 2019 Reported Adjustments As Restated Selling, general and administrative $ 16,730,695 $ (509,996) $ 16,220,699 Net loss $(56,777,401) $ 509,996 $(56,267,405) Basic and diluted net loss per share $ (0.32) $ 0.00 $ (0.32) Previously Consolidated Balance Sheets as of May 31, 2019 Reported Adjustments As Restated Additional paid in capital $ 24,539,004 $ (509,996) $ 24,029,008 Accumulated deficit $(119,318,903) $ 509,996 $(118,808,907)

DESCRIPTION OF BUSINESS AND B_2

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details Narrative) - USD ($)	3 Months Ended				6 Months Ended
	Nov. 30, 2019	Aug. 31, 2019	Nov. 30, 2018	Aug. 31, 2018	Nov. 30, 2019	Nov. 30, 2018	May 31, 2019
Description Of Business And Basis Of Presentation
Accumulated deficit	$ (119,964,868)				$ (119,964,868)		$ (119,318,903)
Working capital deficit	(17,500,000)				(17,500,000)		$ (23,600,000)
Loss from operations	$ 6,850,277	$ (8,030,815)	$ (17,118,897)	$ (8,543,107)	(1,180,538)	$ (25,662,004)
Cash flows from operations					$ (6,837,664)	$ (12,087,500)

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Revenue	$ 257,605	$ 835,869	$ 1,015,566	$ 885,665
Energy Services
Revenue	117,910	772,570	833,182	775,500
Network Hosting Services
Revenue	129,067	58,047	156,506	104,913
Subscription Sales
Revenue	$ 10,628	$ 5,252	$ 25,878	$ 5,252

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	3 Months Ended					6 Months Ended		9 Months Ended	12 Months Ended
	Nov. 30, 2019	Aug. 31, 2019	Feb. 28, 2019	Nov. 30, 2018	Aug. 31, 2018	Nov. 30, 2019	Nov. 30, 2018	Feb. 28, 2019	May 31, 2019
Accounting Policies [Abstract]
Net income (loss)	$ 6,850,277	$ (8,030,815)		$ (17,118,897)	$ (8,543,107)	$ (1,180,538)	$ (25,662,004)
Net loss attributable to non-controlling interest	(24,577)			0		(24,577)	0
Net income (loss) applicable to Iota Communications, Inc.	$ 6,874,854	$ 8,055,428	$ (13,093,665)	$ (17,118,897)		$ (1,155,961)	$ (25,662,004)	$ (39,746,334)	$ (56,267,405)
Basic earnings (loss) per share - weighted average shares outstanding	230,721,378			161,245,806		225,778,381	145,372,474
Warrants converted to common stock	$ 961,738
Shares issuable on conversion of debt	2,368,917
Diluted earnings (loss) per share - weighted average and assumed conversion	234,052,033			161,245,806		225,778,381	145,372,474
Net income (loss) per share
Basic net income (loss) per share	$ 0.03			$ (0.11)		$ (0.01)	$ (0.18)
Diluted net income (loss) per share	$ 0.03			$ (0.11)		$ (0.01)	$ (0.18)

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - shares	3 Months Ended		6 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Securities excluded from the diluted per share calculation	22,828,498	35,833,300	34,275,210	35,833,300
Convertible Notes
Securities excluded from the diluted per share calculation	0	3,100,000	2,652,381	3,100,000
Stock Options
Securities excluded from the diluted per share calculation	7,812,500	7,112,500	7,812,500	7,112,500
Warrants
Securities excluded from the diluted per share calculation	15,015,998	25,620,800	23,810,329	25,620,800

SUMMARY OF SIGNIFICANT ACCOUN_7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018	May 31, 2019
Non-controlling interest in connection with variable interest entity	$ 3,321,887		$ 3,321,887		$ 0
Contract assets loss reserve	0		0		71,624
Warranty reserve	150,000		150,000		314,000
Unsatisfied performance obligations	1,455,771		1,455,771
Allowance for doubtful accounts	1,007,036		1,007,036		810,132
Software development costs	1,174	$ 3,288	403,509	$ 782,524
Contract Assets	171,492		171,492		$ 435,788
Advertising and marketing expenses	81,750	84,770	250,268	201,223
Amortization of deferred financing costs	94,671	148,586	53,915	104,601
Research & development costs	$ 1,144	$ 671,544	$ 3,288	$ 2,064,234
Site and Tower Equipment
Property and equipment useful life			10 years
Network Equipment
Property and equipment useful life			5 years
Furniture, Fixtures and Equipment | Minimum
Property and equipment useful life			5 years
Furniture, Fixtures and Equipment | Maximum
Property and equipment useful life			7 years

