Reviv3 Delivers Continued Strong Growth in Third Quarter Fiscal 2023
April 13, 2023 at 01:01 pm
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Q3 revenues up 1,087% year-over-year to $5.6 million
Gross profit increased to $4.2 million, up from $0.34 million in prior year period
Gross profit margin increased to 75%, up from 72% in the prior year period
Net income before provisions for income tax improved to $0.22 million, up from a loss of $0.09 million in the prior year period
LOS ANGELES, April 13, 2023 (GLOBE NEWSWIRE) -- Reviv3 Procare Company (OTCQB: RVIV), an emerging global e-commerce brand in hair care products industry and hearing protection and enhancement products, announced its financial and operational results for third quarter of fiscal year 2023.
“We delivered solid third quarter results, generating revenues of $5.6 million, representing 1,087% year-over-year growth, as we continue to focus on opportunities in our AXIL brand hearing protection and enhancement business,” commented Chairman and Chief Executive Officer Jeff Toghraie. “Our enterprise and international strategies are showing tangible results with accelerated expansion of our dealer network and partnerships in Europe. I thank our entire team for their tireless efforts as we mark our third consecutive profitable quarter and remain optimistic that our momentum will continue as we further execute our objectives.”
First Quarter Fiscal 2023 Financial Summary
Revenues for the three months ended February 28, 2023 and 2022 were $5,656,461 and $476,384 respectively, representing a 1,087% increase for the comparable period. The increase was primarily a result of the increasing sales of hearing protection and enhancement products.
Cost of sales for the three months ended February 28, 2023 was $1,437,976 compared to $134,609 in the prior year period. Cost of sales as a percentage of sales for the periods were 25% and 28%, respectively.
Gross profit for the third quarter ended February 28, 2023 was $4,218,485 compared to $341,775 in the prior year quarter. Gross profit as a percentage of sales for the three months ended February 28, 2023, was 75% as compared to 72% for the same comparable period in 2022.
Net cash flows provided by operating activities for the nine months of 2023 was $2,319,976 compared to $90,873 used in the comparable 2022 period.
As a result of the above, for the third quarter ended February 28, 2023 the Company reported a net income of $221,595 before provisions for income taxes compared to a net loss of $99,314 for the comparable period in the prior year.
About Reviv3 Procare Company
Reviv3 Procare Company (OTCQB: RVIV) is an emerging global e-commerce consumer products company. The Company is a direct-to-consumer marketer of premium hair and skincare products under its in-house Reviv3 Procare brand and hearing enhancement and protection products, including ear plugs, ear muffs and ear buds, under the brand AXIL - 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 "anticipates," "expects," "intends," "plans," “will,” “may,” “should,” “could,” “would,” “guidance,” “outlook,” "confident that" and "believes," 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 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 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.
The preliminary selected financial results for the quarter ended February 28, 2023 in this press release are preliminary, are not a comprehensive statement of financial results for such quarter, and are provided prior to completion of all internal and external review and audit procedures and, therefore, are subject to adjustment. Actual results may vary from these estimates, and the variations may be material. Among the factors that could cause or contribute to material differences between the Company’s actual results and expectations indicated by the forward-looking statements are risks and uncertainties that include, but are not limited to: changes to the Company’s financial results for the quarter ended February 28, 2023 due to the completion of financial closing procedures, final adjustments and other developments that may arise between now and the time that the Company’s financial statements for the quarter are finalized and publicly released and other risks and uncertainties described above and in the Company’s filings with the Securities and Exchange Commission.
Media Relations: Reviv3 PR Team Tel: 888-638-8883 Email: pr@reviv3.com www.reviv3.com
REVIV3 PROCARE COMPANY AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
February 28, 2023
May 31, 2022
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash
$
4,180,332
$
373,731
Accounts receivable, net
454,546
105,921
Inventory, net
1,368,635
323,388
Prepaid expenses and other current assets
437,031
-
Total Current Assets
6,440,544
803,040
OTHER ASSETS:
Property and equipment, net
166,324
29,145
Intangible assets, net
402,047
-
Right of use asset
117,127
45,453
Other assets
12,195
16,277
Goodwill
2,152,215
-
Total Other Assets
2,849,908
90,875
TOTAL ASSETS
$
9,290,452
$
893,915
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
758,755
$
435,713
Contract liabilities- current
779,488
-
Notes payable
186,911
156,300
Due to related party
88,460
25,452
Other current liabilities
1,039,727
89,538
Total Current Liabilities
2,853,341
707,003
LONG TERM LIABILITIES:
Equipment payable
-
2,200
Lease liability- long term
54,321
-
Contract liabilities- long term
523,206
-
Total Long Term Liabilities
577,527
2,200
Total Liabilities
3,430,868
709,203
Commitments and contingencies (see Note 10)
-
-
STOCKHOLDERS’ EQUITY:
Preferred stock, $0.0001 par value; 300,000,000 shares authorized; 250,000,000 and none shares issued and outstanding as of February 28, 2023 and May 31, 2022, respectively
25,000
-
Common stock, $0.0001 par value: 450,000,000 shares authorized; 117,076,949 and 41,945,881 shares issued and outstanding as of February 28, 2023 and May 31, 2022, respectively
11,708
4,195
Additional paid-in capital
10,049,968
5,472,084
Accumulated deficit
(4,227,092
)
(5,291,567
)
Total Stockholders’ Equity
5,859,584
184,712
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
9,290,452
$
893,915
REVIV3 PROCARE COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED FEBRUARY 28, 2023 AND 2022
AXIL Brands, Inc., formerly Reviv3 Procare Company, 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. The Company operates through two segments: hearing enhancement and protection, and hair care and skin care. The products in the hearing enhancement and protection segment include GS Xtreme sound enhancement and hearing protection ear buds, XCOR True Wireless, digital ear buds with touch control, TRACKR Blu advanced sound enhancement, hearing protection, and Bluetooth audio earmuffs and X-PRO passive ear protection. Its hair and skin care segment focuses on business-to-business salon sales through its network of domestic and international distributors.