REVIV3 Procare Company Reports Financial Results for the First Quarter of Fiscal Year 2024


  • 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.


REVIV3 PROCARE COMPANY AND SUBSIDIARY

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, $0.0001 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, $0.0001 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 
 


REVIV3 PROCARE COMPANY AND SUBSIDIARY

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 
 


REVIV3 PROCARE COMPANY AND SUBSIDIARY

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
(888) 638-8883
investors@reviv3.com