ACQUISITIONS (Details)

ACQUISITIONS (Details)	6 Months Ended
	Nov. 30, 2019USD ($)
Consideration paid	$ 6,765,335
Iota Networks, LLC
Consideration paid	880,602
Tangible assets acquired:
Cash	72,059
Accounts receivable, net	184,165
Contract assets	473,998
Other current assets & prepaid expenses	354,955
Fixed assets - net	20,291
Security deposit	30,289
Total tangible assets	1,135,757
Assumed liabilities:
Accounts payable	2,983,537
Accrued expenses	673,736
Contract liabilities	59,385
Accrued income tax	63,082
Warranty reserve	210,594
Debt subject to equity being issued	179,180
Advances from related party	827,700
Convertible debentures, net of debt discount	850,000
Notes payable	535,832
Total assumed liabilities	6,383,046
Net tangible (liabilities)	(5,247,289)
Intangible assets acquired:
Intangible assets	878,000
Net assets acquired	(4,369,289)
Goodwill	5,249,891
Iota Networks, LLC | IP/Technology/Patents
Intangible assets acquired:
Intangible assets	210,000
Iota Networks, LLC | Customer Base
Intangible assets acquired:
Intangible assets	17,000
Iota Networks, LLC | Tradenames - Trademarks
Intangible assets acquired:
Intangible assets	510,500
Iota Networks, LLC | Non-compete Agreements
Intangible assets acquired:
Intangible assets	$ 140,500

ACQUISITIONS (Details 1)

ACQUISITIONS (Details 1) - Iota Networks, LLC	6 Months Ended
	Nov. 30, 2018USD ($)
Net revenue	$ 1,731,147
Net loss	$ (30,515,798)

ACQUISITIONS (Details 2)

ACQUISITIONS (Details 2)	6 Months Ended
	Nov. 30, 2019USD ($)
Consideration paid
12,146,241 shares of common stock	$ 3,765,335
Cash payment	1,000,000
Notes payable	2,000,000
Total Consideration	6,765,335
Tangible assets acquired
Software	2,610,000
Intangible assets acquired:
In process research and development and patents	4,155,335
Net assets acquired	$ 6,765,335

OTHER CURRENT ASSETS (Details)

OTHER CURRENT ASSETS (Details) - USD ($)	Nov. 30, 2019	May 31, 2019
Other Assets [Abstract]
Prepaid expense	$ 574,371	$ 630,746
Prepaid inventory	24,978	5,000
Total other current assets	$ 599,349	$ 635,746

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	Nov. 30, 2019	May 31, 2019
Property and equipment, gross	$ 16,047,079	$ 13,883,992
Less: accumulated depreciation	(4,156,990)	(3,759,229)
Property and equipment, net	11,890,089	10,124,763
Site and Tower Equipment
Property and equipment, gross	6,528,446	6,678,148
Construction in Progress
Property and equipment, gross	4,355,861	4,606,949
Software
Property and equipment, gross	2,610,000
Asset Retirement Costs
Property and equipment, gross	1,481,399	1,530,163
Network Equipment
Property and equipment, gross	859,829	859,829
Furniture, Fixtures and Equipment
Property and equipment, gross	$ 211,544	$ 208,903

PROPERTY AND EQUIPMENT (Detai_2

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 275,143	$ 254,045	$ 539,291	$ 511,427

