REVIV3 Procare Company Reports Financial Results for the First Quarter of Fiscal Year 2024
Reviv3 Procare Company announces Q1 financial and operational results with a 44.1% increase in net sales compared to the prior year period.
Positive
Net sales increased by 44.1% for the quarter ended August 31, 2023, compared to the same period last year.
10/13/2023 - 08:00 AM
Net Sales (revenue) up 44.1% for the quarter ended August 31, 2023, as compared to the prior year period. Gross Profit (as a percentage of Net Sales) was 76.1% as compared to 77.5% in the prior year period. Operating expenses as a percentage of Net Sales was 73.3% compared to 72.8% in the prior year period. LOS ANGELES, Oct. 13, 2023 (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 first quarter ended August 31, 2023 (“Q1”).
“Reviv3 had a strong start to the fiscal year with increased product adoption and customer acquisition through our various sales channels, which resulted in a 44.1% increase in Net Sales as compared to the same period last year,” remarked Monica Diaz Brickell, CFO. “During the quarter and throughout the balance of this fiscal year we are committed to furthering our financial strength through pragmatic revenue growth and a disciplined approach to managing operating costs and expenses,” continued Ms. Brickell.
“Our focus during the first quarter was continued expansion of our global retail presence through the onboarding of new domestic and international vendors and distributors, which we expect to continue in the second quarter and beyond,” added Jeff Toghraie, CEO. “We intend to grow our business to create long-term success for our brands and ultimately drive shareholder value and we are excited about where the business is heading,” concluded Mr. Toghraie.
CONSOLIDATED BALANCE SHEETS
August 31, 2023 May 31, 2023 (Unaudited) ASSETS CURRENT ASSETS: Cash $ 5,061,723 $ 4,832,682 Accounts receivable, net 455,886 417,016 Inventory, net 2,069,968 1,311,864 Prepaid expenses and other current assets 485,609 801,360 Total Current Assets 8,073,186 7,362,922 OTHER ASSETS: Property and equipment, net 199,561 157,463 Intangible assets, net 363,299 382,674 Right of use asset 86,111 101,845 Other assets 12,194 12,195 Goodwill $ 2,152,215 2,152,215 Total Other Assets 2,813,380 2,806,392 TOTAL ASSETS $ 10,886,566 $ 10,169,314 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 1,077,005 $ 908,606 Customer deposits 92,817 183,688 Equipment payable, current 1,375 2,200 Contract liabilities, current 909,883 827,106 Notes payable 155,334 172,588 Due to related party 58,980 158,072 Lease Liability, current 68,558 65,824 Income Tax Liability 296,902 230,913 Other current liabilities 768,185 305,664 Total Current Liabilities 3,429,039 2,854,661 LONG TERM LIABILITIES: Lease liability, long term 18,650 36,752 Contract liabilities, long term 561,359 605,942 Total Long Term Liabilities 580,009 642,694 Total Liabilities 4,009,048 3,497,355 Commitments and contingencies — — STOCKHOLDERS’ EQUITY: Preferred stock, $0.00 01 par value; 300,000,000 shares authorized; 250,000,000 and no shares issued and outstanding as of August 31, 2023 and May 31, 2023 25,000 25,000 Common stock, $0.00 01 par value: 450,000,000 shares authorized; 117,076,949 shares issued, and outstanding as of August 31, 2023 and May 31, 2023 11,708 11,708 Additional paid-in capital 10,153,350 10,102,243 Accumulated deficit (3,312,540 ) (3,466,992 ) Total Stockholders’ Equity 6,877,518 6,671,959 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 10,886,566 $ 10,169,314
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Three Months Ended August 31, 2023 2022 Sales, net $ 6,106,269 $ 4,237,358 Cost of sales 1,458,703 954,704 Gross profit 4,647,566 3,282,654 OPERATING EXPENSES: Marketing and selling expenses 3,206,841 1,977,976 Compensation and related taxes 279,989 280,688 Professional and consulting expenses 426,775 466,450 General and administrative 560,204 358,139 Total Operating Expenses 4,473,809 3,083,253 INCOME FROM OPERATIONS 173,757 199,401 OTHER INCOME (EXPENSE): Gain on debt settlement — 50,500 Other income 9,835 — Interest income 38,493 1,837 Interest expense and other finance charges (1,644 ) (1,458 ) Other Income (Expense), Net 46,684 50,879 INCOME BEFORE PROVISION FOR INCOME TAXES 220,441 250,280 Provision for income taxes 65,989 74,753 NET INCOME $ 154,452 $ 175,527 NET INCOME PER COMMON SHARE: Basic $ 0.00 $ 0.00 Diluted $ 0.00 $ 0.00 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 117,076,949 102,402,140 Diluted 372,451,949 314,223,880
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Three Months Ended August 31, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 154,452 $ 175,527 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 28,237 19,669 Bad debts 52,866 — Stock based compensation 51,107 97,283 Gain on debt forgiveness — (50,500 ) Change in operating assets and liabilities: Accounts receivable (91,736 ) (93,901 ) Inventory (758,104 ) 432,998 Prepaid expenses and other current assets 315,751 (204,130 ) Accounts payable and accrued expenses 168,399 52,247 Other current liabilities 438,006 296,106 Contract liabilities 38,194 82,334 NET CASH PROVIDED BY OPERATING ACTIVITIES 397,172 807,633 CASH FLOWS FROM INVESTING ACTIVITIES Cash acquired on business acquisition — 1,066,414 Purchase of property and equipment (50,960 ) (6,400 ) NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (50,960 ) 1,060,014 CASH FLOWS FROM FINANCING ACTIVITIES Repayment of equipment financing (825 ) (825 ) Repayment of note payable (17,254 ) — Advances (payments) from a related party (99,092 ) 2,732 NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (117,171 ) 1,907 NET INCREASE IN CASH 229,041 1,869,554 CASH - Beginning of period 4,832,682 373,731 CASH - End of period $ 5,061,723 $ 2,243,285 — SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ 1,644 $ 125 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 “expect,” “intend,” and “committed,” 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) our 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 integrating 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 Asia or the European Union, 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 (vi) 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 and ongoing impact of COVID-19, 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 U.S. 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
What was the increase in net sales for Reviv3 Procare Company in Q1 2023?
Net sales increased by 44.1% for the quarter ended August 31, 2023, compared to the same period last year.
What is Reviv3 Procare Company's focus for the first quarter?
Reviv3 Procare Company's focus for the first quarter was the expansion of their global retail presence through the onboarding of new domestic and international vendors and distributors.
What are Reviv3 Procare Company's financial and operational results for Q1 2023?
Reviv3 Procare Company announced a 44.1% increase in net sales for the quarter ended August 31, 2023, compared to the same period last year.
What is Reviv3 Procare Company's goal?
Reviv3 Procare Company intends to grow their business to create long-term success for their brands and ultimately drive shareholder value.
