REVIV3 Procare Company Reports Record Second Quarter Fiscal Year 2024 Financial Results

  • Net Sales (revenue) increased 25.1% to a record $8.4 million for the second quarter ended November 30, 2023, as compared to the prior year period.
  • Gross Profit (as a percentage of Net Sales) was 74.3% as compared to 74.9% for the prior year period.
  • Operating expenses as a percentage of Net Sales was 59.3% as compared to 60.2% for the prior year period.
  • Net Income increased 40.1% to a record $1,018,075 as compared to $726,900 for the prior year period.

LOS ANGELES, Jan. 04, 2024 (GLOBE NEWSWIRE) -- Reviv3 Procare Company (“Reviv3,” “we,” “us,” “our,” or the “Company”) (OTCQB: RVIV), an emerging global consumer products company for AXIL® hearing protection and enhancement products and Reviv3® hair and skin care products, today announced financial and operational results for the second quarter ended November 30, 2023.

“We delivered another strong quarter, growing our net sales by approximately twenty-five percent and net income by approximately forty percent as compared to the second quarter of fiscal 2023. This quarter marks our sixth consecutive profitable quarter, which we believe is reflective of our continued focus on profitability while maintaining aggressive growth through market expansion and product innovation,” remarked Jeff Toghraie, CEO.

 

Financial Tables

 

REVIV3 PROCARE COMPANY AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
                 
    November 30, 2023     May 31, 2023  
    (Unaudited)          
                 
ASSETS                
CURRENT ASSETS:                
Cash   $ 5,962,431     $ 4,832,682  
Accounts receivable, net     953,315       417,016  
Inventory, net     2,352,215       1,311,864  
Prepaid expenses and other current assets     1,068,767       801,360  
                 
Total Current Assets     10,336,728       7,362,922  
                 
OTHER ASSETS:                
Property and equipment, net     211,036       157,463  
Intangible assets, net     343,924       382,674  
Right of use asset     69,911       101,845  
Other assets     12,195       12,195  
Goodwill     2,152,215       2,152,215  
                 
Total Other Assets     2,789,281       2,806,392  
                 
TOTAL ASSETS   $ 13,126,009     $ 10,169,314  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
                 
CURRENT LIABILITIES:                
Accounts payable   $ 1,922,159     $ 908,606  
Customer deposits     100,889       183,688  
Equipment payable, current     550       2,200  
Contract liabilities, current     1,050,420       827,106  
Notes payable, current     3,270       172,588  
Due to related party     132,860       158,072  
Lease liability, current     71,374       65,824  
Income tax liability     661,295       230,913  
Other current liabilities     534,067       305,664  
                 
Total Current Liabilities     4,476,884       2,854,661  
                 
LONG TERM LIABILITIES:                
Notes payable, long term     144,661        
Lease liability, long term           36,752  
Contract liabilities, long term     557,763       605,942  
                 
Total Long Term Liabilities     702,424       642,694  
                 
Total Liabilities     5,179,308       3,497,355  
                 
                 
STOCKHOLDERS’ EQUITY:                
Preferred stock, $0.0001 par value; 300,000,000 shares authorized; 250,000,000 shares issued and outstanding as of November 30, 2023 and May 31, 2023, respectively     25,000       25,000  
Common stock, $0.0001 par value: 450,000,000 shares authorized; 117,076,949 shares issued, and outstanding as of November 30, 2023 and May 31, 2023     11,708       11,708  
Additional paid-in capital     10,204,458       10,102,243  
Accumulated deficit     (2,294,465 )     (3,466,992 )
                 
Total Stockholders’ Equity     7,946,701       6,671,959  
                 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 13,126,009     $ 10,169,314  
                 

 

 

REVIV3 PROCARE COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
                                 
    For the Three Months Ended     For the Six Months Ended  
    November 30,     November 30,  
    2023     2022     2023     2022  
                         
Sales, net    $ 8,421,677     $ 6,731,999     $ 14,527,946     $ 10,969,357  
                                 
Cost of sales     2,163,738       1,692,965       3,622,441       2,647,669  
                                 
Gross profit     6,257,939       5,039,034       10,905,505       8,321,688  
                                 
OPERATING EXPENSES:                                
Marketing and selling expenses     3,672,780       3,098,898       6,879,621       5,076,874  
Compensation and related taxes     204,646       509,339       484,635       790,027  
Professional and consulting expenses     491,328       213,205       918,103       679,655  
General and administrative     625,273       232,597       1,185,477       590,736  
                                 
Total Operating Expenses     4,994,027       4,054,039       9,467,836       7,137,292  
                                 