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Nov. 30, 2019	Nov. 30, 2019	May 31, 2019
Intangible assets, gross	$ 4,441,873	$ 4,441,873	$ 992,950
Less: accumulated amortization	(18,153)	(18,153)	(90,750)
Less: impairment charge		0	(615,662)
Intangible assets, net	$ 4,423,720	4,423,720	286,538
Useful life	9 years 5 months 5 days
In process R&D and Patents (2)
Intangible assets, gross	$ 4,155,335	4,155,335
Tradenames - Trademarks
Intangible assets, gross	165,900	$ 165,900	510,500
Useful life		5 years
FCC Licenses
Intangible assets, gross	114,950	$ 114,950	114,950
Non-compete Agreements
Intangible assets, gross	5,688	$ 5,688	140,500
Useful life		3 years
IP/Technology
Intangible assets, gross	0	$ 0	210,000
Useful life		5 years
Customer Base
Intangible assets, gross	$ 0	$ 0	$ 17,000
Useful life		5 years
In process R&D and Patents (2)
Useful life		5 years

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Weighted average useful life of identifiable intangible assets	9 years 5 months 5 days
Amortization of identifiable intangible assets	$ 9,384	$ 45,735	$ 18,153	$ 45,735
Amortization expense of identifiable intangible assets in 2020	600,000		600,000
Amortization expense of identifiable intangible assets in 2021	600,000		600,000
Amortization expense of identifiable intangible assets in 2022	600,000		600,000
Amortization expense of identifiable intangible assets in 2023	600,000		600,000
Amortization expense of identifiable intangible assets in 2024	600,000		600,000
Amortization expense of identifiable intangible assets in 2025	600,000		600,000
Amortization expense of identifiable intangible assets 2026-2035	$ 1,300,000		$ 1,300,000

ACCOUNTS PAYABLE AND ACCRUED _3

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Nov. 30, 2019	May 31, 2019
Accounts Payable and Accrued Liabilities [Abstract]
Accounts payable	$ 5,228,933	$ 14,136,259
Tower and billboard rent accrual	0	2,910,483
Accrued expenses	1,483,763	1,516,808
Accounts payable and accrued expenses	$ 6,712,696	$ 18,563,550

WARRANTY RESERVE (Details)

WARRANTY RESERVE (Details)	6 Months Ended
	Nov. 30, 2019USD ($)
Warranty Reserve Details Abstract
Warranty reserve, beginning	$ 313,881
Accrual for warranties issued	56,436
Settlements made	0
Adjustments made	(220,317)
Warranty reserve	$ 150,000

CONVERTIBLE DEBENTURES AND NO_3

CONVERTIBLE DEBENTURES AND NOTES PAYABLE (Details) - USD ($)	Nov. 30, 2019	May 31, 2019
Convertible debentures, net of debt discount	$ 905,637	$ 4,450,296
Convertible Notes Payable 1
Convertible debentures, net of debt discount	0	2,283,198
Convertible Notes Payable 2
Convertible debentures, net of debt discount	0	1,000,000
Convertible Notes Payable 3
Convertible debentures, net of debt discount	0	1,000,000
Convertible Notes Payable 4
Convertible debentures, net of debt discount	150,000	0
Convertible Notes Payable 5
Convertible debentures, net of debt discount	365,000	150,000
Convertible Notes Payable 6
Convertible debentures, net of debt discount	125,635	17,098
Convertible Notes Payable 7
Convertible debentures, net of debt discount	$ 265,002	$ 0

CONVERTIBLE DEBENTURES AND NO_4

CONVERTIBLE DEBENTURES AND NOTES PAYABLE (Details 1) - USD ($)	Nov. 30, 2019	May 31, 2019
Notes payable	$ 4,331,943	$ 479,102
Notes Payable 1
Notes payable	3,869,972	150,000
Notes Payable 2
Notes payable	150,000	100,000
Notes Payable 3
Notes payable	100,000	74,812
Notes Payable 4
Notes payable	74,812	84,290
Notes Payable 5
Notes payable	67,159	50,000
Notes Payable 6
Notes payable	50,000	10,000
Notes Payable 7
Notes payable	10,000	10,000
Notes Payable 8
Notes payable	$ 10,000	$ 0

CONVERTIBLE DEBENTURES AND NO_5

CONVERTIBLE DEBENTURES AND NOTES PAYABLE (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018	May 31, 2019
Notes Payable [Abstract]
Amortization of debt discount			$ 1,613,114		$ 796,509
Amortization expense related	$ 679,919	$ 223,516	838,717	$ 223,516
Convertible debenture, debt discount	1,028,192		1,028,192		312,902
Notes payable, debt discount	810,493		810,493		$ 0
Total expense related to interest	$ 1,129,107	$ 15,162	$ 2,170,450	$ 15,162

