REVIV3 Procare Company Reports Record Second Quarter Fiscal Year 2024 Financial Results
Reviv3 Procare Company (RVIV) reported a 25.1% increase in net sales to a record $8.4 million for the second quarter ended November 30, 2023, with a 40.1% increase in net income. The company delivered its sixth consecutive profitable quarter, reflecting a focus on profitability while maintaining aggressive growth through market expansion and product innovation.
Positive
25.1% increase in net sales to $8.4 million for the second quarter
40.1% increase in net income to a record $1,018,075
Sixth consecutive profitable quarter
Focus on profitability and aggressive growth through market expansion and product innovation
01/04/2024 - 04:30 PM
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, $0.00 01 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, $0.00 01 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 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:investors@reviv3.com
What was the percentage increase in net sales for Reviv3 Procare Company (RVIV) in the second quarter?
Reviv3 Procare Company (RVIV) reported a 25.1% increase in net sales to a record $8.4 million for the second quarter ended November 30, 2023.
What was the percentage increase in net income for Reviv3 Procare Company (RVIV) in the second quarter?
Reviv3 Procare Company (RVIV) reported a 40.1% increase in net income to a record $1,018,075 for the second quarter ended November 30, 2023.
How many consecutive profitable quarters has Reviv3 Procare Company (RVIV) delivered?
Reviv3 Procare Company (RVIV) delivered its sixth consecutive profitable quarter, reflecting a focus on profitability while maintaining aggressive growth through market expansion and product innovation.
What is the focus of Reviv3 Procare Company (RVIV) in terms of growth strategy?
Reviv3 Procare Company (RVIV) is focused on profitability and aggressive growth through market expansion and product innovation.
