Reviv3 Procare Delivers Record Second Quarter Fiscal 2023 Revenue and Earnings
January 10, 2023 at 09:31 pm
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Record second quarter 2023 revenues of $6.7 million, up 1,264% year-over-year.
Gross profit increased to $5.0 million compared to $0.4 million for the prior year quarter.
Net cash generated from operating activities of $2.2 million with a net increase in cash of over $3.6 million for the first six months of 2023.
Net income before provisions for income tax of $987,944 compared to $28,201 in the prior year quarter.
LOS ANGELES, Jan. 10, 2023 (GLOBE NEWSWIRE) -- Reviv3 Procare Company (OTCQB: RVIV), an emerging global e-commerce brand for hair care products and hearing protection and enhancement products, today announced its financial and operational results for second quarter of fiscal year 2023.
Second Quarter Fiscal 2023 Financial Summary
The company reported revenues of $6,731,999 in the second quarter of 2023 compared to $493,816 for the prior comparable period representing a 1,264 percent increase, primarily due to the acquisition of the hearing protection and hearing enhancement business.
Cost of sales for the second quarter of 2023 increased to $1,692,965 compared to $112,800 in the prior year quarter. Cost of sales as a percentage of was sales 25 percent compared to 23 percent in the prior comparable period.
Gross profit for the second quarter of 2023 increased to a record $5,039,034 compared to $381,016 in the prior year quarter. Gross profit as a percentage of sales was 75 percent compared to 77 percent for the prior comparable period.
Net cash flows provided by operating activities for the six months ended November 30, 2022 was $2,196,195 compared to $28,060 used in the prior comparable period.
As a result of the above, we reported a net income of $987,944, before provisions for income taxes, compared to $28,201 for the comparable three months in the prior year.
Management Commentary
“We delivered solid results with record second quarter revenues of $6.7 million and earnings before provisions for income tax of $987,944 marking our second consecutive quarter of profitability with revenues exceeding $10 million for the first half of our fiscal year,” commented Chairman and Chief Executive Officer Jeff Toghraie.
“These results reflect the strength of our hearing protection and enhancement products sold under the AXIL brand across our retail network and digital marketing channels. Despite the challenging economic conditions and ongoing supply chain disruptions our team continues to execute our marketing and operational initiatives. Looking ahead, we expect to introduce a number of impactful new products and strategic partnerships to further enhance our ability to expand market share and generate free cash flow in 2023 and beyond,” Concluded Toghraie.
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, earmuffs 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, generate free cash flow, 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) Reviv3’s ability to successfully execute its marketing, operational and strategic initiatives, including entering into strategic partnerships or other collaborations, and to expand its market share; (vi) Reviv3’s ability to successfully introduce, and achieve market acceptance of, new products; (vii) the concentration of Reviv3's customers, potentially increasing the negative impact to Reviv3 by changing purchasing or selling patterns; (viii) 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 (ix) 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, including any potential recession. 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.
Media Relations: Reviv3 PR Team Tel: 888-638-8883 Email: pr@reviv3.com www.reviv3.com
REVIV3 PROCARE COMPANY AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS
November 30, 2022
May 31, 2022
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash
$
4,018,170
$
373,731
Accounts receivable, net
791,325
105,921
Inventory, net
2,113,678
323,388
Prepaid expenses and other current assets
380,095
-
Total Current Assets
7,303,268
803,040
OTHER ASSETS:
Property and equipment, net
159,627
29,145
Intangible assets, net
421,423
-
Right of use asset
-
45,453
Other assets
20,087
16,277
Goodwill
2,152,215
-
Total Other Assets
2,753,352
90,875
TOTAL ASSETS
$
10,056,620
$
893,915
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
1,322,240
$
435,713
Contract liabilities- current
817,606
-
Notes payable
208,688
156,300
Due to related party
136,844
25,452
Other current liabilities
1,450,495
89,538
Total Current Liabilities
3,935,873
707,003
LONG TERM LIABILITIES:
Equipment payable
450
2,200
Contract liabilities- long term
573,483
-
Total Long Term Liabilities
573,933
2,200
Total Liabilities
4,509,806
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 November 30 and May 31, 2022, respectively
25,000
-
Common stock, $0.0001 par value: 450,000,000 shares authorized; 116,556,165 and 41,945,881 shares issued, issuable and outstanding as of November 30 and May 31, 2022, respectively
11,656
4,195
Additional paid-in capital
9,899,298
5,472,084
Accumulated deficit
(4,389,140
)
(5,291,567
)
Total Stockholders’ Equity
5,546,814
184,712
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
10,056,620
$
893,915
REVIV3 PROCARE COMPANY AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED NOVEMBER 30, 2022 AND 2021 (UNAUDITED)
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.