REVENUE-BASED NOTES AND ACCRU_3

REVENUE-BASED NOTES AND ACCRUED INTEREST (Details) - USD ($)	Nov. 30, 2019	May 31, 2019
Revenue-based notes, gross	$ 76,174,920	$ 77,403,628
Debt discounts, unamortized	(765,822)	(914,408)
Revenue-based notes, net	75,409,098	76,489,220
Revenue-based Notes 1
Revenue-based notes, gross	66,927,335	68,253,496
Revenue-based Notes 2
Revenue-based notes, gross	2,045,075	2,045,075
Revenue-based Notes 3
Revenue-based notes, gross	341,273	243,820
Revenue-based Notes 4
Revenue-based notes, gross	$ 6,861,237	$ 6,861,237

REVENUE-BASED NOTES AND ACCRU_4

REVENUE-BASED NOTES AND ACCRUED INTEREST (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Notes Payable [Abstract]
Interest expense related to financing costs	$ 61,925	$ 33,347	$ 97,453	$ 64,889
Amortization expense related to deferred financing costs	$ 94,672	$ 53,915	$ 148,586	$ 104,601

NOTES PAYABLE TO OFFICER (Detai

NOTES PAYABLE TO OFFICER (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018	May 31, 2019
Notes Payable [Abstract]
Notes payable - officers, current	$ 0		$ 0		$ 557,237
Notes payable - officers, noncurrent	0		0		$ 827,348
Interest paid	$ 6,368	$ 6,805	$ 16,242	$ 13,061

ASSET RETIREMENT OBLIGATION (De

ASSET RETIREMENT OBLIGATION (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018	May 31, 2019
Asset Retirement Obligation Disclosure [Abstract]
Asset retirement obligation, beginning			$ 1,771,227	$ 1,676,932	$ 1,676,932
Liabilities incurred			9,556		40,898
Tower decommission write-off			(69,684)	0	0
Accretion expense	$ 10,642	$ 13,149	26,279	$ 26,401	53,306
Asset retirement obligation, ending	$ 1,737,378		$ 1,737,378		$ 1,771,227

ASSET RETIREMENT OBLIGATION (_2

ASSET RETIREMENT OBLIGATION (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018	May 31, 2019
Asset Retirement Obligation Disclosure [Abstract]
Accretion expense	$ 10,642	$ 13,149	$ 26,279	$ 26,401	$ 53,306

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details)	6 Months Ended
	Nov. 30, 2019$ / sharesshares
Share-based Payment Arrangement, Noncash Expense [Abstract]
Number of options outstanding, beginning	6,812,500
Number of options granted	1,000,000
Number of options exercised	0
Number of options expired/cancelled	0
Number of options outstanding, ending	7,812,500
Weighted average exercise price outstanding, beginning | $ / shares	$ 1.02
Weighted average exercise price granted | $ / shares	.41
Weighted average exercise price outstanding, ending | $ / shares	$ .94

STOCK-BASED COMPENSATION (Det_2

STOCK-BASED COMPENSATION (Details 1) - $ / shares	6 Months Ended
	Nov. 30, 2019	May 31, 2019
Range of exercise prices	$ .94	$ 1.02
Number of options outstanding	7,812,500	6,812,500
Weighted average remaining contractual life	6 years 10 months 28 days
Weighted average exercise price	$ .94
Number of options exercisable	4,062,500
Stock Option 1
Range of exercise prices	$ .41
Number of options outstanding	1,000,000
Weighted average remaining contractual life	2 years 11 months 16 days
Weighted average exercise price	$ .41
Number of options exercisable	0
Stock Option 2
Range of exercise prices	$ .60
Number of options outstanding	1,000,000
Weighted average remaining contractual life	6 years 4 months 24 days
Weighted average exercise price	$ .60
Number of options exercisable	1,000,000
Stock Option 3
Range of exercise prices	$ .99
Number of options outstanding	4,000,000
Weighted average remaining contractual life	8 years 9 months 7 days
Weighted average exercise price	$ .99
Number of options exercisable	1,250,000
Stock Option 4
Range of exercise prices	$ 1.20
Number of options outstanding	1,562,500
Weighted average remaining contractual life	5 years 29 days
Weighted average exercise price	$ 1.20
Number of options exercisable	1,562,500
Stock Option 5
Range of exercise prices	$ 2
Number of options outstanding	250,000
Weighted average exercise price	$ 2
Number of options exercisable	250,000
Stock Option 5
Weighted average remaining contractual life	6 years 4 months 24 days