INCOME FROM OPERATIONS     1,263,912       984,995       1,437,669       1,184,396  
                                 
OTHER INCOME (EXPENSE):                                
Gain on settlement     79,182             79,182       50,500  
Other income     3,189             13,024        
Interest income     37,825       4,704       76,318       6,541  
Interest expense and other finance charges     (1,640 )     (1,755 )     (3,284 )     (3,213 )
                                 
Other Income (Expense), Net     118,556       2,949       165,240       53,828  
                                 
INCOME BEFORE PROVISION FOR INCOME TAXES     1,382,468       987,944       1,602,909       1,238,224  
                                 
Provision for income taxes     364,393       261,044       430,382       335,797  
                                 
NET INCOME   $ 1,018,075     $ 726,900     $ 1,172,527     $ 902,427  
                                 
NET INCOME PER COMMON SHARE:                                
Basic   $ 0.01     $ 0.01     $ 0.01     $ 0.01  
Diluted   $ 0.00     $ 0.00     $ 0.00     $ 0.00  
                                 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:                                
Basic     117,076,949       115,226,893       117,076,949       108,779,476  
Diluted     372,451,949       368,993,486       372,451,949       341,429,203  

 

 

REVIV3 PROCARE COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
FOR THE THREE AND SIX MONTHS ENDED NOVEMBER 30, 2023 AND 2022
(UNAUDITED)
 
For the six months ended November 30, 2023
          Common Stock     Additional           Total  
    Preferred Stock     Issued     Paid-in     Accumulated     Stockholders’  
    Shares     Amount     Shares     Amount     Capital     Deficit     Equity  
Balance, May 31, 2023     250,000,000     $ 25,000       117,076,949     $ 11,708     $ 10,102,243     $ (3,466,992 )   $ 6,671,959  
                                                         
Stock options expense                             102,215             102,215  
                                                         
Net income for the six months ended November 30, 2023                                   1,172,527       1,172,527  
                                                         
Balance, November 30, 2023     250,000,000     $ 25,000       117,076,949     $ 11,708     $ 10,204,458     $ (2,294,465 )   $ 7,946,701  

 

For the three months ended November 30, 2023
 
                Common Stock     Additional           Total  
    Preferred Stock     Issued     Paid-in     Accumulated     Stockholders’  
    Shares     Amount     Shares     Amount     Capital     Deficit     Equity  
Balance, August 31, 2023     250,000,000     $ 25,000       117,076,949     $ 11,708     $ 10,153,350     $ (3,312,540 )   $ 6,877,518  
                                                         
Stock options expense                             51,108             51,108  
                                                         
Net income for the three months ended November 30, 2023                                   1,018,075       1,018,075  
                                                         
Balance, November 30, 2023     250,000,000     $ 25,000       117,076,949     $ 11,708     $ 10,204,458     $ (2,294,465 )   $ 7,946,701  

 

For the six months ended November 30, 2022
 
                Common Stock     Additional           Total  
    Preferred Stock     Issued     Paid-in     Accumulated     Stockholders’  
    Shares     Amount     Shares     Amount     Capital     Deficit     Equity  
Balance, May 31, 2022         $       41,945,881     $ 4,195     $ 5,472,084     $ (5,291,567 )   $ 184,712  
                                                         
Shares issued for acquisition of business     250,000,000       25,000       73,183,893       7,318       3,975,162             4,007,480  
                                                         
Stock options expense                             124,145             124,145  
                                                         
Shares to be issued for cash                 1,426,391       143       327,907             328,050  
                                                         
Net income for the six months ended November 30, 2022                                   902,427       902,427  
                                                         
Balance, November 30, 2022     250,000,000     $ 25,000       116,556,165     $ 11,656     $ 9,899,298     $ (4,389,140 )   $ 5,546,814  

 

For the three months ended November 30, 2022  
                Common Stock     Additional           Total  
    Preferred Stock     Issued     Paid-in     Accumulated     Stockholders’  
    Shares     Amount     Shares     Amount     Capital     Deficit     Equity  
Balance, August 31, 2022     250,000,000     $ 25,000       115,129,774     $ 11,513     $ 9,544,529     $ (5,116,040 )   $ 4,465,002  
                                                         
Stock options expense                             26,862             26,862  
                                                         
Shares to be issued for cash                 1,426,391       143       327,907             328,050  
                                                         
Net income for the three months ended November 30, 2022                                   726,900       726,900  
                                                         
Balance, November 30, 2022     250,000,000     $ 25,000       116,556,165     $ 11,656     $ 9,899,298     $ (4,389,140 )   $ 5,546,814  

 

 