STOCK-BASED COMPENSATION (Det_3

STOCK-BASED COMPENSATION (Details 2)	6 Months Ended
	Nov. 30, 2019$ / sharesshares
Share-based Payment Arrangement, Noncash Expense [Abstract]
Number of warrants outstanding, beginning | shares	16,501,252
Number of warrants granted | shares	11,462,636
Number of warrants exercised | shares	(684,736)
Number of warrants expired/cancelled | shares	(2,868,823)
Number of warrants outstanding, ending | shares	24,410,329
Weighted average exercise price outstanding, beginning | $ / shares	$ .635
Weighted average exercise price granted | $ / shares	.360
Weighted average exercise price exercised | $ / shares	.280
Weighted average exercise price expired/cancelled | $ / shares	1.200
Weighted average exercise price outstanding, ending | $ / shares	$ .440

STOCK-BASED COMPENSATION (Det_4

STOCK-BASED COMPENSATION (Details 3) - $ / shares	6 Months Ended
	Nov. 30, 2019	May 31, 2019
Range of exercise prices	$ .440	$ .635
Number of warrants outstanding	24,410,329	16,501,252
Weighted average remaining contractual life	3 years 7 months 2 days
Weighted average exercise price	$ .440
Number of warrants exercisable	24,410,329
Warrant 1
Range of exercise prices	$ 0.01
Number of warrants outstanding	555,652
Weighted average remaining contractual life	4 years 3 months 29 days
Weighted average exercise price	$ 0.01
Number of warrants exercisable	555,652
Warrant 2
Range of exercise prices	$ 0.30
Number of warrants outstanding	4,350,000
Weighted average remaining contractual life	2 years 10 months 6 days
Weighted average exercise price	$ 0.3
Number of warrants exercisable	4,350,000
Warrant 3
Range of exercise prices	$ 0.31
Number of warrants outstanding	3,888,679
Weighted average remaining contractual life	4 years 11 months 1 day
Weighted average exercise price	$ 0.31
Number of warrants exercisable	3,888,679
Warrant 4
Range of exercise prices	$ 0.35
Number of warrants outstanding	1,200,000
Weighted average remaining contractual life	2 years 7 months 20 days
Weighted average exercise price	$ 0.35
Number of warrants exercisable	1,200,000
Warrant 5
Range of exercise prices	$ 0.38
Number of warrants outstanding	6,024,725
Weighted average remaining contractual life	4 years 1 month 13 days
Weighted average exercise price	$ 0.38
Number of warrants exercisable	6,024,725
Warrant 6
Range of exercise prices	$ 0.40
Number of warrants outstanding	998,500
Weighted average remaining contractual life	4 years 7 months 13 days
Weighted average exercise price	$ 0.4
Number of warrants exercisable	998,500
Warrant 7
Range of exercise prices	$ 0.48
Number of warrants outstanding	1,703,957
Weighted average remaining contractual life	4 years 11 months 1 day
Weighted average exercise price	$ 0.48
Number of warrants exercisable	1,703,957
Warrant 8
Range of exercise prices	$ 0.54
Number of warrants outstanding	1,985,000
Weighted average exercise price	$ 0.54
Number of warrants exercisable	1,985,000
Warrant 9
Range of exercise prices	$ 0.60
Number of warrants outstanding	1,208,928
Weighted average exercise price	$ 0.6
Number of warrants exercisable	1,208,928
Warrant 10
Range of exercise prices	$ 1
Number of warrants outstanding	2,494,888
Weighted average exercise price	$ 1
Number of warrants exercisable	2,494,888
Warrant 8
Weighted average remaining contractual life	4 years 25 days
Warrant 9
Weighted average remaining contractual life	2 years 10 months 17 days
Warrant 10
Weighted average remaining contractual life	5 months 12 days

STOCK-BASED COMPENSATION (Det_5

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended			6 Months Ended
	Nov. 30, 2019	Aug. 31, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Share-based Payment Arrangement, Noncash Expense [Abstract]
Number of options granted				1,000,000
Stock based compensation - stock options	$ 202,782	$ 202,782	$ 202,782	$ 405,564	$ 202,782
Future compensation cost	2,503,436			2,503,436
Stock based compensation - warrants	$ 394,791		$ 4,000,000	$ 704,872	$ 4,000,000

LEASES (Details)

LEASES (Details) - USD ($)	3 Months Ended	6 Months Ended
	Nov. 30, 2019	Nov. 30, 2019	Nov. 30, 2018
Lease cost
Operating lease cost (cost resulting from lease payments)	$ 967,013	$ 2,089,625
Short term lease cost	43,533	82,493
Sublease income	0	0
Net lease cost	1,010,546	2,172,118
Operating lease - operating cash flows (fixed payments)	361,243	594,923
Operating lease- operating cash flows (liability reduction)	(475,298)	169,321	$ 0
Non-current leases- right of use assets	17,926,862	17,926,862
Current liabilities - operating lease liabilities	1,179,155	1,179,155
Non-current liabilities - operating lease liabilities	$ 17,729,382	$ 17,729,382

LEASES (Details 1)

LEASES (Details 1)	Nov. 30, 2019USD ($)
Leases Details 1Abstract
2020 (excluding the six months ended November 30, 2019)	$ 1,237,312
2021	3,204,606
2022	3,301,555
2023	3,389,941
2024	3,491,534
After 2024	14,355,185
Total future minimum lease payments	28,980,133
Amount representing interest	(10,071,596)
Present value of net future minimum lease payments	$ 18,908,537

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018
Leases Details Narrative Abstract
Remaining weighted average lease term	8 years 2 months 12 days		8 years 2 months 12 days
Rent expense	$ 1,050,000	$ 1,300,000	$ 2,200,000	$ 2,500,000

CONCENTRATION OF CREDIT RISK (D

CONCENTRATION OF CREDIT RISK (Details)	6 Months Ended		12 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	May 31, 2019
Revenues | Customer A
Concentration risk	85.00%	36.00%
Revenues | Customer B
Concentration risk	14.00%	19.00%
Accounts Receivable | Customer A
Concentration risk	38.00%		37.00%
Accounts Receivable | Customer B
Concentration risk	16.00%		36.00%
Accounts Receivable | Customer C
Concentration risk	11.00%
Accounts Payable | Customer A
Concentration risk	16.00%
Accounts Payable | Customer B
Concentration risk	15.00%

CONCENTRATION OF CREDIT RISK _2

CONCENTRATION OF CREDIT RISK (Details Narrative) - USD ($)	Nov. 30, 2019	May 31, 2019
Risks and Uncertainties [Abstract]
Cash excess of the federal insurance limit	$ 0	$ 583,500

BUSINESS SEGMENT INFORMATION (D

BUSINESS SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018	May 31, 2019
Net sales	$ 257,605	$ 835,869	$ 1,015,566	$ 885,665
Loss from operations	8,748,175	(16,946,655)	1,980,539	(25,484,682)
Assets	35,918,667		35,918,667		$ 12,977,628
Iota Communications
Net sales	0	0	0	0
Loss from operations	(1,013,958)	(12,409,125)	(3,979,065)	(13,117,971)
Assets	170,281		170,281		845,063
ICS
Net sales	128,538	777,822	859,060	780,752
Loss from operations	(424,875)	(397,063)	(830,324)	(756,291)
Assets	1,111,312		1,111,312		1,471,678
Iota Networks
Net sales	129,067	58,047	156,506	104,913
Loss from operations	10,201,607	(4,140,467)	7,030,410	(11,610,420)
Assets	34,585,309		34,585,309		10,660,887
Iota Holdings
Net sales	0	0	0	0
Loss from operations	(14,599)	$ 0	(240,482)	$ 0
Assets	$ 51,765		$ 51,765		$ 0