REVIV3 PROCARE COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 
             
    For the Six Months Ended  
    November 30,  
    2023     2022  
             
CASH FLOWS FROM OPERATING ACTIVITIES                
Net income   $ 1,172,527     $ 902,427  
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization     56,022       43,015  
Bad debts     64,327       105,975  
Deposit used in rent             8,385  
Stock based compensation     102,215       124,145  
Gain on settlement     (79,182 )     (50,500 )
Amortization of prepaid expense           3,159  
Change in operating assets and liabilities:                
Accounts receivable      (600,626 )     (563,594 )
Inventory     (1,040,351 )     (447,830 )
Prepaid expenses and other current assets     (267,407 )     (243,010 )
Deposits           (12,195 )
Accounts payable and accrued expenses     1,092,735       651,365  
Other current liabilities     576,718       1,327,096  
Contract liabilities     175,135       347,757  
                 
NET CASH PROVIDED BY OPERATING ACTIVITIES     1,252,113       2,196,195  
                 
CASH FLOWS FROM INVESTING ACTIVITIES                
Cash acquired on business acquisition           1,066,414  
Purchase of property and equipment     (70,845 )     (54,400 )
                 
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES     (70,845 )     1,012,014  
                 
CASH FLOWS FROM FINANCING ACTIVITIES                
Cash raised for common stock to be issued           328,050  
Repayment of equipment financing     (1,650 )     (1,750 )
Repayment of note payable     (24,657 )     (1,462 )
Advances (payments) from a related party     (25,212 )     111,392  
                 
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES     (51,519 )     436,230  
                 
NET INCREASE IN CASH     1,129,749       3,644,439  
                 
CASH - Beginning of period     4,832,682       373,731  
                 
CASH - End of period   $ 5,962,431     $ 4,018,170  
                 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                
Cash paid during the period for:                
Interest   $ 3,284     $ 250  
Income taxes   $     $  
                 
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:                
Stock issued for asset purchase agreement   $     $ 4,007,480  
Tangible assets (excluding cash) acquired in business combination   $     $ 1,740,729  
Intangible assets acquired in business combination   $     $ 456,945  
Goodwill acquired in business combination   $     $ 2,152,215  
Liabilities assumed in business combination   $     $ 1,408,823  

 

About Reviv3

Reviv3 Procare Company (OTCQB: RVIV) is an emerging global e-commerce consumer products company. The Company is a manufacturer and marketer of premium hearing enhancement and protection products, including ear plugs, earmuffs, and ear buds, under the AXIL® brand and premium hair and skincare products under its in-house Reviv3 Procare brand - selling products in the United States, Canada, the European Union and throughout Asia. To learn more, please visit the Company’s website at www.reviv3.com and, for the AXIL® brand, visit www.goaxil.com.

Forward-Looking Statements

This press release contains a number of forward-looking statements within the meaning of the federal securities laws. The use of words such as ”believe,” “focus,” and “growth,” among others, generally identify forward-looking statements. These forward-looking statements are based on currently available information, and management’s beliefs, projections, and current expectations, and are subject to a number of significant risks and uncertainties, many of which are beyond management’s control and may cause Reviv3’s results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things: (i) Reviv3’s ability to grow net sales as anticipated and perform in accordance with guidance; (ii) Reviv3’s ability to generate sufficient revenue to support Reviv3’s operations and to raise additional funds or obtain other forms of financing as needed on acceptable terms, or at all; (iii) potential difficulties or delays Reviv3 may experience in implementing its cost savings and efficiency initiatives, including continued integration of the AXIL® brand; (iv) Reviv3’s ability to compete effectively with other hair and skincare companies and hearing enhancement and protection companies; (v) the concentration of Reviv3’s customers, potentially increasing the negative impact to Reviv3 by changing purchasing or selling patterns; (vi) changes in laws or regulations in the United States and/or in other major markets, such as China, in which Reviv3 operates, including, without limitation, with respect to taxes, tariffs, trade policies or product safety, which may increase Reviv3’s product costs and other costs of doing business, and reduce Reviv3’s earnings; and (vii) the impact of unstable market and general economic conditions on Reviv3’s business, financial condition and stock price, including inflationary cost pressures, decreased discretionary consumer spending, supply chain disruptions and constraints, labor shortages, ongoing economic disruption, including the effects of the Ukraine-Russia conflict, the Israel-Hamas conflict and the ongoing impact of worldwide pandemics and other downturns in the business cycle or the economy. There can be no assurance as to any of these matters, and potential investors are urged to consider these factors carefully in evaluating the forward-looking statements. Other important factors that may cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. Except as required by law, Reviv3 does not assume any obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.

Investor Relations:
Reviv3 Investor Relations Team
(888) 638-8883
investors@reviv3.com 


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