REVISION OF PRIOR QUARTER IMM_3

REVISION OF PRIOR QUARTER IMMATERIAL MISSTATEMENTS (Details) - USD ($)	3 Months Ended				6 Months Ended		9 Months Ended	12 Months Ended
	Nov. 30, 2019	Aug. 31, 2019	Feb. 28, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018	Feb. 28, 2019	May 31, 2019
Network site expense				$ 1,656,535
Selling, general and administrative expense	$ 572,318	$ 4,611,429	$ 2,373,928	3,902,845	$ 5,147,867	$ 9,639,176	$ 11,854,257	$ 16,220,699
Net loss	$ 6,874,854	$ 8,055,428	$ (13,093,665)	(17,118,897)	$ (1,155,961)	$ (25,662,004)	$ (39,746,334)	$ (56,267,405)
Basic and diluted net loss per share		$ (.04)	$ (.07)				$ (.24)	$ (.32)
Previously Reported
Network site expense				796,750
Selling, general and administrative expense		$ 4,582,066	$ 2,883,924	4,762,930			$ 12,364,253	$ 16,730,695
Net loss		$ 8,026,065	$ (13,603,661)				$ (40,256,330)	$ (56,777,401)
Basic and diluted net loss per share		$ (.04)	$ (.07)				$ (.25)	$ (.32)
Adjustment
Network site expense				859,785
Selling, general and administrative expense		$ 29,363	$ (509,996)	$ (859,785)			$ (509,996)	$ (509,996)
Net loss		$ (29,363)	$ 509,996				$ 509,996	$ 509,996
Basic and diluted net loss per share		$ 0	$ .00				$ .01	$ .00

REVISION OF PRIOR QUARTER IMM_4

REVISION OF PRIOR QUARTER IMMATERIAL MISSTATEMENTS (Details 1) - USD ($)	Nov. 30, 2019	Aug. 31, 2019	May 31, 2019	Feb. 28, 2019
ROU Assets	$ 17,926,862	$ 19,365,001	$ 0
Current portion of lease liabilities	1,179,155	2,733,568	0
Lease liabilities, net of current portion	17,729,382	18,465,236	0
Additional paid in capital	37,486,851	26,563,831	24,539,004	$ 20,064,564
Accumulated deficit	$ (119,964,868)	(126,834,972)	(119,318,903)	(102,357,836)
Previously Reported
ROU Assets		16,718,780
Current portion of lease liabilities		2,595,994
Lease liabilities, net of current portion		15,956,589
Additional paid in capital		27,073,827	24,539,004	20,574,650
Accumulated deficit		(127,344,968)	(119,318,903)	(102,867,832)
Adjustment
ROU Assets		2,646,221
Current portion of lease liabilities		137,574
Lease liabilities, net of current portion		2,508,647
Additional paid in capital		(509,996)	(509,996)	(509,996)
Accumulated deficit		$ 509,996	509,996	$ 509,996
Restated
Additional paid in capital			24,029,008
Accumulated deficit			$ (118,808,907)

REVISION OF PRIOR QUARTER IMM_5

REVISION OF PRIOR QUARTER IMMATERIAL MISSTATEMENTS (Details 2) - USD ($)	3 Months Ended				6 Months Ended		9 Months Ended	12 Months Ended
	Nov. 30, 2019	Aug. 31, 2019	Feb. 28, 2019	Nov. 30, 2018	Nov. 30, 2019	Nov. 30, 2018	Feb. 28, 2019	May 31, 2019
Selling, general and administrative expense	$ 572,318	$ 4,611,429	$ 2,373,928	$ 3,902,845	$ 5,147,867	$ 9,639,176	$ 11,854,257	$ 16,220,699
Net loss	$ 6,874,854	8,055,428	(13,093,665)	(17,118,897)	$ (1,155,961)	$ (25,662,004)	(39,746,334)	(56,267,405)
Previously Reported
Selling, general and administrative expense		4,582,066	2,883,924	4,762,930			12,364,253	16,730,695
Net loss		8,026,065	(13,603,661)				(40,256,330)	(56,777,401)
Adjustment
Selling, general and administrative expense		29,363	(509,996)	$ (859,785)			(509,996)	(509,996)
Net loss		$ (29,363)	$ 509,996				$ 509,996	$ 509,996